#Japan #Tokyo #HFS Research #Hitachi Digital Services #Legacy Application

Hitachi Digital Services Achieves Market Leader Status

Hitachi Digital Services, a subsidiary of Hitachi Ltd. in the U.S., has been recognized as a market leader in HFS Research’s report titled "HFS Horizons: Legacy Application Modernization Services 2025." This report evaluates service providers' capabilities to modernize IT systems, focusing on modular, scalable, and flexible solutions.

HFS Research offers deep insights and actionable strategies for enterprise transformation, primarily serving Fortune 500 companies. In its annual report, it analyzed 32 firms, including global system integrators and specialized application modernization providers, assessing their ability to address challenges posed by fragmented legacy systems.

The challenges identified included:

• - Distributed architecture and hidden dependencies
• - Difficulties in scaling AI and new technologies
• - Constraints related to cost, monetization, and time-to-market (TTM)
• - Fragmented customer experience and burden on human resources

These service providers were classified into three levels or “Horizons,” with Hitachi Digital Services achieving the top-level designation of "Horizon 3." This classification is reserved for companies delivering AI-native, event-driven products that foster co-creation across the entire ecosystem. Firms in this category are recognized for their integrated use of cloud-native technologies, APIs, automation, microservices, and DevOps to drive continuous modernization, enhance customer and product experiences, and improve business agility and scalability.

HFS Research highlighted the unique strengths and methodologies of Hitachi Digital Services, including:

• - E3 (Envision, Evaluate, Execute) Methodology: This engineering-driven approach focuses on integrating cloud, AI, ERP, and IoT solutions while emphasizing sustainability.
• - Proven Success in Multiple Programs: Hitachi has successfully completed thousands of programs, helping clients achieve their objectives. Many of these utilize the Hitachi Cloud Acceleration Platform (HCAP) and Hitachi Application Reliability Center (HARC) Agents, which replace cumbersome manual coding with efficient AI-assisted code transformation.
• - Demonstrated Results Across Industries: Hitachi has successfully delivered solutions in various sectors, including energy, finance, healthcare, manufacturing, and mobility.
• - High Customer Satisfaction: Independent evaluations indicate that Hitachi Digital Services excels in advanced initiatives and comprehensive lifecycle strategies, collaborating closely with clients to advance projects. Additionally, their proactive leadership, deep technical expertise, and industry knowledge contribute to high returns on investments in AI, enhancing customer satisfaction.

Leadership Comments

Roger Lvin, CEO of Hitachi Digital Services, commented:
"Being recognized by HFS Research as a market leader in legacy application modernization is a testament to our commitment to meaningful innovation and partnership with our customers. We view modernization not just as a technical upgrade but as an opportunity to transform how businesses operate, compete, and grow. Through responsible co-creation and advanced AI, we support the development of sustainable and future-ready enterprises through our One Hitachi ecosystem."

Hansa Iyengar, IT Practice Leader at HFS Research, stated:
"Hitachi Digital Services drives modernization with precision, scale, and vision, swiftly converting complex legacy challenges into rapid business outcomes. By combining their E3 methodology with proprietary automation platforms like HCAP and HARC, they enhance productivity and agility while maintaining operational resilience. Their One Hitachi approach connects technology and business transformation, yielding tangible results across industries."

For more information, view the full report here: HFS Horizons: Legacy Application Modernization Services 2025

About HFS Research

HFS Research is a leading global provider of research and advisory services for enterprise transformation, offering bold insights and practical strategies to Fortune 500 companies. Utilizing deep expertise in AI, automation, and digital business models, HFS supports organizations in making confident decisions that facilitate sustained competitive advantages. Learn more at www.hfsresearch.com.

About Hitachi Digital Services

As a wholly-owned subsidiary of Hitachi Ltd., Hitachi Digital Services is a global systems integrator that supports mission-critical infrastructures by leveraging the power of people and technology. They provide advanced AI-based solutions for cloud, data, IoT, and ERP modernization, assisting companies in building, integrating, and operating physical and digital systems. By merging IT and operational technology (OT), Hitachi enhances efficiency, promotes innovation, and fosters growth across various sectors. With over 110 years of engineering excellence and technology leadership, Hitachi Digital Services is dedicated to delivering smart infrastructures for a safer and more sustainable future. For more details, visit www.hitachids.com.

About Hitachi, Ltd.

Hitachi's Social Innovation Business leverages IT, OT, and products to contribute to the realization of a Harmonized Society where the environment, well-being, and economic growth are in balance. Through a strategic structure that creates new growth businesses across four sectors—Digital Systems & Services, Energy, Mobility, and Connected Industries—Hitachi aims to solve challenges faced by customers and society by creating value from data centered around Lumada. For the fiscal year 2024, the expected revenue is approximately 9.78 trillion yen, with 618 consolidated subsidiaries and about 280,000 employees worldwide as of March 2025. More information can be found at www.hitachi.co.jp.