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Hitachi Buys IBM Hard Drive Unit
Hitachi, Ltd. will assume control of IBM's hard disk drive (HDD) operations in a move that underscores IBM's increasing concentration on services revenues.
Hitachi will purchase the majority of IBM's HDD-related assets for $2.05 billion -- including IBM's HDD-related IP portfolio -- in a new organization 70% owned by Hitachi, and will make additional payments to IBM before assuming complete ownership in three years.
The new company will be managed by an independent team of executives from both companies.
IBM has been migrating from its hardware roots to a services model, which started by de-emphasizing "Big Iron" and today is characterized by a promotion of its web services capabilities.
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