Changes at Dimension Data as NTT plans to launch new company – Report

The Nippon Telegraph & Telephone group (NTT) will launch a new company which will oversee its three major communications and data subsidiaries – NTT Data, NTT Communications, and Dimension Data.

This is according to Nikkei, which said shares from the subsidiaries will be transferred to the new company to form Japan’s biggest IT provider.

“The resulting company will provide corporate clients with a wide range of services, including cloud storage and data processing,” stated Nikkei.

Nikkei said the new company will be set up in the coming months and, will challenge companies like IBM and Google.

Changes at IS

TechCentral reported that Internet Solutions, which is a division of Dimension Data Middle East and Africa, may be folded into Dimension Data.

Numerous employees at Internet Solutions currently face retrenchment as a round of staff cuts is planned at the company.

The latest staff cuts follow a similar process in September 2016, when the company cut jobs to “streamline departments, roles, and responsibilities”.

The company said it has also introduced a decentralised, segmented business model in recent years.

“While we achieved some successes with this approach, we created process and service delivery complexity,” it said.

“Therefore, Internet Solutions is simplifying its business model to increase responsiveness with offerings that enable self-service, enhanced visibility, and flexibility.”

In the past two years, IS has also sold non-core infrastructure assets and implemented more automation.

The next step involves a review of the required skills to drive the next phase of evolution, it said.

“On 17 July 2018, we announced to staff that the business is entering into a formal consultation process in a move to be more agile and responsive.”

VAST for sale

Another development linked to Dimension Data is that Investec has gone to market to attract potential buyers for VAST Networks, which is owned by Dimension Data and Naspers.

VAST Networks was established in 2015 as a joint venture between Dimension Data and Naspers, which own 51% and 49% of the company respectively.

The company is an open-access Wi-Fi network infrastructure provider, delivering carrier-grade Wi-Fi in Southern Africa.

MyBroadband asked VAST Networks for feedback on the matter, but the company said it does not comment on speculation.

Dimension Data echoed VAST Networks’ comment, while Naspers communications director Anika Ebrahim said: “It is our policy to neither acknowledge nor deny our involvement in any merger, acquisition, or divestiture activity, nor to comment on market speculation.”

Now read: VAST Networks for sale

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Changes at Dimension Data as NTT plans to launch new company – Report