Dimension Data Parent Company NTT Fuels U.S. Cloud Offensive With Two Acquisitions


NTT currently operates eight data centers in the U.S. With an ownership stake in RagingWire, however, NTT has access to RagingWire's 650,000 square feet of data center space in its Sacramento, Calif., and Ashburn, Va., campuses, both of which are currently being expanded.

In addition, RagingWire is constructing a new 150,000-square-foot data center in Sacramento and has plans to build a brand-new 1,500,000-square-foot facility in Ashburn.

NTT said RagingWire's founders and management team will continue to operate the company under the RagingWire brand and maintain a minority interest in the company.

Gomi told CRN he expects the RagingWire and Virtela acquisitions to bear just as much fruit for NTT's subsidiary Dimension Data as it does for NTT itself.

"Dimension Data has its own public cloud platform," Gomi told CRN. "They are using NTT America's facility for their data center today. Now, with RagingWire facilities becoming available to them, it means more space for expansion."

South African-headquartered Dimension Data has been staging its own cloud and IT services offensive over the past few years, evidenced most recently by its acquisition of Australian managed security services provider Earthwave Corp., and its public goal of doubling its sales to $12 billion over the next five years.

Martinwolf M&A Advisors' Wolf said NTT's acquisitions also speak volumes to the changing of the solution provider and IT landscapes, and the urgency for traditional resellers to migrate to the cloud services world.

"It shows the continuation of the [cloud services] trend," Wolf said. "It's no longer about point solutions, but about the total solution."

PUBLISHED OCT. 29, 2013


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