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NTT To Launch Giant Japanese Solution Provider This Fall: Report
O'Ryan Johnson and Joseph F. Kovar
The Nippon Telegraph & Telephone group is creating a new company to oversee its three communications and data subsidiaries, creating one of Japan's biggest IT solutions providers, according to a report.
The Nikkei Asian Review said NTT will launch the new company this fall.
NTT is expected to transfer its shares in subsidiaries NTT Data, NTT Communications and South Africa-based Dimensions Data Holdings to a new entity, the Review reported.
NTT is the parent company of Dimension Data, No. 9 on the CRN Solution Provider 500. NTT Data bought solution provider Dell Services – formerly Perot Services – in November 2016.
In November, NTT Communications and its Dimension Data subsidiary combined their cloud infrastructure-as-a-service (IaaS) capabilities into a single global solution provider organization under NTT Communications.
The move was targeted at bringing cloud-based offerings to clients of both companies.
That followed several turnovers and employee layoffs at Dimension Data, which was acquired in 2010 by Tokyo-based NTT Communications in a $3 billion deal that created a global technology solutions and services provider. By combining the cloud personnel and resources of Dimension Data and NTT Communications, the company hoped to expand its innovation and drive new services.
A Dimension Data spokesperson said the company had no comment "on news related to NTT, rumor or speculation."
The reported announcement is similar to a reorganization announced in September, when Japan-based Hitachi Ltd. said it has reorganized its data center infrastructure, big data and Internet of Things capabilities into a new business called Hitachi Vantara.
Hitachi Vantara combined the Hitachi Data Systems storage and data center infrastructure business, its Hitachi Insight Group IoT business and its Pentaho big data business into a new company aimed at delivering new collaborative data offerings for commercial and industrial enterprises
The news also comes just weeks after Dimension Data's former CEO, Jere Brown, who was known as a fierce competitor with a commitment to customers and a passion for philanthropy, passed away on July 17. Brown spent over 30 years in the IT business, and in 2004 joined Dimension Data as a senior vice president of sales. He took over as CEO of Dimension Data in 2006, and in 2013 retired from the company.