There is some interesting timing in NTT DATA’s decision to purchase Dell Services in order to become a leading Global IT service provider. Before we get to that however, it’s worth noting the deal is valued at more than $3 billion has already helped Dell’s debt reduction and a ratings increase as it acquires EMC.
For NTT, The combined companies will offer expanded BPO capabilities with a focus on the healthcare and insurance markets.
Other benefits of the acquisition will include an increased infrastructure platform footprint, with Dell’s U.S., U.K. and Australian data centers joining NTT’s 230 global facilities. The companies will also offer expanded technology resources for providing next-gen application and business process services with the goal of aiding clients as they use IT to improve business performance and outcomes.
“There are few acquisition targets in our market that provide this type of unique opportunity to increase our competitiveness and the depth of our market offerings,” said John McCain, CEO of NTT DATA. McCain led the acquisition and will take responsibility for directing the combined businesses and offerings. “Dell Services is a very well-run business and we believe its employee base, long-standing client relationships, and the mix of long term and project-based work will enhance our portfolio.”
I recently interviewed Robert Westervelt (pictured), VP and General Manager, Indirect Global Solutions for NTT DATA and he told me the company has signed 15 major partners and is now focusing on the sub-agent space.
The company has an amazingly wide array of products to offer and even Rob marveled at the fact the company was $105 billion in size and didn’t have a channel. Something they have now remedied. You may recall, Kevin Goodman (see video below) described the company’s massive innovation center as well as the vast array of products the company has. In addition, he went on to explain the company’s laser focus on the channel and data center space.
Rob also emphasized some of the differences the company brings to the table – such an early jump into NFV – allowing services such as firewalls to live in the cloud instead of being truck-rolled in numerous locations. In addition, the company has become a security powerhouse and a new OpenStack-based enterprise cloud offering is coming to Japan and the US very soon.
I started this post with a mention of timing – you see, Dell Services is mostly Perot Systems which was founded by Ross Perot – the businessman turned presidential candidate. Many people compare Donald Trump to Ross Perot – there are so many parallels. So although Perot and Trump’s presidential aspirations have little to do with data centers and NFV, its interesting to see how the political news of the day can sometimes overlap with what’s happening in the world of M&A and technology. Is this all a coincidence? You tell me – but I think it may be worth pointing out the CEO of NTT DATA is named John McCain… Wow, I’m getting goosebumps.
Want to dig deeper? Here is a past interview from 2011 that TMC conducted with NTT Communications