& cplSiteName &

Dimension Data Unveils 'Buy to Grow' Strategy

Robert Clark
News Analysis
Robert Clark
7/10/2014
50%
50%

Dimension Data is on a mission -- to grow as fast as it can in the Asia-Pacific market through acquisitions.

In particular, the international IT and managed services specialist is looking to buy data center services firms, or anything that involves managed services into the data center, according to Bill Padfield, CEO of the company's Asia-Pacific unit.

Acquired by NTT Group (NYSE: NTT) three years ago, Dimension Data now accounts for almost half of the US$12 billion in group revenue outside Japan. "We have been challenged to double the size of that business by 2018," explains Padfield.

Data center services is the fastest-growing segment. "We really regard ourselves as an early entrant into the virtualized cloud-ready centers," Padfield says.

The company offers managed cloud services in major locations such as Tokyo, Singapore, and Hong Kong, with the plan to merge them eventually into a single cloud exchange.

Padfield says that, at one level, the Dimension Data cloud competes against big operators such as Amazon Web Services Inc. and Microsoft's Azure in the public cloud, but he argues his platform is "enterprise grade." The same architecture is deployed for private cloud and hosted solutions and is also offered as a white label service to Asian operators such as Hutchison Global Communications Ltd. (HGC) , Bharat Sanchar Nigam Ltd. (BSNL) , and PT Indosat Tbk .

The next stage is the deployment of a voice (or VaaS) platform based on Cisco Systems Inc. (Nasdaq: CSCO) technology, that will support a managed voice service for businesses and call centers.

Padfield says the company has seen a sharp increase in enterprise cloud takeup across Asia during the past 18 months. But like everyone else in the Asian cloud business, the lack of consistent regulations is a frustration. Each market has its own rules on security, privacy and compliance, especially in sensitive areas such as financial services and healthcare.

That's a real problem when the data owner, the server hosting the data, the application owner, and the end-user may all be in different countries. "Whose environment is that under? What records have to be kept on shore? What have to be kept offshore? The rulebook is being rewritten almost daily," says the DiData executive.

On the plus side, he thinks there's greater confidence in cloud security, and this is one of the reasons for the faster take-up. "Two years ago the conversation was all about security. Now it comes up a little bit, but is in no way front and center. People know how it works. In a lot of cases they're actually arguing for third parties to manage their security." (See Verizon: Cloud Security Is Often an Excuse to Avoid Change and Is the Cloud Eating the World?)

— Robert Clark, contributing editor, special to Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DOShea
50%
50%
DOShea,
User Rank: Blogger
7/10/2014 | 12:46:11 PM
Enterprise grade
With the enterprise claims, sounds more like they are trying to step in and compete with the data center-minded telcos, rather than Amazon.
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
September 25-27, 2018, Denver, Colorado
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Net Neutrality Moves Are as Futile as Trump's Comb-Over
Iain Morris, News Editor, 1/18/2018
Samsung Plots New 5G Modem – Report
Dan Jones, Mobile Editor, 1/18/2018
Europe Urges US to Block Trump on Net Neutrality
Iain Morris, News Editor, 1/22/2018
Last Look – CES 2018 Spectacular, in Photos
Mari Silbey, Senior Editor, Cable/Video, 1/22/2018
Has the 5G Upturn Begun?
Iain Morris, News Editor, 1/19/2018
Animals with Phones
I May Have an Appointment Available Later Today... Click Here
Let me check my schedule.
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed