Light Reading

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 LLC 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.
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
FCC Plan Could Stymie Rural Broadband
Carol Wilson, Editor-at-large, 8/3/2015
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?