It was a move that analysts say makes perfect business sense. After decades of restructuring businesses, NTT Corp is launching NTT Ltd.
NTT Ltd will be the umbrella brand that will bring together 28 companies. These include NTT Communications, Dimension Data, and NTT Security. With the move, the NTT Ltd brand will be valued at USD 11 billion, said a press release.
“When we combine the new capabilities of NTT Ltd. along with NTT DATA, we create a top five global technology and business solutions provider with USD 20 billion revenues outside of Japan. Going forward, we will accelerate our execution as one NTT in order to contribute to a smarter and better world through digital transformation,” said Jun Sawada, president and chief executive officer for NTT Corp.
Analysts remain positive of the consolidation. “Societies, agriculture and manufacturing need fully-integrated solutions that will help them harness the power of IoT, edge analytics and collaboration platforms. In coming together as one company, NTT is acknowledging this, giving them one single view across their organization for better insights that will help them transform and benefit from change,” said Chris Barnard, vice president for Enterprise Infrastructure and Communications at IDC.
The newly-minted NTT Ltd will be headquartered in London, the U.K. It now employs 40,000 people in over 70 countries and regions.
Some of the benefits of the consolidation:
“Today, we’ve created a global technology services provider that delivers a full breadth of industry-leading products, solutions and managed services that address our clients’ business needs. We know technology doesn’t stand still. And nor do we,” said Jason Goodall, chief executive officer for NTT Ltd.
Through the consolidation, NTT Ltd is looking to increase investment in research. “Along with creating a very strong technology and managed services provider in NTT Ltd. we have also increased our commitment to invest more in R&D, new technology startups through our venture capital fund, and developing our own disruptive innovation business team. We see the opportunity to help our clients and communities more effectively when we bring all of these capabilities together,” said Tsunehisa Okuno, chairman for NTT Ltd. and executive vice president for NTT Corp.