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NTTis... Autumn 2011

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Message from Senior Executive Vice President Unoura --Global Business Initiatives--

In recent years, NTT Group's global business has been expanding rapidly.
We asked Mr. Unoura, who is in charge of the Global Business Office and oversees NTT Group's business strategy, about the current state and future of NTT's global business.

Please tell us about NTT’s global business initiatives to date.

Representative Director and Senior Executive Vice President Hiroo Unoura

Global business is one of the pillars of growth within NTT Group's Medium-Term Management Strategy. So far, in the corporate ICT services field, NTT Group has worked to enhance its lineup of services, including networks, data centers and solutions, and to continue to expand coverage areas.
NTT Communications operates network services in 159 countries worldwide under the Arcstar brand. It is also working to strengthen the IP backbone that supports Internet use and has achieved a 500 Gbps circuit capacity for the Japan-U.S. backbone, the highest level in the industry. NTT Communications has also established data centers to handle customer data in 31 cities, primarily in Europe, North America and Asia, steadily building its services infrastructure.

NTT DATA is in a position to provide services including business applications development and support as well as system architecture in 34 countries by acquiring global companies such as Keane International, Inc., Intelligroup, Inc., Cirquent GmbH and itelligence AG. In particular, with respect to SAP*1, which has a global share in the ERP*2 field, NTT DATA is building a structure that will enable its domestic subsidiaries and acquired overseas subsidiaries, to offer sales, solutions and support worldwide, as a single team.
Despite these initiatives in place, there was still room for improvement in business domains such as developing, maintaining and operating network devices and servers within customer premises, as well as in extension of the geographical reach of its services to regions such as Africa, the Middle East and South America. The acquisition of Dimension Data Holdings plc ("Dimension Data") as a wholly-owned subsidiary, which was completed in December 2010, has resolved this issue and allowed NTT to make great advances in its initiatives.

Structure of Global Business

With this acquisition, NTT Group will leverage the strengths of both its existing group companies and Dimension Data, combining IT infrastructure, applications and managed ICT as a total solution package to offer a one-stop service that provides everything from system deployment to operation, maintenance and troubleshooting. Moreover, Dimension Data has over 6,000 overseas corporate customers, including business connections with over 60% of the companies ranked in the "FORTUNE Global 500"*3. We would like to step up sales activities through cross-selling*4 with NTT Group's customer base of approximately 4,000 companies.

  • *1 In this article, SAP is a general term for ERP packages provided by SAP AG of Germany.
  • *2 Information system package that supports core corporate operations such as orders and sales management, inventory management, production management and accounting.
  • *3 Annual global ranking of companies worldwide by sales compiled by FORTUNE, the largest business magazine in the world.
  • *4 A sales approach recommending related products and additional products that can be used together for customers thinking about buying a certain product in order to generate increased sales.

How will NTT continue to manage its global business?

In May 2011, with the aim of establishing unified strategies throughout the group and flexibly utilizing human resources, we established two committees in which group companies will participate. The Global Strategy Committee establishes global strategies for the entire group and shares related information within the group. The Global HR Committee aims to gain an understanding of top management human resources and to utilize human resources effectively. Through discussions in both committees, we will further deepen ties and work to strengthen cross-selling between group companies and develop new users.

Two Committees in Global Business

Please tell us about NTT's upcoming global business initiatives and sales targets.

NTT Group is making all-out efforts to address the need for cloud-based services which is expanding worldwide. NTT has strengths as a group, such as an extensive service lineup and seamless maintenance for systems and networks that meet the various needs of customers. By using the strengths of group companies - the customer base and business development capabilities of Dimension Data, the IT infrastructure including the IP backbone and data centers of NTT Communications, and the system-developing capabilities of NTT DATA, for example ? we will aggressively provide new cloud-based services as a "Global ICT Leader." We will promote cross-selling between group companies and cultivate new users to achieve our global business sales target of US$8.0 billion for the fiscal year ending March 31, 2012 and over US$10.0 billion for the fiscal year ending March 31, 2013. Moving forward, we will strengthen global business initiatives as a motivating force to bolster the continuing upward trend of increased revenues and profit for the entire group.

Sales Targets for Global Business

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