Expanding Global Business / Increasing Overseas Profit

Last updated : October 31, 2016

Accelerating Profit Generation of Global Cloud Services

* Operating income excludes M&A-related temporary expenses,
such as depreciation costs of intangible fixed assets.

NTT Group has taken steps to enhance its global cloud services lineup through M&A, and we have promoted cross-selling through collaboration among Group companies. Consequently, we are starting to see solid results in our global business.
In the fiscal year ended March 31, 2016, overseas sales increased to $15.6 billion, and overseas operating income rose to $0.69 billion.
Overseas sales of $22.0 billion has come into view. Moving forward, we will take on the challenge of achieving our target for operating income, which has been set at a high level. To that end, we will accelerate Groupwide initiatives to increase sales and enhance cost efficiency.

Strengthening the Service Promotion System on Three Axes

To provide one-stop solutions to the diverse needs of customers around the world, we are strengthening the service promotion system on the following three axes.

(1) Full stack : Provision of services in a wide range of fields related to cloud services, from ICT infrastructure to applications.

(2) Full life-cycle : Ability to handle everything from cloud migration consulting to system construction and maintenance.

(3) Footprint expansion : Ability to provide services on a global scale

Global Cloud Business Promotion System

Strengths of NTT Group

NTT Group is a unique all-round player that has the ability to provide full-stack, full life-cycle services.
In global cloud services, it is important to be able to provide total solutions-from data centers and networks to applications.
Accordingly, global cloud services is a field in which NTT Group can fully leverage its strengths.

Ability to Provide Global Business Services-Comparison of NTT Group and Other Companies

External Evaluations

NTT Group has earned high evaluations in the ICT services field from overseas research institutions, and the Group's presence in global markets is steadily increasing. Consequently, we are receiving an increasing number of inquiries from global companies.

Global Cloud Business Evaluations

  • *Source: "A Baker's Dozen, 2015 Edition" Earl Zmijewski, 12 April 2016
  • **Source: "Magic Quadrant for Managed Security Services, Worldwide" Kelly M. Kavanagh/Toby Bussa, 23 December 2015
  • ***Source: "Magic Quadrant for Network Services, Global" Neil Rickard/Bjarne Munch, 14 January 2016
  • ****Source: "Magic Quadrant for Cloud-Enabled Managed Hosting, Asia/Pacific" To Chee Eng/Kenshi Tazaki/Vincent Fu/Arup Roy, 11 November 2015

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation.
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The Gartner Report(s) described herein, (the "Gartner Report(s)") represent(s), research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of making homepage) and the opinions expressed in the Gartner Report(s) are subject to change without notice.

  • *****Source: IDC ITMarketScape: Worldwide Cloud Professional Services 2016 Vendor Assessment (Apr 2016, Doc # US40149616_JP)

Cross-Selling

In regard to global cross-selling in the fiscal year ended March 31, 2016, we received an order totaling more than $100 million from a customer in the manufacturing industry in Europe and the United States for large cloud-migration and IT full-outsourcing projects. The contract value of cross-selling orders totaled $400 million for the fiscal year, and the aggregate contract value of cross-selling orders reached $1.6 billion.
Moving forward, we will continue working to strengthen cross-selling. To that end, we will target projects centered on growth drivers, such as cloud and security projects, and on projects that leverage the comprehensive strengths of NTT Group for global accounts.

Principal Cross-Selling Orders Track Record

Increasing inquiries from and transactions with global companies by enhancing our presence

Strengthening Competitiveness of Security Services

Establishing NTT Security

To support the global provision of competitive security services, in June 2016 NTT established NTT Security, a specialized security company. NTT Security integrates the advanced analytics technologies, threat intelligence, and the security experts of NTT Com Security, Solutionary, Dimension Data, NTT Innovation Institute, and NTT Communications.

Positioning of NTT Security

As a service development and wholesale company, NTT Security will provide managed security services through NTT Group operating companies on a worldwide basis. Dimension Data, NTT Communications, NTT DATA, and other NTT Group operating companies will fully utilize their individual marketing capabilities and implement the worldwide provision of total solutions that combine the advanced technologies and services offered by NTT Security.


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