1.Acquisition Background

OpSource ^(*1) provides cloud solutions that enable businesses of all sizes to accelerate growth and scale operations while controlling costs and reducing IT infrastructure support risks. More than six hundred Software-as-a-Service ISVs, cloud platform providers, carriers and enterprises rely on OpSource’s expertise, experience and agility to operate high-availability, business-critical hosting environments by utilizing cloud capabilities such as orchestration ^(*2).

In November 2008, NTT entered into a strategic alliance with OpSource. In February 2009, through an investment by NTT Investment Partners Fund, L.P ^(*3), NTT aggressively pursued its collaboration with OpSource as part of an increased strategic focus on developing a global cloud business.

As part of this increased focus, cloud computing infrastructure services such as hosting and network services provided by NTT America and NTT Europe were combined with cloud capabilities such as orchestration and automation provided by OpSource, to deliver public cloud services mainly in North America and Europe in May 2010, in addition to NTT Communications global private cloud services ^(*4).

With the purchase of Dimension Data in October 2010, NTT further solidified its position as a one-stop provider of a broad and high-quality end-to-end total ICT services offering.

In May 2011, as the next step, NTT announced that NTT Group in total will strengthen service capabilities by achieving the collaboration and automation of operations, ranging from IT infrastructure to applications, through strengthening the synergy effect of global management resources and meeting the global cloud computing needs of clients. The OpSource acquisition will accelerate service capabilities of entire NTT Group.

2.Purpose of the Acquisition

1) Dimension Data will develop a highly flexible cloud infrastructure to enable cloud services and applications.

Market readiness for cloud capabilities and services is being enabled by technology maturation along with client needs for more flexible services-centric, IT sourcing options. Dimension Data’s decision to accelerate its focus on cloud aligns to its long-standing strategy to become a services-led business. For the last few years, Dimension Data has been building cloud-related skills and capabilities in areas such as virtualisation, data centre and storage, managed services, and IT outsourcing. The market’s desire for more flexible and cost effective IT sourcing and consumption models will make the move toward cloud architectures an inevitability. It is important Dimension Data is well-positioned to provide its clients with services that help them at each step in their journey toward cloud architectures.

OpSource will further accelerate the development of Dimension Data’s cloud services and solutions. OpSource’s orchestration and automation capabilities; expertise in cloud hosting, application operations, and compliance; coupled with its market leading cloud infrastructure, provide unique and critical intellectual property which overcomes some of the most difficult challenges to operationalising a cloud architecture. The OpSource acquisition will allow Dimension Data to develop a highly flexible cloud infrastructure to enable cloud services and applications that will support all client segments on their journey toward cloud architectures.

Dimension Data’s cloud strategy is focused on supporting all its and OpSource’s existing client segments. For Enterprise and Public Sector clients, Dimension Data will design, operate and manage private cloud infrastructures. Dimension Data will help clients design and implement the appropriate architecture to support their business needs. For Service Providers - both traditional telcos and Software-as-a-Service providers - Dimension Data will build, operate and manage their cloud services infrastructure; providing differentiated value in the critical areas of advanced orchestration, automation and billing.

2) Provide global seamless service offerings and global one-stop operations in NTT Group total.

In order to accelerate all the NTT Group companies cloud solutions and services, NTT is establishing a NTT Group-wide working group focused on the advancement of cloud technologies, capabilities, and services. It will facilitate the integration of the Group’s capacities in application development, mobile solution services and research and development, and in addition to the core competencies with OpSource, NTT Communications and Dimension Data. Through these efforts, NTT will ensure comprehensive, high quality cloud services are developed to support all our clients’ needs.

(*1)OpSource

Founded in 2002, OpSource provides cloud solutions that enable businesses of all sizes to accelerate growth and scale operations while controlling costs and reducing IT infrastructure support risks. OpSource has operations in California, Virginia, UK, Ireland, and India. www.opsource.net. 

(*2)Orchestration

Orchestration is an architecture that enables to operate and control various software which consists of cloud platform, such as virtualization/billing software and NW configuration tools. This could realize connections among various clouds and integrated and automated operation.

(*3)NTT Investment Partners Fund, L.P

Established in March 2008 with the aim of investment in Japanese and overseas venture companies with various technologies and know-how and good prospects for growth in information and communications-related fields.

(*4)NTT Communications global private cloud services

NTT Com to Launch Global Virtual Hosting, October 27, 2009
(http://www.ntt.com/aboutus_e/news/data/20091027.html )
Biz Hosting Global to Launch in Singapore, Offer One-stop Management with Biz Hosting Enterprise, June 9, 2010
(http://www.ntt.com/aboutus_e/news/data/20100609.html )