Exclusive: Giant NTT plans massive enterprise IT services business via Silicon Valley

Summary:From just $2 billion in 2008 revenues, NTT's IT services business plans to hit $20 billion in 2016. Its Silicon Valley research center will play a key role.

Tsunehisa Okuno
NTT Group senior strategist Tsunehisa Okuno outlines NTT's future.

NTT Group, Japan's $112 billion communications giant, unveiled ambitious plans for expansion by leveraging its strengths in global communications infrastructure, its aggressive investments in its IT services division, and in the rapid monetization of key technologies and services created by its new Silicon Valley based research center, NTT Innovation Institute.

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I was the only journalist at a recent strategy briefing at NTT's research and development center in Palo Alto. The company's representatives laid out an ambitious plan to grow out its overseas business into a $20 billion annual revenues operation by the end of its 2016 fiscal year (March 2017), a 33 percent jump from this year's projected $15 billion.

Key to this growth will be integration of its US acquisitions in IT services, and new apps and technologies developed by its Silicon Valley research center.

A quiet giant...

NTT is huge. It employs 240,000 people in 79 countries, and offers communications services in 196 countries; it is #53 in the Fortune 500 and its customers include 80 of the top Fortune 100 corporations. It operates more than 50 data centers ranking it #2 in data centers, and #2 in global IP backbone, and it is in the top ten in marine cable.

Since 2008 NTT has made many key overseas acquisitions such as Dimension Data, Keane, and Solutionary. Now it intends to leverage those investments into a rapid expansion following several years of slow growth from $11.4 billion in fiscal 2011 to $12.2billion last year. 

Core to its growth strategy is the expected demand for global cloud services, and for IT services from large corporations struggling with the complexity of managing hybrid IT and cloud computing platforms, said NTT Group senior strategist Tsunehisa Okuno (above). 

NTT says it now has a full stack of communications infrastructure and data center services for any type of global business. And it has new technologies on the way that will essentially provide a full business operating system that can manage multiple data centers and communications networks, along with an agile software infrastructure to support e-commerce and business operations across a full catalog of data center, desktop and mobile applications. It's a very big picture.



Topics: Data Centers, CXO, Enterprise Software


In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to become a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley. Tom arrived in San Francisco in 1984, and has covered US technology markets for leading comput... Full Bio

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