NTT Continues Path of U.S. Expansion

By Paula Bernier September 03, 2014

A recent article by The Wall Street indicates that Nippon Telegraph & Telephone Corp. is spending billions of dollars on acquisitions, with most of the action in the U.S.

That would seem to include NTT Communications Corp.’s October 2013 $350 million investment for an 80 percent stake in RagingWire Data Centers. That deal, NTT Com disclosed, more than doubled NTT Com’s data center space in the U.S.

"We are rapidly expanding our capabilities to provide cloud and telecommunications solutions worldwide and the deal with RagingWire is critical to increasing our overall capacity, providing data center infrastructure management tools which enhance colocation service’s reliability and efficiency. RagingWire leads the data center industry in availability, innovation, and customer experience, and that will enhance our global cloud solutions significantly," Akira Arima, CEO of NTT Com, said at the time.

A month later, NTT Data purchased SAP services partner Optimal Solutions Integration of Irving, Texas.

NTT Communications Corp. in 2013 announced and in January of 2014 closed the $525 million acquisition of Virtela Technology Service Corp., a global managed and cloud-based network services company.

A month later, NTT Communications Corp. closed the acquisition of Arkadin, a unified communications provider out of France. And that news came on the heels of Arkadin’s announcement that it was buying cloud consulting and hosting firm, which specializes in Microsoft unified communications solutions.

All of the above is reportedly an effort by NTT to counterbalance what appears to be a shrinking opportunity in Japan, which accounts for 90 percent of the company’s revenues but is a market the WSJ describes as “stagnating”.

The Japanese telecom services provider also recently opened an R&D facility in Silicon Valley and has been working to hire on strong engineering talent there.

Already, the company is recognized as a pioneer in the hot networking technology known as software-defined networking. The company in May took its SDN services global.

“We are the first providers to really make these services available,” Takashi Ooi,

vice president of enterprise network services of the network services division at

NTT Communications Corp., said at the time.

Most other service providers are testing SDN, but NTT Communications is actually providing NFV and SDN services commercially, he said.

It should also be noted that NTT Communications Corp. was also recognized by research firm Renesys as one of the top two global wholesale IP providers of 2013.

Commenting on that, Michael Wheeler, executive vice president of NTT Communications’ Global IP Network at NTT America, said: “We are delighted with these results but we most certainly do not intend to rest on our laurels. We have worked hard to grow our business in a number of key markets around the world over the last twelve months, and we will continue those efforts as we go into 2014.”

Edited by Stefania Viscusi

Executive Editor, TMC

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