NTT recently announced the consolidation of 28 of its entities into one new NTT Ltd unit and a single global NTT brand. Though it will take significant investment, the new NTT Ltd will become a major IT services provider once it is fully integrated under one brand.
NTT's consolidation should optimize its global assets
NTT made many acquisitions over the past 10 years. These acquisitions were spread across its business units. In 2010, NTT purchased Dimension Data, a major acquisition that added new capabilities and global staff to its business. In the past year, NTT disclosed plans to consolidate various business units including Dimension Data. Key to this consolidation has been consistent branding. NTT wanted to unify its many units and assets under a single brand. Customers and the industry were confused about the many different NTT entities, which seemed to operate independently.
NTT had previously tried to create a global brand with its separate entities, for example, using the tagline "an NTT Company" across some brands. But many of these entities did not collaborate or cooperate. On paper, the NTT entities and their respective assets are a major global force in the IT and telecoms industry. But earlier efforts were not unified. In security for example, NTT created an NTT Security brand, but NTT Security relied on separate NTT units (NTT Communications, Dimension Data, and NTT Data), which sometimes would compete for the business. With this new NTT Ltd organization, the integration of managed security services, go-to-market approach, and delivery should be much improved.
By merging the various brands into NTT and investing in the unified brand, NTT will get more brand equity and credibility with customers, prospects, and partners. NTT Ltd is just starting to fully integrate and invest in its single brand, but it has promise and strong potential to become a major global force in the IT and telecoms industry, potentially with major industry differentiation.
Digital Profile: NTT Group, GLB007-000122 (October 2018)
Market Landscape: Digital workspace, ENS001-000059 (June 2019)
Ovum Network Services Assessment: NTT Communications, ENS004-000056 (March 2019)
Mike Sapien, Chief Analyst, Enterprise Services