NTT Global Business NTT , SVP of Global Business & Member of - - PowerPoint PPT Presentation
NTT Global Business NTT , SVP of Global Business & Member of the Board Tsunehisa Okuno October 2 nd , 2015 Agenda Current and Further Steps of NTT Global Business 20 min Dimension Data The Transformational Journey 40 min Panel
October 2nd
, 2015
NTT , SVP of Global Business & Member of the Board Tsunehisa Okuno
40 min
40 min
20 min
Brandon Lee Jason Goodall Tsunehisa OKUNO SVP
NTT COO Dimension Data CSO NTT Com Asia EVP NTT DATA
Kaz Nishihata
1
2
11.9
2008.1 2008.10 2009.10 2010.10 2010.12 2011.6 2010.7
2007 2008 2009 2011 2010
2.0 2.6 2.9 4.8 11.4
*1
2012 2013 2014
2013
*1 Month and year as of M&A completion *2 Consolidated sales of NTT Group companies excluding those in Japan
2014
15.0 12.2
2016
Target
20.0
2012
2017
Target
22.0
(USD Billions)
(FY of NTT)
*2
3
AMERICAS EMEA APAC
(USD)
1,610B
(FY2014)
47% 53% 67% 33% 54% 46%
(EBITA/Rev 4.5%)
10% 90%
42% 58%
36% 64%
940B (60%) 490B (30%) 180B (10%)
69% 31%
*Source: Created by NTT based on McKinsey’s data (excluding Telephone market)
Legend IT Infrastructure Application 4
Source; *1 "Magic Quadrant for Network Services, Global" Neil Rickard, et al. 14 Jan 2015 *2 "Magic Quadrant for Communications Outsourcing and Professional Services" Christine Tenneson, et al. 4 Nov 2014, *3 "Magic Quadrant for SAP Implementation Service Providers, Worldwide” Susan Tan, 23 Jul 2015 *4 "Magic Quadrant for SAP Application Management Service Providers, Worldwide" Frances Karamouzis et al., 16 Oct 2014 *5 "Magic Quadrant for Disaster Recovery as a Service" John P Morency, et al. 21 Apr 2015 *6 "Magic Quadrant for Cloud-Enabled Managed Hosting, Asia/Pacific" To Chee Eng et al. 10 Dec 2014 *7 "Magic Quadrant for Cloud-Enabled Managed Hosting, Europe" Tiny Haynes, et al. 30 Jun 2015 *8 "Magic Quadrant for Cloud-Enabled Managed Hosting, North America" Douglas Toombs et al., 28 Jul 2015 *9 “Magic Quadrant for Cloud Infrastructure as a Service, Worldwide” Lydia Leong, et al. 18 May 2015 *10 "Magic Quadrant for Managed Security Services, Worldwide”, Kelly M. Kavanagh, 30 Dec 2014 The Gartner Report(s) described herein, (the “Gartner Report(s)”) represent(s) data, 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 this enterprise report) and the opinions expressed in the Gartner Report(s) are subject to change without notice. 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. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Category
Gartner’s report
Position Company
Network
Gartner’s Magic Quadrant for
Network Services, Global *
a Leader
Network Integration
Gartner’s Magic Quadrant for
Communications Outsourcing and Professional Services*
a Leader
Apps
(SAP)
Imple- mentation
Gartner’s Magic Quadrant for
SAP Implementation Service Providers, Worldwide*
a Challenger AMO
Gartner’s Magic Quadrant for
SAP Application Management Service Providers, Worldwide* a Niche Player Cloud
Gartner’s Magic Quadrant for
Disaster Recovery as a Service*
a Leader
Gartner’s Magic Quadrant for
Cloud-Enabled Managed Hosting Asia/Pacific*
a Challenger a Visionary
Gartner’s Magic Quadrant for
Cloud-Enabled Managed Hosting Europe*
a Challenger
Gartner’s Magic Quadrant for
Cloud-Enabled Managed Hosting North America*
a Niche Player
Gartner’s Magic Quadrant for
Cloud Infrastructure as a Service, Worldwide*
a Niche Player
Security
Gartner’s Magic Quadrant for
Managed Security Services, Worldwide*
a Challenger
1 2 3 4 5 6 7 8 9 10
Category
TeleGeography colocation database 2014
Position Company Data Center Retail data center operator total floor space, Global
Top class
5
Telecom
(A)
Cloud
(A)
IT Vendor
(A)
SIer
(I)
Data Center
Integration
( ERP)
Imple- mentation
Public
Private
Leader Attacker
Legend：
Top Tier Specific capability Not competitive/Local Out of scope 2
nd Tier
6
FY2016 (Target) FY2017 (Target)
* Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets.
FY2014
Sales 15B Operating Income* 0.7B
（USD）
Operating Income* 1.5B
7
1,770 1,460
5% Growth
per annum
500 1,000 1,500 2013 2014 2015 2016 2017
Cloud
SaaS Cloud SI IaaS/PaaS
10% of ICT market
= $160B market （GAGR 23%）
(USD Billions)
← BPO ← Traditional apps ← ITO/AMO ← IT infrastructure ← Network services ← SI for traditional apps ← New business
* Those numbers exclude software/hardware direct sales and telephone service.
Source: NTT’s calculation based on inputs from McKinsey, etc.
←
8
From 500 to 4,999 employees [Ave. Revenue: $110M - $320M]
Customer’s needs on cloud
At-scale Enterprise /Govt.
Lots of large, complicated customized legacy Apps → Mostly cloud migration by SIers who implemented existing legacy Apps
Large enterprise
Higher mix of packaged Apps such as SAP and Oracle, etc. → Cloud migration driven by cost reduction & business transformation → Open to IT players who can provide cloud migration of IT infrastructure and apps in total
Mid-market (upper-end) Mid-market (lower-end)
Discard existing Apps, shifting to SaaS → Limited migration service needs
SME
* The numbers of enterprises are examples of the US market. The market segments are defined based on those of a US census.
100
Companies
16,000
Companies
6M
Companies
3,000
Companies
Fortune 100 (US companies) 5,000 employees or more [Ave. Revenue: $6B - $8B] 499 employees or less [Ave. Revenue: $5M - $10M] 9
Transformation of Customer’s Businesses
Legend
Network/NFV DC ITO Cloud Security AMO NI
Tailor-made solutions On-premise systems
Business/ICT Consulting, Vertical solutions
IoT Big Data AI
Modularized, Standardized, and Automated Solutions
Modernization of Applications Migration to Cloud/ Hybrid Cloud offering
Cloud systems
Total ICT Management Innovation
IT Infrastructure Applications
Tailor-made solutions On-premise systems
NTT’s Strengths Target / focus
Orchestration
Apps Development
Cloud SI
10
FY2014 FY2017 (Target)
（USD）
Sales 15B Operating Income* 700M
Operating Income* 1.5B+α
Organic Growth, Strengthening GTM, M&A
Efficient Operation/Services and Optimized Procurement Profit thru revenue growth
* Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets.
11
Network Data Center Application
ITO (Managed Service)/NI Direct materials
Indirect materials
12
Transformational solution selling
Apps modernization Cloud migration
Advisory-led selling
Provide total solution for specific industries
(1) Strengthen cross-selling activities
Cross-selling between ADM and ITO Delivery-led selling
Propose and win additional businesses in delivery/
13
✓ Expand our global accounts ✓ Optimize NTT Group efficiency (cloud, security and IT outsourcing services) ✓ Avoid duplication in new service investments ✓ Collaborate within NTT Group re: procurement ✓ Facilitate transparency of information re: Group management ✓ Set common accounting standards
Strengthen Group Governance and Risk Management
✓ Strengthen consulting/industry-specific solutions ✓ Create solutions that integrate services provided by a variety of companies ✓ Enhance collaboration within NTT Group’s global subsidiaries
Deliver Steady Growth of Sales Thorough Cost Optimization
Strengthen Products/Services Strengthen Sales/Marketing Efforts Optimize Services and Operations Reduce Procurement Costs
Standardize and Improve IT Infrastructure Strengthen Financial/Operations Systems
✓ Bolster cash management 14
Strengthen Group Governance and Risk Management Deliver Steady Growth of Sales Thorough Cost Optimization
Drastic Operational Reforms PT （More Efficient Procurement） Cloud Security Application Network Data Center ITO Voice/Conferencing
CIO Committee （IT Infrastructure） HRM WG Finance WG
Service Catalog/Value Prop.
15
16