Dimension Data, a Convergence Partners investee, received the 2011 South African Excellence in Mergers and Acquisitions (M&A) Strategy Award from Frost & Sullivan.

Dimension Data, according to a recent Frost & Sullivan analysis conducted on the IT services market, have met a number of measurement performance criteria, pertinent to achieving a certain level of excellence, when compared to that of key competitors within the IT industry.

Brent Flint, services executive: Dimension Data Middle East & Africa, describes the award as a significant confirmation that Dimension Data is well positioned to provide its clients with services that help them at each step in their journey toward cloud architectures.

“For the last few years, we have been building cloud-related skills and capabilities in areas such as virtualisation, data centre and storage, managed services and hosting, and IT outsourcing – critical to enabling cloud architectures for our clients. Our experience with complex, multi-national systems integration projects coupled with its managed services expertise are critical to making cloud a reality for clients.”

The company’s acquisitions and investments in cloud assets such as Australian-based, Blue Fire, Internet Solutions, as well as the OneCloud initiative between their Asian subsidiary and Bharat Sanchar Nigam Limited (BSNL) was succeeded by the OpSource deal.

“The acquisition of OpSource in June 2011 marks the culmination of Dimension Data’s strategy to ensure the company accelerates the provision of its cloud offerings, and remains at the forefront of global networking and communications technology,” says Frost & Sullivan’s ICT industry analyst Ishe Zingoni. “Whereas Dimension Data is an end-to-end IT solutions provider in the South African market, the acquisition brings with it special expertise around cloud and managed hosting solutions that enable businesses to grow and scale operations, while controlling costs.”

Over the past few years, the company has been developing cloud-related skills and capabilities in the areas of virtualisation, data centre and storage, managed services and hosting, and IT outsourcing – all critical to enabling cloud architectures for clients. At the same time, Dimension Data has been educating its clients on the service possibilities of implementing cloud computing and virtualisation. Such initiatives have laid the groundwork for Dimension Data’s cloud strategy.

“The acquisition of OpSource contributes a rich set of services, a sound cloud architecture, and extensive experience in cloud services that will meet immediate client needs,” remarks Zingoni. “This is in addition to a cloud infrastructure with a proprietary integrated orchestration system that supports growth, development and globally consistent operations.”

OpSource also brings an attractive client base in the Independent Software Vendors (ISVs) and Service Providers (SPs) to complement Dimension Data’s strong enterprise footprint.

Dimension Data has realised that, in order to develop its cloud-based architecture, it is essential to understand the integration of IT systems across disparate multi-technology, multi-geography IT environments. Its acquisition of OpSource represents a key element in achieving this goal.

“OpSource is better positioned to exploit its cloud architecture and orchestration capabilities, maximising on the global cloud opportunity as part of a globally diversified group, rather than on its own,” explains Zingoni. “Geographical expansion is, therefore, one of the key operational synergies that will be facilitated by this deal.”

To aid in seamless post-merger integration, Dimension Data has created a centralised stand-alone division – Dimension Data Cloud Solutions Business Unit, which falls directly under the scope of the CEO. This business model aims to eliminate duplication of costs, as well as to provide for a consistent global client experience.

“As a business entity, OpSource will operate as part of this unit, nevertheless retaining its name and brand identity,” says Zingoni. “The advantage of this strategy is to preserve brand recognition and customer loyalty in highly competitive markets.”

The Excellence in M&A Strategy Award is presented to the company that has excelled in the following criteria: synergies of acquisitions, expansion of customer base, enabling geographic expansion and strategy for post-merger integration.

Article from IT Online

On 15 July 2010, Nippon Telegraph and Telephone Corporation (“NTT”) Dimension Data Holdings plc (“Dimension Data” or “DiData”) announced that they have reached agreement on the terms of a cash offer to be made by NTT for 100% of Dimension Data. The offer, totalling approximately GBP 2.1 billion (R24.4 billion), was unanimously recommended by both Boards of Directors.

NTT, one of the largest global telecommunications service providers in the world, has limited presence in certain emerging markets where Dimension Data is very strong, specifically Africa and the Middle East. The transaction is a huge vote of confidence in DiData, South African and Africa, and the rationale of both parties is to capitalise on the significant growth opportunities that are unfolding.

Andile Ngcaba, Chairman of Dimension Data’s Middle East and Africa business (“DDMEA”), as well as of its minority shareholder Convergence Partners, is excited about the deal and how its positions DiData in this region. “With access to the resources, products and R&D of the NTT Group, DDMEA is better positioned than ever to grow its presence and capitalise on new and fast growing market opportunities, such as cloud computing. The deal is great for the country and the company”.

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Dimension Data once again proved its mettle across the African continent, winning the Top ICT Company in Africa Award at the 11^th African ICT Achievers Awards ceremony held on the 5^th December 2009.

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Dimension Data Middle East & Africa has acquired a 51% stake in Telcom (Morocco), representing a further step in the establishment of a strong presence across the continent. Telcom will be rebranded Dimension Data Morocco.

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