Dimension Data, the global specialist IT solutions and services provider, has been positioned by BMI-TechKnowledge as the largest provider of IT services to the South African market.

“In its latest IT services market sizing and forecast of 2010-2015 report published in December 2011, BMI-T recognised that Dimension Data was still the largest provider of IT services in South Africa in 2010, accounting for 15.4% of the total IT services market, up from 14.8% in 2009,” the company said on Tuesday.

According to BMI-T, the South African IT services market was valued at R33.8 billion in 2010, reflecting a year-on-year growth of 8.5%. The market was expected to grow at a CAGR (compound annual growth rate) of 9.5% over the five-year forecast period, reaching a total of R53.3 billion by 2015.

“The reason we have grown is because of the quality of our people and their desire to deliver exceptional services to our clients,” Brent Flint, services executive for Dimension Data Middle East and Africa said.

BMI-T reported that the maintenance, support and upgrade service segment was expected to account for the largest portion of the total IT services market, while hosting was expected to reflect the fastest growth rate over the five-year forecast period, with a CAGR of 18.1%.

Managed services were also expected to reflect a significant growth over the forecast period, with a CAGR of 14.6%.

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Article from Business Live

Howard Earley, COO of Plessey, a Convergence Partners investee says that Plessey has identified the opportunities that exist and need for a next-generation service provider with the ability to build the infrastructure required by the fast growing communications industry.

He says that Plessey is well positioned to fulfill this role due it being able to:

• provide a comprehensive, solution themselves, thereby providing a broad, modular range of telecommunications solutions that keep pace with and can be very precisely mapped to the new opportunities opening up to customers;  and
• call, where relevant, on the global consulting and solutions design experience and capability of their parent company, Dimension Data, and also on the carrier, connectivity, and communications specialisations within Internet Solutions

The result of this unique positioning is that Plessey and Dimension Data are being commissioned to, respectively, project-manage the laying of fibre and provide the equipment to light up the fibre.

Article from ITWeb

Convergence Partners Chairman, Andile Ngcaba, was named as TechCentral’s newsmaker of 2011 for his significant impact on South Africa’s technology sector over the past 12 months, topping an impressive list consisting of Pieter Uys, Mamodupi Mohlala, Karel Pienaar, Robert Gumede, Roy Padayachie, Lars Reichelt, Michael Jordaan, Pinky Moholi and Mteto Nyati.

According to TechCentral: “Through his Convergence Partners investment vehicle, Ngcaba launched a US$250m satellite with Intelsat (after a false start) and signed a multibillion-rand deal to build a national fibre network with Cell C and Dimension Data’s Internet Solutions.

“Ngcaba has taken to the business world like a proverbial duck to water. Executive chairman of Dimension Data Middle East and Africa, in which he also holds a sizeable investment through Convergence Partners, Ngcaba is certainly prepared to put his money where his mouth is.”

“Despite his involvement in the launch of the Intelsat New Dawn satellite and FibreCo’s plans to deploy a R5bn national fibre network consisting of up to 14 000km of fibre infrastructure, Ngcaba has stayed largely out of the media spotlight in 2011. But we’ve been tracking his activities closely and we think he’s worthy of the accolade of newsmaker of the year.”

Read more here: http://www.techcentral.co.za/sa-newsmakers-of-the-year-the-top-five/28200/

Convergence Partners investee, Dimension Data, which was delisted about a year ago, after being bought out by Japan-based NTT in a R24.2 billion deal, reported double-digit top line growth for the year to September.

The company says revenue grew 14.8%, to $5.79 billion, from $4.74 billion for the 2010 financial year. It also reported double-digit operating profit growth of 10.8%.

Dimension Data’s system’s integration business, which makes up 78% of total revenue, grew 12.8% year-on-year, to $4.5 billion, and operating profit was 7% higher, at $202.7 million.

By region, Europe, Asia and Australia delivered good growth, while Middle East and Africa was steady, says Dimension Data. In the Americas, Canada, Mexico and Chile recorded “excellent growth”, but operating profit in the US was flat, it adds.

Internet Solutions grew revenue 6.9%; Plessey lifted revenue 22.9%; and Express Data’s revenue expanded by 24.3%. Merchants and Learning Solutions delivered “strong contributions”, the company says.

Internet Solutions grew operating profit 9.1% at an operating margin of 12.6%. However, operating profit in Express Data declined 5.6% for the year due to product margin pressures.

Dimension Data says Plessey’s operating profit improved “substantially” off a low base in the 2010 financial year.

CEO Brett Dawson says “this year’s double-digit growth is an outstanding performance”, considering the current volatile global economy and tough trading conditions.

In the next 12 months, the group will focus on building its cloud solutions and services portfolio, and global cloud infrastructure and platform.

“The group’s acquisition of OpSource in July, and the formation of our cloud business unit were critical steps in accelerating our cloud computing strategy,” says Dawson. He adds the company is on track to go to market with its cloud value proposition.

Press Release

Article from ITWeb

Article from Business Day

When the competing fleet of 11-strong crews of professional sailors dock in Cape Town harbour after up to 22 days on the open sea, Convergence Partners’ investee companies, Dimension Data, Internet Solutions and Comsol, have exclusivity in providing connectivity for the race fleet while it is docked in the Mother City port for repairs and re-stocking. The Cape Town leg of the race will take place in early December.

The Volvo Ocean Race has been held for 38 years, 11 of these under the Volvo banner. It’s an iconic event, starting in the Spanish port of Alicante in October 2011, and finishing in Galway, Ireland in 2012. On the way, the race visits Cape Town (South Africa), Abu Dhabi (UAE), Sanya (China), Auckland (New Zealand), Itajai (Brazil), Miami (USA), Lisbon (Portugal) and Lorient (France). The race is contested by 11-strong crews of professional sailors, who will endure temperatures ranging from -15 to +40 degrees Celsius over the course of the race. The teams compete in state-of-the-art Volvo Open 70s, the fastest racing yacht in the world.

John van der Vyver, Financial Director of Dimension Data Western Cape says, “The push for even minor advantages means the sailing teams are at the forefront of technological advances in the industry. Again, this has echoes in our own business, where it’s vital that we are ahead of the pack to offer our clients the gains that the latest technology offers. We understand competitiveness and the drive to get the edge.”

Van der Vyver goes on to explain that Dimension Data, Internet Solutions and Comsol have been appointed joint sponsors with exclusivity in the category of Information Technology. “This means we will jointly enable their connectivity while in port in Cape Town. Some of the technology we’ll be providing to support the IT requirements of the crews and associated personnel includes two Polycom units, a dedicated technical resource to provide hands-on assistance to the crews with laptops and connectivity so they can touch base with family and loved ones at home, all onsite LAN cabling to establish a secure and reliable onsite command centre, and all bandwidth requirements to support Internet use and traffic.”

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

The Internet Service Providers’ Association of SA (ISPA) has named the management committee for 2011-2012.  Marc Furman of Internet Solutions (IS) and Jaap Scholten of eNetworks will lead the management committee as joint chairs, while Mike Silber of Liquid Telecom is the treasurer.  Other members of the management committee include Graham Beneke (Neology), David Gentleman (Enyuka Internet Access), Rob Hunter (Neotel), Jenny King (e-Schools Network), Ant Brooks (Future Foundation), Wilmari Hannie (MWEB Connect), and Elaine Zinn (Future Foundation).

Article from MyBroadband

Article from TechCentral

Dimension Data division Internet Solutions (IS) has increased its stake in its Kenyan subsidiary from 51% to 80% as it seeks to further expand its presence in the fast growing East African region. IS initially acquired a 51% stake in Kenyan service provider iConnect in 2005, which was then rebranded Internet Solutions Kenya.
The Kenyan business also serves Tanzania and Uganda. IS has plans to expand into Rwanda, Burundi and South Sudan in the near future and has secured an option to acquire the remaining 20% stake in its Kenyan operation.

See attached press release

Article from TechCentral

FibreCo Telecommunications (“FibreCo”), a joint venture between Cell C, Convergence Partners and Internet Solutions, announced the awarding of a contract for construction of its nation-wide open-access fibre optic network. FibreCo’s objective is to facilitate affordable and reliable high-speed Internet access for South African citizens and businesses.

The initial phase of FibreCo’s development will result in the creation of 2,300 direct and indirect job opportunities. FibreCo will also facilitate the training of at least 100 fibre optic technicians who will be involved during construction and maintenance of the network in all provinces along its route. Furthermore, FibreCo will make heavily subsidized fibre capacity available to academic and research institutions, enabling greater innovation in the use of information and technology.

FibreCo’s total investment will amount to R5 billion.

The Company envisages the development of a national network stretching over 12,000 km. Phase 1 involves linking up Johannesburg, Cape Town and Durban as well as the East and West coast submarine cable landing stations.

Andile Ngcaba, Chairman of FibreCo, said: “This landmark investment will provide affordable, reliable and fast Internet access to ordinary South Africans.”

FibreCo proudly announced that they have awarded the contract to ZTE for the network construction and supply of technology equipment. ZTE is China’s largest publicly listed global provider of telecommunications equipment and network solutions. Work on the initial leg of Phase 1 is already underway, which is a 1,900 km link between Johannesburg and Cape Town via the Free State and Eastern Cape valued at R1 billion.

FibreCo has also signed capacity purchase agreements with its first 3 clients for the Johannesburg-Cape Town route, namely BT, Cell C and Internet Solutions, allowing them ownership of fibre infrastructure and the ability to build bespoke optical transmission networks.

Arif Hussain, CEO of FibreCo, commented: “We are delighted to welcome BT, a client with a truly global brand, to the FibreCo network alongside Cell C and Internet Solutions, who have been valued partners since inception. On the strength of these contracts, coupled with the financial backing of our shareholders, we have secured the necessary funding”.

FibreCo Press Release

Article from ITWeb

Article from MyBroadband

Article from TechCentral

Convergence Partners’ investee company, Internet Solutions, is making moves towards an enhanced sustainable data centre model, with the development of its new Tier3 facility in Johannesburg, scheduled for completion in Q4 of 2011. This is the first African facility of its kind to be designed and equipped with the world-class KyotoCooling technology solution for efficient and reliable autonomous cooling for data centres.

This improvement results in a 93% saving on cooling costs and 41% saving on power bills. “The KyotoCooling Cells allow Internet Solutions to offer its clients a greener, more cost effective data centre than anything seen before. We anticipate KyotoCooling will reduce the costs required to power a rack for clients by up to 40%, which we will pass directly onto our clients,” said Greg Montjoie, executive for Cloud Services at Internet Solutions.

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