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NTT Communications paid $5.5 billion for U.S. Web hosting firm, Verio

Monday, August 31, 2009, 11:01
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“It took us time to leverage that [acquisition],” admits Kazuhiro Gomi, CTO and COO of NTT America, who in 2004 moved to the U.S. from the company’s Tokyo headquarters to help better integrate Verio. Now NTT Communications is looking to make further changes and Gomi, who added the COO role to his responsibilities in June this year, will be one of the people to push them through.

Like many operators, NTT Com has not had its easiest year.

NTT’s international networking and IT services arm reported that total operating revenues fell 2.3% to 267.57 billion yen ($2.86 billion) for the three months to 30 June, compared with the same period in 2008. The company still sources most of its revenues domestically, with its largest affiliate, NTT America, generating approximately $300 million in annual revenues. But NTT Communications is busy shaking up its overseas businesses in an effort to generate greater international income. At the end of June NTT Europe purchased German managed IT security services company, Integralis AG, for approximately €75 million in cash. This acquisition followed the addition of points of presence (PoPs) in Brussels, Russia and India earlier this year. NTT America, meanwhile, has created a new entity – its Enterprise Solutions Business Unit (ESBU) – that ties together sales and customer support for its global private network services and enterprise hosting businesses.

“When we looked at the customer base we knew there were lots of overlaps between private line and enterprise hosting and there were some inefficiencies,” says Gomi.

For example, the company was “not able to seamlessly support [both] hosting and network…we’re working on that,” explains Gomi. “There are no new products in that notion, but a better customer experience. That’s where we’re at… [currently, with]…

NTT Communications paid $5.5 billion for U.S. Web hosting firm, Verio, just months before the dotcom crash. The Japanese operator struggled to make a go of Verio, which in addition to operating a tier-one Internet backbone in the U.S. also came with a business of hosting Web pages for SMEs.It took us time to leverage that [acquisition],” admits Kazuhiro Gomi, CTO and COO of NTT America, who in 2004 moved to the U.S. from the company’s Tokyo headquarters to help better integrate Verio. Now NTT Communications is looking to make further changes and Gomi, who added the COO role to his responsibilities in June this year, will be one of the people to push them through.Like many operators, NTT Com has not had its easiest year.NTT’s international networking and IT services arm reported that total operating revenues fell 2.3% to 267.57 billion yen ($2.86 billion) for the three months to 30 June, compared with the same period in 2008. The company still sources most of its revenues domestically, with its largest affiliate, NTT America, generating approximately $300 million in annual revenues. But NTT Communications is busy shaking up its overseas businesses in an effort to generate greater international income. At the end of June NTT Europe purchased German managed IT security services company, Integralis AG, for approximately €75 million in cash. This acquisition followed the addition of points of presence (PoPs) in Brussels, Russia and India earlier this year. NTT America, meanwhile, has created a new entity – its Enterprise Solutions Business Unit (ESBU) – that ties together sales and customer support for its global private network services and enterprise hosting businesses.”When we looked at the customer base we knew there were lots of overlaps between private line and enterprise hosting and there were some inefficiencies,” says Gomi.For example, the company was “not able to seamlessly support [both] hosting and network…we’re working on that,” explains Gomi. “There are no new products in that notion, but a better customer experience. That’s where we’re at… [currently, with]…

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