A few weeks ago, I wrote here about the revolutionary IOWN project from Japanese technology group NTT $9432 (+0,1%) wrote here. As the company, despite its size, is hardly present on this platform, I wanted to report again today on a new interesting development.
Similar to Siemens, NTT has also spun off certain business units, including NTT Data $9613 (-0,41%). Today, NTT still holds around 58% of NTT Data and now wants to buy up the remaining shares for around $16.5 billion.
NTT Data:
Sales - € 29 billion
EBITDA - € 4 billion
Profit - € 1 billion
Market capitalization - € 34 billion
Main business segment - IT Consulting
At first glance, it doesn't seem very attractive, does it? But what makes the merger of the parent company and subsidiary so interesting?
The takeover and complete merger is intended to increase global competitiveness and enable vertical integration in the field of AI infrastructure. The NTT Global Data Center segment is currently subordinate to NTT Data. With 150 data centers in more than 20 countries, NTT GDC is the world's third-largest provider of data centers. A further $10 billion is to be invested by 2027, with a further 1 GW of capacity to be added (370 MW was added last year alone). There are new projects in Milan and Tochigi, for example, while existing data centers in Arizona, Frankfurt and London, among others, are to be expanded.
"Taking NTT Data private accelerates our ability to deliver integrated, AI-powered solutions across our entire platform," (statement from NTT).
NTT is positioning itself as a central player in the field of AI infrastructure. It will be combined:
-NTT's leading role in communications infrastructure and networks
-Opportunities from the IOWN project (see previous article)
-NTT's cloud, robotics, AI and other competencies
-NTT GDC's rapidly growing portfolio of data centers
-NTT Data's IT Consulting segment (implementation of AI and digitalization)
-NTT Data's AI services (including partnership with OpenAI)
-Financial resources, employees and R&D
...
In the future, IT consulting, AI services, data center capacities and connectivity solutions can be offered from a single source, with correspondingly more efficient integration and resulting synergies between the individual areas. The demand for everything is growing and NTT is well positioned to benefit from these developments.
Only a short post this time, but it's enough for a brief overview!!! :)
