Over the years, I have found Dimension Data to be a provocative company, operating as it does with a refreshing "can do" machismo backed by actions as well as profits.
I began following Dimension Data nearly 10 years ago when the company focused on deploying Cisco networking and communications gear. In time, it expanded to sell and support Microsoft Lync and Avaya UC offerings, including Avaya Contact Center. Today, Dimension Data is a global leader in the provisioning and management of specialist IT infrastructure solutions services. Following a $3.2 billion acquisition, it became a wholly owned subsidiary of NTT in October 2010.
To hear the latest from Dimension Data, I attended the annual analyst meeting the company held last month. Here are some of the highlights.
Growth
Two years ago, Dimension Data set a target of doubling its revenue by 2018 through internal growth as well as by M&A activity. The company reports it is on track to achieve this goal, having grown by 48% over the past 24 months. Half of this growth has come organically, while acquisitions account for the other half. By 2018, Dimension Data plans to be approximately $12 billion in size, up from $6.8 billion today.
Focus Areas
Dimension Data focuses on five core product areas, as shown below. 
Supporting the rest of Dimension Data's technology stack is security, upon which its large networking business is built. Riding over this security and networking foundation are its communications, data center, and end-user computing products and services. No Jitter readers should be generally familiar with Dimension Data's communications products, which include those for UC&C and contact center. However, Dimension Data's data center and end-user computing solutions likely need more explanation.
In addition to Dimension Data, NTT has a multibillion-dollar communications services subsidiary called NTT Communications and a huge global IT services provider, NTT Data. In recent years, these three companies have been combining resources, when appropriate, to create a global service offering that involves more than 25 data centers globally connected by NTT's data backbone. Each of these three companies may be involved when bidding for contracts. In one case study shown at the analyst event, Dimension Data hosted a number of applications in NTT Data's data centers, with management services coming from both Dimension Data and NTT Communications.
Through the acquisition of Australia-based Oakton, which sells ERP consulting and implementation services, Dimension Data increased its presence in the ERP business, and it is one of the few providers approved to run SAP's software in the cloud. In addition, a Deloitte and Dimension Data partnership gives Deloitte's consulting arm the ability to recommend and implement customer SAP applications based on Dimension Data's cloud.
More on the NTT Relationship
Analysts often ask Dimension Data about its relationship with NTT and whether any synergies are really developing. While one would expect anything said in public to have a positive spin, it appears clear that NTT's investment and its capabilities far exceeds what Dimension Data could have done on its own were it to have remained a publicly traded company. This includes funds for acquisitions, as well as investment in cloud services capabilities along with cooperative agreements with other NTT-owned companies.
The Tour de France Sponsorship
Dimension Data realizes that in spite of its size, it is still relatively unknown throughout the world. In an effort to grow its global brand awareness, it has signed a five-year partnership agreement with the Amaury Sport Organisation, which owns the Tour de France cycling race. As a technology partner of the Tour de France, Dimension Data says it aims to showcase its ability to deliver digital business transformation -- particularly in the arenas of digitization, cloud, mobility, security, and data analytics.
In 2015 Dimension Data will establish a cloud-hosted big-data analytics and digital delivery platform that it says will take cycling fans into the heart of the race. In the following four years, it will continue to extend and enhance the platform to deliver a range of innovative end-user experiences intended to transform the world of professional cycling and amateur engagement. (Click here to get a sense for how real-time cycling sensor and video data is collected using an "HF Long Distance System" consisting of sensors, helicopters, airplanes, mobile data centers, and satellites.)
Tour de France video feeds and websites will feature Dimension Data branding such that the company expects to become a recognized global technology brand in short order. More than three billion viewers in 190 countrie follow the Tour de France and other ASO cycling events.
Dimension Data's Focus on Cloud
Dimension Data and its sister companies have invested heavily in cloud systems and services. The company claims it has the second-largest global cloud capability of any entity in the world.
Dimension Data has been involved with cloud for a number of years, but the company's cloud focus accelerated significantly following the NTT acquisition and most recently with the inclusion of its Managed Cloud Platform as the public component of the Cisco InterCloud Fabric. Cisco also resells Dimension Data's cloud services to Cisco partners; this enables the partners to offer cloud services to their clients without the expense or complexity of becoming a cloud service provider themselves.
The leadership at Dimension Data is committed to cloud, and so is NTT. In fact, the company's progress in IT as a service, and the resulting revenue, will determine a significant portion of compensation for Dimension Data executives. Consequently, cloud was a heavy focus at this analyst event, whereas UC and networking, while still important, were not emphasized. In fact, Dimension Data's goal is to have 60% of its global revenues derived from cloud services by 2018.
Dimension Data's Position with Partners
Dimension Data has a strong portfolio of products and services, which it is continually expanding. Some years ago, we almost exclusively heard about Dimension Data's partnership with Cisco and, therefore, its products, but the company has broadened its portfolio substantially. The slide below shows for which partners Dimension Data is generally the No. 1 or No. 2 global reseller.
Conclusion
Dimension Data is on a roll, with rapidly increasing revenues and a focus on cloud services of all types.
Company executives are engaging, accessible, and easy to talk to, I've found. While Dimension Data has this air of "can do" associated with some of its South African and Australian heritage, I also found a sense of humility and a willingness to learn and be influenced by the executive team at all levels.
I give Dimension Data high marks with respect to its strategy and its go-to-market plans. Look for this company to become much more known and respected as a global IT services company in the coming years.
Author's note: KelCor has not been compensated for preparing this article.
