Dimension Data eyeing expansion into Argentina

Wednesday, November 30, 2011

South African IT services provider Dimension Data plans to open up offices in Argentina in the short term as the company continues to pursue growth opportunities, particularly in cloud computing, Sylvio Mode, the company's senior VP and managing director for Latin America, told BNamericas.

The executive said Dimension Data's expansion plans in Latin America have been going well, following the acquisition in April 2010 of 51% in Chilean integrator Magenta, bringing the total number of Latin American offices to three along with Mexico and Brazil. He could not provide a timeframe for opening the next office but said that Argentina was the obvious next choice.

Mode said Dimension Data planned to continue expanding into new countries inorganically but also to grow organically in the countries where it currently has a presence and where the company sees significant opportunities in areas like mining.

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"It is part of our DNA to grow through acquisitions. We have a culture of maximum respect for the local touch. For that reason, when we acquire companies, we preserve the staff, the sales team, etc, because they're the ones responsible for making that company successful in the first place," Mode said. "Then we add on some global offerings."

Dimension Data's main revenues still come from its core offering of network implementation, the executive said, adding that company is pursuing opportunities in Brazil to wire sports stadiums for the World Cup in 2014 and Olympics in 2016, as it did with the soccer stadiums in South Africa for the World Cup in 2010.

Second in importance in terms of revenues is the area of collaboration, telepresence and call centers. Thirdly is cloud computing and virtualization - emerging areas where Dimension Data sees most potential growth.

In July, Dimension Data announced that it had acquired cloud and managed hosting solutions provider OpSource to enhance its cloud computing offering. The company had previously made a similar acquisition of Asia's OneCloud.

Mode said Dimension Data buys and implements hardware and then monitors it post installation. Among the company's strong points is the fact that it works with multiple brands to ensure that it provides best of breed products.

Alberto Mordojovich, country manager for Dimension Data Chile, underscored the importance of Dimension Data's acquisition by Japanese telecoms giant NTT Holdings, which will help add value and a global scale to where Dimension Data wants to go.

"This gives us strength in terms of support and a global presence. NTT didn't have a very strong presence outside Japan but is a company with many different technological solutions. The challenge was to get them out of Japan," Mordojovich said.

The global presence will allow Dimension Data to "follow the sun" in providing services round the clock.

Areas of growth where NTT can help Dimension Data in Chile include mining projects and astronomy projects, given that Chile is building a series of telescopes that require very high levels of network capacity for transferring large volumes of data.