NTT Communications Cloud Revenue up 17.9%; Total Group Revenue DOWN 1.5%; SDN Enterprise Cloud Expands

Japan’s NTT Communications posted a 12%  jump in profit for the year ending in March, as subsidiary NTT DoCoMo announced  a management shake-up.

NTT Com recorded a full-year net profit of  65.3 billion yen ($643.1 million). But group operating revenues fell 1.5% to  1.19 trillion yen. Total data networks revenue fell 0.7% to  427 billion yen, and group voice revenues slumped 9.1% to 320 billion yen.  

NTT Com posted strong gains in  cloud platform revenue (up 17.9% to 99 billion yen), as well as applications  and content revenue (up 4.9% to 108 billion yen.).  The company made progress with its plan of  leveraging its expertise as a telecom operator to become a one-stop ICT  outsourcing shop. As of the end of the year, NTT Com had  global data centers in 144 locations, and was  offering its Enterprise Cloud services in nine countries.

NTT Data’s revenues and operating income went up due to an increase in the number of consolidated subsidiaries. Mobile unit NTT Docomo saw revenues increase on higher handset sales and and new areas of revenues, but operating income decreased. At NTT Communications, operating revenues continued to fall but operating income reose on cost reductions.

NTT group ended the period with 17.30 million customers for its fibre optic service called Flet’s Hikari after adding 740,000 new subscribers in the year. The company aims to attract 1 million new subscribers this year. The company also had 15.17 million Hikari Denwa customers after adding 1.27 million new customers for the optical IP telephone service and the ADSL customer base continued to contract to 1.85 million. The company’s mobile unit, NTT Docomo, ended the quarter with 61.54 million subscribers, which includes 11.57 million Xi (LTE) customers. NTT also had 4.19 million TV subscribers, comprising 3 million.

Looking ahead to the current financial  year, NTT Com warned that with Japan’s economy still struggling and the global  economic slowdown continuing, “the future direction of the domestic economy  remains uncertain.”  But the company is still predicting a 2.5%  increase in group operating revenues for the year to 1.225 trillion yen.

Separately, domestic subsidiary NTT DoCoMo announced significant proposed changes to its management team.

As the first service provider in the world to embrace SDN and the OpenFlow communications interface, NTT Com launched its SDN-based Enterprise Cloud in June 2012 via data centers in Japan and Hong Kong.  With the addition of data centers in Singapore, England, and Virginia and California in the United States, the Enterprise Cloud became available on a global basis in February 2013.  Within this spring, NTT Com’s Enterprise Cloud will include SDN in eight countries and ten locations.  Clients have used the self-manageable Enterprise Cloud platform to flexibly extend their own data centers, gaining cost-optimized and secure compute capacity as a result.

“NTT Communications’ Enterprise Cloud is gaining traction in several sectors, especially among global manufacturers looking to consolidate systems and assets,” said Mr. Yukio Ito, Senior Vice President of Service Infrastructure at NTT Com. “Global enterprises continue to look to NTT Com as a partner of choice for real-world cloud transformation, relying on our foundation of advisory, migration, operational and management services.”

“Successful enterprise clouds will need to provide flexible connectivity at a speed and price point that mirrors the rapid and low-cost delivery of virtual machines,” said Caroline Chappell, Senior Analyst, Heavy Reading, a division of UBM Tech.  “Current approaches to data center networking don’t scale and are expensive because of the level of manual configuration involved.  NTT Com’s early adoption of SDN gives it the opportunity to transform customer experience of cloud services, as well as the operational costs associated with running them.  NTT Com is therefore in a strong position to lead the global market for cloud services going forward.” and–942826