NTT: Global Management & Data Center Business

The consolidated financial results for the first quarter of fiscal 2023 (2023/4/6) announced by the NTT DATA Group on the 8th were sales up 49.8% from the same period last year to 1.14.9 billion yen, order volume increased 60.3% to 998.3 billion yen, operating profit increased 1.4% to 58.3 billion yen, profit before income taxes fell 18.1% to 48.2 billion yen, and net profit fell 30.4% to 27.6 billion yen. Sales and order volume have greatly expanded due to the consolidation of the overseas business NTT Ltd.

“We are actively working to expand our overseas business, and we will shift to a global management system for further business expansion in the future. There is an urgent need to respond quickly to changes in the business environment based on a strategy that assumes a global situation. The holding company will promote the formulation of global strategies, the creation of global synergies, and the strengthening of global governance.” “There must be no division loss in domestic business. Providing services to customers is the starting point, and we are proceeding with our business without impairing domestic mobility. Business integration and structural reforms are progressing smoothly, and we will proceed with initiatives for medium-term growth.”

What I cited as an example of a collaboration proposal was a case of a major multinational corporation.

“I would like to create further synergies by continuing to promote overseas business integration and promoting a new operating model from 2024,” he said.

The NTT DATA Group has become the 3rd largest global data center operator in the world due to the integration of overseas businesses, and “the data center market is expected to have a high growth rate, and inquiries are also strong. The policy is to seize the data center business as a medium- to long-term revenue source, position it as an important pillar of the business foundation, and proceed with aggressive investment in the future.”

An investment of about 350 billion yen is also planned for fiscal 2023, and it is said that they aim for business growth equal to or greater than the growth rate of the overall market.

NTT DATA has set up more than 100 data centers in approximately 30 cities around the world, and has secured robust facilities to provide for hyperscalers and enterprises, and an environment boasting abundant power supply. It is said that growth strategies according to the characteristics and regulations of each region have been set, and investment expansion and business expansion are being promoted. In fiscal 2023, we plan to complete more than 10 data centers in India, Germany, Malaysia, and the United States.

About generative AII also mentioned it.

Vice President Nakayama said, “We anticipate that the use of generative AI will have an impact on the business. In addition to improving efficiency by utilizing it for coding during system development, we expect that added value will be increased by incorporating it into services provided to customers.”

“The strength of the NTT DATA Group is that it can provide an optimal combination of various large-scale language models through strategic collaboration with partners. In the future, we believe that the need for small, secure, large-scale language models, such as enterprise-specific and specialized ones, will increase, and we will build them while utilizing the NTT Group's research results. Also, with enterprise-specific AI, etc., there will be a need to place data within one's own country. We expect that the use of the NTT DATA Group's data centers will also expand.”