NTT Data snaps up Dell's IT services arm for $3.06bn

Deal allows Japanese telecom to expand IT services reach

NTT Data, the IT consulting unit of the giant Japanese telecom firm, has bought Dell's professional services business for $3.06 billion (£2.14bn), the two parties have announced.

While the deal fell somewhat short of Dell's $3.6bn reported asking price for the unit, it still dents the vendor's expected $49bn debt load from its proposed $67bn EMC buyout expected to close later this year.

The big gain for NTT Data is ownership of Dell's customer list, spanning a variety of vertical markets, such as healthcare, banking and financial services and public sector organisations. The customer list alone gives NTT Data a strong foundation to expand the reach of its IT services business beyond its native Japan.

Tied to the customer list, of course, is Dell Services' portfolio of infrastructure, cloud and application services, as well as business process outsourcing capabilities. And NTT will absorb about 28,000 Dell Services employees housed primarily in North America and India.

Dell Services' datacentres in the US, UK and Australia will be transferred to NTT's 230 datacentre lineup worldwide.

For channel partners, Dell's offloading of its IT services business opens new sales opportunities, in particular for MSPs, to challenge for services engagements formerly commanded by the vendor.

Earlier this month, word surfaced that NTT and Dell were engaged in late-stage negotiations for the former Perot Systems operation the PC vendor purchased in 2009 for $3.9bn. Reports indicated that Dell's $5bn initial asking price for the services unit had snagged earlier talks.

Dell's Quest Software and its SonicWall business may also be on the selling block as the company looks to further reduce its debt from the impending EMC deal.