NTT Com Security sales staff to transfer to Didata and other NTT firms

NTT Com Security executives tell CRN the creation of NTT Security brand is a 'build not a burn'

NTT Com Security's sales staff will soon be working for Dimension Data and other NTT operating companies, the security services firm has confirmed as it opened up over an impending group reorganisation.

Japanese telco NTT yesterday announced that NTT Com Security will be folded into a new brand, NTT Security, which will go live on 1 August.

The combined outfit will initially have 1,300 staff, including 840 from NTT Com Security, but headcount will fall to 1,100 once its sales staff are relocated to NTT's three operating companies - Dimension Data, NTT Communications and NTT Data - who will act as the front end of the new brand.

The other two entities being integrated into NTT Security are US managed security firm Solutionary and Earthwave, an Australia-based managed security platform Dimension Data acquired in 2013.

Gavin Bradbury, senior vice president of global marketing at NTT Com Security, said his firm and others in the group were being "marked down" for not providing a joined-up approach to security.

The completion of a compulsory squeeze-out of NTT Com Security shareholders last week cleared the path for NTT to finally integrate its various security assets, Bradbury explained.

"The premise is that a lot of our customers - and customers of Solutionary and the other operating companies - have been saying they want one point of contact for all their NTT/IT needs," he said.

"That has been borne out with a lot of conversations we've had with tier-one analysts - we do get marked down for being separate security entities so [the creation of NTT Security] looks to seamlessly move both our customers and go-to-market sales capabilities to those operating companies."

Relocation of sales staff

Solutionary will contribute 340 staff to the new entity, alongside 55 staff from Earthwave, bringing NTT Security's initial headcount to above 1,300.

Bradbury said this will eventually drop to 1,100 as roughly 200 sales staff are relocated to the three operating companies.

"If you look at the various labour laws and TUPE etc, we need to do it right. Some countries will be easier and others will take a bit more time," Bradbury said. "The plan is to do this as soon as possible, as long as it works for the customer. The new company will be formed on 1 August but we are not going to rush this. We will be working with our customers and operating companies - as well as our salespeople who are currently with us but who will be transferred in due course - to make sure this syncs up."

There are no plans to close any offices or lay off staff, Bradbury said, adding that the intention is to increase consulting headcount at the new entity.

Before too long, the managed security services platforms of other group companies, including Dimension Data, will be fed into NTT Security, he confirmed.

"This is a build; it's not a burn," Bradbury said. "We still have dozens if not scores of vacancies."

The perception at least in some quarters is that NTT Com Security and Dimension Data can sometimes still butt heads in the security market, despite having been under NTT ownership since 2009 and 2010 respectively.

Garry Sidaway, senior vice president of security strategy and alliances at NTT Com Security (pictured), argued that the advent of NTT Security would improve vendor alignment.

"This is a primary reason why we are doing this - to make sure those relations are consistent across the group, so that who owns and maintains the relationship is clear and we have one voice from a vendor point of view," he said.

"From an NTT Security perspective, we remain the [vendor] partners' point of excellence. We will continue to invest in our technologies from both a consulting and managed services perspective. But the volume purchasing will come through the appropriate operating company."

Despite having bought NTT Com Security - then Integralis - in 2009, NTT snaffled a 100 per cent stake in the Germany-based security integrator only last week, when a compulsory squeeze-out was concluded.

Revenues for NTT Com Security's fiscal first half ending 30 September rose 13 per cent to €143.1m (£111.4m) year on year, with €50.3m of that coming from technology sales, €38.1m from support services, €23m from managed security services and €26.3m from consultancy and related services.

However, net losses for the period widened year on year to €9.95m.

Bradbury said recent losses reflect the fact NTT Com Security has been "over-investing for the future", knowing it would soon be integrated with other companies in the group. NTT Com Security first hinted such a move was on the cards back in 2014.

"This has been coming for some time; it's just taken a long time. The squeeze-out has been the catalyst for moving as quickly as we're trying to go now," he explained.