Dimension Data says that it will retire its brands Britehouse, Internet Solutions and ContinuitySA in a move that will result in the group operating under one name. This will reduce the duplication it is experiencing within its subsidiaries, via Business Day.
Headed by CEO, Grant Bodley, the Johannesburg-based technology group is made up of four business units – namely: the traditional “Dimension Data” systems integrator business, call centre unit Merchants, digital solutions unit Britehouse and Internet service provider Internet Solutions. It also recently launched a new cybersecurity subsidiary, Dimension Data Security.
From 1 April 2020, Dimension Data – which has 15,000 employees across 15 countries – will begin its process to “create an operating model that will enable it to execute on its strategy and better serve its clients, employees and the communities in which they operate,” the company says.
Bodley says that the consolidation of the company’s brands is something that has been asked by employees and customers, adding simply “We felt the timing was right.”
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One of the main reasons for this move is to completely remove the duplication of services, products, and capabilities, says Bodley. Dimension Data Systems Integration and Internet Solutions both offer similar services and products such as networking and data centres. The duplication of services would cause unnecessary competition internally.
Different business units would be in line to bid for the same business thus causing clients frustration when wanted to deal with one company or point of contact.
The move will also reduce the costs around operating multiple brands, and the group also hopes the move will help grow its business locally at a time when tech businesses, such as EOH and Adapt It, have fared poorly because of the slowing economy and governance issues.
Once considered one of the largest tech companies on the JSE with a market capitalisation of $4 billion at its highest peak in September 2000. In 2010, the company delisted from the exchange after it was bought by Japanese tech firm Nippon Telegraph & Telephone (NTT) for $2.7 billion.
Currently, Dimension Data’s management is in advanced talks to buy the company back from NTT. Bodley simply comments that NTT will “always be a shareholder” and their company was “open to all suggestions.”
SA has been performing poorly over the past five years for the company, even with Dimension Data growing its market share. Bodley hopes that the restructuring will allow the company to stimulate its local business.
The group is still deciding what to do with its Merchant and Mweb brands. Mweb, the company’s ISP brand, could undergo a name change to “Dimension Data Home.” In the short term though, these brands are likely to remain unchanged.
Edited by Luis Monzon
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