Japan’s NTT InfraNet Selects Amdocs to Modernize its IT Operations Systems and Migrate them to the Cloud
Amdocs (NASDAQ: DOX) announces a cloud transformation and managed services agreement with NTT Infrastructure Network Corporation, a Japanese information and communication infrastructure specialist in the NTT Group. The agreement involves modernizing and migrating NTT InfraNet's IT operations systems to the cloud, aiming to drive efficiency, introduce cost savings, and enhance business capabilities. Amdocs will provide a comprehensive cloud platform, migrate legacy IT systems to the cloud, and provide cloud security and operations services. The collaboration aims to strengthen core businesses, reduce IT operations costs, gain development agility, improve security, and foster better visibility. Amdocs will showcase its ongoing innovation at the Mobile World Congress Barcelona, February 26-29, 2024.
Cloud adoption is a strategic move for companies seeking operational efficiency and cost savings. NTT InfraNet's migration to the cloud, facilitated by Amdocs, represents a significant investment in technology that is likely to improve its competitive edge. The shift to a more flexible and scalable infrastructure can potentially reduce capital expenditure and lead to better resource allocation. This transition is expected to streamline operations, which can result in increased productivity and faster time-to-market for new services.
However, the success of such a transformation depends on the seamless integration of new cloud services with existing systems and the ability to maintain uninterrupted operations during the migration. Investors should monitor the progress of the implementation and any reported cost savings or productivity gains, as these will be critical indicators of the project's success and its impact on the company's bottom line.
The agreement between Amdocs and NTT InfraNet is not only a revenue-generating opportunity for Amdocs but also a cost optimization strategy for NTT InfraNet. By leveraging Amdocs' expertise, NTT InfraNet is likely to achieve significant cost savings through reduced IT operational expenses. This is expected to have a positive effect on their profit margins over time. For Amdocs, the deal could enhance its market position and demonstrate its capability in managing large-scale cloud transformations, potentially attracting more clients.
Investors should consider the long-term financial implications of such agreements. While initial costs of migration can be substantial, the return on investment through operational savings and improved business agility may justify the expenditure. The deal's impact on Amdocs' revenue growth will depend on the project's scope and the duration of the service agreement.
The partnership highlights the ongoing trend of digital transformation within the infrastructure and communications sector. Cloud migration is a complex process, particularly for established companies with legacy systems. Amdocs' role in providing not only the cloud platform but also security and operations services is crucial. The use of automated cloud management capabilities is indicative of the industry's move towards more sophisticated, AI-driven solutions.
NTT InfraNet's optimization of its vendor ecosystem as a result of this agreement suggests a strategic pivot towards operational agility. This can be a key differentiator in the market, allowing the company to rapidly adapt to changing customer demands and technological advancements. The industry-wide implications of such transformations are substantial, as they pressure competitors to also adopt cloud technologies or risk falling behind.
02/06/2024 - 04:15 PM
Under a cloud transformation and managed services agreement, which involves the migration of NTT InfraNet's IT operations systems to the cloud, the Japanese infrastructure specialist will be able to drive efficiency, introduce cost savings and enhance its business capabilities
JERSEY CITY, NJ / ACCESSWIRE / February 6, 2024 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today announced that it has signed a managed services agreement with NTT Infrastructure Network Corporation (NTT InfraNet), a Japanese information and communication infrastructure specialist in the NTT Group, to modernize and migrate its IT operations systems to the cloud. The modernization program will enable NTT InfraNet to make significant cost savings, increase productivity, positioning it to be future-ready and equipped with enhanced business capabilities.
As part of the agreement, Amdocs will provide a comprehensive cloud platform, migrate NTT InfraNet's legacy IT systems to the cloud, and provide cloud security and operations services using the highly automated cloud management capabilities. The transformation journey will also help NTT InfraNet optimize its vendor ecosystem, providing the company with greater flexibility and capacity to support future growth.
"Moving to the cloud aligns with our vision of strengthening core businesses and creating new ones. This will also help us reduce IT operations costs, gain development agility, improve security and foster better visibility," said Takashi Kato,Member of the Board - NTT InfraNet. "With this collaboration with Amdocs, we aim to transform our operational landscape and build a cost-effective streamlined vendor ecosystem."
"We are thrilled to extend our relationship with NTT Infranet as they evolve their business and build a future-ready infrastructure," said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs. "By designing a cloud strategy based on their unique needs and adopting industry-tailored GenAI capabilities, NTT Infranet will be able to operate more efficiently and deliver better experiences for their customers."
Amdocs will showcase its ongoing innovation at the Mobile World Congress Barcelona, February 26-29, 2024.
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About Amdocs
Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers' innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and enterprise customers. Our approximately 29,000 employees around the globe are here to accelerate service providers' migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.89 billion in fiscal 2023. For more information, visit www.amdocs.com
Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macro-economic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other global or regional events such as the recent attacks in Israel and evolving conflict and the COVID-19 pandemic, as well as the current inflationary environment, and the effects of these conditions on the company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the company's customers, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the company's offerings and operations and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2023 filed on December 13, 2023.
Media Contacts
Swati Sharmaswati.sharma4@amdocs.com
SOURCE: Amdocs Management Limited
press release on accesswire.com
What is the nature of the agreement between Amdocs and NTT Infrastructure Network Corporation?
The agreement involves modernizing and migrating NTT InfraNet's IT operations systems to the cloud, aiming to drive efficiency, introduce cost savings, and enhance business capabilities.
What services will Amdocs provide as part of the agreement?
Amdocs will provide a comprehensive cloud platform, migrate NTT InfraNet's legacy IT systems to the cloud, and provide cloud security and operations services.
What are the expected benefits for NTT Infrastructure Network Corporation from this collaboration?
The collaboration aims to strengthen core businesses, reduce IT operations costs, gain development agility, improve security, and foster better visibility.
When will Amdocs showcase its ongoing innovation?
Amdocs will showcase its ongoing innovation at the Mobile World Congress Barcelona, February 26-29, 2024.
