Netband, Japan's CTC agree system-integrator joint venture
Netband Consulting has entered a joint venture with giant Japanese system integrator CTC as the latter expands its business base in Thailand, with an eye to using the JV model to move into the United States as the next step.
Netband, a Thai system integrator, expects to generate revenue of Bt520 million this year and Bt2 billion in the next five years.
Narong Intanate, founder and president of Vnet Capital, the holding company of Netband, said CTC would purchase 45 per cent of Netband. Vnet Capital will hold the other 55 per cent, but declined to disclose the investment values.
Under the deal, CTC will transfer know-how to its local partner so that Netband can expand into information-technology infrastructure and support business services in Thailand including virtualisation, cloud computing, mobile-device network management and disaster recovery.
INDOCHINA
“We believe that the partnership with CTC will help transform Netband into an advanced IT infrastructure systems integrator with cutting-edge solutions. The joint venture will also allow Vnet to expand into Indochina under the Asean Economic Community,” Narong said.
Netband expects to be a top-five system integrator in Thailand within five years, reaching revenue of about Bt2 billion, up from a targeted Bt520 million this year.
Yoichi Okuda, president and chief executive officer of CTC, a top-three system integrator in Japan, said this was the first time it had expanded its business base outside its home country.
The company believes that Thailand offers high growth potential in this business, as the IT market is set to expand quickly, at about 13-14 per cent a year.
Meanwhile, the IT market in Japan is flat, growing at about 2.8 per cent. It is time to expand outside Japan, he said.
