GTT acquisitions 'very balanced' globally as provider boosts security, cloud capabilities, CEO says

GTT CEO Richard Calder. (Image source: GTT)

GTT has been building out its service portfolio via targeted acquisitions, enhancing its voice and broadband data capabilities for large multinational businesses, but the service provider says these customers are demanding more security services to get in front of growing cyber threats.  

CEO Rick Calder told investors during a second quarter earnings call that while it could not reveal any specific acquisition targets, the service provider is looking for ways to enhance its managed security offerings.

“I would say that the element that we've seen and the most increase in demand as we continue to grow is all around security,” Calder said during the earnings call, according to a Seeking Alpha earnings transcript. “And that while we have a very deep multi-tiered offering in the security space, there are always incremental things that we continue to look at with respect to bolstering that part of our managed service portfolio.”

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Security is just one part of the service portfolio enhancement. GTT is also looking for ways to improve its cloud service offerings inside and outside of the United States.

“We also continue to expand the scope and nature of the cloud services connectivity we provide to our clients, as multinational clients are now accelerating their movement of IT applications outside the four corners of their enterprise into cloud service providers,” Calder said. “Having a neutral cloud networking partner like GTT is a tremendous advantage for them, as they look to get connectivity to cloud services anywhere in world on secure private EtherCloud networks.”

Calder added that “if we go back to our acquisitions just a few years ago, we're very balanced between acquisitions in the U.S. and acquisitions outside the U.S.”

While GTT has been building product sets on its own, it’s clear that acquisitions have enabled it to better serve particular segments like voice. By purchasing One Source Networks last year, GTT was able to gain new capabilities like SIP trunking, for example.

“We have seen, particularly after the OSN acquisition, some very significant uptick in the cross-selling of voice,” Calder said. “We historically had not been in the voice business really until 2015 and now we've seen some real nice uptick in the cross-selling of voice services, both SIP trunking and hosted seats, which are natural add-on products to many of our core EtherCloud and IP service customers.”

Interestingly, the service provider is also finding opportunities to sell its MNC customers broadband connections, particularly at their smaller satellite office locations. In a typical configuration, GTT will sell large Ethernet and MPLS circuits at an MNC’s headquarter location and then equip the other offices with lower speed DSL or cable connections it can purchase from a local cable company or telco.

“We’re seeing cross-selling broadband because many of our large high-capacity clients have unique needs for smaller-capacity broadband internet services in many of their locations,” Calder said. “We've also seen cross-selling in some of our more traditional customers who've only brought broadband services to buy high-capacity Internet and large EtherCloud connection.”

For more:
- read the Seeking Alpha earnings transcript (sub. req.)

Related articles:
GTT, AT&T sign IP network interconnection agreement
GTT acquires Telnes Broadband for $18M, accelerates channel sales reach
GTT restructures debt, sets focus on growth via acquisitions, organic builds
GTT acquires One Source Networks for $175M to scale SIP trunking, managed service capabilities

 

Suggested Articles

Expect a full dose of Kubernetes at next week's VMworld conference in San Francisco, according to VMware CEO Pat Gelsinger.

If there is indeed a global recession in the offing, no one has told the top cloud and colocation providers.

On the same day as its second quarter earnings, VMware announced it's buying Carbon Black and Pivotal for a combined value of $4.8 billion.