Dimension Data Acquires on Xigo En Route to Becoming Full MSP

Dimension Data, an IT solutions and services provider, has acquired the Xigo, a telecom expense management (TEM) solution provider, as part of its broader plan to become a complete managed communications services provider.

According to Dimension Data Group Executive of Global Solutions Steve Joubert, Xigo gives Dimension Data the ability to offer its enterprise customers spend analysis, sourcing, provisioning and invoice processing capabilities. Dimension plans to focus its new TEM offering in the U.S., where Dimension is based and already has a large enterprise customer base. Over time, Dimension plans to expand its TEM offering to other regions.

Dimension has not detailed where it plans to expand its new TEM capabilities next, but we should probably look for such a solution expansion in places like Asia and Australia both regions in which Dimension recently expanded into by acquiring BlueFire and Netforce -- two managed services providers that gave Dimension data a broader regional reach and a larger customer base.

"As clients evolve their networks to address globalization, mobile device proliferation, virtualization and the cloud, Xigo will be instrumental to help them implement the most cost-effective roadmaps are architectures for the internal and external communications," Joubert said in a prepared statement.

There is certainly no  shortage of companies looking for TEM solutions these days as a way to have greater control over their expenses. Gartner Inc. predicts that the TEM market will reach $2 billion by 2015.

En route to becoming a full managed communications service provider, Dimension Data has also launched a managed video services offering to help its customers reduce operational costs and improve the overall user video experience. We'll keep an eye out for Dimension's next move toward its managed services goal.

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