Asia-Pacific carrier Pacnet has announced a strategic plan to transform its business with the aims of accelerating growth and improving profitability, with new CEO Carl Grivner stating a goal of becoming ‘the leading provider of network and technology solutions’ for enterprise and carrier customers in the Asia-Pacific region.
The plan comprises five key strategies: 1.) Focus exclusively on carrier and enterprise customers. 2.) Leverage existing data centre capacity and introduce additional managed services, including ‘IT as a service’ incorporating new facilities such as ‘full data management’, virtual hosting and security products. 3.) Expand the capabilities and reach of Pacnet’s network in China; in line with its intention to focus expansion on markets with the greatest opportunities, Pacnet will commit more capital and resources to its China business, taking further advantage of its existing network and licences in the country, including its domestic IP VPN licence. 4.) Implement a new operating model; restructuring the sales organisation to create two separate divisions – Enterprise Markets and Carrier Services, while forming a dedicated Managed Services unit. 5.) Rationalise the business to free capital for more value added services; the company will divest ‘non-core’ units, beginning in this quarter with an exit from businesses including the residential internet and wholesale voice segments. Pacnet plans to reduce its global workforce in non-strategic areas and by a total of around 30%, thereby lowering annual expenses by approximately USD30 million.
Pacnet, headquartered in Hong Kong and Singapore with offices across Asia and North America, owns 46,000km of fibre connected to its regional data centres.