VAN and VPN operator OmniLink and corporate ISP The Internet Solution (IS) are merging in a bid by Dimension Data, holding company of the two, to better focus the services provided by the two in a market that it says has been diluted.
In a statement, Linx Holdings, of which OmniLink is a subsidiary, says, "Both IS and OnmiLink have developed offerings to meet [the demand for and extent of value-added services]. In fact, in some instances, both companies have independently developed similar service. This is ... a waste of scarce resources."
Peter Hird, MD of Linx Holdings and the man tipped as heading up the new operation, says, "We`re very mindful of the fact that we cannot merge the networks, as that would be a regulatory breach. What we`re doing is more joining forces in the areas of hosting and remote access. There could be incredible consolidation if we could [merge the networks], but the benefits that will stem from the merger are limited because of the regulated telecommunications society we operate in."
OmniLink`s staff complement will relocate from the Dimension Data Oval in Bryanston to the IS offices in Rosebank.
Hird says that while the greater considerations of the merger are still largely in the planning phase, consolidation of staff and skills has already begun. He is positive in his outlook, foreseeing neither staff cutbacks nor the possibility of a clash in corporate cultures.
Old Mutual and Nedcor, who with Dimension Data jointly established Linx Holdings three years ago, will "probably be indicating their intentions to use [the merged company] to provide better services to their clients," according to Hird.
While the new company remains unnamed as yet, smaller companies that will be spun off may trade with the well known Dimension Data branding. Hird confirms that OmniLink will retain most of its branding due to various regulatory issues, but it remains to be seen what is to become with the IS name.
The services to be offered include Internet access, managed network services, hosting, remote access, network security, business gateway services and IP telephony services.
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