Cognizant to acquire 3Cloud, accelerating AI-based digital transformation
IT giant Cognizant recently signed an agreement to acquire 3Cloud. This acquisition will strengthen Cognizant’s presence in enterprise AI, data modernization, app innovation, and cloud platform services, especially at a time when companies worldwide are rapidly adopting Azure and generative AI-powered solutions. 3Cloud provides AI-enabled solutions based on Microsoft Azure to large enterprise clients worldwide. The acquisition is expected to close in the first quarter of 2026.
Deal Highlights
The deal will bring over 1,000 Azure experts, over 1,500 Microsoft certifiers, and approximately 1,200 employees to Cognizant. This will bring Cognizant’s total number of Azure-certified experts to nearly 20,000. 3Cloud is also an Elite Databricks Partner, specializing in data and AI solutions. Its solutions include:
- Modern data platform.
- Cloud-native AI app development.
- Advanced analytics.
- Azure-based managed services.
- Azure and AI capabilities will be boosted.
Cognizant CEO Ravi Kumar S. stated that this acquisition is a major step for the company in enterprise AI. He stated that 3Cloud’s Azure expertise and industry-based approach will provide clients with greater value in AI-based digital transformation. 3Cloud has recorded a CAGR growth of 20% since 2020 and is projected to grow 20%+ in 2025. According to Microsoft, Azure and other cloud services grew at a rate of 40% in the third quarter of 2023.
Partnership will strengthen its global position
3Cloud CEO Mike Royko said that becoming part of Cognizant will provide greater opportunities for clients worldwide. He said that the combined capabilities of both companies will help unlock the full potential of Azure. Judson Althoff, CEO of Microsoft’s Commercial Business, also called the deal a “game-changer” for the Azure ecosystem. He said that this will empower clients to implement AI and Azure-based innovations at scale. Following this acquisition, Cognizant will become one of Microsoft’s largest global partners based on Azure consumption revenue.
