Cognizant has announced its acquisition of 3Cloud, enhancing its capabilities in Microsoft Azure services and enterprise AI transformation.

Target Company Overview

Cognizant has entered into a definitive agreement to acquire 3Cloud, a prominent independent Microsoft Azure services provider and a global leader in AI enablement solutions specific to Azure. This acquisition is designed to enhance Cognizant's capabilities in digital transformation and enterprise AI readiness by integrating 3Cloud's expertise in data, AI, and cloud platforms. With a workforce of nearly 1,200 employees and a client base primarily consisting of enterprise-scale organizations in sectors such as banking and finance, healthcare, technology, and consumer markets, 3Cloud has shown remarkable growth, achieving a compound annual growth rate of 20% since 2020, and anticipates continued growth fueled by the increasing demand for Microsoft Azure solutions.

The addition of 3Cloud's advanced capabilities will significantly expand Cognizant's Azure portfolio and strengthen its proficiency in managing complex, engineering-intensive engagements geared towards AI-driven business transformation. The collaboration aims to develop one of the most credentialed Microsoft AI partners worldwide, boasting over 21,000 Azure-certified specialists and numerous accolades, including Microsoft’s accolades for U.S. SI Partner of the Year for 2025.

Industry Overview in the United States

The cloud computing industry, particularly in the United States, is experiencing exponential growth thanks to increased digital transformation initiatives across all sectors. With companies prioritizing technology investments, the demand for platforms such as Microsoft Azure has