Acquisition aims to combine 3Cloud’s specialized cloud expertise with Cognizant’s global consulting scale, significantly increasing the company's talent pool of Microsoft-certified professionals.
Cognizant has announced a definitive agreement to acquire 3Cloud, a provider of Microsoft Azure services focused on data, AI, and application innovation. The move is part of Cognizant's broader strategy to enhance its offerings in enterprise AI and cloud transformation. Financial details of the transaction were not disclosed.
The acquisition is positioned to address the growing enterprise demand for AI solutions built on cloud infrastructure. Microsoft recently reported that its Azure and other cloud services grew 40% year-on-year in its first fiscal quarter of 2026, a market trend that drives acquisitions like this one. 3Cloud has reported 20% organic compound annual growth since 2020, with similar growth expected for 2025, fueled by this demand.
"This acquisition marks a step in Cognizant's strategy to empower our clients for the future of enterprise AI," said Ravi Kumar S, CEO of Cognizant. "3Cloud's deep Azure expertise, industry-aligned approach and longstanding Microsoft partnership will enable us to deliver even greater value to our clients as they accelerate their AI journeys."
Upon completion, the deal will integrate 3Cloud’s nearly 1,200 employees, including over 1,000 Azure experts and engineers, into Cognizant's operations. This will bring Cognizant’s total number of Azure-certified specialists to more than 21,000 globally. The addition of 3Cloud’s team, which includes approximately 700 U.S.-based employees, strengthens Cognizant’s onshore delivery capabilities for clients in North America.
The combined entity will become one of the larger global partners for Microsoft, particularly in terms of influenced Azure consumption revenue. Both companies have received numerous awards from Microsoft. 3Cloud was named the 2025 Microsoft U.S. Channel Partner of the Year, while Cognizant received accolades including the 2025 U.S. SI Partner of the Year.
"Microsoft Azure is the platform of choice for AI transformation, and Cognizant's acquisition of 3Cloud will create one of the most capable and credentialed partners in the Azure ecosystem," said Judson Althoff, Chief Executive Officer of Microsoft's Commercial Business.
Mike Rocco, CEO of 3Cloud, added, "Our shared vision for driving enterprise AI readiness and our combined strengths in cloud, app innovation, and data will help our clients realize the full potential of Azure, now at a global scale."
The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals and other standard closing conditions.
SOURCE: Cognizant
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