Cognizant announced a definitive agreement to acquire 3Cloud, a major independent Microsoft Azure services provider and a leader in Azure-dedicated artificial intelligence (AI) solutions. The deal, revealed in mid-November 2025, aims to significantly boost Cognizant's enterprise AI readiness and digital transformation capabilities. The acquisition is expected to close in the first quarter of 2026, pending necessary regulatory approvals.^[1][2][3][4] ### Boosting Azure and AI Capabilities This strategic move will expand Cognizant's Azure portfolio and deepen its expertise in complex, engineering-focused projects that drive AI-led business transformation.^[4][5] 3Cloud specializes in data and AI, application innovation, and cloud platforms for large enterprise clients across various sectors, including banking, financial services, healthcare, technology, and consumer markets.^[1][2][4] Ravi Kumar S, CEO of Cognizant, emphasized the importance of this acquisition. "This acquisition marks a pivotal step in Cognizant's strategy to empower our clients for the future of enterprise AI," Kumar said in a press release.^{[1][2][6][7][8]} He added that 3Cloud's deep Azure expertise and long-standing Microsoft partnership will deliver greater value to clients as they accelerate their AI journeys.^{[1][2][6][7][8]} ### Expanding Expert Workforce and Market Position Upon the acquisition's close, 3Cloud will bring more than 1,000 Azure experts and engineers to Cognizant.^[2][9][4][8] The company also adds over 1,500 Microsoft certifications to Cognizant's existing capabilities.^[2][9][4][8] 3Cloud has nearly 1,200 employees, with about 700 based in the United States.^[2][4] These employees will join Cognizant's nearly 20,000 Azure-certified associates globally, creating a combined workforce with over 21,000 Azure-certified specialists.^[2][9][4] Judson Althoff, CEO of Microsoft's Commercial Business, highlighted the significance of the partnership. "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," Althoff stated.^[2][8][10] ### Strong Growth and Strategic Rationale 3Cloud, founded in 2016 by former Microsoft executives, has demonstrated strong financial performance.^[1][2][11] Since 2020, the company has achieved 20% organic compound annual growth, with expectations for over 20% growth in 2025.^[1][2][4] This growth is fueled by high demand for Microsoft Azure-powered business transformation.^[1][2][4] Microsoft's Azure and other cloud services reported robust growth of approximately 40% year-on-year in the third quarter of 2025 (Microsoft's Q1 FY26).^{[3][4][12][13]} This acquisition aligns with Cognizant's "AI builder" strategy, which focuses on helping enterprise clients build, deploy, and scale AI solutions on Azure-native infrastructure.^{[3][9][5][13]} By integrating 3Cloud's specialized expertise, Cognizant aims to provide end-to-end AI implementation services and guidance for building AI-ready cloud infrastructure.^[14] Mike Rocco, CEO of 3Cloud, expressed enthusiasm about joining Cognizant. "Being a part of Cognizant will unlock new opportunities for our clients and employees," Rocco said.^[4][12][10] He added that the shared vision for driving enterprise AI readiness and combined strengths in cloud, app innovation, and data will help clients fully realize Azure's potential on a global scale.^[6][4][10] Rocco and 3Cloud President Jim Dietrich will continue in key leadership roles within Cognizant's Azure practice.^[15][16] ### Impact on Enterprise AI Transformation The acquisition is a response to the market trend where enterprises are moving AI projects from pilots to large-scale production.^[3][13] This shift increases the demand for teams capable of delivering robust cloud infrastructure, modern data platforms, MLOps, and production-grade application modernization.^[3][17] 3Cloud's offerings include cloud strategy, design, implementation, and managed services, with a 100% focus on Azure.^{[1][18][19][11]} The company is also an Elite Databricks partner, known for its deep expertise in data and AI programs.^[6][7][5][8] The combined entity will create one of the largest global partners to Microsoft in terms of influenced Azure Consumption Revenue.^[12] This further strengthens Cognizant's long-standing alliance with Microsoft.^[6][12] The deal underscores how larger technology services firms are consolidating specialized cloud expertise to remain competitive and meet the increasing demand for cloud-native and AI-driven solutions.^[14][3] The financial terms of the transaction were not disclosed.^[1][2][3][4] 3Cloud was a portfolio company of the private equity firm Gryphon Investors, which acquired it in 2020.^{[1][2][4][15]}

AI Insights Hub