New Delhi, Nov. 14 -- IT services major Cognizant has signed a definitive agreement to acquire Microsoft Azure-focused consultancy 3Cloud, strengthening its position in the fast-expanding market for enterprise AI readiness and cloud-led digital transformation. The companies announced the deal on Friday. Financial terms were not disclosed, and the transaction is expected to close in the first quarter of 2026.
Chicago-based 3Cloud is among the largest independent Microsoft Azure services partners globally, with deep capabilities in data and AI, app modernisation and cloud engineering. The firm serves large enterprises across banking and financial services, healthcare, technology and consumer segments. Since 2020, it has posted 20% organic CAGR, with similar growth expected in 2025, driven by demand for Azure-powered transformation. Microsoft reported 40% year-on-year growth in Azure and other cloud services in Q3 2025, underscoring the momentum in the ecosystem.
Cognizant said the acquisition will significantly expand its Azure portfolio and strengthen its role as a strategic partner for enterprises preparing to deploy and scale AI. The deal will add more than 1,000 Azure experts, 1,500+ Microsoft certifications and nearly 1,200 3Cloud employees-about 700 of them in the US-to Cognizant's workforce. Cognizant currently has nearly 20,000 Azure-certified associates globally.
"This acquisition marks a pivotal 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 greater value as clients accelerate their AI journeys."
Mike Rocco, CEO of 3Cloud, said joining Cognizant would "unlock new opportunities" through combined strengths in cloud, app innovation and data. "Our shared vision for driving enterprise AI readiness will help clients realize the full potential of Azure, now at a global scale," he said.
Judson Althoff, CEO of Microsoft's Commercial Business, said the combined entity would become "one of the most capable and credentialed partners in the Azure ecosystem," enabling customers to unlock AI-led innovation at scale.
Founded by former Microsoft executives, 3Cloud has earned multiple 'Partner of the Year' awards across data, AI, healthcare, migration and app modernization categories. It is also an Elite Databricks partner with strong credentials in advanced analytics, cloud-native AI app development and managed services. The acquisition is expected to make Cognizant one of Microsoft's largest global partners by influenced Azure consumption revenue, further deepening a longstanding alliance between the two companies.
Published by HT Digital Content Services with permission from TechCircle.