Information sys Ltd., Wipro Ltd., Cognizant Technology Solutions Corp. (TCS), Tata Consultancy Services Ltd. (TCS) and Mindtree Ltd. are all investing in cloud-specific solutions to win large contracts from clients who want to modernize their infrastructure.
Infosys launched Cobalt, a cloud-specific offering, in August 2013. Infosys's Cobalt consists of a series of solutions, services and platforms that help large corporations, mainly, to build cloud-first capabilities.
Wipro announced in July that it would invest $1 billion over three years to improve its cloud technologies, capabilities and acquisitions. Wipro FullStride Cloud Services was launched as part of this investment. It brings together all of Wipro's cloud-related capabilities and offerings.
Mindtree, a mid-sized IT company, is investing in dedicated Industry Cloud delivery centers for its core verticals: retail, consumer products, manufacturing (RCM), travel, tourism, and hospitality (TTH); financial services, insurance (BFSI); communications, media, and technology (CMT). Cognizant has also increased its cloud portfolio through strategic acquisitions and organic investments.
According to Narsimha Rao Mandepalli (head of cloud infrastructure, security solutions at Infosys), cloud is Infosys' strategic focus area. Infosys Cobalt is gaining traction and has been well-received in the market. Cobalt has been instrumental in helping us to win strategic transformation deals and large contracts. Cobalt was responsible for some of our largest deals, such as the Vanguard, Spirit AeroSystems and SPS, he stated.
This strategy seems to be paying off. Cloud is often included under the digital revenues of IT companies. Infosys's digital revenues grew by 42.1% in constant currency, and contributed almost 54% of the company's total revenue for the June quarter. Cognizant's digital revenues grew by 20% each year and contributed over 44% to total revenues in the June quarter. TCS, Wipro and Mindtree no more separate digital revenues.
Mannepalli said that Infosys had built "a lot" of capabilities, talent, scale and credentials over the years in the cloud and digital space. Based on our strategic roadmap and growth, we continue to invest inorganically and organically. This road map is supported by our recent acquisitions of Carter Digital, Kaleidoscope and Guidevision as well as Simplus and Simplus.
Wipro also has experienced "consistent growth in its cloud business." It now employs more than 79,000 cloud professionals, and over 10,000 cloud specialists certified by top cloud service providers. In the last 12 months, Wipro announced major cloud-related wins with Telefonica Germany/O2, Verifone and E.ON. Metro AG was also one of the biggest deals in Wipro's history.
Suresh Uppalapati is the global head of enterprise IT and cloud services at Mindtree. He stated that each delivery centre will combine cloud skills with industry expertise to allow us to better service each industry and create business-aligned products and offerings. These delivery centers will be expanded to include several thousand people over the next three-years.
Although clients may already be using cloud providers such as Amazon Web Services (AWS), Google Cloud or Microsoft Azure, the integrated offerings of IT service companies offer their own unique value proposition. They provide a one-stop shop to help customers navigate the cloud, integrate multiple clouds, scale-up, and expedite their cloud journey. Many IT service companies have partnered with hyperscalers to offer tailored solutions to client needs," stated Sanchit Vir Gogia (founder and chief analyst at Greyhound Research).
Rajesh Naambiar, president of digital business and technology at Cognizant, also echoed the sentiment, "Our growing ecosystem and our commitment to coinnovation with three top hyperscalers in the world, as well as a focused, go-to market strategy are driving our momentum."
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TCS created new cloud practice units last year to compete in the growing market for the three major hyperscale platforms, AWS, Azure, or Google Cloud. TCS recently launched Google Cloud Garages, which help enterprises evaluate cloud solutions and prototype applications. They also provide analytics to address business opportunities.
