Cognizant has acquired 3Cloud, a specialized Microsoft Azure consulting firm, to strengthen its global cloud infrastructure services. The deal enhances Cognizant’s enterprise digital transformation offerings with deeper integration into Microsoft’s cloud ecosystem.
- Cognizant acquired 3Cloud in January 2026 to strengthen its Microsoft Azure capabilities.
- 3Cloud brings over 200 certified Azure engineers and 150 active client engagements.
- Deal is estimated to be valued between $400M and $500M.
- Cognizant expects a 15% increase in Azure-related contract wins over the next 18 months.
- CTSH stock rose 2.3% on the announcement, reflecting positive market sentiment.
- Integration is being managed under Cognizant’s Digital Engineering division.
Cognizant, a global leader in technology services and consulting, has completed the acquisition of 3Cloud, a U.S.-based cloud solutions provider with deep expertise in Microsoft Azure. The transaction, finalized in early January 2026, bolsters Cognizant’s ability to deliver end-to-end cloud migration, optimization, and managed services for enterprise clients across North America, Europe, and Asia-Pacific. 3Cloud brings a portfolio of over 150 active Azure engagements and a team of more than 200 certified engineers, significantly expanding Cognizant’s certified Azure professional base by approximately 40%. The acquisition aligns with Cognizant’s strategic focus on hybrid and multi-cloud solutions, particularly within Microsoft’s ecosystem. By integrating 3Cloud’s technical specialization in Azure DevOps, AI-driven cloud analytics, and security compliance, Cognizant aims to accelerate client deployments and increase win rates in large-scale digital transformation projects. The move comes as enterprises increasingly prioritize cloud agility and Microsoft Azure continues to capture a growing share of the global cloud infrastructure market, with a 24% year-over-year revenue increase reported in Q4 2025. Financial terms of the deal were not disclosed, but industry analysts estimate the transaction value to be in the range of $400 million to $500 million. The acquisition is expected to contribute to Cognizant’s cloud services revenue growth, with projections indicating a 15% uplift in Azure-related contract wins over the next 18 months. Cognizant’s stock (CTSH) rose 2.3% in early trading following the announcement, reflecting market confidence in the strategic consolidation. The integration of 3Cloud’s operations will be managed through Cognizant’s Digital Engineering division, with headquarters in Austin, Texas, and London, UK. Clients of both companies are expected to benefit from expanded service offerings, faster time-to-value, and enhanced cloud performance monitoring tools.