Cognizant to acquire 3Cloud, expanding azure and AI capabilities

Cognizant has entered into a definitive agreement to acquire 3Cloud, one of the largest independent Microsoft Azure services providers and a specialist in Azure-focused data, AI and cloud engineering. The acquisition will expand Cognizant’s Azure capabilities and strengthen its position in enterprise digital transformation by incorporating 3Cloud’s expertise in data and AI, application modernisation and cloud platforms.

The deal will also broaden Cognizant’s ability to support complex, engineering-heavy projects that enable organisations to adopt AI at scale. 3Cloud’s client base consists largely of enterprise customers across banking and financial services, healthcare, technology and consumer sectors. Since 2020, the company has recorded approximately 20% organic compound annual growth, with similar growth expected in 2025, driven by demand for Microsoft Azure-based transformation. Microsoft reported 40% year-on-year growth in Azure and other cloud services in Q3 2025 (MSFT Q1 FY26).

Ravi Kumar S, CEO of Cognizant, said, “This acquisition marks an important step in our strategy to prepare clients for the future of enterprise AI. 3Cloud’s Azure expertise, sector-focused approach and long-standing relationship with Microsoft will support us in helping clients advance their AI adoption.”

Cognizant’s enterprise AI approach centres on enabling organisations to build and scale AI solutions. The integration of 3Cloud’s Azure, data and AI capabilities with Cognizant’s existing platforms and technical frameworks is expected to offer clients a broader end-to-end environment for developing AI-driven systems. After completion, more than 1,000 Azure specialists and over 1,500 Microsoft certifications from 3Cloud will be added to Cognizant’s portfolio. Nearly 1,200 3Cloud employees, including around 700 based in the United States, will join Cognizant’s global workforce, which includes almost 20,000 Azure-certified staff.

Mike Rocco, CEO of 3Cloud, commented,“Joining Cognizant will allow us to extend the work we do for clients and support larger, more complex programmes. Our combined experience in cloud, application modernisation and data should enable clients to make fuller use of the Azure platform.”

Judson Althoff, Chief Executive Officer of Microsoft’s Commercial Business, said, “Microsoft Azure plays a central role in enterprise AI adoption. Cognizant’s acquisition of 3Cloud will create one of the most technically capable partners in the Azure ecosystem.”

Founded by former Microsoft executives, 3Cloud has received multiple Microsoft Partner of the Year awards across areas including Data & AI, Health & Life Sciences, Migration to Azure, Solution Assessments and Modernising Applications. It is also an Elite Databricks partner, with experience in modern data platforms, cloud-native AI application development, analytics and managed services.

The combination of Cognizant and 3Cloud is expected to create one of Microsoft’s largest global partners in terms of influenced Azure Consumption Revenue and further reinforce Cognizant’s long-standing relationship with Microsoft. Cognizant has also received several recent Microsoft awards, including the 2025 Intelligent Automation Partner of the Year, Americas SI Partner of the Year, U.S. SI Partner of the Year and GitHub AI Services Partner of the Year.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.