Cognizant has finalised its acquisition of 3Cloud, a Microsoft Azure services provider based in Chicago, US, effective on 1 January 2026.
The transaction, first announced in November 2025, will see around 1,200 employees, including roughly 700 based in the US, join Cognizant’s global workforce.
With this deal, Cognizant aims to expand its capabilities in Azure, data and AI, as well as cloud-based application innovation for clients across multiple sectors.
The addition of 3Cloud increases Cognizant’s roster of Azure-certified professionals to more than 21,000 worldwide.
Both companies have extensive experience in engineering-centric cloud projects.
The newly combined entity is expected to strengthen Cognizant’s strategic partnership with Microsoft and further develop its enterprise-scale digital and AI transformation offerings.
Gryphon Investors completed the sale of 3Cloud to Cognizant following several years of investment that saw the company’s scale increase significantly, in part through average annual organic growth of more than 20% since 2020.
Under Gryphon’s ownership since June 2020, 3Cloud also undertook several add-on acquisitions.
Financial details of the acquisition remain undisclosed.
Cognizant CEO Ravi Kumar S said: “The addition of 3Cloud’s capabilities and skilled professionals is an important step along our path to becoming the premier AI builder for the enterprise.
“By combining 3Cloud’s Azure, data and AI expertise with Cognizant’s global scale and industry depth, we are creating a powerful platform for innovation, helping clients harness the full potential of AI and cloud to transform their businesses.”
Founded in 2016 by former Microsoft executives, 3Cloud covers areas such as modern data engineering, AI-driven application development, analytics and managed services.
The company serves enterprise clients in sectors including banking, healthcare, technology and consumer industries.
It is also an Elite Databricks partner and has received industry recognition for its delivery model and technical expertise.
The integration of 3Cloud is intended to broaden Cognizant’s portfolio of Azure-related services as organisations increasely demand AI-led business transformation using Microsoft Azure platforms.
According to Microsoft’s reports for the third quarter of 2025, Azure and related cloud services experienced a year-on-year growth rate of 40%.
Gryphon Investors received advisory support from Lazard and legal counsel from Kirkland & Ellis on the deal, while Mayer Brown acted as legal adviser to Cognizant.
“Cognizant acquires 3Cloud to boost global Azure expertise” was originally created and published by Verdict, a GlobalData owned brand.
Apple is the most valuable company in the world right now with a market capitalization of $3.4 trillion, but it’s closely followed by two other tech giants, Microsoft(NASDAQ: MSFT) and Nvidia(NASDAQ: NVDA). It’s worth noting that both Microsoft and Nvidia have taken turns becoming the world’s most valuable company this year, but Apple has managed to regain the top spot, thanks to a recent surge in the stock price.
However, if we compare Apple’s prospects to those of Nvidia and Microsoft for the next five years, it won’t be surprising to see them becoming more valuable than the iPhone maker. Below is a look at the reasons why.
1. Microsoft
Microsoft’s market cap of $3.3 trillion means that it’s strikingly close to Apple right now. More importantly, Microsoft is clocking faster growth than Apple, a trend that’s likely to continue over the next five years, thanks to the growing adoption of artificial intelligence (AI) in multiple markets.
For instance, Microsoft’s revenue in the third quarter of fiscal 2024 (which ended on March 31) increased 17% year over year to $61.9 billion. Meanwhile, Apple’s fiscal 2024 second-quarter revenue (for the three months ended March 30) was down 4% year over year to $90.8 billion. This stark difference in the performance of the two tech giants is largely due to AI.
While Microsoft is capitalizing on multiple AI-driven growth trends such as cloud computing, personal computers (PCs), and workplace collaboration tools, Apple has been late to the AI smartphone market. Microsoft’s Intelligent Cloud segment reported a 21% year-over-year increase in revenue in fiscal Q3 to $26.7 billion, driven by the growing usage of its cloud-based AI services.
The company pointed out that its Azure cloud business received a boost of 7 percentage points, thanks to AI. The cloud-based AI services market is forecast to generate $647 billion in revenue in 2030, clocking a compound annual growth rate of nearly 40% through the end of the decade, and Microsoft is sitting on a potentially large incremental revenue opportunity in this market.
Also, Microsoft Azure’s 25% share of the cloud computing market means that it’s well-placed to tap this multibillion-dollar AI opportunity. But this isn’t where the AI-driven catalysts end for Microsoft. The company’s Copilot generative AI chatbot, which serves both individual and business users, is witnessing healthy adoption.
For example, Microsoft’s Copilot for GitHub, a developer platform used by more than 100 million users, boasted of 1.8 million paid subscribers at the end of March. Meanwhile, the enterprise adoption of Copilot for workplace productivity remains solid. In the words of CEO Satya Nadella:
This quarter, we made Copilot available to organizations of all types and sizes from enterprises to small businesses, nearly 60% of the Fortune 500 now use Copilot and we have seen accelerated adoption across industries and geographies with companies like Amgen, BP, Cognizant, Koch Industries, Moody’s, Novo Nordisk, Nvidia, and Tech Mahindra purchasing over 10,000 seats.
Microsoft is charging $30 per user per month from enterprise customers for its Copilot. The individual plan is priced at $20 per user per month. So the company is already monetizing the AI-assistant market, which is expected to grow eightfold over the next decade and generate almost $167 billion in revenue in 2033.
The above AI-related catalysts indicate why Microsoft’s annual earnings are expected to grow at 16% a year for the next five years compared to Apple’s projected growth rate of 10%. This could eventually help Microsoft stock deliver more upside and become more valuable than Apple in the long run.
2. Nvidia
Nvidia is currently the third-largest company in the world, with a market cap of $3 trillion. Shares of the semiconductor specialist have surged a remarkable 745% since the beginning of 2023 as the likes of Microsoft and other tech giants have been looking to get their hands on its AI graphics processing units (GPUs) to train and deploy AI models and services.
More importantly, Nvidia controls over 90% of the AI chip market. This terrific market share is the reason behind its outstanding growth in recent quarters, resulting in a much better financial performance than Apple.
AAPL Revenue (TTM) Chart
With the global AI chip market estimated to grow tenfold in the next 10 years to become a $300 billion market, there’s a good chance that Nvidia’s outstanding growth will continue. According to some analysts, the company’s data center revenue alone could jump to $280 billion over the next four years from $47.5 billion in the previous fiscal year.
Throw in additional catalysts, such as the recovery in the PC market thanks to the adoption of AI-enabled PCs (which has started lifting Nvidia’s gaming business), and it’s easy to see why analysts are estimating Nvidia’s earnings to increase at 46% a year for the next five years. That’s significantly faster than the growth Apple is expected to deliver over the same period.
Of course, Apple could get a shot in the arm, thanks to the emergence of AI smartphones, but investors should note that the company is operating in a very competitive market. In the second quarter of 2024, Apple’s smartphone market share stood at 15.8%, down from 16.6% in the same quarter in 2023. Its shipments grew only 1.5% year over year as compared to the overall smartphone-market’s growth of 6.5%.
It’s easy to see why Nvidia’s growth is expected to be faster as it leads the AI chip market, while Apple operates in a crowded space where rivals have acted with alacrity in jumping onto the AI bandwagon. As such, the possibility of Nvidia overtaking Apple’s market share over the next five years, thanks to its faster bottom-line growth, can’t be ruled out, and AI is going to play a central role in helping the semiconductor company achieve that.
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Efficiency and cost-savings are two reasons financial institutions are tapping into their cloud providers’ AI capabilities rather than building the technology in-house. The cloud is serving as a gateway to financial institution clients to “reap the benefits of AI,” William Borden, corporate vice president of worldwide financial services at Microsoft, told Bank Automation News. […]
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Cloud migration projects have become increasingly important for the banking industry, offering benefits that can revolutionize how financial institutions operate. In an era in which digital transformation is reshaping the landscape, it is vital for banks to adapt to stay competitive and meet evolving customer expectations. Cloud migration provides a powerful avenue for achieving these goals, enabling banks to leverage advanced technologies, enhance operational efficiency and deliver superior customer experiences.
The banking sector has traditionally been cautious when adopting new technologies, and cloud migration is no exception. The difference is that cloud migration’s benefits far outweigh its challenges. By understanding these challenges and the crucial role cloud migration plays in the survival of legacy institutions, banking professionals can gain insights into the significance of the cloud and the steps required to navigate this journey successfully.
Rambabu Nalagandla, Lead Solutions Architect at Pilvi Systems Inc.
Challenges in migration for banks
Cloud migration for banks presents myriad challenges that demand meticulous attention and strategic planning. One significant hurdle is the initial reluctance to move to the cloud, which stems from data security and compliance concerns. Banks handle vast amounts of sensitive customer data and ensuring its protection during migration is paramount to maintaining trust and confidence.
Migrating complex legacy systems poses another obstacle. These systems often have intricate interdependencies, making their integration with cloud infrastructure a delicate process. Meticulous restructuring and data mapping are required to ensure a seamless transition without disrupting critical functionalities.
Adhering to regulatory requirements is a vital aspect of cloud migration for banks. Financial institutions are subject to stringent regulations imposed by the Financial Industry Regulatory Authority, the Securities and Exchange Commissionand other regulators. Banks must ensure compliance to avoid potential legal and financial consequences.
Effective data governance and management are fundamental in addressing these requirements. It is essential for banks to implement robust data governance policies to appropriately classify and protect sensitive data. Data encryption, access controls and continuous monitoring are essential to maintain data integrity and confidentiality during and after migration.
Fostering a culture that embraces cloud technologies is also vital. This involves educating employees about the benefits of cloud adoption, providing training to upskill the workforce, and cultivating a cooperative environment to ensure a smooth transition.
Banks can overcome these challenges by collaborating with experienced cloud service providers and employing best practices. A comprehensive risk assessment, thorough security frameworks, and continuous monitoring are vital to effectively address data security and compliance concerns. With a clear focus on regulatory adherence and a forward-looking approach, banks can unlock the benefits of enhanced agility, cost–efficiency, and improved customer experiences through successful cloud migration.
Accelerating migration journey
Establishing a well-defined strategy is crucial to a successful cloud migration journey. Banks should thoroughly assess their infrastructure, applications and data to identify suitable candidates for migration. Categorizing workloads based on complexity, security requirements and business impact helps prioritize migration efforts effectively. A phased migration approach, starting with noncritical workloads, allows banks to gain valuable experience and build confidence before moving to mission-critical applications.
Collaboration with experienced cloud service providers is another essential aspect of accelerating the migration journey. Industry-leading cloud providers like Amazon Web Services (AWS), Google Cloud Platform (GCP) and Microsoft Azure offer tailored solutions for banks. These can simplify the migration process while ensuring adherence to industry standards and regulations.
For instance, AWS provides the AWS for Financial Services competency, which highlights AWS partners with demonstrated expertise in serving the financial industry. This competency offers various solutions, including core systems modernization, data management and security. One service for banks, Amazon Aurora, offers a fully managed and relational database service. Banks can utilize Amazon Aurora to migrate their on-premises databases to the cloud with minimal downtime, benefiting from improved performance, reliability and cost optimization.
GCP also offers the Financial Services industry, providing tailored solutions for financial institutions. GCP’s BigQuery service offers a powerful database that enables banks to analyze vast amounts of data and derive valuable insights for informed decision making.
Azure offers the Azure Financial Services Accelerator, a platform designed to streamline the development of financial solutions. Azure Key Vault facilitates secure key management and encryption, ensuring robust security for sensitive data during migration and beyond.
Estimating migration costs
Accurately estimating cloud migration costs is key to ensuring a cost-effective process. Banks can utilize cloud cost estimator tools provided by AWS, Azure, and GCP to gain insights into potential expenses based on their existing infrastructure and projected workloads. These tools help banks make informed decisions and plan their migration budgets effectively. Banks must consider data storage requirements, application dependencies, network bandwidth, and data transfer fees when estimating costs. AWS, Azure, and GCP offer pricing options, including pay-as-you-go, reserved instances and volume-based discounts.
Reserved instances allow banks to commit to specific virtual machine types for one- or three-year terms, offering substantial discounts compared to pay-as-you-go rates. Azure offers Reserved VM Instances, while AWS provides Amazon EC2 Reserved Instances. GCP offers sustained use discounts, automatically reducing prices for long-running workloads.
Implementing cost optimization strategies like rightsizing instances, auto scaling and serverless computing helps banks reduce expenses while maintaining optimal performance.
Continuous monitoring and optimization post-migration allow banks to identify cost-saving opportunities and adjust cloud resources. By leveraging cost estimator tools, understanding pricing models, and optimizing expenses through reserved instances and volume-based discounts, banks can navigate cloud migration with financial clarity, enhance cost efficiency and achieve long-term success.
The survival of legacy institutions depends on cloud migration. Emphasizing the advantages of enhanced agility, scalability and improved customer experiences, cloud adoption empowers these institutions to maintain competitiveness, adapt to evolving demands and deliver seamless services in the rapidly changing digital landscape. Embracing cloud technologies enables legacy institutions to unlock new possibilities, optimize operations, and ensure long-term success in an increasingly technology-driven world. It is essential for banks to take the leap and embark on their cloud migration journeys for sustained growth and prosperity.
About the Author:
Rambabu Nalagandla is a lead solutions architect at Pilvi Systems Inc., with more than 19 years of experience in the banking and financial services industry. He has successfully guided leading banks through digital transformation, leveraging emerging technologies to drive operational efficiency and enhance customer experiences.
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