IT Services Cos Discover Silver Lining In Cloud Deals

IT services companies are seeing increased opportunities in chasing revenue from new software vendors — sparking a series of buyouts — as clients move away from paying large upfront licence fees for software and hosting on-premise servers.

The deal follows two Salesforce partner acquisitions made by larger rival Cognizant last week. IT analysts expect more deals to follow.

“The SAP, Microsoft, Oracle service lines are drying up as customers are moving to Software-as-a-Service offerings, of which Salesforce is the largest platform… Now, instead of the CIO, the chief marketing officer controls more of the spending and they prefer these models, so it makes sense to build those service lines,” said Sanchit Vir Gogia, CEO of Greyhound Research.

There are over 100 Salesforce platinum partners globally, Gogia said, and the top Indian IT companies are already platinum partners. However, not all have capabilities in each area of the Salesforce platform, leading to the need to merge to provide a single consolidated offering, he added.

[Economic Times]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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