Wipro has acquired Appirio, a US based cloud services company for $500 million. Wipro’s existing cloud applications from Salesforce and Workday will be integrated into Appirio, keeping the latter’s brand name and Appirio’s CEO Chris Barbin will lead the business. The acquisition is expected to close by 31 December 2016 and will be subject to regulatory approvals.
Appirio was founded in 2006 and has 1,250 employees globally. It claims clients in Coca Cola, eBay, Facebook, Sony Playstation, Johnson Controls etc. It provides customer and worker experience, cloud management centre for analytics, and consultations for companies which want to adapt to the cloud.
Wipro’s acquisition also gives the company Topcoder, a crowdsourcing marketplace which Appirio acquired in 2013, which at the time had 500,000 developers, engineers and designers and currently claims to have 1 million. At the time, Appirio merged it with CloudSpokes, a similar platform of its own. Appirio had raised $111 million in multiple rounds of funding from Fidelity Management and Research, General Atlantic, GGV Capital and Sequoia Capital.
Large technology companies have been on a cloud-company buying spree this year, as more and more enterprises and users move online. Last month, Google acquired US-based Apigee, an API management company to enhance its cloud business. In July it bought Anvato, a cloud based platform to scale media processing and workflows in the cloud. In March, Persistent Systems acquired Australia-based PRM Cloud Solutions, a subsidiary of Datetix Group for an undisclosed amount. In January, it had signed an agreement to acquire Citrix CloudPlatform and CloudPortal business manager products.
Funding in the cloud startup space has also seen an uptake with CloudCherry raising $6 million in a Series A funding led by Vertex Ventures and Cisco Investments, Druva raised $51 million, Zenoti, a B2B cloud based business management company, raised $15 million in Series B funding led by Norwest Venture Partners and participation from existing investor Accel Partners. In August, Intel acquired Nervana Systems, a cloud based deep learning company for $400 million.