Tech giant IBM Corp. has acquired Irvine-based Neudesic to help tap into an estimated $200 billion cloud consulting market opportunity.
“We’ve built systems for people that help them run their business,” Neudesic co-founder and Chief Executive Parsa Rohani told the Business Journal on Feb. 22. “We do that on platforms, and the platform that we chose to do that on is Microsoft.”
Cloud services consultancy Neudesic provides a range of digital transformation services across advisory, application development, cloud migration, DevOps, integration, data engineering, data visualization and hyper-automation.
The company counts more than 180 active clients, most of them in the U.S., but also in India and Australia.
“They’re primarily in the midmarket, and some of them in the enterprise space,” Rohani said of the clients.
IBM (NYSE: IBM) has been investing in hybrid cloud and AI services to fuel clients’ digital transformation.
IBM, valued at around $110 billion, has acquired more than 20 companies—12 in its IBM Consulting unit alone—since Arvind Krishna became CEO in April 2020.
The Neudesic purchase was announced on Feb. 15. Financial details of the transaction were not released.
Irvine Base
Neudesic plans to stay in Orange County at least for the time being. It leases some 14,000 square feet of space in Irvine, according to CoStar Group Inc. records.
“We will be working with the executives at IBM over the next 18 to 24 months to see what makes sense going forward. Do we stay in Irvine? Do we move somewhere else?” Rohani said.
“For now, the direction we have is we continue to execute as we have and we continue to operate our headquarters out of Irvine,” according to the CEO.
Neudesic has about 1,700 employees with about 950 of them in India and the rest in the U.S.
“We are hiring at a very rapid rate,” Rohani said, having added 100 people in January.
Rohani works out of the company headquarters at the 200 Spectrum Center tower. The company also has offices in Dallas, Denver, Houston, Las Vegas, New York City, Phoenix and Seattle, as well as in Bangalore, Hyderabad and Kochi in India, according to its website.
He said the management team will stay the same as it is now.
Rohani declined to disclose the company’s revenue.
Neudesic has expertise in delivering Microsoft Corp.’s Azure cloud services to clients across the health and life sciences, financial services, energy and utilities, professional services and retail industries. Microsoft Azure is a cloud computing service operated by Microsoft for application management via Microsoft-managed data centers.
“Neudesic adds deep Azure cloud, data engineering and data analytics expertise to accelerate our clients’ hybrid cloud journeys,” John Granger, senior vice president, IBM Consulting, said in a statement.
“As one of the leading cloud platforms, Microsoft Azure is key to many of our clients’ ability to modernize and innovate,” he added.
Cloud Leveraging
Neudesic extends IBM Consulting’s skills and certifications across the hybrid cloud ecosystem including Microsoft, AWS, Google Cloud Platform, and Oracle.
“As a Microsoft Gold Partner with multiple Azure competencies, Neudesic is excited to enhance IBM’s hybrid cloud strategy with extensive Azure capabilities,” according to the Neudesic CEO.
“The combination of our capabilities with IBM’s hybrid cloud vision and scale will drive even more impactful innovation for clients.”
