The ‘Renew and New’ facet of the Bengaluru based company, Infosys, seems to have taken a business dimension. The company announced that it will acquire Panaya, a New Jersey based Enterprise Resource Planning(ERP) company.
Panaya provides a cloud-based management services for enterprise applications, and they boast of bigwigs like Unilever, Whirlpool, Renault, Coca-Cola, Mercedes-Benz in their client list.
Vishal Sikka, the company CEO has been placing major emphasis on innovation, automation and artificial intelligence, and this acquisition is seen as a reflection of the company’s efforts in that direction.
Panaya’s cloud computing technology called ‘CloudQuality’ will give a unique edge to Infosys in bringing automation to several of its service lines via something called a SaaS- Software as a Service model- helping them in controlling three very important parameters that are risks involved, reduce costs and shorten time to market for clients.
The CloudQuality Suite is Powered by big data analytics, and it reduces all the three mentioned enterprise parameters in delivering all types of SAP®, Oracle® EBS, and Salesforce changes. So, it basically predicts what is going to go wrong, how you can fix it, and what to test. The magnitude of things going wrong in giant companies is immense, and this software definitely gives an edge to whoever wields it.
Vishal Sikka, expressing his emotions on the acquisition, said-
The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.
The acquisition is valued at $200 million an is expected to close by March 31, this year.
Infosys aims to beat the predicted IT sector growth rate of 13-15% in 2014-15 fiscal as against 13% in 2013-14, by a margin of 18-30 months, another reason of why the acquisition will be on par with the strategies outlined by the MD and the CEO. These plans are in a conscious effort to regain lost market ground from industry rivals.