Capgemini completes Cloud4C acquisition, bolstering AI-driven cloud services

Capgemini announced the successful closure of its acquisition of Cloud4C, a specialist in automation-driven managed services. The deal, first announced in August, transfers a team of 1,600 professionals to Capgemini, immediately expanding the Group's presence and capability in the quickly growing cloud managed services market.

The central value of the acquisition lies in Cloud4C’s platform-based offerings, which feature hyper-automation and AI operations (AIOps) capabilities. These technologies help businesses develop, migrate, and manage complex IT environments across hybrid, private, public, and sovereign clouds. The combined entity aims to meet client demand for advanced cloud automation and scalable, industry-specific solutions.

The strategic value: Automation and AI

Capgemini gains specialised resources focused on creating bespoke, industry-specific assets and frameworks. The Cloud4C team brings intellectual property (IP) and methodologies that integrate generative AI (gen AI) into cloud management and migration processes.

Aiman Essat, CEO of Capgemini, explained the deal's focus on complexity. Many large, global clients need managed services for hybrid cloud setups and often require assistance with difficult migrations. Cloud4C’s deep technical proficiency, particularly in highly automated cloud operations across the entire technology stack, directly addresses this market need. The goal is to move clients toward tangible business results using gen AI-powered cloud automation.

Cloud4C Non-executive Chairman Sridhar Pinnapureddy noted that the companies’ complementary services allow for quick access to augmented cloud managed services for their respective client bases.

SAP and sovereign cloud acceleration

The acquisition significantly affects Capgemini’s strategy around SAP services. Cloud4C held a strong standing as a global partner for SAP, particularly in the SAP RISE offering, which packages cloud migration and modernisation tools.

The merger combines Cloud4C’s SAP AI-driven cloud management expertise with the data capabilities of Syniti, a data management specialist previously acquired by Capgemini. This combination sharpens Capgemini’s ability to deliver end-to-end services for clients moving to the SAP S/4HANA cloud, providing highly automated data expertise throughout the migration and lifecycle management process.

Cloud4C also provides specialised hybrid cloud solutions focused on sovereignty and compliance. This addresses the growing regulatory need in Europe and other regions where governments and critical infrastructure companies require data to remain within specific geographic and legal boundaries. Cloud4C's services portfolio includes value-added offerings like disaster recovery, data loss prevention, cybersecurity, and compliance with various industry and sovereign standards.

The addition of the 1,600 Cloud4C specialists places Capgemini in a stronger position to capture market share in a cloud managed services segment that analysts project to grow significantly in the coming years.