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Infosys invests in second cloud computing start-up in Israel

Infosys Ltd has invested $4 million to pick up a minority stake in Cloudyn Ltd, an Israeli company that makes software for monitoring and optimizing cloud computing, marking the Bengaluru-headquartered firm’s second investment in an Israel-based cloud-computing start-up from the company’s $500 million innovation fund.

Last year, Infosys invested $4 million to pick a minority stake in Cloud Endure Ltd, an Israeli-based start-up, which offers solutions to help large companies move applications to cloud and cloud-based Disaster Recovery software.

Cloudyn’s software helps Chief Information Officers at large enterprises keep a tab and manage the usage of cloud computing when bought from service providers like Amazon Web Services.

Privately-held Cloudyn, which was founded in 2011, is estimated to have revenue of $3 million and counts many Fortune 1000 firms as its customers.

Infosys expects to complete the transaction by 15 August.

Besides its investment in two cloud-computing start-ups, Infosys’s Innovation fund has also picked minority investments in two data-analytics startups, including Trifacta and Waterline Data Science Inc. Trifacta applies machine learning technologies to help data scientists understand data better, while the Delaware-based Waterline helps companies make sense of large data sets.

The aggressive approach of partnering with start-ups focused on disruptive technologies underscores Infosys chief executive Vishal Sikka’s so-called “New and Renew” strategy to reinvigorate India’s second-largest software services company.

Infosys believes that by picking minority investments in start-ups and taking their technology to its clients, it stands a better chance in winning outsourcing deals.

Including this investment, Infosys has spent over $33 million to buy stakes in eight start-ups and invested an undisclosed amount last September to become a limited partner in Vertex Ventures, a Palo Alto-based venture capital firm.

Infosys also bought three firms in 2015, spending $390 million to purchase automation technology provider Panaya, digital commerce firm Skava and Noah Consulting Llc.

Source: Mint