Key Findings & Highlights:

Headquartered in Bangalore, Infosys was founded in 1981 in Pune by a group of seven programmers. It became a public limited company in India in June 1992 and was listed on NASDAQ in 1999, having set up development centers in several Indian cities to serve the global market.

Infosys launched a cloud offering in 2012 that focuses on assisting clients in migrating applications to cloud environments, as well as maintaining, orchestrating, and provisioning environments hosted across a number of partners.

To enhance its cloud service offering, in 2015 Infosys invested $4m in Israeli software start-up CloudEndure, to expand its capabilities in automating server and application migrations through block-level continuous replication, application stack orchestration and automated machine conversion.

Early in 2017, Infosys redefined its cloud approach and is now looking more broadly at cloud as a foundational service spanning infrastructure, applications, and business processes. As a result, it has created an Enterprise Cloud Ecosystem (ECE) organization that spans its individual capability areas such as ERP, data and analytics, and SaaS.

It has defined two groups of dedicated teams in client-proximate locations to join the enterprise cloud ecosystem group. The first team has go-to-market employees dedicated to driving new engagements across key cloud technology partners (AWS, Azure, Oracle, Google and SAP) including in joint go to market opportunities with the vendors. The second has cloud strategists and architects who bring technical capabilities.

These client-facing teams are supported by remote delivery center teams dedicated to specific technical cloud skills such as:

• Cloud infrastructure and security: including cloud rehosting/remediating and hybrid cloud management
• Data and analytics: including big data, AI and machine learning, and IoT
• Application development and maintenance: including application re-engineering, and cloud native development
• Business applications: packaged application and ERP SaaS implementations.

Infosys' total revenues for CY 2017 were $10.7bn. Of these CY 2017 revenues. NelsonHall estimates that ~19% (~$190m) is associated with enterprise cloud ecosystem services, and of this NelsonHall estimates that ~72% (~$137m) is related to cloud advisory, assessment, and migration services.

Infosys is using ECE to position itself as an end to end provider of cloud services. It is growing and expanding its advisory services to complement a larger foundation of application and infrastructure services; and is positioning its cloud offerings in three groups:

• Advise services
• Build services
• Co-evolve services, for the operation and enhancement of existing cloud environments.

Globally, Infosys has ~5.2k FTEs dedicated to cloud services. Of this, ~1.2k employees are dedicated to cloud advisory and migration services with additional employees used to augment this team and bring specific point skills. NelsonHall estimates that ~24% (288) are located in client-proximate locations and the remainder are located in remote delivery centers in India.

Infosys has a broad application and infrastructure management footprint of clients. This provides a foundation for delivering cloud services, given Infosys' existing relationships and knowledge of the client application landscape. As clients' objectives for migrating workloads to the cloud evolve, Infosys is looking to evolve in parallel. Building the Enterprise Cloud Ecosystem organization positions it to pull in the necessary capabilities to address broad client digital transformation objectives. It has a dedicated go-to-market organization and a core group of cloud strategists and architects supported by capabilities such as IoT, analytics, and application specialists. The go-to-market and cloud strategist teams are still a small focused group and given its leadership in shaping these engagements, it will be important for Infosys to expand its onshore consulting, strategy, and architecture capabilities to meet its growth objectives.

To support these specialist teams, it is also important for Infosys to continue to grow its automated toolset. While this has been a major focus throughout Infosys, for significant components of advisory and migration services, the use of third-party tools from AWS and Azure limits its differentiation from its competition. Its investment in CloudEndure and other third-party partnerships with tool providers lay the foundation for a more comprehensive differentiated automation capability, to be further expanded and matured.

Two areas where Infosys does have differentiated capability are its focus on mainframe modernization and its industry-targeted solutions. As clients continue to expand how they capture value from a cloud adoption, these complementary offerings provide clients with an avenue to realizing their business case objectives.