Leading technology services and consulting firm, Infosys Limited (INFY - Free Report) , announced that it had invested in TidalScale – a California-based start-up – thus expanding its portfolio of innovative software solutions for big data.
The financial details of the deal remain undisclosed. The round of investment is scheduled to be completed on or before Nov 24.
Founded in 2012, TidalScale offers a robust architecture for customers trying to decipher large computing problems. Its self-optimizing Software-Defined Servers deliver in-memory performance at any scale, use standard hardware, and are compatible across all applications and operating systems. This ease of use helps companies garner insights from big data faster, with higher flexibility and at lower costs.
It, thus, transforms the economics of analyzing big data and tackles the time constraints as well.
Further, as application needs evolve, TidalScale-based systems can scale dynamically and at linear cost. Thus, there is no need for expensive hardware investments or time-consuming software modifications.
Companies have access to vast amounts of data these days and it’s a challenge to extract meaningful, actionable insights from the same. TidalScale’s Software-Defined Server technology empowers clients to gain insight from the ever-growing data by scaling systems swiftly and affordably across virtually any population of commodity servers.
Thus, Infosys will gain access to a technology of considerable value through this partnership.
Infosys has made a string of startup investments, especially overseas, ever since it created its $500 million Innovation fund, soon after current CEO Vishal Sikka took over. The Fund was launched in 2015, with an aim to invest in innovative entrepreneurial ventures in domains related to the company’s core business. Investing in start-ups also has the advantage of getting products based on new technologies to the market faster.
This is Infosys’s tenth investment in a start-up after it created its innovation fund. The company has previously invested in two cloud-computing start-ups — Israel-based Cloudyn and CloudEndure. It also invested in two data-analytics start-ups — Waterline Data Science Inc. and Trifacta.
Besides investing in startups, Infosys has acquired four companies last year, which include Panaya, Kallidus Technologies, Skava and Noah Consulting.
Such strategic investments and acquisitions have served to strengthen Infosys’ core competencies and will continue to fortify its portfolio as well as expand its market share.
Infosys presently carries a Zacks Rank #3 (Hold).
INFOSYS LTD Price and Consensus
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