NTT Data, a global IT services leader, announced its acquisition of Niveus Solutions, a cloud engineering firm specializing in Google Cloud Platform (GCP) services. The deal brings a strategic addition to NTT Data’s arsenal, enhancing its position in the cloud services ecosystem and advancing its partnership with Google Cloud.
Background: Who is Niveus Solutions?
Niveus Solutions, founded in 2013, is a cloud-native engineering services company headquartered in Udupi, Karnataka, India. Specializing in GCP technologies, Niveus offers services in application, data, and infrastructure modernization, cloud security, consulting, migration, and managed cloud services.
The company has experienced significant growth, with a team of over 1,000 professionals as of September 2024.
Strategic Rationale for the Acquisition
- Expanding Cloud Expertise: Niveus Solutions brings an impressive team of approximately 1,000 GCP engineers, significantly strengthening NTT Data’s cloud service capabilities. This integration improves NTT Data’s capabilities in GCP-native modernization, data engineering, and AI-driven solutions.
- Strengthening Google Cloud Partnership: NTT Data’s longstanding partnership with Google Cloud receives a critical boost through the acquisition. Niveus was recognized as a 2024 Google Cloud ‘Breakthrough Partner of the Year’ in the Asia-Pacific region,
- Enhancing Industry-Specific Solutions: Niveus’s expertise in sectors like financial services, manufacturing, and logistics enables NTT Data to deepen its cloud-based industry vertical solutions.
- Geographic Diversification: Based in Udupi, Karnataka, India, Niveus strengthens NTT Data’s footprint in the Asia-Pacific region.
Quick Take
Google Cloud is seeing strong growth, continuing to take share from its more dominant competitors. The CSP grew its market share by two percentage points from Q3 2023 to Q30 2024, rising to 13% from 11% the year prior. AWS’s market share slightly decreased, while Microsoft Azure’s share remained relatively stable.
The acquisition should improve NTT Data’s competitive standing among global IT service providers. Integrating Niveus Solutions allows NTT Data to differentiate with enhanced capabilities in Google Cloud services. As a result, competitors like Accenture, Cognizant, Infosys, and Capgemini – all of which have strong GCP capabilities – will feel intensified competition from NTT Data, particularly in delivering GCP-focused solutions and industry-specific AI services.
Overall, acquiring Niveus Solutions is a timely and well-aligned strategic move, enhancing NTT Data’s capabilities in high-growth areas such as cloud engineering and AI while strengthening its ability to meet rising global demand for cloud transformation. This will undoubtedly generate substantial revenue opportunities for the company, particularly in the Asia-Pacific region and among industries requiring deep, sector-specific expertise.
