Amdocs acquired Canadian technology consultancy and cloud transformation specialist Sourced Group for $75 million, aiming to position itself as the top system integrator for cloud migrations across the communications, media and financial services sectors.
Oren Betzaleli, head of Amdocs Cloud, told Fierce the deal expands Amdocs’ capabilities beyond a focus on transitioning its own products and services to tackle customers’ entire IT infrastructure and application landscape.
He explained the Sourced team is comprised of highly-skilled engineers who not only look at the applications that need to move to the cloud but also the underlying infrastructure, tools and platforms. This, he said, helps ensure that when customers move to the cloud, they are able to do it at scale rather than hitting a wall after transitioning a few dozen applications.
“We are acquiring a huge depth of knowledge,” Betzaleli said, referring to Sourced’s team of more than 150 employees. “The main value is not just staff augmentation, outsourcing some coding for a customer. You can do that, but it’s not worthwhile. The benefit is coming from the work that they do around setting the strategy, establishing the infrastructure, thinking about migration to the cloud in a much more holistic, reusable, scalable way.”
Though Sourced has primarily worked with customers in the financial services industry, Betzaleli said Amdocs believes that experience can easily be applied to telecommunications customers since the industries have similarly stringent security and regulatory requirements.
Betzaleli said it is initially targeting “all of Amdocs customers, which is almost the entire telecommunications industry.” He added it also aims to speed cloud transitions among media customers and additional players in the financial services industry.
“When you say cloud, you immediately think about AWS, Azure. You don’t immediately think about Amdocs…what we’re trying to achieve here is we want to be known as the system integrator of choice in the telecommunications industry to help the industry move to the cloud,” Betzaleli said.
Out of “hundreds” of Amdocs clients, only a few dozen have already started the cloud journey, he said. But Betzaleli noted the Sourced team hit the ground running after the deal was executed in mid-March and is already engaged with a handful of customers each in North America and the Asia Pacific region, as well as a couple players each in Europe and South America.
“We are trying to slow down because they’re a small company, we don’t want to overwhelm them. But the demand is huge. We have an amazing customer base that are waiting for us to bring value,” he said.
Amdocs reported results for its fiscal second quarter (ended March 31) on Wednesday. Revenue of $1.049 billion was flat compared to $1.048 billion in the year-ago quarter. Net income fell to $119.1 million, down from $127 million in the same period last year.