Infosys appears to have tired of maintaining ERP systems by hand and would prefer to offer more interesting consulting services instead.
The shift is evident in the decision to slap down 200 million crisp greenbacks to acquire Panaya. The newly-acquired outfit's main offering is the CloudQuality suite, a toolset that offers automated test and maintenance facilities for SAP, Oracle and Salesforce. The company's products can also predict looming ERP problems, then fix them based on insights gathered from its experience overseeing numerous implementations.
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Infosys wants the company, says CEO and MD Dr. Vishal Sikka, because it represents “a key step in renewing and differentiating our service lines” as automation “will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients.”
Which sounds an awful lot like Sikka admitting that certain parts of the services business aren;t much fun to be in these days, but that more complex consulting is where the action is.
Infosys is also building building a deeper and broader product suite. Panaya's mostly delivered in SaaS mode, so gives its new owner a chance to tap into the stream of revenue such offerings deliver while also giving it the chance to exit the mucky maintenance business. ®