IT major Wipro has completed selling its data centres to IT solutions provider, Ensono for $405 million and planned to invest $55 million on a joint venture
Information Technology (IT) giant Wipro has announced that it has sold its data centre operations in India to IT solutions provider, Ensono. Following its statement in March, the company has divested its data centre business, comprising Wipro Data Centre, Cloud Services, Inc (US), a part of its data centre business located in Germany and the UK for $405 million.
The Bengaluru-headquartered company informed that it had completed its divestment plans of the data centres on September 30. Earlier, in March, Wipro had revealed its decision to transfer eight of its data centres, along with the staff strength of over 900 to Ensono.
Wipro-Ensono partnership
The two IT firms had earlier signed a contract of long-term partnership. The mission was to deal with hybrid IT solutions for Wipro’s new and existing enterprise customers. The idea was to combine Ensono’s IT services for both on-premise and cloud and work towards a common goal to achieve the duo’s set targets. The partnership also planned to expand the global centres and the staff strength to gain desired revenue and offer end-to-end capabilities in the infrastructure space. The Bengaluru-based company has planned to invest around $55 million on a combined entity with Ensono.
Data centre business
Wipro’s divestment of data centre operations in India was laid down at a consideration of $6 million. The company had taken over the hosted data centre services after it acquired Infocrossing Inc. in 2007.
According to analysts, Wipro’s decision to withdraw from its data centre business is apt as it comes at a time when several entities are turning to large cloud infrastructure providers. Reports suggest that data centre business stood at $241 million for FY16-17, of which Wipro’s share accounted for about 2.9 per cent of the country’s total revenue.
