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Wipro Plucks cMango

2/28/06

Giant Indian IT outsourcer Wipro last week announced its $20 million purchase of cMango, confirming a trend we noted a few years back of rising demand for the services of infrastructure management companies.

cMango, based in Sunnyvale, CA and employing 120, supplies infrastructure architecture and implementation consulting services in addition to remote management. Some of the factors driving demand for such services are the ever-increasing pervasiveness of Internet communications, the escalating complexity and sophistication of security systems, and the proliferation of distributed devices like PDA's and smartphones. All these things argue for the value of robust, external infrastructure management platforms.

As a final advantage for outsourcers, such infrastructure service models create high switching costs and levels of dependency among their users.


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