Impact of Wipro investment in Axeda examined in new Machina Research report

05 June 2013

On 3rd June 2013 Indian IT services firm Wipro announced that it was investing USD5 million in M2M stalwart Axeda. In exchange it will become a "Platinum Partner". Public details of the announcement can be found here.

The relationship between Axeda and Wipro has evolved significantly in recent months. Axeda and Wipro have been formal partners since February 2013, when the two companies announced a global alliance designed to speed M2M deployments by providing “end-to-end” solutions for their customers. The latest development seems to tie the two companies even more tightly together.

Today Machina Research published a report "Confronting prospects of waning growth, Axeda adds partners and new capital injection to gain global scale and expand functionality" looking at the current strategic approach of Axeda, particularly in the light of several announcements in recent months. One relates to Wipro, but others include tie-ups with UI firm JackBe and the latest news on its "Axeda-Ready" device approval programme.

Commenting on the Wipro tie-up, report author Andy Castonguay said: "Our view is that Axeda has struggled in the last year or two to scale its offering. The strategic relationship with Wipro should go some way to overcoming that obstacle. A tie-up with Wipro will provide Axeda’s platform services with the global sales organization and ongoing enterprise relationships in several key verticals to market and sell Axeda-based and branded M2M solutions more effectively."

However, Castonguay recommended caution to those who see this as an inevitable precursor to Wipro's acquisition of Axeda, observing that: "the heightened technical and service support established with Wipro’s investment may prove sufficient for Wipro to gain the strategic position it needs to significantly expand its M2M footprint without requiring an acquisition of Axeda."

The report is available through Machina Research's Advisory Service. Please contact us if you would like to know more.

quick links >