As more content companies turn to digital platforms to stream entertainment, video services provider Harmonic has made a $3.5 million investment in cloud-based encoding firm Encoding.com.

Harmonic is essentially betting that the future of its services will rely more heavily on cloud-based transcoding farms to convert video for clients so that’s it’s watchable on smartphones, tablets, smart TVs, set top boxes and websites.

That’s essentially what San Francisco-based Encoding provides. The company operates 12 data centers around the world to streamline transcoding, packaging and video delivery to all mobile, desktop, IPTV, and OTT devices.

“Encoding.com has pioneered and continues to lead the cloud-based, video software-as-a-service market,” said Patrick Harshman, CEO at Harmonic. “As the market increasingly embraces the cloud, we look forward to working closely with Encoding.com to offer our customers the most compelling solutions to meet the rapid changes within the video ecosystem.”

The investment by Harmonic represents a Series B round of financing for Encoding.

Encoding said it will use the investment to scale up its customer acquisition efforts around the world. Until now, the six-year-old venture had focused primarily on growing its customer base in North America and Europe.

Its current roster of clients include Discovery Communications, Viacom, Fox, the BBC, AOL, Scripps and Getty Images.

Encoding’s clientele is now expected to increase with Harmonic’s investment, given that Harmonic will integrate Encoding’s services into its own offerings.

One of Harmonic’s largest clients is Comcast, for example, which will be able to use Encoding’s cloud-based service to convert video for various platforms rather than build out its own hardware and software encoding farms.

“With the strength of Harmonic’s brand and video product experience along with Encoding.com’s advanced cloud-based capabilities, together we offer the most compelling solution for publishers targeting multi-screen video distribution and video production workflows,” said Jeff Malkin, president of Encoding.com.

Earlier this year, Encoding and Harmonic began collaborating on Harmonic’s ProMedia Carbon broadcast toolset, adding in cloud-based capabilities to enable users to produce versions of video for different platforms.