IBM Acquires HashiCorp for Next-Gen Cloud Platform

By Greg Tavarez, TMCnet Editor  |  May 01, 2024

IBM positions itself as a powerhouse in three key areas: hybrid cloud solutions, AI and consulting expertise. This allows them to serve a vast international clientele exceeding 175 countries.

IBM (News - Alert) understands that businesses often require a blend of on-premise and cloud computing environments. Their hybrid cloud platform lets organizations leverage the best of both worlds, optimizing data management, streamlining processes and reducing costs.

Being at the forefront of AI innovation, IBM offers solutions that help businesses extract valuable insights from their data. This leads to improved decision-making, enhanced automation and a competitive advantage.

The long-story-short of this is that IBM acts as a one-stop shop for organizations wanting to achieve their digital transformation goals. With a global reach, industry-specific expertise and a focus on ethical practices, IBM places itself with organizations at the summit that shape the future of technology.

With its focus and investment in hybrid cloud and AI, two of the more transformational technologies for clients today, IBM announced a definitive agreement to acquire HashiCorp for $35 per share in cash, representing an enterprise value of $6.4 billion.

HashiCorp offers tools that automate the management of infrastructure and security across hybrid and multi-cloud environments. These tools help businesses manage their cloud setups efficiently by acting as a central control hub for critical workflows. Terraform, a solution from HashiCorp, for example, sets a standard for provisioning infrastructure in such environments. By using HashiCorp's solutions, companies manage their multi-cloud infrastructure in a way that works across different cloud providers

“IBM's leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey,” said Dave McJannet, CEO, HashiCorp.

The question is, how does this align with IBM's focus on collaboration and open-source innovation?

Buying HashiCorp gives IBM a powerful platform to manage complex hybrid cloud environments with AI-driven tools. Combining their expertise will offer customers improved solutions for managing applications, infrastructure and security across their cloud setups.

This acquisition boosts IBM's growth in key areas like Red Hat (News - Alert) and AI and simplifies application management through combined technologies like Terraform and Ansible. Additionally, leveraging IBM's global reach and sales network will accelerate HashiCorp's growth.

The combined offering caters to the massive hybrid and multi-cloud market and allows clients to automate workload deployment across various environments. This expands IBM's potential in the $1.1 trillion cloud market, projected for substantial growth in the coming years.

Financially, the deal promises faster growth for IBM through synergies and improved efficiency, leading to significant profit and cash flow increases in the near future.

“HashiCorp has a proven track record of enabling clients to manage the complexity of today's infrastructure and application sprawl,” aid Arvind Krishna, IBM chairman and CEO. “Combining IBM's portfolio and expertise with HashiCorp's capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”

The transaction is expected to close by the end of 2024.

Edited by Alex Passett
Get stories like this delivered straight to your inbox. [Free eNews Subscription]