IBM expands hybrid cloud management capabilities with $6.4B HashiCorp purchase

IBM continues its strategic acquisition streak with the announcement of a $6.4 billion deal to acquire cloud management vendor HashiCorp. This move is part of IBM’s shift away from being a pure cloud infrastructure vendor and towards helping IT departments manage complex hybrid environments.

HashiCorp, founded in 2012, offers cloud lifecycle management and security tools, with revenue of $155 million last quarter, up 15% year-over-year. IBM CEO Arvind Krishna sees the acquisition as a key piece of the company’s hybrid cloud strategy, stating that combining IBM’s portfolio and expertise with HashiCorp’s capabilities will create a comprehensive hybrid cloud platform designed for the AI era.

The acquisition comes after IBM’s previous high-profile acquisitions, including Red Hat for $34 billion in 2018 and Apptio last year. With HashiCorp’s rapid growth and expertise in managing infrastructure and application sprawl, IBM aims to strengthen its position in the hybrid cloud market.

However, there are concerns within the open-source community regarding HashiCorp’s licensing changes and the creation of a new open-source alternative called OpenTofu. It remains to be seen how IBM’s ownership will impact HashiCorp’s approach to open source.

Overall, industry experts believe that IBM should maintain HashiCorp’s independence and neutral stance in working with multiple cloud providers to maximize the value of the acquisition. With HashiCorp now part of the IBM family, the company is poised to enhance its hybrid cloud product catalog and solidify its position in the competitive cloud market.