IBM doubles down on hybrid cloud with $6.4B HashiCorp acquisition
Addressing the challenge of hybrid cloud complexity
The complexity of managing multicloud and hybrid environments has become a daunting task for enterprises in recent times with the rise of cloud-native applications and generative AI (GenAI) deployments.
Addressing the challenge of hybrid cloud complexity
The complexity of managing multicloud and hybrid environments has become a daunting task for enterprises in recent times with the rise of cloud-native applications and generative AI (GenAI) deployments. The acquisition of HashiCorp by IBM fortifies IBM’s position in the rapidly growing AI and cloud computing market, two game-changing technologies shaping the future of how enterprises operate.
“Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments. The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies,” Arvind Krishna, IBM chairman and CEO, said in a press statement. “HashiCorp has a proven track record of enabling clients to manage the complexity of today’s infrastructure and application sprawl. Combining IBM’s portfolio and expertise with HashiCorp’s capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era.”
Managing the infrastructure lifecycle is often an afterthought or is assumed to be done by the systems integrator or the cloud infrastructure provider, Shah noted. “But it is becoming more and more complex for enterprises with variety and velocity of workloads in a hybrid cloud setting with different policies, security, troubleshooting, migrations, feature updates across clouds,” Shah said. He said with the onset of GenAI integrations, it would become even more complex and would need greater automation and policy management. “This is where IBM can gain an edge with HashiCorp’s capabilities and potential customers,” he added.
What IBM gains from HashiCorp acquisition
IBM’s acquisition of HashiCorp strengthens the company’s play in the hybrid cloud and DevOps market. HashiCorp’s well-regarded open source tools, particularly Terraform, bolster IBM’s portfolio and provide a path to attract a wider developer base, potentially fostering further innovation, said Prabhu Ram, head for Industry Intelligence Group at CyberMedia Research (CMR).
Combining IBM’s existing cloud solutions with HashiCorp’s infrastructure automation tools is expected to create a robust platform for managing hybrid and multi-cloud environments. “Our strategy at its core is about enabling companies to innovate in the cloud while providing a consistent approach to managing cloud at scale. The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today’s AI revolution,” Armon Dadgar, HashiCorp co-founder and chief technology officer, said in a statement.
Notably, HashiCorp’s multicloud focus aligns with the market’s increasing demand for flexibility, said CMR’s Ram backing the move. “By integrating these capabilities with its established customer base, IBM can create significant cross-selling opportunities. The combined entity positions IBM as a more comprehensive player in a fiercely competitive landscape, addressing the needs of both traditional infrastructure and emerging AI-driven workloads.”
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