IBM Invests $6.4B in HashiCorp’s Multi-Cloud Automation Technology

IBM announced today its plans to purchase HashiCorp, a multi-cloud infrastructure automation company, in a deal totaling $6.4 billion.

The deal, which is expected to close by the end of 2024, will enhance IBM’s integration of HashiCorp’s automation technology into its various sectors such as Red Hat, watsonx, data security, IT automation, and consulting services. IBM has been incorporating HashiCorp’s technology in several of its cloud services for some time.

HashiCorp’s product lineup includes the popular Terraform package that enables customers to automatically assign infrastructure network, virtual, and other elements across various cloud providers and on-premises environments.

Other offerings from the company include Vault, Nomad, and Consul, which all aid in the automation of cloud infrastructure provisioning, secure secret management, resource orchestration, and service networking on multiple cloud platforms.

HashiCorp maintains technology partnerships with numerous prominent cloud providers, like Amazon Web Services, Google Cloud, Microsoft Azure, and others.

IBM’s chairman and CEO, Arvind Krishna noted during a conference call, “We have a long-standing relationship with HashiCorp and deem them to be highly synergistic with IBM.” He went on to say, “Enterprise customers are grappling with an unprecedented growth and deployment of infrastructure applications throughout public and private clouds, and on-premise environments.”

“Considering the pace at which generative AI deployment is escalating alongside conventional workloads, developers are dealing with increasingly heterogeneous, dynamic, and intricate infrastructure strategies. Having a solid history of assisting clients manage today’s complex infrastructure by automating, orchestrating, and securing hybrid and multi-cloud environments, HashiCorp proves its worth.”

A strategic addition to the IBM’s suite, HashiCorp will bolster Red Hat’s hybrid cloud capabilities by providing enhanced automated infrastructure and security lifecycle management, as per Krishna’s statement. “Given that TerraForm is the industrial norm for infrastructure automation in these environments, security considerations remain a top priority for every enterprise,” he added.

For instance, the unified use of Red Hat’s Ansible Automation Platform for configuration management and Terraform’s automation can significantly streamline the provisioning and configuration of applications across hybrid cloud setups, as IBM indicated.

If the HashiCorp acquisition goes through, it would be IBM’s third acquisition for the year and its 13th since 2023. IBM’s largest acquisition remains its 2018 takeover of the software firm Red Hat for $34 billion, including debt, as per a report by Reuters.

HashiCorp’s CEO, Dave McJannet, would report to Rob Thomas, the senior vice president of IBM in charge of software, should the deal materialize, IBM revealed.

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