Key Points:
• IBM acquired HashiCorp for $6.4 billion to infuse its automation and security technology into every data center possible.
• HashiCorp’s products, including Terraform, Vault, Nomad, Boundary, and Consul, will be integrated with IBM and Red Hat’s offerings to provide a platform for automating workload deployment and orchestration across various environments.
• The deal aims to help enterprises efficiently manage and modernize cloud infrastructure and security tasks, with a focus on infrastructure automation to support the expected 1 billion new cloud-native applications by 2028.
IBM has announced the closure of its $6.4 billion acquisition of HashiCorp, a leading provider of automation and security technology. The deal, which took 10 months to complete, marks a significant milestone in IBM’s efforts to integrate HashiCorp’s technology into its existing offerings, including Red Hat, Watson, data security, IT automation, and consulting businesses.
HashiCorp’s products, including Terraform, Vault, Nomad, Boundary, and Consul, will be integrated with IBM’s and Red Hat’s solutions to provide a platform for automating workload deployment and orchestration across various environments, including hyperscale cloud service providers, private clouds, and on-premises environments. This will enable customers to more efficiently manage and modernize their cloud infrastructure and security tasks.
The acquisition is driven by IBM’s goal of empowering customers to take advantage of the increasing demand for cloud-native applications. As stated by Rob Thomas, senior vice president of IBM Software, "By 2028, it is projected that generative AI will lead to the creation of 1 billion new cloud-native applications. Supporting this scale requires infrastructure automation far beyond the capacity of the workforce alone."
HashiCorp’s CTO and co-founder, Armon Dadgar, highlighted the potential benefits of the deal in a blog post, stating that integrating Terraform with Ansible and Cloudability will enable an end-to-end approach to infrastructure automation as code, while integrating Vault with OpenShift, Ansible, and Guardium will bring world-class secrets management to those platforms.
The deal is expected to have significant implications for the cloud and technology industries, with the potential to transform the way businesses approach infrastructure automation, security, and management. As the demand for cloud-native applications continues to grow, the integration of HashiCorp’s technology with IBM’s and Red Hat’s offerings is likely to play a critical role in shaping the future of IT infrastructure and security.
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