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Cloud Computing > Developments > Serverless Computing > The Significance of IBM’s $6.4 Billion Acquisition of HashiCorp
Serverless Computing

The Significance of IBM’s $6.4 Billion Acquisition of HashiCorp

Three months on, IBM's acquisition of HashiCorp is enhancing AI, hybrid cloud, and DevOps collaboration. Discover the impact on Terraform and future innovations.

Conal Cram
Conal Cram August 5, 2024
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IBM Acquisition of HashiCorp Boosts DevOps After 1st Quarter
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Contents
How HashiCorp Enhances IBM’s Focus on AI and Hybrid CloudThe DevOps Community’s Optimism Towards the AcquisitionImplications for Terraform’s Open-Source StatusFuture Collaborative Opportunities in DevOpsA Positive Outlook on IBM’s Strategic MoveIs Collaboration the Key to Innovation in All Industries?

In April of this year, IBM announced its $6.4 billion acquisition of HashiCorp, a company that specializes in software for infrastructure and security lifecycle management in hybrid and multi-cloud environments. The IBM HashiCorp acquisition is not just a routine addition to IBM’s portfolio but a significant development that has captured the attention of the collaborative DevOps community. The acquisition was expected to enhance IBM’s capabilities in AI, hybrid cloud services, and foster a new era of innovation and collaboration in the DevOps sector.

HashiCorp is excited to join @IBM to continue building the platform of choice for multi-cloud automation. @armon shares his thoughts on how this serves our community, customers, partners, and product innovation: https://t.co/xBIN6FkVsE (link contains important information) pic.twitter.com/71Bzn1MDfH

— HashiCorp (@HashiCorp) April 24, 2024

How HashiCorp Enhances IBM’s Focus on AI and Hybrid Cloud

From the outset, the acquisition of HashiCorp was viewed positively for IBM’s efforts to strengthen its position in AI, hybrid cloud, and DevOps. HashiCorp’s Terraform tool is likely to help IBM attract a broader base of developers while creating a more robust platform with IBM’s existing cloud solutions. An analysis by CIO noted that Terraform, in particular, could be a key factor in expanding IBM’s developer community and enhancing its platform capabilities.

The DevOps Community’s Optimism Towards the Acquisition

Paul Nashawaty, a practice lead at the Futurum Group, commented on the potential for changes in cloud computing and automation. “According to our research, more than six tools are used by organizations to support cloud computing and automation. The combination of IBM, Red Hat, and potentially HashiCorp product portfolios suggests changes in cloud computing and the overall automation landscape. It is an alliance of seasoned professionals that goes beyond a simple technology merger to give organizations the tools and insights they need to manage the complex web of modern IT with efficiency and foresight.”

Mike Vizard and Paul Nashawaty discuss the cloud-native implications of IBM's move to acquire HashiCorp before diving into why NVIDIA acquired Run:AI.

Watch the episode here:https://t.co/mbRxwcLcR5

Listen to the episode here: https://t.co/YPJKHOMmb3#cloudnative #NVIDIA #IBM pic.twitter.com/VZ5gWazX9w

— Techstrong TV (@TechstrongTV) May 2, 2024

Implications for Terraform’s Open-Source Status

HashiCorp’s recent shift from an open-source Mozilla license to a closed Business Source License led to the creation of a rival Terraform fork called OpenTofu. IBM’s acquisition may influence this discourse, potentially reverting Terraform to its original open-source license, as hoped by many in the DevOps community.

Ohad Maislish, co-founder and CEO of Env0, explained:

“When HashiCorp changed the Terraform license, the DevOps community felt somewhat disillusioned, mostly because they had heavily invested in collaborating on Terraform and felt something they helped build was, in a sense, taken away. This situation fueled great enthusiasm for OpenTofu, driving its rapid adoption, with massive collaboration from the community.”

Hear about the changing tides in Terraform’s open source status and what the future holds with @OpenTofuOrg. @OpenObserv Talks with @horovits and his guest @omryhay, co-founder and CTO of @envZero is here!

📖+ 📺 +🎧 https://t.co/iOpUH7nhdg#oss #terraform #observability

— Logz.io (@logzio) September 26, 2023

Future Collaborative Opportunities in DevOps

With IBM’s acquisition of HashiCorp, there is optimism about restoring a collaborative system for Terraform contributors. Maislish highlighted the community’s desire to see Terraform moved under a neutral, non-profit organization to ensure best practices and governance.

“With IBM’s acquisition of HashiCorp, some hope Terraform will return to its original, open-source license. The community would likely be even more thrilled to see Terraform moved under a neutral, non-profit organization. A move like that would ensure best practices and governance around community collaboration,” Maislish noted.

A Positive Outlook on IBM’s Strategic Move

The IBM acquisition of HashiCorp, set to be completed by year-end, holds promise for significant advancements in AI and hybrid cloud. This move appears poised to have a substantial impact on future developments in these areas, enhancing collaboration and innovation. The DevOps community’s response reaffirms the importance of collaboration for unlocking innovative ideas and developments.

Is Collaboration the Key to Innovation in All Industries?

The collaborative nature of open-source platforms like Terraform serves as a powerful example for other industries, where shared expertise can lead to faster progress and innovation. The DevOps community highly values collaboration, and the IBM HashiCorp acquisition may be a crucial step in maintaining and enhancing this collaborative spirit.

Wouldn’t it be refreshing if other industries had the same mindset? What are your thoughts on the IBM HashiCorp acquisition and its potential impact on the DevOps community? Share your comments below!

Photo by Yuheng Ouyang on Unsplash

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By Conal Cram
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Conal is a seasoned tech industry professional and content writer for numerous tech publications. With a strong background in software engineering and digital media development, he's passionate about sharing the latest updates and insights in the tech industry, particularly in artificial intelligence and other disruptive trends. In his spare time he loves a mezze platter and a good film, and if he's not playing Fortnite or spending time with his daughter you can assume he's at the dry slopes!
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