Justin is founder and principal analyst at PivotNine. He covers enterprise IT, cloud, and information security.
This is a significant premium above HashiCorp’s recent trading price of around $25 a share in early April 2024, though not so significant compared to 2022 when the median stock price was around $35, according to data from Yahoo Finance. IBM must believe that it can reverse the recent decline in HashiCorp’s fortunes and reach or exceed the performance of a couple of years ago.
Revenue growth was healthy, at 22.5% YoY for FY 2024, but less than half that of the year before . Not the kind of growth expected from a high-tech company in a still-emerging market, and less than promising trends. Conversions to cloud subscriptions were slowing. The variety of measures deployed to improve the situation didn’t seem to be working. At least, not as well as hoped.
HashiCorp’s two pillars complement Red Hat’s business well. Terraform is a de-facto standard mechanism for cloud-agnostic infrastructure provisioning and management. While it has some overlap in functionality to Red Hat’s own Ansible product, the two can work together perfectly well. It is better for IBM if those who reject Ansible choose Terraform instead, rather than some other, non-IBM product. New accounts with well-established Terraform will have no need to switch away.
IBM’s cloud was based on the acquisition of SoftLayer in 2013 rather than internal innovation. In 2016, IBM added Bluemix, based on the SoftLayer stack, in an attempt to make its cloud platform easier to use. It launched multiple attempts at AI-flavoured cloud withIBM’s approach to cloud has worked well where it aligns with its traditional, industry vertical approach.
Hashicorp Red Hat Terraform Openshift Vault Acquisition
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What IBM’s Deal For HashiCorp Means For The Cloud Infra BattleR. Scott Raynovich is the Founder and Chief Analyst of Futuriom, an independent cloud technology analysis firm. He has been following technology markets as an analyst and writer for 25 years. In the past he was a partner and Editor in Chief of Light Reading (Lightreading.
Read more »
Meta earnings, IBM to acquire HashiCorp, U.S. GDP ahead - what's moving marketsMeta earnings, IBM to acquire HashiCorp, U.S. GDP ahead - what's moving markets
Read more »
IBM announces mixed Q1 results, HashiCorp acquisition; shares downIBM announces mixed Q1 results, HashiCorp acquisition; shares down
Read more »
IBM announces mixed Q1 results, HashiCorp acquisition; shares downIBM announces mixed Q1 results, HashiCorp acquisition; shares down
Read more »
IBM to buy HashiCorp in $6.4 billion deal to expand cloud softwareIBM to buy HashiCorp in $6.4 billion deal to expand cloud software
Read more »
IBM Bolsters Hybrid-Cloud Business With $6.4B HashiCorp AcquisitionSteve McDowell is chief analyst at NAND Research. Steve is a technologist with over 25 years of deep industry experience in a variety of strategy, engineering, and strategic marketing roles, all with the unifying theme of delivering innovative technologies into the enterprise infrastructure market.
Read more »