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IBM to buy HashiCorp in $6.4B deal

reuters.com

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Re: IBM to buy HashiCorp in $6.4B deal

#31
post #13

Earlier quoted context omitted.

Considering IBM sided with the fork, I suspect it'll be reverted for most or all of Hashicorp's projects.

That is the kind of thing that could have been a kind of negotiation tactic for purchasing Hashicorp, not necessarily done in good faith.

Hashicorp's relicensing could also have been a tactic to get the sale to happen.

Re: IBM to buy HashiCorp in $6.4B deal

#33

I wonder how this will work with Red Hat. Traditionally, Red Hat and HashiCorp competed more directly than other IBM portfolio products, fighting over the same customer dollars.

Number one rule of megacorp M&A: Juice quarterly numbers first, ask capital allocation efficiency questions never.

Re: IBM to buy HashiCorp in $6.4B deal

#36

terraform changed to business source license pretty recently too: https://www.hashicorp.com/blog/hashicorp-adopts-business-sou...

When they did this the community forked it into https://opentofu.org/

In what sense did they side with OpenTofu? Genuinely curious.

Re: IBM to buy HashiCorp in $6.4B deal

#39

I didn't know IBM still had money to throw around like that. What do they even do these days? Who are their customers?

IBM had ~$14B cash to start the year.

Additionally, you don't need the full purchase price in cash to buy the company. You can do leveraged buyouts, etc.

Re: IBM to buy HashiCorp in $6.4B deal

#40
Hashi never sold me on the integration of their products, which was my primary issue with not selecting them. Each is independently useful, and there is no nudge to combine them for a 1+1=3 feature set.

Kubernetes was the chasm. Owning the computing platform is the core of utilizing Vault and integrating it.

The primary issue was that there was never a "One Click" way to create an environment using Vagarent, Packer, Nomad, Vault, Waypoint, and Boundry for a local developer-to-prod setup. Because of this, everyone built bespoke, and each component was independently debated and selected. They could have standardized a pipeline and allowed new companies to get off the ground quickly. Existing companies could still pick and choose their pieces. On both, you sell support contracts.

I hope they do well at IBM. Their cloud services' strategy is creating a holistic platform. So, there is still a chance Hashi products will get the integration they deserve.

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