IBM’s latest quarterly earnings report revealed a revenue of $14.5bn, a 1% increase from the previous year. Software revenue also experienced growth, reaching $5.9bn with automation contributing the most to this increase at 14%. Additionally, Red Hat saw a revenue increase of 9%.
IBM CEO, Arvind Krishna, sees the acquisition of HashiCorp as a significant strategic move due to the current expansion in infrastructure and applications across different cloud environments. He believes that HashiCorp’s expertise in managing complex infrastructure will be valuable in this evolving landscape.
During an earnings call, Krishna addressed the trend of enterprises moving away from VMware and emphasized the importance of choosing a platform for the long term. He highlighted the growing interest in container-native virtualization and the KVM hypervisor, with the HashiCorp acquisition supporting IBM’s focus in this area.
The acquisition of HashiCorp by IBM aligns with HashiCorp’s goal of enabling companies to innovate in the cloud while managing it effectively. However, there have been criticisms regarding HashiCorp’s move away from open source principles through its commercial licensing of Terraform.
Amanda Brock, CEO of OpenUK, believes that the acquisition will strengthen IBM’s cloud offering but questions whether IBM’s commitment to open source will continue. Overall, the acquisition holds potential for IBM’s growth.
Menu
