HashiCorp will retain its name and the
Terraform brand. The 2,200-person company
will report to Thomas’s IBM software group in
its own division, and Thomas said IBM isn’t
planning layoffs.
So there will be RAs.
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IBM just caused Oracle to switch a bunch of HashiCorp clients to a free alternative, and they won't be coming back:
https://www.thestack.technology/oracle-dumps-terraform-for-opentofu/
“In this release, we have switched from Terraform to OpenTofu due to forthcoming Terraform licensing changes,” wrote Terri Noyes.
“ You must therefore upgrade your Cloud Manager to 24.1.1.1 by June 30, 2024 at the latest,”
Did IBM make a $6.4B blunder by buying HashiCorp? --
https://www.theregister.com/2024/05/10/opinion_column_ibm_hashicorp/
When Rob "Blazer" Thomas was informed he heard Hashish and got a chubby. The eyes never lie.
“ reached the 3 billion run rate”
For a software leader like Big Blue, that’s peanuts and nothing to gloat about. For reference, ULTA (yes lipstick Ulta) reported 5 billion last quarter.
The mojo is gone, enterprise rewriting is over, time to cull the expenses.
im getting out of IT. this company is a full blown s.h.i.t box. They pay you scraps. I can barely survive working here. Peace out to all my friends I've made along the way!!
Redhat reached the 3 billion run rate per year and slowed to 9% growth last quarter (not bad given the 34 billion invested, but certainly much slower than what it used to do (double digit)). So can Redhat get its mojo back? Most likely not as strongly as before, given that the low hanging fruit (enterprise middleware rewrite) has been accomplished, BUT if it grows at 9% via other “Enterprise Niche” spinoff/offerings, IBM will be more than satisfied. ALSO note IBM has started down the “mature redhat” path via cost take out on the developer side and replacing it with Hashicorp offerings. It’s a continuum of approx 3-5 years before IBM moves on from one shiny object to the next. The beauty of SW is it has 80% margins which make purchasing prices look high vs where wallstreet places value. 6.5 billion looks high, but it’s run rate over 5 years will definitely payoff given their current USA focus, and IBM’s ability to take the offering worldwide
Did we hear that about the 34b acquisition a few years ago? How did that turn out for everyone?
Just a year or so ago, RT both promised and predicted literally thousands of new "logos" coming on board. He likes to sound cool: "logos," in this case, means new customers. This would result from, among other things, two new products per quarter every quarter until the end of time. Is it possible that IBM did NOT actually get thousands of new customers in the last year or so? Seems unlikely given its dominance in all things AI.
How do you know when Thomas is lying? His lips are moving.
I believe Mr Thomas left a few words off of his statement No Layoffs for the new golden child Hashicorp is true, BUT layoffs for the mature “ex” golden child Redhat are certainly in the plan. IBM has become the new Computer Associates. Innovate via acquisition. Bluewash for the next 1-3 years. Then downsize in year 4 to a skeleton crew as you milk the mature product. Rinse and repeat Why is IBM doing this? Because they can’t grow the install base, so they have to find innovation and cash flow via add ons