IBM Acquires AI Consultancy Hakkoda to Bolster Data Transformation Services

IBM acquires consultancy Hakkoda in continued AI investment push | TechCrunch

IBM on Monday announced that it acquired Hakkoda, a data and AI consultancy based in New York, for an undisclosed amount. Mohamad Ali, SVP and head of IBM's consulting business, said that the acquisition would "further expand" IBM's ability to bring consultants and AI to clients, particularly customers in industries like financial services, public sector, and healthcare and life sciences. "With Hakkoda's data expertise, deep technology partnerships, and asset-centric delivery model," Ali said in a statement, "IBM will be even better-positioned to deliver value faster to clients as they transform with AI." IBM's Hakkoda buy comes as the former company continues to ramp up its investments in AI and automation technologies. In February, IBM acquired DataStax, a platform for building AI apps, and the outfit recently finalized its purchase of infrastructure and security automation firm HashiCorp. It's a strategy that's done well for IBM. In Q4 2024, the company, which makes the bulk of its AI income from consulting, recorded its biggest revenue jump in five years -- sending its stock soaring 10%. In Q4, IBM said that AI bookings and sales stood at over $5 billion inception-to-date. Co-founded in 2021 by ex-Deloitte GM Erik Duffield, Hakkoda helps customers move data to the cloud - in particular, the Snowflake data cloud. The startup offers a range of tools to help firms migrate and transform data, as well as products to "modernize" data from older systems. Prior to its exit, Hakkoda managed to raise $5.6 million in venture capital, according to Crunchbase. Backers include Tercera, Lead Edge Capital, and Casimir Holdings. Duffield said that Hakkoda's hundreds of consultants across the U.S., Latin America, India, Europe, and the UK will join IBM Consulting, IBM's consulting division, as part of the acquisition deal. "From the beginning, Hakkoda has committed to being 'in the arena,' not observing the greatest transformation in history but shaping it," Duffield said in a press release. "IBM's heritage of innovation, their commitment to discovery, and deep partnerships with clients on their most technical challenges [are] a perfect pairing to take Hakkoda's industry-focused modern data consulting to the global marketplace."

IBM Buys Snowflake-Focused Data, AI Consultancy Hakkoda

'IBM will be even better positioned to deliver value faster to clients as they transform with AI,' IBM Consulting's Mohamad Ali said. IBM has bought global data, artificial intelligence and Snowflake-focused consultancy startup Hakkoda to boost the data transformation services portfolio of the tech giant's IBM Consulting division. Armonk, N.Y.-based IBM will leverage the capabilities of New York-based Hakkoda, founded in 2021, for faster, and more-cost efficient integrated client enterprise data estates across various use cases, IBM said in a statement Monday. The deal closed April 2. Financial details were not disclosed. "IBM is at the leading edge of the consulting industry with how we're supercharging our consultants with AI," Mohamad Ali, IBM Consulting's senior vice president and head, said in the statement. "With Hakkoda's data expertise, deep technology partnerships and asset-centric delivery model, IBM will be even better positioned to deliver value faster to clients as they transform with AI." [RELATED: IBM CEO: GenAI With Consulting Driving Future Growth] CRN has reached out to both companies for comment. IBM Consulting is No. 6 on CRN's 2024 Solution Provider 500. In Monday's statement, Hakkoda CEO and co-founder Erik Duffield said selling to IBM will allow the firm to leverage the tech giant's innovations and deep client partnerships to go after industry-focused modern data consulting. In a separate online post by Duffield, he said that IBM's $6 billion-plus annual investments in research and development (R&D), AI and quantum computing leadership and $5 billion AI practice helped the vendor stand out as a potential Hakkoda buyer. He called the firm's Snowflake commitment "unwavering," but acknowledged a benefit in IBM's partnerships with other large cloud platforms. Hakkoda's other technology partners include Fivetran, Amazon Web Services and Dataiku, according to the firm's website. "I believed then and I believe today in the exceptional people who have made Hakkoda what it is," he said. "IBM does too, and that's why our leadership, our brand, and our values will remain. ... This isn't about fitting into someone else's mold -- it's about taking everything that makes Hakkoda special and amplifying it." Duffield's resume includes about three years with consulting giant Deloitte, leaving in 2021 with the title of general manager and managing director of the experience management platform. He also worked at Appirio for about six years, including one year as CEO, before leaving in 2019. Solution provider giant Wipro acquired Appirio in 2016. Hakkoda was founded in 2021 and raised $5.6 million in funding that year to boost its offers focused on the Snowflake platform. Hakkoda sought to stand out from other consultancies with a subscription model providing on-demand access to data engineers, architects and other professionals. The firm went on to raise an undisclosed amount of investment once again with participation from capital firm Tercera and others in 2023. Hakkoda brings to IBM generative AI-powered assets for data modernization projects with vertical focuses in financial services, public sector, health care and elsewhere, according to IBM's statement. IBM will add Hakkoda's consulting capabilities to its IBM Consulting Advantage platform. The data modernization play comes as IBM users get ready for the vendor to announce its new z17 mainframe product line, expected to come in the middle of 2025. The Hakkoda deal comes less than two months after IBM closed its $6.4 billion megadeal for Terraform creator and cloud provider HashiCorp. The tech giant has also looked to acquisitions to boost its consulting offerings, with recent deals including global Oracle consultancy Applications Software Technology Japan-based Amazon Web Services consultancy Skyarch Networks.

IBM Enhances AI Consulting Muscle With Hakkoda Deal - IBM (NYSE:IBM)

With stocks plunging, steady income is key. Tim Melvin & Ryan Faloona reveal dividend stocks and deep-value plays on April 8. Reserve your spot now. International Business Machines Corporation IBM disclosed on Monday that it had acquired Hakkoda Inc. for an undisclosed amount. This move enhances IBM Consulting's data transformation services by adding Hakkoda's expertise in data platforms, supporting clients in preparing their data for AI-driven business operations. The acquisition is expected to strengthen IBM's capacity to meet the rising demand for data services, enabling clients to build integrated, high-performance data estates optimized for speed, cost, and efficiency across diverse business needs. Organizations "are looking for a trusted partner to help them modernize their data for the AI era," Erik Duffield, CEO and co-founder of Hakkoda said. "IBM's heritage of innovation, their commitment to discovery and deep partnerships with clients on their most technical challenges is a perfect pairing to take Hakkoda's industry focused modern data consulting to the global marketplace." Last week, IBM broadened its cloud offerings in Canada and unveiled new innovations tailored to help organizations expand their artificial intelligence capabilities and adhere to regulatory standards. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund TDIV. Price Action: IBM shares are down 3.57% at $219.36 premarket at the last check Monday. Read Next: IBM Expands Cloud Storage To On-Premises With Ceph As A Service Image: Shutterstock IBMInternational Business Machines Corp $223.19-1.88% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum88.24 Growth77.14 Quality64.35 Value16.82 Price Trend Short Medium Long Overview TDIVFirst Trust NASDAQ Technology Dividend Index Fund $65.710.35% Got Questions? Ask Which data consulting firms could thrive with IBM's acquisition? How might AI technology providers benefit from IBM's expansion? What impact will IBM's AI services have on competitors? Are there emerging startups gaining traction in AI data services? How could cloud service companies react to IBM's new offerings? Which industries will seek IBM's enhanced data consulting? What opportunities exist for investing in AI infrastructure? Will big data companies see increased demand from IBM's clients? Could IBM's rivals face challenges in the AI era? How will tech ETFs respond to IBM's AI advancements? Powered By Market News and Data brought to you by Benzinga APIs