IBM has announced the acquisition of Hakkoda, a data and AI consultancy based in New York, in a move to further expand its ability to bring consultants and AI to clients across various industries. The acquisition, the terms of which were not disclosed, is the latest in a series of investments by IBM in AI and automation technologies.

Mohamad Ali, Senior Vice President and head of IBM's consulting business, stated that the acquisition would enable IBM to deliver value faster to clients as they transform with AI. "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," Ali said in a statement.

The acquisition is part of IBM's strategy to ramp up its investments in AI and automation technologies. In February, the company acquired DataStax, a platform for building AI apps, and recently finalized its purchase of infrastructure and security automation firm HashiCorp. These investments have paid off, with IBM recording its biggest revenue jump in five years in Q4 2024, driven largely by its AI consulting business.

In Q4 2024, IBM's AI bookings and sales stood at over $5 billion inception-to-date, with the company making the bulk of its AI income from consulting. The acquisition of Hakkoda is expected to further boost IBM's AI consulting capabilities, particularly in industries such as financial services, public sector, and healthcare and life sciences.

Hakkoda, co-founded in 2021 by ex-Deloitte GM Erik Duffield, helps customers move data to the cloud, particularly 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 from backers including Tercera, Lead Edge Capital, and Casimir Holdings.

As part of the acquisition deal, Hakkoda's hundreds of consultants across the U.S., Latin America, India, Europe, and the UK will join IBM Consulting, IBM's consulting division. Duffield stated that IBM's heritage of innovation, commitment to discovery, and deep partnerships with clients on their most technical challenges made it a perfect pairing to take Hakkoda's industry-focused modern data consulting to the global marketplace.

The acquisition is a significant move for IBM, which is seeking to strengthen its position in the AI consulting market. With Hakkoda's expertise in data migration and transformation, IBM is well-positioned to help clients accelerate their digital transformation journeys. The deal is also a testament to the growing importance of AI and automation technologies in driving business growth and innovation.

As the AI market continues to evolve, IBM's acquisition of Hakkoda is likely to have significant implications for the industry. With its expanded capabilities, IBM is poised to take on more complex AI projects and deliver greater value to clients. The deal is also likely to drive further consolidation in the AI consulting market, as companies seek to strengthen their capabilities and stay ahead of the competition.

In conclusion, IBM's acquisition of Hakkoda is a strategic move that strengthens its AI consulting business and positions the company for further growth in the AI market. As the demand for AI and automation technologies continues to rise, IBM is well-positioned to capitalize on this trend and deliver greater value to clients across various industries.