IBM Acquires Hakkoda: Expanding AI Consultancy Capabilities

IBM Acquires Data and AI Consultancy Hakkoda

IBM announced on Monday the acquisition of Hakkoda, a data and artificial intelligence consultancy headquartered in New York City.

Expanding AI Capabilities

This acquisition is intended to significantly enhance IBM’s capacity to deliver both consulting services and AI solutions to its clientele.

Mohamad Ali, Senior Vice President and head of IBM Consulting, stated that the focus will be on industries such as financial services, the public sector, and healthcare/life sciences.

Leveraging Hakkoda’s Expertise

According to Ali, Hakkoda’s proficiency in data management, established technology partnerships, and asset-focused delivery approach will enable IBM to accelerate value creation for clients undergoing AI-driven transformations.

The financial details of this transaction have not been publicly revealed.

Strategic Investments in AI

This move aligns with IBM’s ongoing strategy of increasing investments in AI and automation technologies.

Recent acquisitions include DataStax, a platform for developing AI applications, and HashiCorp, a firm specializing in infrastructure and security automation.

Positive Impact on Revenue

IBM’s strategic focus on AI has already yielded positive results.

In the fourth quarter of 2024, the company experienced its largest revenue increase in five years, resulting in a 10% surge in stock value.

IBM reported that AI-related bookings and sales exceeded $5 billion to date.

Hakkoda’s Focus and Growth

Founded in 2021 by former Deloitte General Manager Erik Duffield, Hakkoda specializes in assisting clients with data migration to the cloud, particularly the Snowflake data cloud.

The company provides tools for data migration, transformation, and modernization of legacy systems.

Funding and Backers

Hakkoda had successfully raised $5.6 million in venture capital funding.

Key investors included Tercera, Lead Edge Capital, and Casimir Holdings.

Integration with IBM Consulting

Duffield confirmed that Hakkoda’s team of consultants, located across the U.S., Latin America, India, Europe, and the U.K., will be integrated into IBM’s consulting division.

A Vision for the Future

“Hakkoda has always been dedicated to actively participating in, and shaping, the current period of significant transformation,” Duffield explained.

He believes IBM’s history of innovation, commitment to research, and strong client relationships make it an ideal partner to expand Hakkoda’s data consulting services globally.