HashiCorp's capabilities will drive significant synergies across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation and Consulting, the company said in a statement.

"Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments,” said Arvind Krishna, IBM Chairman and CEO.

“The global excitement surrounding generative AI has exacerbated these challenges and CIOs and developers are up against dramatic complexity in their tech strategies," Krishna added.

As a part of IBM, HashiCorp is expected to accelerate innovation and enhance its go-to-market, growth and monetisation initiatives.

“The need for effective management and automation is critical with the rise of multi-cloud and hybrid cloud, which is being accelerated by today's AI revolution," said Armon Dadgar, HashiCorp co-founder and chief technology officer.

"I'm incredibly excited to be joining IBM to accelerate HashiCorp's mission and expand access to our products to an even broader set of developers and enterprises,” Dadgar added.

The rise of cloud-native workloads and associated applications is driving a radical expansion in the number of cloud workloads enterprises are managing. In addition, generative AI deployment continues to grow alongside traditional workloads.

“IBM's leadership in hybrid cloud along with its rich history of innovation, make it the ideal home for HashiCorp as we enter the next phase of our growth journey,” said Dave McJannet, HashiCorp chief executive officer.