IBM Acquires Hakkoda Inc In Bid To Expand Data Transformation

The estimated global spending for enterprise intelligence services initiatives stands at $169 billion and, with a five-year CAGR of about 13%, is expected to grow to more than $243 billion by 2028, according to IDC. To extract value from their data, business leaders need a migration strategy and a modern, multi-use case data platform on the cloud.

To address these enterprise needs, IBM has acquired Hakkoda Inc., a global data and AI consultancy, in a bid to expand its data transformation services portfolio. The acquisition of Hakkoda will add data platform expertise to IBM’s portfolio to help clients drive AI-powered business operations fuelled by data.

Hakkoda has capabilities in migrating, modernising, and monetising data estates and is an award-winning Snowflake partner. This acquisition amplifies IBM's ability to meet the rapidly growing demand for data services and help clients build integrated enterprise data estates that are optimised for speed, cost and efficiency across multiple business use cases, the tech giant said.

Hakkoda also brings a portfolio of generative AI-powered assets that can speed up data modernisation projects. Their industry solutions complement and build on their consultants' expertise in industries like financial services, public sector, and healthcare and life sciences. Hakkoda will further expand IBM's ability to bring both consulting expertise and AI to clients using its AI-powered delivery platform IBM Consulting Advantage.

“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," said Mohamad Ali, senior vice president and head of IBM Consulting.

“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," said Erik Duffield, chief executive officer and co-founder of Hakkoda.

The acquisition closed on April 2, and financial details of the transaction were not disclosed.