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.”

IBM Buys Hakkoda

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.