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IBM to Acquire Confluent

https://www.confluent.io/blog/ibm-to-acquire-confluent/
107•abd12•1h ago

Comments

jituyadav•1h ago
is it good or bad for confluent employees?
rvz•1h ago
Both.

IBM will likely give Confluent employees a large pay package, and then let them go after the merger.

vb-8448•1h ago
They will get some money in the short term, but they better start looking for another job

edit: btw, it's typical for any acquisition/merger

xocnad•45m ago
From experience, and to slightly refute the sibling replied, good for the confluent peeps that get flagged as being essential to the acquisition, they'll get a retention bonus of 100-300% of base pay spread over three years. The cutting of staff will begin likely in the 3-5 year time frame.
abtinf•43m ago
It depends a lot on which org they go into, and the motivations of the P&L owner of that division.

IBM is a really big and diverse company, in a way fundamentally different from most other big tech. In a sense, it is completely incoherent to refer to them as a singular entity.

My opinions are my own. I worked at IBM like a decade ago in a role where I could see the radically different motivations of divisions.

paxys•41m ago
IBM paid a ~30% premium on the current stock price, so all shareholders (I imagine employees own a bunch of shares) will get a decent chunk of cash.

Some redundant departments (HR, finance, accounting and the like) will be downsized after the acquisition.

Engineering and product will mostly be unaffected in the short term, but in a year or two the IBM culture will start to seep in, and that would be a good time for tenured employees to start planning their exits. That's also when lock-up agreements will expire and the existing leadership of Confluent will depart and be replaced by IBM execs.

itsanaccount•56m ago
And the enshittification treadmill continues. Great time to be a kafka alternative.

I'll start.

https://github.com/tansu-io/tansu

gooob•47m ago
wait what's wrong with kafka?
itslennysfault•45m ago
What's wrong with kafka or what WILL BE wrong with kafka?
Boxxed•29m ago
I was in the midst of writing a snarky reply and then realized my actual issue with Kafka is that people reach for it way too often and use it in ways that don't really make sense.

Kind of like how people use docker for evrything, when what you really should be doing is learn how to package software.

stackskipton•18m ago
Ops here, Docker is packaging software.

Agree on the Kafka thing though. I've seen so many devs trip over Kafka topics, partitions and offsets when their throughput is low enough that RabbitMQ would do fine.

osigurdson•35m ago
https://nats.io

Not a drop in replacement, but worth looking at.

toomuchtodo•34m ago
https://pulsar.apache.org/
adamdecaf•24m ago
Redpanda has been a superior wire-compatible alternative to Kafka for years.

https://www.redpanda.com/compare/redpanda-vs-kafka

inesranzo•21m ago
Until Redpanda becomes enshittified.

Sigh.

spyspy•21m ago
`SELECT * FROM mytable ORDER BY timestamp ASC`
alexjplant•12m ago
Ah yes, and every consumer should just do this in a while (true) loop as producers write to it. Very efficient and simple with no possibility of lock contention or hot spots. Genius, really.
antonvs•7m ago
It's one of my favorite patterns, because it's the highest-impact, lowest-hanging fruit to fix in many systems that have hit serious scaling bottlenecks.
tormeh•11m ago
Apache Iggy seems like a project with a lot of momentum: https://github.com/apache/iggy
mistercheph•56m ago
Another genius move from International Business Machines!
zkmon•52m ago
Kafka is already past it's prime time. Time for new solutions for the oldest problem - sending a message.
slekker•32m ago
Erlang/OTP!
spyspy•22m ago
I'm still convinced the vast majority of kafka implementations could be replaced with `SELECT * FROM mytable ORDER BY timestamp ASC`
devnull3•10m ago
That is exactly what I am doing with sqlite.

Have a table level seqno as monotonically increasing number stamped for every mutation. When a subscriber connects it asks for rows > Subscriber's seqno-last-handled.

gooob•15m ago
wait what do you mean? what's wrong with kafka?
jhickok•52m ago
“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI.”

https://newsroom.ibm.com/2025-12-08-ibm-to-acquire-confluent...

I don't understand how this acquisition is relevant for AI.

exsomet•35m ago
Every time an executive says AI the number goes up.
oedemis•22m ago
Streaming, EDA can solve lot of data challenges for enterprise AI use cases
kitd•21m ago
Event-driven AI decision making is the C-suite wet dream. A large % of major orgs run Kafka for their eventing systems.
udev4096•48m ago
How is IBM still alive? Or is it trying to prove the same
hadrien01•48m ago
Genuine question: how did the IBM acquisitions of Red Hat and HashiCorp turn out?

For Red Hat, there's no longer an official "public" distribution of RHEL, but apart from that they seemingly have been left alone and able to continue to develop their own products. But that's only my POV as a user of OSS Red Hat products at home and of RHEL and OpenShift at work.

EarthIsHome•44m ago
Gnome has stagnated significantly.
tannhaeuser•40m ago
If only it had stagnated around gnome 2.0.
throw10920•30m ago
Could that be due to increased popularity of KDE?
phkahler•26m ago
>> Gnome has stagnated significantly.

GTK is still alive. It seems like Cosmic desktop with GTK apps will be a reasonable path forward. Of course there's KDE and QT, but I mean as an alternative to those.

shrubble•24m ago
The Gnome desktop that shipped with Solaris over two decades ago is just as useful, possibly more useful, as the tablet-oriented hamburger menu UI of today.

Yes, two decades: https://adtmag.com/articles/2003/08/04/solaris-gets-a-gnome-...

m4rtink•39m ago
Well, there is CentOS Stream:

https://www.centos.org/centos-stream/

And Fedora is still the upstream of RHEL, nothing changed there.

bluedino•35m ago
It seems like most users got tired of the unknowns with CentOS and went to Alma/Rocky. Doesn't help that most third party software vendors also didn't bother to support it.
this_user•32m ago
The argument has been made that the real value of RH lies in the people working there. And if IBM were to interfere too heavy-handedly, those people would just leave, and RH would become basically worthless.
rmccue•32m ago
We moved off HashiCorp's Terraform Cloud when they tried to hike the price 100x on us, although that was technically pre-acquisition I think (it was their move to resource-based pricing). In talking with our account manager, they basically said they only really cared about enterprise accounts, and that migrating away would probably make sense for us.

HashiCorp also changed their licenses to non-open-source licenses, but again I think this was technically pre-acquisition (I think as they were gearing up to be a more attractive target for an exit).

dangus•14m ago
In addition to this, I’ve noticed that OpenTofu is gaining much more interesting features and are actually acting upon long-requested functionality that HashiCorp has refused to implement (example: provider for_each in 1.9.0)
mitchellh•3m ago
> (I think as they were gearing up to be a more attractive target for an exit).

A common conspiracy theory, but not true. There were no ongoing acquisition talks or attempts to find a buyer when any of these decisions were made (the pricing or the licensing one).

CSMastermind•2m ago
I migrated our company off Terraform to Pulumi as a direct result of the acquisition.
leeoniya•47m ago
previously...

https://www.confluent.io/blog/confluent-acquires-warpstream/

elcapitan•46m ago
At least you can now safely buy into Kafka, as nobody ever got fired for buying IBM.
notepad0x90•41m ago
This isn't the old times, you can expect the opposite outcome these days.
kevstev•4m ago
OP IMHO was obviously being sarcastic.
antonvs•11m ago
I know companies who would certainly have fired people for buying IBM, if they could have gone back in time to do so.
b33f•46m ago
Maybe a good time to consider alternatives https://www.redpanda.com/compare/redpanda-vs-kafka
mliezun•28m ago
Maybe this whole thing it's because Snowflake acquired redpanda earlier this year: https://www.investors.com/news/technology/snowflake-stock-re...
jerrinot•25m ago
Snowflake did not acquire RP after all.
geodel•41m ago
This is great news. Kafka (the messaging/streaming platform) has finally found its natural home.
notepad0x90•35m ago
This is so fascinating to me. I mean how IBM keeps taking over other companies, but they consistently deliver low quality/bottom-tier services and products. Why do they keep doing the same thing again and again? How are they generating actual revenue this way?

Ok, so does anyone remember 'Watson'? It was the chatgpt before chatgpt. they built it in house. Why didn't they compete with OpenAI like Google and Anthropic are doing, with in-house tools? They have a mature PowerPC (Power9+? now?)setup, lots of talent to make ML/LLMs work and lots of existing investment in datacenters and getting GPU-intense workloads going.

I don't disagree that this acquisition is good strategy, I'm just fascinated (Schadenfreude?) to witness the demise of confluent now. I think economists should study this, it might help avert larger problems.

SV_BubbleTime•20m ago
I’m pretty convinced there is a bell curve of “understanding what IBM does” where idiots and geniuses both have absolutely no idea.

It really is probably that strangest company in tech which you think could be mysterious and intriguing. But no one cares. It’s like no one wants to look behind the boring suit and see wtf. From my low point on that bell curve I can’t see how they are even solvent.

embedding-shape•20m ago
Your fascination seems hinged on the fact that IBM has "lots of talent to make ML/LLMs work" which judging by what they've put out so far and talk publicly about, is very far from the truth. Anyone who has a clue seems to (rightly) have left IBM decades ago, and left are business people who think "Managed to increase margin by 0.1%" is something to celebrate.
notepad0x90•17m ago
To be a bit more candid, they have lots of employees outside of the US (particularly in India). and both in the US and elsewhere, people need to eat. They may not have the talent to innovate new tech like OpenAI and others, or do cutting-edge R&D, but they certainly have the talent to take LLM breakthroughs and adapt. They could have competed with many of the B-Tier LLM services out there with the right leadership.
embedding-shape•7m ago
> but they certainly have the talent to take LLM breakthroughs and adapt

I'll believe that when I see it. They had a decade headstart with all of this, and yeah, could have been at the forefront. But they're not, and because of the organization itself, they're unlikely to have a shot at even getting close to there. Seems they know this themselves too, as they're targeting the lower end of the market now with their Granite models, rather than shooting for the stars and missing, like they've done countless of times before.

photon_lines•15m ago
Why in the world would economists need to study this? It's been known that large bureaucracies have been dysfunctional for over a couple of decades now if not centuries. The large reason is because 1) the incentives to do great work are not there (most of the credit for a huge company's success goes to the CEO who gets 100X the salary of a regular worker while delivering usually pretty much nothing) 2) politics usually plays a huge role which gives a huge advantage to your competition (i.e. your competition needs to spend less time on politics and more time on the actual product) and 3) human beings don't functionally work well in groups larger than 100-250 due to the overwhelming complexity of the communication needed in order to make this type of structure work. Incentives though I think are the primary driver - most people at companies like IBM don't have any incentives to actually care about the product they produce and that's the secret behind the ruin of almost every large company.
stackskipton•11m ago
>Why do they keep doing the same thing again and again? How are they generating actual revenue this way?

IBM has a ton of Enterprise software, backed by a bunch of consultants hiding in boring businesses/governments.

They also do a ton of outsourcing work where they will be big enterprise IT support desk and various other functions. In fact, that side has gotten so big, IBM now has more employees in India in then any other country.

prodigycorp•5m ago
Watson couldn't remotely work as a chatbot. "Watson" was essentially an ML pipeline overoptimized on jeopardy.

Outside of Jeopardy, Watson was just a brand.

sqircles•2m ago
There are entire niches of us that make a living (not at IBM) making certain IBM products actually do what they're supposed to. From my vantage point I see essentially zero maintenance going on with their products. I sincerely don't understand the market (why do people keep paying hundreds of thousands to millions of dollars for non-existent support?) - but whatever.
JSR_FDED•33m ago
IBM have an absolutely stellar record of blowing acquisitions. The highly motivated newly acquired team will be in honeymoon phase for 3 months, and then it slowly dawns on them that they’ve joined an unbelievably rigid organization where things like customer satisfaction and great products don’t matter at all. Then they’ll be in shock and disbelief at the mind boggling Byzantine rules and internal systems they have to use, whose sole purpose is to make sure nobody does anything. Finally, the core IBM sales force will start to make demands on them and will short to ground any vestiges of energy, time, opportunity and motivation they might have left. The good team members will leave and join a former business partner, or decide to spend more time with the family. They’ll meet often at the beginning to relive the glory days of pre-acquisition and recount times where they went went above and beyond for that important early customer. But then these meetings will become fewer and fewer. Finally they’ll find a way of massaging their resumes to cast the last years as being “at the heart of AI infrastructure”.
coliveira•23m ago
IBM is designed to milk every last bit of money from their clients. So they need to add new products every now and then to add new money flows.
embedding-shape•21m ago
Surely by now everyone, including non-developers and non-software people, know exactly what IBM is, and you don't sell to IBM/join IBM without knowing exactly what's about to happen. No one joins IBM today and thinks there will be a huge focus on customer satisfaction or focus on great product design, it's all about squeezing maximum profit out of products until you need to discontinue them because you chased away all of the customers.
cr125rider•18m ago
I hope Hashicorp survives. A few higher ups I’ve talked to there made it seem like IBM wants to learn from them, not force their old ways onto Hashicorp. We’ll see. That one is still pretty new.
gedy•14m ago
Not to be cynical but that's said a lot in acquisitions by bigger companies to motivate some people to stay, but just doesn't seem to happen.
gnatman•17m ago
Pretty bleak, and describes my experience to a T (although involving other companies). Has there ever been an example where a company has been acquired and culture/morale/conditions have actually improved rather than dissolved?
Romario77•7m ago
I wouldn't describe it as improved necessarily, but successfully integrated. This happened many times - youtube by google for example. Facebook acquisitions are pretty successful too (not looking if it was good for humanity, just from business perspective).

Some companies like Amazon buy companies and let them run almost independently - IMDB for example, Zappos, Twitch, Whole Foods, Zoox, Audible.

shrubble•29m ago
IBM is buying market share, not a surprise; at least one telecom has all their Kafka stuff on the Confluent cloud, and there must be 1000s of such customers.
theta_d•28m ago
I worked for IBM Cloud about 6+ years ago. While there, we had to connect to a Softlayer VPN to get into our Jira instance. My VPN account and Jira account never got provisioned so I couldn't connect nor see the Jira board. My team-mates couldn't even assign a ticket to me b/c of this. They would just put my initial's in the ticket summary and send me a slack of the details.

It was right before I left that we got our own Jira instance. This was all around the time of the Red Hat acquisition. I remember the announcement b/c we used SuSE for everything IIRC.

rwmj•18m ago
How is this different from Apache Qpid or RabbitMQ or IBM MQ (at least the first and third of those is already owned by IBM!)
ekropotin•15m ago
Could anyone please explain what IBM is even doing these days? Where revenue is coming from?

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