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by adastra22 558 days ago
Who would buy it?
8 comments

Many options , older companies like IBM, Google, SAP, Oracle or even Salesforce (already own heroku in dev tooling space so not far fetched ) with stable or slowing market presence in engineering departments

Mid sized newer companies likes Hashicorp or datadog or vercel who target developers as customers .

Gitlab gives access to a large audience of developers to cross sell most dev tools so all these orgs can get a lot of returns paying more than the standalone value of gitlab itself.

The best fit would be companies like Hashicorp who have strong open source pedigree so users won’t be turned off and leave

> The best fit would be companies like Hashicorp who have strong open source pedigree so users won’t be turned off and leave

HashiCorp might not be the best fit anymore. Last year, they switched to a license that isn't open source: https://news.ycombinator.com/item?id=37081306

Did I miss something? Didn't IBM acquire Hashicorp?
Yes they did, i should have clarified, as IBM is becoming like Broadcom as an umbrella organization for all sorts of companies, the ibm core is different beast than some of the acquisitions they have been making

In my mind just like LinkedIn , GitHub and Microsoft are every distinct entities with a lot of differences on how they work , Hashicorp and IBM parent are different and will remain so. Integrating into Hashicorp for Gitlab would be very different than integrating into IBM core with different values for both businesses .

GitLab Premium already integrates with HashiCorp Vault [1]

GitLab supports storing the Terraform state and includes Terraform templates however they are moving to OpenTofu in 18.x [2]

1. https://docs.gitlab.com/ee/ci/secrets/hashicorp_vault.html 2. https://docs.gitlab.com/ee/update/deprecations.html

I wasn't thinking about a few focused features or integrations, but more generally. i.e non product things like sales and license packaging and son on.

If an acquisition has to make sense there should be a clear path to monetize it, for IBM core or its HashiCorp unit or any other buyer that will not just be through some light integrations alone, they can achieved with partnerships after all you don't need to buy the organization for it.

Agree. What did you have in mind? The two products are already lightly integrated.
Salesforce let Heroku wither and die. I don't see them sticking their toes into the dev tooling space again anytime soon.
The official rumor is DataDog:

https://www.reuters.com/markets/deals/google-backed-software...

Given New Relic is a direct competitor, Bill Staples' background makes even more sense.

Why? And why would Gitlab be worth $8billion?

I seriously don't understand the deals being made in tech. Most of the makes no sense, not even retrospectively. I get Microsoft buying Github, that was a part of their open source strategy and they've always put a high value on developers.

> why would Gitlab be worth $8billion?

I wouldn't buy them for that myself, but Gitlab made $200 million in revenue in Q3 2024 [1]. So $800 million a year in revenue.

I've seen worse purchases.

[1] https://ir.gitlab.com/news/news-details/2024/GitLab-Reports-...

The way the present their numbers is pretty hard to understand, at least for me, did they lose $28million or make $28million in that same quarter? Either way that seems insanely low, if they're expected to be worth $8billion. The gap between profit and revenue seems to high.

There might be some potential for Gitlab complement your other business, in which case you may not see the lack of profit as that big of an issue. The problem is that if you can't make those $8billions back in future profit, then you're going to start making changes to the Gitlab offerings until they do become profitable.

That might be what the new CEO is suppose to do, pump up those numbers, and make it look like a sane investment.

Maybe IBM since I think Gnome and a few other large projects moved there. Plus since AI is all the rage, I can see someone picking it up.

The main question is probably the price.

I was thinking about that as well, given that it seems it would fit in well with the red hat portfolio. They don't as far as I know. Have a good answer for a gitforge, and the phenomenal CI CD offering that gitlab has would be very marketable to Red hat customers.

I would be excited if IBM acquired them and put them under the red hat umbrella, because as history has shown, it may mean that gitlab ends up becoming much more open. They may open up the entire product instead of doing the open core model.

Please correct me if wrong. Red Hat has OpenShift Cloud, which I think has Git repo hosting, including CI/CD.
I think its right time for AWS to buy.

AWS shut down their service, if AWS can "easily" integrate with Gitlab, I see a lot of potential on the deployment side to increase AWS revenue.

Google should do it. If some CorpDev of theirs are listening. This could be their Satya Nadella <> GitHib moment to bring back the lost shine.
This makes a lot of sense, and is truly frightening.

Google isn't know for its hands-off approach nor long term view for service growths. Gitlab is essential to balance Github's impact, I'd hate it to go in the graveyard.

I sincerely hope it's not Broadcom. A 10x price increase would scare away a lot of customers.
Atlassian?
They have Bitbucket already.
Most of these sales aren't about acquiring a product but about acquiring a customer base, so it would make perfect sense for Atlassian IMHO.
Microsoft :)
Would make no sense. They already own the most popular service, owning the second one may bring monopoly scrutiny.
Won’t be allowed ? They already own GitHub