Real Money columnist Kevin Curran sat down with the executive team of the $1 billion education technology company Instructure ahead of their earnings on Monday night, as the team offered TheStreet an exclusive interview with newly named CEO Dan Goldsmith and outgoing CEO and soon-to-be executive chairman Josh Coates.
The conversation quickly moved to the topic of the day in IBM's $34 billion acquisition offer to Red Hat, wherein the two tech leaders gave their thoughts on mergers and acquisitions in software and the direction of the industry.
Goldsmith has a great deal of experience in both cloud computing and IBM, as he was a partner at IBM for 6 years and was among the first 50 employees at Veeva Systems (VEEV) - Get Report , a cloud-based software provider for the global life sciences industries, where he rose to executive vice president.
"We obviously see a lot of organizations, Microsoft (MSFT) - Get Report , Amazon (AMZN) - Get Report and now IBM with the Red Hat acquisition trying to go bigger and deeper into the cloud space," Goldsmith explained.
He added that company's eager for acquisitions like Salesforce (CRM) - Get Report , for example, the look at the overall tech stack is necessary in order to ensure the end market the company is looking to dominate is appropriately targeted.
He added that talent acquisition could be part of the strategy, although maybe not the prime mover.
Coates picked up on this dynamic later in the conversation and noted the dearth of talent that has been of much debate after the deal's announcement.
"I think the skills gap is very real," Coates explained. "It's really almost a crisis, companies are starving for talent and acquisitions are a really quick way to make that happen."
To read more about what Red Hat developers and investors are saying, who in software might be next to be acquired, as well as what cloud experts are expecting from IBM's Red Hat acquisition, check out all of the Stock of the Day coverage on Real Money.
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