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Forbes
an hour ago
- Business
- Forbes
IBM Aims To Expand Its Infrastructure Market Reach With Power11
IBM's new Power11 servers aim to address growing modernization needs in the enterprise datacenter, ... More expanding the Power lineup to cover new use cases. IBM recently achieved its highest market cap ever. How did it do this? It comes down to CEO Arvind Krishna's strategy and his team's execution. When Krishna took the reins as CEO, he wanted to have the company lead in 'hybrid cloud and AI.' We all understood the 'hybrid cloud' part on day one (this is where Red Hat came into the picture), but what about AI? IBM followed up shortly with watsonx, the world's first-to-GA end-to-end enterprise generative AI platform. Yes, IBM did this before Azure, AWS or Google Cloud did — and it runs in the cloud and on-prem. Krishna also spun off low-growth services businesses, turning IBM into a product and technology company again and investing where the puck was going. Fit-for-purpose infrastructure is cool now, but IBM has never stopped working on it in areas including Z for mainframe, semiconductor research and quantum computing. In that context, we've recently covered the Z17 launch and weighed in on IBM's quantum roadmap. But what about IBM's Power servers, which we hadn't written about since Patrick Moorhead did in 2021? This is an opportune moment to return to the subject, because IBM launched its new Power11 platforms last week to address growing modernization needs in the enterprise datacenter. While the Power platform has traditionally been considered mainframe-adjacent, Power11 is the company's attempt to expand the product line's target deployment scenarios and use cases. How might IBM use Power11 to address an expanded market opportunity? And what will IBM need to do to be successful as it makes a play beyond what some would consider the mainframe-adjacent market? (Note: IBM is an advisory client of our firm, Moor Insights & Strategy.) The Great Data Convergence In Enterprise IT As analysts who often confer with leaders from both enterprise IT and lines of business, we tend to notice a disconnect between the two groups. While business leaders understand that activating AI is a significant effort, their understanding tends to be abstract. Meanwhile, it's the IT leaders who must deal with the real and complex challenges of integrating technology stacks and, more importantly, data. Further complicating this challenge, historical data that adds context to large language models often exists on platforms that have been powering the largest enterprises for decades. More specifically for our context here, this data often sits on 'big iron' IBM Power servers that were originally designed with data in mind. IT leaders understand the importance of using this data to add texture and deliver more accurate intelligence with AI. IBM Power has built a reputation over the years for the highest levels of performance, scale, reliability and security. That reputation is well deserved, because Power is the compute engine for some of the most mission-critical workloads in the most regulated industries: large-scale database, transactional and ERP workloads. This is the bread and butter of the enterprise. Stability Meets Distributed Computing In Power11 It's with this backdrop in mind that we come to Power11. While still emphasizing performance, reliability and security, Power11 has expanded in scope to address a larger segment of the enterprise datacenter market. By combining Power-based systems with IBM's Red Hat portfolio (OpenShift, RHEL) and watsonx, these big-iron platforms now deliver a highly performant hybrid cloud environment made for modern workloads such as AI and SAP HANA in addition to the traditional workloads. IBM positions Power11 as supporting a range of deployment scenarios across the enterprise. IBM has delivered a portfolio of Power11 systems that spans many deployment scenarios in the enterprise: For those unfamiliar with the Power portfolio, it's worth pointing out a few things. First, trying to compare an IBM Power processor and core with an x86 offering such as EPYC from AMD or Xeon from Intel is like comparing apples and oranges. IBM designs its RISC-based Power processors for absolute performance and sustained high utilization. Whereas an x86 CPU will operate most efficiently in the 40% utilization range, Power is designed for efficiency at upwards of 80% utilization. The same kind of design approach extends across Power's security, reliability and power efficiency. While EPYC and Xeon also address these aspects, the Power architecture is seemingly almost maniacal about them. This is why IBM touts its 'six nines' of availability and can point to differentiating features such as quantum-safe encryption built into the firmware of Power11 systems. On top of this, Power systems are designed and built as fully integrated stacks. The silicon is fully leveraged in hardware. And the hardware is fully leveraged in firmware and the operating system. This is what enables the highest levels of reliability and performance. For native AI support, IBM has embedded its Vector Scalar Matrix Engine v2. This is a similar approach to what Intel has been offering in its Xeon CPU for the last few generations — dedicated silicon 'engines' to offload CPU functions that are not performed as efficiently by the CPU. These accelerator engines have proven to deliver significant lift, specifically for inference. Finally, when IBM's dedicated AI accelerator, Spyre, is available later this year, customers will be able to order it included in Power systems. Power11 truly does combine the best of the traditional big-iron platforms that IBM has been designing for decades with the flexibility of the distributed x86 platforms that support today's hybrid cloud and virtualized environments. IBM's TAM Expansion Opportunity — And Challenges With all of this in mind, it's worth exploring IBM's market play in more detail. As touched on earlier, under Arvind Krishna IBM looks at the evolution of the datacenter toward data-centric and cloud-native technologies. And in the case of the Power portfolio, the company sees an opportunity to increase its total addressable market significantly. Whereas Power10 focused squarely on a big-iron space that IBM has dominated for quite some time, the Power11 architecture aligns nicely with these new IT market shifts — and with the work IBM has done in recent years with its Red Hat portfolio and watsonx platform. The implications of this could be quite large; whereas the traditional TAM for Power servers running IBM's AIX or IBM i operating systems is estimated at $2 billion, adding new markets for hybrid as-a-service, modernization and SAP HANA use cases brings the TAM to $47 billion. To be clear, we don't think that IBM plans to grow Power's market share by such an exponential amount. But it does demonstrate that Power11 could compete in some very rich market spaces — from which it was previously excluded. So, can IBM effectively compete across the four pillars of as-a-service, modernization, SAP HANA and its core AIX/IBM i business? We think the answer is yes, though the details are important. For example, we don't expect IBM to start replacing traditional distributed computing solutions such as Nutanix and Dell for modernization projects. However, for IT shops already using IBM Z or LinuxONE, going with Power11 could be a very compelling option instead of using Nutanix, Dell or other vendors. Its performance-per-watt advantage (which IBM says is about twice that of x86-based servers), combined with its deep security and reliability, makes the discussion of upgrading to the latest x86 server versus deploying Power11 very interesting. Overall, the integration story is good. Leveraging Red Hat Enterprise Linux and OpenShift to deliver a cloud environment presents a platform and tooling familiar to IT administrators who are not otherwise familiar with Power. Now, it's not so much about making a change to a Power server — it's simply adopting a high-performing IBM cloud platform. Keys To Success For Power11 We believe Power11 offers a compelling value proposition for the enterprise, and that it does open up an expanded TAM for IBM. That said, the company will be challenged to cut through the noise, even in current customer datacenters. In these environments, teams focused on distributed computing tend to be separate from those using Z or LinuxONE. Further, IBM has done a strong job of servicing its install base and building a strong but very tightly focused brand for Power. This brand will need to be deconstructed a bit through education and amplification to reach the broader audience that IBM is aiming for. The road from $2 billion to $47 billion is long. However, in some ways, the transition from supporting large databases and big-iron workloads to hybrid cloud environments is even more daunting. As IBM looks to expand its footprint, it would be well served to play the long game. As previously mentioned, Power11 will not completely replace x86 across the enterprise today or tomorrow. However, there are cases where Power11 is a more logical choice based on where a workload is hosted, its integration with existing IBM systems or the desire to use Red Hat or watsonx to activate generative or agentic AI. From these adjacent IBM use cases, the company should be able to expand its coverage to environments that are perhaps less directly aligned with traditional IBM coverage areas. Another area that IBM product marketing could focus on is adjacent workloads that have been running in VMware environments for the last decade or so. The disruption introduced by Broadcom's acquisition of VMware two years ago has led to many VMware customers looking for alternatives. We believe there's an OpenShift/L1124 or E1150 proof of concept waiting for these customers. There are undoubtedly countless other campaigns IBM can initiate to drive interest that supports its TAM expansion. But the key is to execute this effort in smaller, manageable chunks, focusing on the lowest-hanging fruit first to build momentum. Could IBM Disrupt The Datacenter Server Market? IBM's launch of Power11 is potentially disruptive. By combining the extreme automation and reliability of the Power platform with the scale-out capabilities of distributed computing environments, it has the chance to significantly increase IBM's footprint in the enterprise datacenter by enabling modernization efforts anchored in a hybrid cloud architecture. However, potential means nothing without execution. The path to expanding the enterprise datacenter footprint requires highly concentrated go-to-market efforts around awareness and education. Strangely enough, building Power11 was, in some ways, the easy part. We'll check in over the next few quarters to see how Power11 adoption is shaping up.
Straits Times
03-07-2025
- Business
- Straits Times
IBM's new tool speeds up work with factual guardrails, stops AI errors
IBM's Generative AI platform uses an open-source approach that can help cut your business costs, adapt to changing situations and keep data secure The AI-powered concierge robots at Bird Paradise at Mandai Wildlife Reserves use IBM's Granite small language learning models to provide information such as weather updates and customised itineraries to visitors. 'Would you prefer to see the orangutans or the white tigers first?' asks the female avatar, beaming out of a big screen mounted on wheels. If you only have a few hours to spare when visiting the Singapore Zoo, Mandy the concierge robot can help you design an instant zoo itinerary. Mandy is one of the Autonomous Mobile Robots being trialled by the Mandai Wildlife Group. She can help you with directions, provide fun facts about the zoo's animals, or simply lead you to where you want to go. If dark clouds gather, she will pull live weather data to suggest a wet weather plan instead. Her intelligence is powered by IBM's data and artificial intelligence (AI) platform known as watsonx . Trained on Mandai Wildlife Group's data, Mandy can personalise responses to suit every visitor's needs and even react to facial expressions. IBM's cutting edge Generative AI solution delivers the responsive and flexible customer experience that Mandai Wildlife Group needs. IBM data scientist Ang Ai Kiar says: 'We uniquely leveraged our Generative AI capabilities to set us apart, showcasing how Mandy can create novel responses on the spot, rather than being limited to pre-programmed answers. A Gen AI-powered concierge may seem straightforward to implement, but turning AI ambitions into working solutions is a real challenge for most enterprises. Large language models (LLMs) may have taken the world by storm, but they are not always a good fit for business. For instance, they might come with high costs, security concerns and limited customisation options for specific business needs. Ms Catherine Lian, general manager and technology leader, IBM ASEAN, says that smaller, industry-tailored AI models can offer greater benefits for businesses: 'Many organisations are realising that large, general-purpose AI models require substantial computing resources, making it a challenge to scale their use affordably.' Beyond the resource challenges, companies are also concerned about data security and the tendency of Gen AI to 'hallucinate' or make up false answers. Despite these teething pains, companies see real productivity gains from Gen AI. According to an IBM survey, 57 per cent of Singapore organisations plan to increase AI investment in 2025 . The biggest investments will be in areas such as IT operations, data quality management and finance operations. Open and nimble solutions To address these concerns about resource requirements, data security and AI accuracy, IBM has taken a different path from other AI companies – one that emphasises openness, transparency and cost efficiency. For starters, IBM's watsonx platform uses open-source AI models known as small language models (SLMs) that can save up to 98.5 per cent in costs. Unlike closed-source AI models that operate as 'black boxes' with proprietary code and training data that users cannot examine, open-source SLMs provide much greater transparency. Another application of IBM's Granite small language models is the Ferrari Scuderia HP mobile app, which transforms complex race data into fan-friendly insights like overtaking analysis. PHOTO: IBM Organisations can inspect the code, understand how the model works, and even modify it to suit their business needs. This open-source approach allows business to maintain control and transparency over their AI models while leveraging the watsonx platform for enterprise-grade hosting, updates and support services. Open-source models often become more accurate and reliable over time because developers from global communities can spot mistakes, fix technical problems and add new features. For businesses, this means getting new features more quickly – they are not stuck with one vendor's technology and are able to customise AI capabilities for their customers. According to a survey of over 2,400 IT decision makers across 21 countries, 51 per cent of companies using open-source AI tools report positive returns on investment (ROI) compared to just 41 per cent of those using closed-source systems. Expanding on its commitment to open-source AI, IBM released the latest version of its Granite model family, Granite 3.2, in February 2025. Granite is IBM's collection of SLMs that power the watsonx platform. The new Granite 3.2 models can match or exceed the performance of larger models while using less power. They include specialised models for different tasks for financial forecasting up to two years ahead, supply chain planning and inventory management. Businesses can access these Granite models or integrate other popular models such as Meta's Llama and Mistral, through IBM's platform. Granite's strengths shine in environments like the Singapore Zoo and other wildlife parks. Robots powered by Granite SLMs don't require a constant internet connection – they can operate offline while using minimal power. This allows them to serve visitors for longer hours across the entire compound. Their flexibility also enables them to perform specific tasks such as tracking animal movements, identifying species, and monitoring environmental conditions. Ms Ang says: 'Granite SLMs offer speed, cost efficiency, and adaptability, making them ideal for ongoing operations in resource-constrained environments like wildlife reserves.' Granite SLMs are also powering the new Scuderia Ferrari HP mobile app, bringing F1 fans closer than ever to their favourite team . Fans can now read race recaps within hours of a race's conclusion. Dynamic visuals, created using AI technologies on watsonx, let them interact with post-race data – including telemetry, weather, track conditions, session results and car and tyre strategies. How IBM's open-source AI models are more cost-efficient Cost comparison: 98.5 per cent lower cost than closed-source AI models 51 per cent of open-source users report positive ROI (vs. 41 per cent for closed-source models) Technical benefits: Require less computing power while matching performance of larger models, reducing operational costs Lower development costs through community-driven improvements rather than proprietary development Business flexibility: Eliminate vendor lock-in expenses, allowing more flexible and economical scaling Leveraging innovation with trust and governance at its core While IBM's open-source approach offers many technical and cost advantages, the company recognises that technology alone is not enough. As Gen AI becomes more powerful, businesses are increasingly concerned about trust, safety and control. While some AI companies have downsized their ethics teams, IBM has doubled down on responsible AI. This approach to responsible AI isn't just a technical consideration for IBM, but central to their vision for how AI should be developed and deployed. Ms Lian says: 'At IBM, we find purpose in bringing breakthrough innovations in AI. While AI is a profound opportunity, it comes with high stakes. 'Imagine if your organisation's Generative AI compromises the personal data of customers or defrauds a customer in an interaction. This simply cannot be happening.' As Gen AI both disrupts and augments the enterprise, AI-powered assistants like Mandai Wildlife Group's Mandy show how businesses can already benefit from using IBM's agile and ethical framework.
Yahoo
28-05-2025
- Business
- Yahoo
Deutsche Bank to optimise operations with IBM's software suite
Deutsche Bank has announced an extension of its alliance with IBM, focusing on the integration of IBM's software solutions into its operations. The agreement allows the German bank to utilise IBM's extensive range of software offerings, which includes business and IT automation tools, hybrid cloud solutions, and the watsonx AI portfolio. Furthermore, Deutsche Bank will gain access to the latest enhancements in the IBM Storage Protect software suite. Deutsche Bank Group Technology Infrastructure head and AmericasTechnology Data and Innovation head Tony Kerrison said: 'IBM is a natural partner for Deutsche Bank's ambitious technology transformation, and their innovative solutions continue to help optimise and streamline our technology stack. 'Our employment of IBM's software and tooling strategically complements our ambitions to modernise, simplify and strengthen our technology infrastructure.' This collaboration is expected to assist Deutsche Bank in refining its business processes and IT infrastructure. The bank intends to phase out outdated systems, improve return on investment, and enhance customer service through the adoption of IBM's technology. Deutsche Bank IBM global managing director Dominic Schulz said: 'We are proud that Deutsche Bank has further intensified their relationship with IBM by engaging with our innovative software solution portfolio. 'With access to IBM's comprehensive offerings, including the innovative watsonx AI and automation portfolio, Deutsche Bank will be able to analyse its data more deeply, simplify complex business processes, and drive IT automation.' In March this year, Deutsche Bank's Corporate Venture Capital group and Heavybit co-led a Series A funding round for Kosli, which offers automated governance solutions for software delivery. "Deutsche Bank to optimise operations with IBM's software suite" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Cision Canada
27-05-2025
- Business
- Cision Canada
Deutsche Bank Accelerates Digital Transformation with IBM's Software Portfolio
New license agreement gives Deutsche Bank increased access to IBM's innovative software solutions to accelerate innovation, optimize operations, and enhance customer experience FRANKFURT and EHNINGEN, Germany, May 27, 2025 /CNW/ -- Deutsche Bank (Frankfurt: DBK) and IBM (NYSE: IBM) today announced a continuation of their partnership in the form of a strategic agreement that grants Deutsche Bank further access to IBM's comprehensive suite of software solutions. This includes IBM's business and IT automation stack, advanced hybrid cloud products, as well as access to the watsonx AI portfolio. Additionally, Deutsche Bank will benefit from the latest upgrades to the IBM Storage Protect software suite. These innovative solutions enable Deutsche Bank to further optimize its business processes, IT infrastructure, and services. By leveraging IBM's technology, Deutsche Bank aims to replace legacy solutions, maximize ROI, and deliver an enhanced customer experience. This agreement marks a significant continuation of the longstanding relationship between the two companies, particularly in relation to Deutsche Bank's existing software estate. "IBM is a natural partner for Deutsche Bank's ambitious technology transformation, and their innovative solutions continue to help optimize and streamline our technology stack," said Tony Kerrison, Deutsche Bank's Head of Group Technology Infrastructure and Head of Technology Data and Innovation for the Americas. "Our employment of IBM's software and tooling strategically complements our ambitions to modernize, simplify and strengthen our technology infrastructure." "We are proud that Deutsche Bank has further intensified their relationship with IBM by engaging with our innovative software solution portfolio," said Dominic Schulz, IBM Global Managing Director for Deutsche Bank. "With access to IBM's comprehensive offerings, including the innovative watsonx AI and automation portfolio, Deutsche Bank will be able to analyze its data more deeply, simplify complex business processes, and drive IT automation." About IBM IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformation quickly, efficiently, and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit for more information. About Deutsche Bank Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network. Media contact: Barbara Jax IBM Corporate Communications [email protected] SOURCE IBM
Yahoo
21-05-2025
- Business
- Yahoo
Bahwan CyberTek (BCT) Expands AI-First Solutions to the U.S. Market with IBM Technology
BCT will double down on generative AI, automation and data platforms in the US using IBM technology. Bahwan CyberTek's Digital Group, "BCT EXP," will lead the efforts for BCT. SANTA CLARA, Calif., May 21, 2025--(BUSINESS WIRE)--Bahwan CyberTek (BCT), a global leader in digital transformation and AI-first experience solutions, today announced the expansion of its AI-driven solutions into the United States market. Leveraging IBM technologies like watsonx and Maximo, the expansion will focus on generative AI, automation and data platforms, in addition to cloud, EAM and ESG services. Drawing from over 14 years of experience with IBM, BCT's Digital Group, "BCT EXP," will lead the initiative. "We are excited to bring AI solutions to our customers in the United States, empowering workforces to do more with less," said Navin Prasad, EVP, Global Head of Experience at BCT. "As a global leader in AI, IBM's innovation is more valuable than ever. With our expansion in the US, BCT EXP will help customers protect value, drive down costs, and improve the efficacy and governance of their AI initiatives." By harnessing IBM solutions—including watsonx Orchestrate, watsonx Assistant and more—BCT EXP's US expansion will concentrate on the following key areas: AI assistants and databases Automation platforms and B2B integration, including business automation, IT automation and app integration Data fabric and analytics, including governance, integration and business analytics Driving Customer Success Through Innovation BCT's deep commitment to the IBM AI portfolio lies in the value it delivers to customers. Recent customer success stories include a large-scale IBM Maximo implementation for one of the world's largest metros, serving a community of 30 million people and 1 million daily active users. The project streamlined maintenance, procurement, and ERP operations, and created a unified interface for accessing asset information and 3D visualization of the metro infrastructure. It also improved user experience and enabled robust payment tracking, reporting, and data visualization. This successful project is one of many achieved with IBM solutions, as BCT has led the market in the Middle East, India, and the Asia Pacific (APAC) region. Building on its strong foundation, BCT is thrilled to expand its presence in the United States. BCT consistently delivers cutting-edge IBM technology, maintains top-tier customer satisfaction, and demonstrates extensive technical and sales expertise. Empowered by deep domain expertise in retail, manufacturing, consumer packaged goods (CPG), energy, banking, government, healthcare, and oil and gas, BCT is an established provider of IBM solutions across industries. "We are excited to continue to enable business partners like BCT in their acceleration of AI technology for their clients and scaling of their business," said David La Rose, GM, IBM Ecosystem Sell. "Their implementation of IBM's watsonx solutions across a global landscape not only shows their commitment to emerging technologies and innovation, but also their expertise in bringing these opportunities to market." As BCT EXP intensifies its focus on the United States market, it reaffirms its commitment to empowering workforces with AI, driving sustainable innovation, and delivering exceptional experiences to every customer. About Bahwan CyberTek (BCT) The Bahwan CyberTek (BCT) Group is a global provider of digital transformation solutions, specializing in enterprise systems, AI, tech infrastructure, future-fit products, and Internet of Things (IoT). BCT EXP is focused on delivering remarkable digital-phygital experiences. With a proven track record of delivering mission-critical solutions to customers worldwide, the BCT Group empowers organizations to become future-fit in the age of AI and beyond. For more information, visit View source version on Contacts BCT EXP Anjali Rangaswamibctexp@
