IBM insists AI didn't kill software deals, just delayed them

IBM is asking investors to view calendar Q2's software wobble as merely a temporary AI-induced panic attack, insisting the delayed deals that triggered one of its steepest stock slides in years are already starting to return. Just over a week after its preliminary results sent stock tumbling, Big Blue devoted much of its …

[Groo The Wanderer - A Canuck]

Of course other companies have managed to replace the losses with AI revenue, but as they so often have in the past 20 years, IBM is a non-contender that only their "locked in" customers use. The public market has eluded them again, and they continue their slide to irrelevance and eventual bankruptcy.

[JoeCool]

Deception by omission

"The majority of what didn't happen in the second quarter was large capex deals at large clients,"

IBM doesn't have anythinh except

Large clients with

large

Capex deals

I'm pretty sure they've outsourced most of their "services" business, leaving them reliant on customer Capex projects.

[Korev]

Re: Deception by omission

And Lenovo seem to do rather well out of what would have once been IBM Capex deals too

[Alpy]

Missed yet another market transition...

How many market transitions has IBM missed in the last 15 years? Answer: All of them. Leadership is clueless.

IBM lives off renewals and trapping customers into ELA deals. Customers are no longer interested in that and will look to migrate to newer more feature rich software and services.

IBM is a lame duck and will become even more irrelevant as time passes by. Quantum might be the only thing left they have to hang on to...