SipIBM insists AI didn't kill software deals, just delayed them
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Summary
IBM has addressed concerns regarding the impact of AI on its software deals, clarifying that the delays experienced were not indicative of a long-term downturn in demand. Instead, CEO Arvind Krishna pointed out that customers are temporarily reallocating their budgets towards AI infrastructure, which has caused a slowdown in closing software deals. However, he remains optimistic, noting that many deals are beginning to close again and that AI presents new revenue opportunities, particularly through initiatives like Project Lightwell.
Takeaways
- Delays in software deals are attributed to a temporary shift in customer spending towards AI.
- IBM's leadership is optimistic about the recovery of software deals and the potential for new revenue streams.
- AI infrastructure investments are seen as a strategic move rather than a decline in software demand.
Why it matters
This situation highlights the transitional phase many companies are experiencing as they adapt to the growing importance of AI technologies. Understanding these shifts can help stakeholders navigate the evolving market landscape.
PMs
For product managers, this is a crucial reminder to align product strategies with emerging AI trends and customer spending patterns to ensure offerings remain relevant.
Developers
Developers should be aware of the growing focus on AI infrastructure, which may influence the types of projects and technologies that receive funding and support in the near future.
Students & job seekers
For students and job-seekers, this trend underscores the importance of gaining skills in AI and related technologies, as they are increasingly shaping the future job market and business strategies.
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The Register AI
IBM insists AI didn't kill software deals, just delayed themIBM reported that delays in software deals were due to a temporary shift in customer spending towards AI infrastructure rather than a permanent decline in demand. CEO Arvind Krishna emphasized that many deals are starting to close again and highlighted the potential for AI to create new revenue opportunities through services like Project Lightwell.