IBM AI Study: Would The Research Report Get an A in Statistics 202?

May 9, 2025

dino-orange_thumb_thumb_thumb_thumb_thumb_thumb_thumbNo AI, just the dinobaby expressing his opinions to Zellenials.

IBM, reinvigorated with its easy-to-use, backwards-compatible, AI-capable mainframe released a research report about AI. Will these findings cause the new IBM AI-capable mainframe to sell like Jeopardy / Watson “I won” T shirts?

Perhaps.

The report is “Five Mindshifts to Supercharge  Business Growth.” It runs a mere 40 pages and requires no more time than configuring your new LinuxONE Emperor 5 mainframe. Well, the report can be absorbed in less time, but the Emperor 5 is a piece of cake as IBM mainframes go.

Here are a few of the findings revealed by IBM in its IBM research report;

AI can improve customer “experience”. I think this means that customer service becomes better with AI in it. Study says, “72 percent of those in the sample agree.”

Turbulence becomes opportunity. 100 percent of the IBM marketers assembling the report agree. I am not sure how many CEOs are into this concept; for example, Hollywood motion picture firms or Georgia Pacific which closed a factory and told workers not to come in tomorrow.

Here’s a graphic from the IBM study. Do you know what’s missing? I will give you five seconds as Arvin Haddad, the LA real estate influencer says in his entertaining YouTube videos:

image

The answer is, “Increasing revenues, boosting revenues, and keeping stakeholders thrilled with their payoffs.” The items listed by IBM really don’t count, do they?

“Embrace AI-fueled creative destruction.” Yep, another 100 percenter from the IBM team. No supporting data, no verification, and not even a hint of proof that AI-fueled creative destruction is doing much more than making lots of venture outfits and some of the US AI leaders is improving their lives. That cash burn could set the forest on fire, couldn’t it? Answer: Of course not.

I must admit I was baffled by this table of data:

image

Accelerate growth and efficiency goes down with generative AI. (Is Dr. Gary Marcus right?). Enhanced decision making goes up with generative AI. Are the decisions based on verifiable facts or hallucinated outputs? Maybe busy executives in the sample choose to believe what AI outputs because a computer like the Emperor 5 was involved. Maybe “easy” is better than old-fashioned problem solving which is expensive, slow, and contentious. “Just let AI tell me” is a more modern, streamlined approach to decision making in a time of uncertainty. And the dotted lines? Hmmm.

On page 40 of the report, I spotted this factoid. It is tiny and hard to read.

image

The text says, “50 percent say their organization has disconnected technology due to the pace of recent investments.” I am not exactly sure what this means. Operative words are “disconnected” and “pace of … investments.” I would hazard  an interpretation: “Hey, this AI costs too much and the payoff is just not obvious.”

I wish to offer some observations:

  1. IBM spent some serious money designing this report
  2. The pagination is in terms of double page spreads, so the “study” plus rah rah consumes about 80 pages if one were to print it out. On my laser printer the pages are illegible for a human, but for the designers, the approach showcases the weird ice cubes, the dotted lines, and allows important factoids to be overlooked
  3. The combination of data (which strike me as less of a home run for the AI fan and more of a report about AI friction) and flat out marketing razzle dazzle is intriguing. I would have enjoyed sitting in the meetings which locked into this approach. My hunch is that when someone thought about the allegedly valid results and said, “You know these data are sort of anti-AI,” then the others in the meeting said, “We have to convert the study into marketing diamonds.” The result? The double truck, design-infused, data tinged report.

Good work, IBM. The study will definitely sell truckloads of those Emperor 5 mainframes.

Stephen E Arnold, May 9, 2025

IBM: Making the Mainframe Cool Again

May 7, 2025

dino-orange_thumb_thumb_thumbNo AI, just the dinobaby expressing his opinions to Zellenials.

I a ZDNet Tech Today article titled “IBM Introduces a Mainframe for AI: The LinuxONE Emperor 5.” Years ago, I had three IBM PC 704s, each with the eight drive SCSI chassis and that wonderful ServeRAID software. I suppose I should tell you, I want a LinuxONE Emperor 5 because the capitalization reminds me of the IBM ServeRAID software. Imagine. A mainframe for artificial intelligence. No wonder that IBM stock looks like a winner in 2025.

The write up says:

IBM’s latest mainframe, the LinuxONE Emperor 5, is not your grandpa’s mainframe

The CPU for this puppy is the IBM Telum II processor. The chip is a seven nanometer item announced in 2021. If you want some information about this, navigate to “IBM’s Newest Chip Is More Than Meets the AI.”

The ZDNet write up says:

Manufactured using Samsung’s 5 nm process technology, Telum II features eight high-performance cores running at 5.5GHz, a 40% increase in on-chip cache capacity (with virtual L3 and L4 caches expanded to 360MB and 2.88GB, respectively), and a dedicated, next-generation on-chip AI accelerator capable of up to 24 trillion operations per second (TOPS) — four times the compute power of its predecessor. The new mainframe also supports the IBM Spyre Accelerator for AI users who want the most power.

The ZDNet write up delivers a bumper crop of IBM buzzwords about security, but there is one question that crossed my mind, “What makes this a mainframe?”

The answer, in my opinion, is IBM marketing. The Emperor should be able to run legacy IBM mainframe applications. However, before placing an order, a customer may want to consider:

  1. Snapping these machines into a modern cloud or hybrid environment might take a bit of work. Never fear, however, IBM consulting can help with this task.
  2. The reliance on the Telum CPU to do AI might put the system at a performance disadvantage from solutions like the Nvidia approach
  3. The security pitch is accurate providing the system is properly configured and set up. Once again, IBM provides the for fee services necessary to allow Z-llenial IT professional to sleep easy on weekends.
  4. Mainframes in the cloud are time sharing oriented; making these work in a hybrid environment can be an interesting technical challenge. Remember: IBM consulting and engineering services can smooth the bumps in the road.

Net net: Interesting system, surprising marketing, and definitely something that will catch a bean counter’s eye.

Stephen E Arnold,  May 7, 2025

Great Moments in Smart Software: IBM Watson Gets to Find Its Future Elsewhere Again

June 19, 2024

dinosaur30a_thumb_thumbThis essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.

The smart software game is a tough one. Whip up some compute, download the models, and go go go. Unfortunately artificial intelligence is artificial and often not actually intelligent. I read an interesting article in Time Magazine (who knew it was still in business?). The story has a clickable title: “McDonald’s Ends Its Test Run of AI Drive-Throughs With IBM.” The juicy word IBM, the big brand McDonald’s, and the pickle on top: IBM.

image

A college student tells the smart software system at a local restaurant that his order was misinterpreted. Thanks, MSFT Copilot. How your “recall” today? What about system security? Oh, that’s too bad.

The write up reports with the glee of a kid getting a happy meal:

McDonald’s automated order taker with IBM received scores of complaints in recent years, for example — with many taking to social media to document the chatbot misunderstanding their orders.

Consequently, the IBM fast food service has been terminated.

Time’s write up included a statement from Big Blue too:

In an initial statement, IBM said that “this technology is proven to have some of the most comprehensive capabilities in the industry, fast and accurate in some of the most demanding conditions," but did not immediately respond to a request for further comment about specifics of potential challenges.

IBM suggested its technology could help fight cancer in Houston a few years ago. How did that work out? That smart software worker had an opportunity to find its future elsewhere. The career trajectory, at first glance, seems to be from medicine to grilling burgers. One might interpret this as an interesting employment trajectory. The path seems to be heading down to Sleepy Town.

What’s the future of the IBM smart software test? The write up points out:

Both IBM and McDonald’s maintained that, while their AI drive-throughs partnership was ending, the two would continue their relationship on other projects. McDonalds said that it still plans to use many of IBM’s products across its global system.

But Ronald McDonald has to be practical. The article adds:

In December, McDonald’s launched a multi-year partnership with Google Cloud. In addition to moving restaurant computations from servers into the cloud, the partnership is also set to apply generative AI “across a number of key business priorities” in restaurants around the world.

Google’s smart software has been snagged in some food controversies too. The firm’s smart system advised some Googlers to use glue to make the cheese topping stick better. Yum.

Several observations seem to be warranted:

  1. Practical and money-saving applications of IBM’s smart software do not have the snap, crackle, and pop of OpenAI’s PR coup with Microsoft in January 2023. Time is writing about IBM, but the case example is not one that makes me crave this particular application. Customers want a sandwich, not something they did not order.
  2. Examples of reliable smart software applications which require spontaneous reaction to people ordering food or asking basic questions are difficult to find. Very narrow applications of smart software do result in positive case examples; for example, in some law enforcement software (what I call policeware), the automatic processes of some vendors’ solutions work well; for example, automatic report generation in the Shadowdragon Horizon system.
  3. Big companies spend money, catch attention, and then have to spend more money to remediate and clean up the negative publicity.

Net net: More small-scale testing and less publicity chasing seem to be two items to add to the menu. And, Watson, keep on trying. Google is.

Stephen E Arnold, June 19, 2024

x

Taming AI Requires a Combo of AskJeeves and Watson Methods

April 15, 2024

green-dino_thumb_thumb_thumbThis essay is the work of a dumb dinobaby. No smart software required.

I spotted a short item called “A Faster, Better Way to Prevent an AI Chatbot from Giving Toxic Responses.” The operative words from my point of view are “faster” and “better.” The write up reports (with a serious tone, of course):

Teams of human testers write prompts aimed at triggering unsafe or toxic text from the model being tested. These prompts are used to teach the chatbot to avoid such responses.

Yep, AskJeeves created rules. As long as the users of the system asked a question for which there was a rule, the helpful servant worked; for example, What’s the weather in San Francisco? However, ask a question for which there was no rule, what happens? The search engine reality falls behind the marketing juice and gets shopped until a less magical version appears as Ask.com. And then there is IBM Watson. That system endeared itself to groups of physicians who were invited to answer IBM “experts’” questions about cancer treatments. I heard when Watson was in full medical-revolution mode that some docs in a certain Manhattan hospital used dirty words to express his view about the Watson method. Rumor or actual factual? I don’t know, but involving humans in making software smart can be fraught with challenges: Managerial and financial to name but two.

image

The write up says:

Researchers from Improbable AI Lab at MIT and the MIT-IBM Watson AI Lab used machine learning to improve red-teaming. They developed a technique to train a red-team large language model to automatically generate diverse prompts that trigger a wider range of undesirable responses from the chatbot being tested. They do this by teaching the red-team model to be curious when it writes prompts, and to focus on novel prompts that evoke toxic responses from the target model. The technique outperformed human testers and other machine-learning approaches by generating more distinct prompts that elicited increasingly toxic responses. Not only does their method significantly improve the coverage of inputs being tested compared to other automated methods, but it can also draw out toxic responses from a chatbot that had safeguards built into it by human experts.

How much improvement? Does the training stick or does it demonstrate that charming “Bayesian drift” which allows the probabilities to go walk-about, nibble some magic mushrooms, and generate fantastical answers? How long did the process take? Was it iterative? So many questions, and so few answers.

But for this group of AI wizards, the future is curiosity-driven red-teaming. Presumably the smart software will not get lost, suffer heat stroke, and hallucinate. No toxicity, please.

Stephen E Arnold, April 15, 2024

IBM and AI: A Spur to Other Ageing Companies?

March 27, 2024

green-dino_thumb_thumb_thumbThis essay is the work of a dumb dinobaby. No smart software required.

I love IBM. Well, I used to. Years ago I had three IBM PC 704 servers. Each was equipped with its expansion SCSI storage device. My love disappeared as we worked daily to keep the estimable ServeRAID softwware in tip top shape. For those unfamiliar with the thrill of ServeRAID, “tip top” means preventing the outstanding code from trashing data.

image

IBM is a winner. Thanks, MSFT Copilot. How are those server vulnerabilities today?

I was, therefore, not surprised to read “IBM Stock Nears an All-Time High—And It May Have Something to Do with its CEO Replacing As Many Workers with AI As Possible.” Instead of creating the first and best example of dinobaby substitution, Big Blue is now using smart software to reduce headcount. The write up says:

[IBM] used AI to reduce the number of employees working on relatively manual HR-related work to about 50 from 700 previously, which allowed them to focus on other things, he [Big Dog at IBM] wrote in an April commentary piece for Fortune. And in its January fourth quarter earnings, the company said it would cut costs in 2024 by $3 billion, up from $2 billion previously, in part by laying off thousands of workers—some of which it later chalked up to AI influence.

Is this development important? Yep. Here are the reasons:

  1. Despite its interesting track record in smart software, IBM has figured out it can add sizzle to the ageing giant by using smart software to reduce costs. Forget that cancer curing stuff. Go with straight humanoid replacement.
  2. The company has significant influence. Some Gen Y and Gen Z wizards don’t think about IBM. That’s fine, but banks, government agencies, Fortune 1000 firms, and family fund management firms do. What IBM does influences these bright entities’ thinking.
  3. The targeted workers are what one might call “expendable.” That’s a great way to motivate some of Big Blue’s war horses.

Net net: The future of AI is coming into focus for some outfits who may have a touch of arthritis.

Stephen E Arnold, March 27, 2024

IBM Charges Toward Consulting Services: Does Don Quixote Work at Big Blue?

January 23, 2024

green-dino_thumb_thumb_thumbThis essay is the work of a dumb dinobaby. No smart software required.

It is official. IBM consultants will use smart software to provide answers to clients. Why not ask the smart software directly and skip the consultants? Why aren’t IBM consultants sufficiently informed and intelligent to answer a client’s questions directly? Is IBM admitting that its consultants lack the knowledge depth and insight necessary to solve a client’s problems? Hmmm.

IBM Introduces IBM Consulting Advantage, an AI Services Platform and Library of Assistants to Empower Consultants” asserts in corporate marketing lingo:

IBM Consulting Assistants are accessed through an intuitive conversational interface powered by IBM Watsonx, IBM’s AI and data platform. Consultants can toggle across multiple IBM and third-party generative AI models to compare outputs and select the right model for their task, and use the platform to rapidly build and share prompts and pre-trained assistants across teams or more widely across the consulting organization. The interface also enables easy uploading of project-specific documents for rapid insights that can then be shared into common business tools.

One of the key benefits of using smart software is to allow the IBM consultants to do more in the same billable hour. Thus, one can assume that billable hours will go up. “Efficiency” may not equate to revenue generation if the AI-assisted humanoids deliver incorrect, off-point, or unverifiable outputs.

image

A winner with a certain large company’s sure fire technology. Thanks, MSFT second string Copilot Bing thing. Good enough.

What can the AI-turbo charged system do? A lot. Here’s what IBM marketing asserts:

The IBM Consulting Advantage platform will be applied across the breadth of IBM Consulting’s services, spanning strategy, experience, technology and operations. It is designed to work in combination with IBM Garage, a proven, collaborative engagement model to help clients fast-track innovation, realize value three times faster than traditional approaches, and transparently track business outcomes. Today’s announcement builds on IBM Consulting’s concrete steps in 2023 to further expand its expertise, tools and methods to help accelerate clients’ business transformations with enterprise-grade AI…. IBM Consulting helps accelerate business transformation for our clients through hybrid cloud and AI technologies, leveraging our open ecosystem of partners. With deep industry expertise spanning strategy, experience design, technology, and operations, we have become the trusted partner to many of the world’s most innovative and valuable companies, helping modernize and secure their most complex systems. Our 160,000 consultants embrace an open way of working and apply our proven, collaborative engagement model, IBM Garage, to scale ideas into outcomes.

I have some questions; for example:

  1. Will IBM hire less qualified and less expensive humans, assuming that smart software lifts them up to super star status?
  2. Will the system be hallucination proof; that is, what procedure ensures that decisions based on smart software assisted outputs are based on factual, reliable information?
  3. When a consulting engagement goes off the rails, how will IBM allocate responsibility; for example, 100 percent to the human, 50 percent to the human and 50 percent to those who were involved in building the model, or 100 percent to the client since the client made a decision and consultants just provide options and recommendations?

I look forward to IBM Watsonx’s revolutionizing consulting related to migrating COBOL from a mainframe to a hybrid environment relying on a distributed network with diverse software. Will WatsonX participate in Jeopardy again?

Stephen E Arnold, January 23, 2024

IBM: AI Marketing Like It Was 2004

January 5, 2024

green-dino_thumb_thumb_thumbThis essay is the work of a dumb dinobaby. No smart software required. Note: The word “dinobaby” is — I have heard — a coinage of IBM. The meaning is an old employee who is no longer wanted due to salary, health care costs, and grousing about how the “new” IBM is not the “old” IBM. I am a proud user of the term, and I want to switch my tail to the person who whipped up the word.

What’s the future of AI? The answer depends on whom one asks. IBM, however, wants to give it the old college try and answer the question so people forget about the Era of Watson. There’s a new Watson in town, or at least, there is a new Watson at the old IBM url. IBM has an interesting cluster of information on its Web site. The heading is “Forward Thinking: Experts Reveal What’s Next for AI.”

IBM crows that it “spoke with 30 artificial intelligence visionaries to learn what it will take to push the technology to the next level.” Five of these interviews are now available on the IBM Web site. My hunch is that IBM will post new interviews, hit the new release button, post some links on social media, and then hit the “Reply” button.

image

Can IBM ignite excitement and capture the revenues it wants from artificial intelligence? That’s a good question, and I want to ask the expert in the cartoon for an answer. Unfortunately only customers and their decisions matter for AI thought leaders unless the intended audience is start ups, professors, and employees. Thanks, MSFT Copilot Bing thing. Good enough.

As I read the interviews, I thought about the challenge of predicting where smart software would go as it moved toward its “what’s next.” Here’s a mini-glimpse of what the IBM visionaries have to offer. Note that I asked Microsoft’s smart software to create an image capturing the expert sitting in an office surrounded by memorabilia.

Kevin Kelly (the author of What Technology Wants) says: “Throughout the business world, every company these days is basically in the data business and they’re going to need AI to civilize and digest big data and make sense out of it—big data without AI is a big headache.” My thought is that IBM is going to make clear that it can help companies with deep pockets tackle these big data and AI them. Does AI want something, or do those trying to generate revenue want something?

Mark Sagar (creator of BabyX) says: “We have had an exponential rise in the amount of video posted online through social media, etc. The increased use of video analysis in conjunction with contextual analysis will end up being an extremely important learning resource for recognizing all kinds of aspects of behavior and situations. This will have wide ranging social impact from security to training to more general knowledge for machines.” Maybe IBM will TikTok itself?

Chieko Asakawa (an unsighted IBM professional) says: “We use machine learning to teach the system to leverage sensors in smartphones as well as Bluetooth radio waves from beacons to determine your location. To provide detailed information that the visually impaired need to explore the real world, beacons have to be placed between every 5 to 10 meters. These can be built into building structures pretty easily today.” I wonder if the technology has surveillance utility?

Yoshua Bengio (seller of an AI company to ServiceNow) says: “AI will allow for much more personalized medicine and bring a revolution in the use of large medical datasets.” IBM appears to have forgotten about its Houston medical adventure and Mr. Bengio found it not worth mentioning I assume.

Margaret Boden (a former Harvard professor without much of a connection to Harvard’s made up data and administrative turmoil) says: “Right now, many of us come at AI from within our own silos and that’s holding us back.” Aren’t silos necessary for security, protecting intellectual property, and getting tenure? Probably the “silobreaking” will become a reality.

Several observations:

  1. IBM is clearly trying hard to market itself as a thought leader in artificial intelligence. The Jeopardy play did not warrant a replay.
  2. IBM is spending money to position itself as a Big Dog pulling the AI sleigh. The MIT tie up and this AI Web extravaganza are evidence that IBM is [a] afraid of flubbing again, [b] going to market its way to importance, [c] trying to get traction as outfits like OpenAI, Mistral, and others capture attention in the US and Europe.
  3. IBM’s ability to generate awareness of its thought leadership in AI underscores one of the challenges the firm faces in 2024.

Net net: The company that coined the term “dinobaby” has its work cut out for itself in my opinion. Is Jeopardy looking like a channel again?

Stephen E Arnold, January 5, 2024

Profits Over Promises: IBM Sells Facial Recognition Tech to British Government

September 18, 2023

Just three years after it swore off any involvement in facial recognition software, IBM has made an about-face. The Verge reports, “IBM Promised to Back Off Facial Recognition—Then it Signed a $69.8 Million Contract to Provide It.” Amid the momentous Black Lives Matter protests of 2020, IBM’s Arvind Krishna wrote a letter to Congress vowing to no longer supply “general purpose” facial recognition tech. However, it appears that is exactly what the company includes within the biometrics platform it just sold to the British government. Reporter Mark Wilding writes:

“The platform will allow photos of individuals to be matched against images stored on a database — what is sometimes known as a ‘one-to-many’ matching system. In September 2020, IBM described such ‘one-to-many’ matching systems as ‘the type of facial recognition technology most likely to be used for mass surveillance, racial profiling, or other violations of human rights.'”

In the face of this lucrative contract IBM has changed its tune. It now insists one-to-many matching tech does not count as “general purpose” since the intention here is to use it within a narrow scope. But scopes have a nasty habit of widening to fit the available tech. The write-up continues:

“Matt Mahmoudi, PhD, tech researcher at Amnesty International, said: ‘The research across the globe is clear; there is no application of one-to-many facial recognition that is compatible with human rights law, and companies — including IBM — must therefore cease its sale, and honor their earlier statements to sunset these tools, even and especially in the context of law and immigration enforcement where the rights implications are compounding.’ Police use of facial recognition has been linked to wrongful arrests in the US and has been challenged in the UK courts. In 2019, an independent report on the London Metropolitan Police Service’s use of live facial recognition found there was no ‘explicit legal basis’ for the force’s use of the technology and raised concerns that it may have breached human rights law. In August of the following year, the UK’s Court of Appeal ruled that South Wales Police’s use of facial recognition technology breached privacy rights and broke equality laws.”

Wilding notes other companies similarly promised to renounce facial recognition technology in 2020, including Amazon and Microsoft. Will governments also be able to entice them into breaking their vows with tantalizing offers?

Cynthia Murrell, September 18, 2023

A Perfect Plan: Mainframes Will Live Forever

September 7, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

Experienced COBOL programmers are in high demand and short supply, but IBM is about to release an AI tool that might render that lucrative position obsolete. The Register reports: “IBM Says GenAI Can Convert that Old COBOL Code to Java for You.” Dubbed the watsonx Code Assistant for Z, the tool should be available near the end of this year. Reporter Dan Robinson gives us a little background:

“COBOL supports many vital processes within organizations globally – some that would surprise newbie devs. The language was designed specifically to be portable and easier for coding business applications. The good news is that it works. The bad news is it’s been working for a little long. COBOL has been around for over 60 years, and many of the developers who wrote those applications have since retired or are no longer with us. ‘If you can find a COBOL programmer, they are expensive. I have seen figures showing they can command some of the highest salaries because so many mission critical apps are written in COBOL and they need maintenance,’ Omdia Chief Analyst Roy Illsley told us.

Migrating the code to Java means there are many more programmers around, he added, and if the apps run on Linux on Z then they can potentially be moved off the mainframe more easily in future.”

Perhaps. There are an estimated 775 to 850 billion lines of COBOL code at work in the business world, and IBM is positioning Code Assistant to help prioritize, refactor, and convert them all into Java. There is just one pesky problem:

“IBM is not the only IT outfit turning to AI tools to help developers code or maintain applications, however, the quality of AI-assisted output has been questioned. A Stanford University study found that programmers who accepted help from AI tools like Github Copilot produce less secure code than those who did not.”

So maybe firms should hold on to those COBOL programmers’ contact info, just in case.

Cynthia Murrell, September 7, 2023

IBM and Smart Software: Try and Try Again, Dear Watson with an X

August 7, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

With high hopes, IBM is acquiring FinOps firm Apptio for $4.6 billion. As Horses for Sources puts it, “IBM’s Acquisition of Apptio Can Shine if IBM Software and IBM Consulting Work Together to Deliver Cost-Managed Innovation at Speed.” But that is a big “if”. The odds seem long from the standpoint of RedHat users unimpressed with both IBM’s approach and internal cooperation at the company.

8 6 kid stacking blocks

The young, sincere child presages her future in a giant technology company, “Yes, I will try to stack blocks to make the big building you told me to create with the blocks I got from my friend, Apt Ti Oh.” MidJourney, you did let me down with your previous “frustrated kid” images. Sultry teens were not what I was after.

IBM intends to mix Apptio with several other acquisitions that have gone into the new Watsonx platform, like Turbonomic, Instana, and MyInvenio, to create a cohesive IT-management platform. Linking spending data with operational data should boost efficiency, save money, and facilitate effective planning. This vision, however, is met with some skepticism. Writers Tom Reuner and Phil Fersht tell us:

“Apptio never progressed beyond providing insights, while IBM needs to demonstrate the proof points for integrating its disparate capabilities as well as progress from insight to action and, ultimately, automation. IBM Software must work with IBM Consulting transformation more effectively. … In essence, if successful, the ability to act on – and ultimately automate – all those insights is pretty much the operational Holy Grail. Just for transparency, getting expansive spend management and FinOps capabilities in itself will be a solid asset for IBM. However, any new and bolder proposition aiming at the bigger transformation price must move beyond technology and include stakeholders and change management. The ambition could be a broader business assurance where spend data, operational insights, and governance get tied to business objectives.  In our view, this provides a significant alignment opportunity with IBM Consulting as it seeks to differentiate itself from the likes of Accenture Operations and Genpact.  Having a deep services alignment with Watsonx and Apptio will bridge together the ability to manage the cost and value of both cloud transformation and AI investments – provided it gets it right with its global talent base of technical and process domain specialists.”

So the objective is a platform that brings companies’ disparate parts together into a cohesive and efficient whole. But this process must involve humans as well as data. If IBM can figure out how to do so within its own company, perhaps it stands a chance of reaching the goal.

Cynthia Murrell, August 6, 2023

Next Page »

  • Archives

  • Recent Posts

  • Meta