“We did not adapt and move quickly enough”: What IBM’s earnings miss says about enterprise AI spending

The New Stack · 1 day ago

IBM's second-quarter revenue fell short of expectations at $17.2 billion versus the forecasted $17.86 billion, as enterprise customers redirected spending from software services toward AI hardware like servers and storage. CEO Arvind Krishna acknowledged the company failed to anticipate the magnitude of this shift and adapt quickly enough, causing numerous large deals to slip. Developers will face tighter software budgets and increased pressure to build custom integrations using open-source tools rather than licensed enterprise middleware.