IBM CEO Blames Execution, Sees AI-Focused Rebound
IBM CEO Arvind Krishna acknowledged a 'shortfall' in software sales during its fiscal second quarter, citing a sudden shift in customer spending from IBM's traditional offerings to AI-focused hardware components.
The shortfall was attributed to a 'shift in client spending priorities' towards servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases.
Krishna stated that about one-third of the shifted deals had since closed, which he saw as an indication that this was deferral rather than destruction.
The CEO also highlighted IBM's plans to increase the use of AI to help scale software development and optimize its supply chain, while touting recent software-focused acquisitions, including Red Hat, HashiCorp, and Confluent.