After shocking quarter, IBM insists that AI isn’t killing the mainframe
TechCrunch
IBM reported a disappointing quarter with a 42% drop in mainframe sales, but executives insist the downturn is only temporary.Summary
IBM experienced a disastrous financial quarter, missing Wall Street expectations and causing a historic 25% drop in its stock price, largely driven by a 42% plunge in its core mainframe business. CEO Arvind Krishna and CFO Jim Kavanaugh explained that a select group of major clients delayed their mainframe purchases due to budget reallocations caused by soaring hardware and component costs linked to the broader AI boom. However, IBM executives firmly maintain that this is a temporary delay rather than a secular shift, assuring investors that customers are merely postponing rather than abandoning their infrastructure upgrades.
(Source：TechCrunch)