Published on November 16, 2023, 7:37 pm

Welcome to the Cloud Wars Minute, your daily source for cloud news and commentary. In today’s episode, we’re diving into IBM’s successful generative artificial intelligence (GenAI) business.

IBM, a 112-year-old company that has been reinventing itself under CEO Arvind Krishna, has achieved impressive results in the GenAI space. With a run rate of one billion dollars, this thriving business is making waves in the industry.

During the recent Q3 earnings call, Krishna revealed that their book of business for GenAI in the quarter was “in the low hundreds of millions of dollars.” While he didn’t explicitly mention it as a billion-dollar annualized run rate, the quarterly revenue growth suggests a strong chance of reaching that milestone.

Krishna also highlighted that IBM has carried out thousands of hands-on interactions with customers both large and small. From these interactions, clear patterns have emerged regarding AI use cases for enterprises. Notably, three sectors stand out: code modernization, customer service, and digital labor.

Code modernization is particularly significant because there are still billions of lines of COBOL code in use today. IBM’s GenAI product, Watson Code Assistant, can assist with modernizing this outdated codebase. Industries such as core banking systems, pension funds, traffic lights management, airports operations, and airline reservation systems heavily rely on COBOL systems.

As Krishna approaches his fourth year as CEO of IBM, his efforts to clean up legacy issues and focus on hybrid cloud and AI have paid off. He has successfully built momentum and set key scenarios that align with the company’s goals.

It’s fascinating to see how IBM has adapted to stay relevant over its long history while embracing emerging technologies like Generative AI. As they continue to innovate in this space, their success story serves as an inspiration for other companies looking to leverage AI capabilities for growth.

To learn more about cloud wars and stay up-to-date with the latest news, check out additional episodes of the Cloud Wars Minute by visiting our website. The Cloud Wars Minute is sponsored by Acceleration Economy’s AI Ecosystem Course, taking place on December 14th. Discover how AI is reshaping partnerships and fueling customer-centric innovation.

This article was originally published on the Acceleration Economy website.

Share.

Comments are closed.