• Gartner Raises 2025 IT Spending Forecast, Puts Out 2026 Prediction

  November 10, 2025 Timothy Prickett Morgan

  If you have your boss pegging your pay increases to the growth in the IT market, you are going to outpace the inflation that is helping to buoy IT spending worldwide. The spreadsheet wizards and economists at Gartner have just raised their forecast for IT spending for the third time this year for 2025, and have also recently put out an initial forecast for what IT spending will look like in 2026.

  As a refresher, here is how Gartner pegged IT spending by the major categories back in its July forecast for both 2024, which had ended, and for 2025, …

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• Cloud Revenues Saved By The GenAI Boom

  November 3, 2025 Timothy Prickett Morgan

  Growth in spending by end users on the clouds was slowing and slowing even more as time went by as we expect in a mature and competitive market from the end of 2021 through the end of 2022. And based on the trends that were happening at that time, about this time growth would have probably slowed to maybe 2X to 3X of the growth in global gross domestic product, which is how you know (in my opinion) how a subset of the IT market is mature.

  IT markets tend to always grow faster than GDP, unless something weird is …

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• Power Systems Grows Nicely In Q3, Looks To Grow For All 2025, Too

  October 27, 2025 Timothy Prickett Morgan

  Here’s a funny thing, or maybe not. In its conference call with Wall Street analysts going over the financial results for its third quarter ended in September, neither Arvind Krishna, IBM’s chairman and chief executive officer, nor James Kavanaugh, the company’s chief financial officer, said “Power” or “Power Systems” or “Power11” or anything directly relating to IBM i or AIX. Nary a peep, even though the Power11 upgrade cycle has begun in earnest and it looks like growth was pretty good in the third quarter and will be decent for all of 2025.

  For a long time now, Big Blue …

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• The GenAI Boom Is Only Slightly Louder Than The Dot Com Boom

  September 29, 2025 Timothy Prickett Morgan

  In most markets, revenues and hopefully profits go from exponential growth to log growth to linear growth in the fullness of time. We are living in the exponential phase of AI, and for GenAI in particular, where the x in y=a^x is a pretty big number and the resulting revenue growth looks like the proverbial hockey stick.

  The numbers can be a bit surreal, as they seemed back in the Dot Com boom, where we turned on mainstream stores into warehouses with delivery services. With AI, we are turning the digital data of our lives into data warehouses and …

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• Positive News From The Kyndryl Mainframe Modernization Report

  September 15, 2025 Alex Woodie

  After a week of bad news, here’s something good to start your week: The costs of mainframe modernization projects are dropping while the return on investment (ROI) is rising, in large part due to AI. That’s according to Kyndryl’s 2025 State of Mainframe Modernization Survey, which documented “a degree of agility” the company wasn’t expecting in the massive projects.

  As it has for the past two years, Kyndryl commissioned Coleman Parkes Research to conduct a global survey of about 500 senior leaders at mainframe-using enterprises. By mainframe, the former IBM consulting business refers to System Z systems, IBM i …

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• AI Is Coming for ERP. How Will IBM i Respond?

  September 8, 2025 Alex Woodie

  A wave of artificial intelligence is beginning to wash over the enterprise resource planning software market, changing the nature of how businesses process automation gets done. IBM i has been a solid platform for running ERP systems for decades. But how will the new generation of AI-enabled enterprise apps get to IBM i?

  When it comes to automating business processes, ERP packages have been the primary means for achieving it for the past four decades. The big monolithic apps from SAP, Oracle, Infor, and dozens of others have driven trillions of dollars in value by providing a …

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• To Comfort The Afflicted And Afflict The Comfortable

  July 14, 2025 Timothy Prickett Morgan

  We are still assembling the information on the new Power11 processor and the Power Systems machines that use them and working on our analysis before they start shipping on July 25. We will do the most thorough job that we can under the circumstances, as always, but we concede that pricing information is very hard to come by on Power10 systems and we suspect it will be the same with Power11 systems, too.

  But we will remind IBM that any new generation of machines always has improved bang for the buck, and given the modest improvements in performance moving from …

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• Rocket Celebrates 35th Anniversary As Private Equity Owner Ponders Sale

  April 28, 2025 Alex Woodie

  Rocket Software has come a long way since Andy Youniss and Johan Magnusson Gedda founded the company in Youniss’ Boston garage in 1990. Today the company counts more than 12,000 customers, including a large number of IBM i shops, and reportedly has a valuation of around $10 billion. Could the company’s 35th anniversary of its founding be a good time for its current majority owner, Bain Capital, to sell?

  Youniss started building what we now think of as Rocket Software in 2000, when he completed the first of what would become dozens of acquisitions. Over the years, there would be …

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• Picking Apart An Ebullient GenAI Spending Forecast

  April 2, 2025 Timothy Prickett Morgan

  In one of the big ironies of our time, companies are embedding AI acceleration functions into PCs that most consumers do not actively want while at the same time datacenter operators (be they captive or independent) are actively trying to get AI compute engines (mostly Nvidia and sometimes AMD GPUs) so they can train their GenAI and other machine learning models – and they can’t get enough of these accelerated servers.

  Because a lot of PCs are already enhanced with AI functions, more and more PCs are falling under the label of an “AI PC,” and therefore the market for …

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• Is IBM i Ready for the Agentic AI Revolution?

  March 24, 2025 Alex Woodie

  The AI world moves fast. Just when you get your head around large language models (LLMs) and the chatbots and coding co-pilots they enable, the AI world has moved onto something new. In 2025, that something new is the reasoning model, which is enabling autonomous AI agents and the world of agentic AI.

  Is IBM i ready for the revolution that’s about to unfold?

  By now you have undoubtedly read about LLMs such as OpenAI’s ChatGPT, Google’s Gemini, and Meta’s Llama. These LLMs are popular ways to power text-based generative AI applications, such as chatbots, coding co-pilots, and question-and-answer …

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