IBM has announced IBM Power Autonomous Operations, an AI agent that helps customers monitor Power systems and autonomously resolve issues to keep operations running smoothly. There are additional software upgrades that are aimed at helping customers deploy and manage AI infrastructure components.
“Each announcement addresses a different layer of the enterprise technology stack, from how infrastructure is deployed and managed to how applications are developed, modernized, and optimized,” wrote Brandon Pederson, senior IBM i product manager, in a blog post about the new products. “Together, they reinforce a broader direction for IBM Power of helping clients move from manually operated infrastructure toward intelligent, resilient, and AI-assisted systems that are easier to manage, easier to modernize, and ready for new workloads.”
The company had also added a new edge S1112 server to its Power server portfolio. This is a one‑socket Power11 server engineered for IBM i, AIX, and Linux.
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This comes after IBM saw its worst stock day since 1968. It plunged 25% after customers rushed to secure hardware before expected price increases. This is reportedly a sign that AI build-out is reshuffling technology budgets and pulling chip stocks away from software.
The damage spread across software, with Atlassian, ServiceNow, and Adobe going down. Cybersecurity was an exception, with CrowdStrike, Zscaler, Palo Alto Networks, and Fortinet all rallying.
CEO Arvind Krishna said in a letter to investors that in the final weeks of June, customers redirected quarterly capital spending toward servers, storage, and memory to lock down supply before expected price increases. IBM underestimated the size of that shift, then failed to adjust quickly enough as large deals slipped past quarter-end. Hardware costs were only part of the pressure.
“Clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter,” Krishna wrote.
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IBM also said its customers were distracted by Anthropic’s Mythos debut, which the AI company warned could give hackers tools to discover cybersecurity vulnerabilities in corporate systems before companies become aware of them. That paused several large deals that IBM had anticipated it would close by the time the quarter had ended.
Krishnan said IBM is quickly innovating out of the turmoil, noting that the company launched its Lightwell open-source security software in rapid response to Mythos.
The company said its preliminary sales grew just 1% in the past quarter, and its unadjusted earnings per share fell 2%. Both of these are below IBM’s forecast.