Major Trends That Affect the IBM i (iSeries/AS400) Market

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Major Trends That Affect the IBM i (iSeries/AS400) Market The IBM i and the underlying infrastructure it runs on (Formerly AS/400 and now IBM Power series) have proved their mettle through several decades of robustness. They have been the choice server for a wide range of industries, and even though their core capabilities and strengths have propelled their growth and adaptation so far, there are new trends in play that may propel them forward in the coming years.

The five major trends that may impact the IBM i and AS/400 (IBM Power) market going forward are: _________________________________________________________________________ Follow us on

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Artificial Intelligence IBM has been one of the early birds in the AI landscape, and even though it's not as well-known as consumer-grade applications of Large Language Models (LLMs) like ChatGPT or key hardware players like Nvidia, it has been well-known at the enterprise levels.

IBM Watson, IBM's proprietary AI and data platform, has been around since 2007 and has gone through many evolutionary phases.

Now, the company has announced Watsonx, which allows IBM clients and partners to use and train their own AI and ML models for their business functions.

Both AI and data science applications require significant raw computing power, and the processors in the IBM Power series are designed for better performance in AI applications. This can give them an edge in market adoption. _________________________________________________________________________ Follow us on

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The IBM Power systems, along with the IBM i operating system, can already significantly reduce the cost of additional software and infrastructure needed by many enterprises, and if it can lead to similar cost savings in AI, too, the market may experience more radical growth.

Hybrid Cloud Adoption and Growth Hybrid cloud adoption is growing at an incredible pace. Multiple forecasts put its growth at a CAGR of around 19% to 20% in the coming years (by 2027 or 2030). The IBM Power servers and the i Series, in general, can benefit from this growth. Even though it's just one of the major players in this arena, it has multiple advantages over its competitors, including its position in the AI market and its existing presence at the enterprise level of the market.

IBM systems are already a trusted name in the market, and they have demonstrated their ability to introduce efficient, high-performance, and robust server systems for hybrid clouds.

Skill Shortage IBM AS/400 is a legacy system, and even though the newer lines like IBM Power 10 have a decent market share and are still experiencing adequate growth, the number of professionals specializing in these technologies has shrunk over the years.

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Now that a sizable segment of the IBM i experts have retired and the number is increasing year after year, the shortage will become more pronounced. There is also a consolidation effect.

Many IBM i professionals are consolidating towards certain jobs, like data centres that use IBM Power servers for holdings.

So even within a relatively small data pool, niche specializations and professional experiences emerge that may make it difficult for businesses to find the right experts.

This can shame the market in one of two ways. In one scenario, it may force enterprises to move away from on-premises and hybrid clouds and rely on the expertise of IBM i cloud experts employed at their own hosting service. This comes with many of the benefits and only some of the downsides, including cost.

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In another scenario, this can lead to more people moving towards acquiring relevant IBM I skillsets and companies growing skills internally, and with ample talent in the market, many companies may start leaning more towards the systems that require this expertise.

The following two trends are associated with IBM's ability to market the strengths of its systems.

IBM Power 10 Efficiency The IBM Power 10 is a huge improvement over its predecessor - four times as many crypto engines, improved AES encryption performance, and an AI interface that's five times as fast as the Power 9.

Even if we stack Power 10 against other hybrid cloud hardware options and run a cost-benefit analysis, IBM Power 10 may rank quite well.

This is a major strength that the company can leverage with the right marketing skills, and it may have a tangible impact on the IBM i market.

IBM i Capabilities Just like the underlying hardware, IBM i has offered many tangible benefits to the companies that have adopted it, including a 191% Return on Investment (ROI).

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It’s also quite efficient because it rolls several capabilities into one package, allowing companies to keep their teams more flexible, smaller, and performance more robust (fewer “moving parts”).

These promising results may be enough to contribute to the growth of the market of both - the underlying hardware and IBM i.

Conclusion The IBM i market will also be influenced by several macro factors like uncertainty in the market regarding the ongoing AI revolution and inflation, which increases the cost of borrowing and forces many businesses to put their expansion/growth plans on hold.

IBM can come ahead of its competitors by navigating those macro factors in the relevant domains, like cost and clear AI advantages (with scalability).

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