logo
IBM powers up AI-ready z17 mainframe

IBM powers up AI-ready z17 mainframe

Yahoo08-04-2025

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter.
IBM rolled out its z17 mainframe, a product line designed for AI computing, in a Tuesday announcement. The units will be generally available on June 18, the company said.
The newest member of the Z Systems family was built to run generative and predictive AI workloads and support multi-model applications, Elpida Tzortzatos, IBM fellow and CTO AI on IBM Z and Linux One, said during a virtual briefing last week. Units come equipped with high-capacity Telum II processors and are set up for IBM's Spyre accelerator chips, which the company plans to deliver later this year.
As part of the rollout, IBM will introduce a performance management tool called IBM Z Operations Unite in May and release a new version of its mainframe operating system, z/OS 3.2, in Q3 of this year. 'This is a fully engineered stack,' Tina Tarquinio, VP and chief product officer for IBM Z and Linux One, said during the briefing.
Mainframes occupy a pivotal position in digital transformation. Organizations have continued to lean on the enterprise workhorse to power core applications despite the impetus to embrace the cloud.
The z17 arrives after a solid two-plus year run for its predecessor, the z16, which yielded one of the longest and most consistent periods of revenue growth in the platform's history, IBM SVP and CFO James Kavanaugh said last year.
Z systems units run over 70% of global transactions by value, including 90% of credit-card transactions, Tarquinio said, drawing on a survey of more than 2,500 global technology executives conducted last year by Oxford Economics at IBM's behest.
'IBM mainframes hold their value,' John Schick, ISG consulting lead on mainframe computing, told CIO Dive. 'There are z15s that are still in use and being installed as used equipment.'
Large language model technologies added another twist to the modernization plot as tech leaders considered the potential cost of running compute-intensive generative AI applications in the cloud. Four in 5 respondents to the Oxford Economics survey said mainframes were a key part of their AI plans.
Security and data privacy concerns have also cast a favorable light on mainframe hardware. To bolster Z systems' resilience, IBM built quantum-safe encryption algorithms into the z17, Tarquinio said.
In the lead up to the release, the company tapped its customer base for over 2,000 hours of test runs and conducted discovery workshops with over 150 clients, according to Tarquinio.
Modernizing legacy applications for deployment on cloud or hybrid infrastructure remains a priority for mainframe users. The z17 will ease this process by leveraging Spyre to power watsonx Code Assistant for Z on-prem, Tarquinio said.
In addition to the z17 rollout, IBM acquired data and AI consultancy Hakkoda, the company announced Monday. Financial details of the deal, which closed on April 2, were not disclosed.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Iran Strike Shakes Markets: Where Smart Investors Are Moving Their Portfolios Now
Iran Strike Shakes Markets: Where Smart Investors Are Moving Their Portfolios Now

Business Insider

time13 hours ago

  • Business Insider

Iran Strike Shakes Markets: Where Smart Investors Are Moving Their Portfolios Now

Investors are preparing for market turbulence after the U.S. launched a military strike on Iranian nuclear sites. The move, announced by former President Donald Trump on Truth Social and described as a 'spectacular military success,' adds new uncertainty to an already fragile global outlook. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Oil prices are expected to spike when markets reopen. Brent crude is already up 18% since June 10, closing at $77.37 per barrel on Friday. Analysts at Oxford Economics warn that if Iranian oil production is disrupted or the Strait of Hormuz is closed, crude could surge to $130 per barrel. That would push U.S. inflation toward 6% by year-end, sharply reducing the chances of Federal Reserve rate cuts in 2025. Which Stocks Are Set to Benefit Higher oil costs may boost energy stocks like ExxonMobil (XOM), Chevron (CVX), and Schlumberger (SLB), but could weigh on consumer-facing sectors. Airlines such as Delta Airlines (DAL) and United Airlines (UAL) may feel margin pressure, while retailers like Target (TGT) and Walmart (WMT) could see demand soften as fuel prices cut into household budgets. Safe-haven demand is likely to lift the U.S. dollar and Gold (XAUUSD). The dollar has been under pressure for most of the year, but geopolitical tension tends to drive inflows into U.S. assets. Treasury yields may fall if investors rush into bonds, while gold prices could benefit from risk aversion. Equities typically decline following major military escalations but often rebound in the months that follow. According to Wedbush Securities, the S&P 500 (SPY) has averaged a 2.3% gain two months after the start of previous Middle East conflicts, despite initial losses. Defense contractors may be another area of interest. Traditional defense stocks, such as Lockheed Martin (LMT) and RTX Corporation (RTX), could attract attention if military engagement continues or expands, but Palantir (PLTR) might also see further contracts being struck. No One Likes Uncertainty The bigger question is how long the uncertainty lasts. A quick resolution could limit damage to markets and ease pressure on inflation. But a prolonged standoff or disruption to oil flows would complicate the Fed's path and keep volatility elevated. For now, investors should closely monitor key indicators, including oil prices, bond yields, gold, and the U.S. dollar. These will signal whether risk sentiment is stabilizing or deteriorating. Diversification into energy and defense may provide a cushion, while keeping some exposure to gold and cash-like assets could help manage volatility. Market reactions to geopolitical shocks often evolve quickly. The key is staying informed and being ready to adjust. We used TipRanks' Co mparis on Tool to bring together all the energy, defense, and retail stocks mentioned above, giving you a broader view of each company and how it stacks up within its industry.

Canadians defaulting on non-mortgage bill payments
Canadians defaulting on non-mortgage bill payments

Yahoo

time18 hours ago

  • Yahoo

Canadians defaulting on non-mortgage bill payments

The financial strain on Canadians has reached unprecedented levels recently, with metropolitan centres such as Toronto and Vancouver experiencing dramatic increases in living costs. These elevated expenses continue to burden residents across the country. Toronto's Greater Area (GTA) residents are particularly impacted, with new research from Oxford Economics revealing that they dedicate a larger portion of their income to housing costs, more than almost any other major city globally. This sobering statistic highlights the severity of the region's affordability crisis. As a direct consequence of these financial pressures, Ontario has witnessed a concerning rise in mortgage delinquencies and missed bill payments, signaling growing economic distress among its residents. According to newly released data from Equifax, Canadians are struggling with debt like never before. In the first months of 2025, there has been a concerning 17.06% increase in people who are either late on payments or completely defaulting on their bills compared to last year. The GTA is particularly affected, leading the nation in the rate of mortgage payments that are more than 90 days overdue. But the problem extends beyond housing — Ontario residents are showing the highest increase in defaults across various types of debt, including credit cards and auto loans year-over-year. This troubling trend isn't new for Ontario, which has consistently shown mounting debt problems over recent years. Data shows a significant increase in non-mortgage payment defaults across Canada, with some provinces experiencing dramatic spikes. Ontario leads the nation with a 24% rise in delinquencies during Q1 2025 compared to the previous year. Alberta follows with a 15.93% increase, while Quebec rounds out the top three at 13.95%. British Columbia and the Western Region also saw notable increases of 12.63 and 12.49% respectively. In contrast, some regions maintained relatively stable delinquency rates. Newfoundland reported a minimal increase of 0.48%, while Manitoba saw a modest 2.04% rise in missed payments. At a municipal level, Toronto stands out with a 24.28% year-over-year increase in delinquency rates, significantly higher than other major Canadian cities. For comparison, St. John's experienced only a slight uptick of 1.19% during the same period. For non-mortgage debt in Q1 2025, Fort McMurray leads Canadian cities in delinquency rates at 2.56% — Edmonton is in a close second at 2.26% with Toronto rounding out the top three at 2.17%. This indicates significant challenges in debt repayment across major urban centers. Looking at provincial statistics, Alberta shows the highest delinquency rate at 1.97% in Q1 2025. Saskatchewan follows at 1.82%, while New Brunswick and Ontario report rates of 1.77% and 1.72% respectively. In terms of non-mortgage consumer debt, Fort McMurray residents carry the heaviest burden among analyzed cities, with an average of $37,269, while Toronto ranks seventh out of nine cities studied, with residents owing an average of $21,048. At the provincial level, Newfoundland leads with the highest average personal non-mortgage debt at $24,770, while Ontario sits at seventh place among provinces with an average of $22,543 per person. 1. BNN Bloomberg: Toronto housing among least affordable on this global index. Here's what experts say needs to change (June 8, 2025) 2. Equifax: Non-Mortgage Delinquencies Reach Levels Not Seen Since 2009 (May 27, 2025) This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

BofA outlines the bull and bear arguments surrounding IBM shares
BofA outlines the bull and bear arguments surrounding IBM shares

Yahoo

time18 hours ago

  • Yahoo

BofA outlines the bull and bear arguments surrounding IBM shares

- Shares in International Business Machines (NYSE:IBM) has surged so far this year, spurred on by hopes around the software group's artificial intelligence ambitions. IBM has said that it now has a "book of business" for its ChatGPT-like generative AI that is worth $6 billion, while CEO Arvind Krishna has said that customer interest in utilizing different AI models would likely fuel demand in the future. The company has also been specializing in developing tools that allow clients to build out their own AI-enhanced agents. Speaking to Reuters in May, Krishna suggested that, using IBM's Granite suite of AI models, along with alternatives from Mistral and Facebook-owner Meta Platforms (NASDAQ:META), these agents could be constructed in mere minutes. These capabilities will lead to an acceleration of the rate of growth of its AI operations, Krishna said at the time. The comments came after IBM announced in April that it would invest some $150 billion in the United States, where it has long had a presence as a manufacturer of mainframe computers. Krishna noted that quantum computers -- a new type of computer that harnesses quantum mechanics to carry out tasks -- will also be made in the country. "There's going to be a very healthy market that behooves us to invest and lean in," Krisna told Reuters. Yet, even as optimism surrounds IBM's AI ambitions, a murky economic outlook clouded its most recent earnings. Faced with the looming threat of sweeping U.S. tariffs, analysts have warned that many companies may be reining in spending, potentially weighing on IBM's key consulting arm. A push by U.S. President Donald Trump's administration to slash government spending has also led to the shelving of 15 federal contracts at IBM that accounted for $100 million in business. Revenue from the consulting segment slipped in the most recent quarter by 2%, although IBM backed its 2025 target for top-line growth on a constant currency basis of at least 5%. Writing in a note to clients, analysts at BofA led by Wamsi Mohan said that IBM shares, despite trading at all-time highs, are "interesting due to the transformational initiatives undertaken by management." "IBM underwent a significant transformation over the last five years by shifting their software segment towards strategic M&A investments, shedding lower growth/high cost businesses, and rebalancing their portfolio towards cloud and AI trends," the brokerage wrote. However, they flagged that less rosy assessments of the stock have highlighted that IBM is "structurally under-owned and underweight." "This disconnect stems from the underperformance from 2010-2019 as revenues, margins and free cash flow were under pressure. While the turnaround [from 2020-2025] is acknowledged by bears, the valuation relative to growth profile remains a hurdle for many," the analysts said. Weighing these arguments, the BofA strategists lifted their price target for the stock to $320 from $290 and reiterated their "buy" rating of the stock. Related articles BofA outlines the bull and bear arguments surrounding IBM shares UBS identifies key thematic opportunities for stock market investors This sector is uniquely positioned to capture infrastructure spend growth: analyst Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store