Techaisle Blog

In today's business landscape, characterized by economic volatility, geopolitical conflicts, and an unrelenting pace of technological change, CEOs feel immense pressure. They are tasked with the challenging duality of funding existing operations while simultaneously investing in innovation and driving growth. These were the themes laid out by Mohamad Ali, SVP and Head of IBM Consulting, during his keynote at their annual Think conference. Technology, particularly AI, is no longer just a tool; it has become the source of competitive advantage. Yet, navigating this new era is complex, and many organizations are struggling to move beyond AI experimentation to realize tangible business value. This is where consulting plays a crucial role, and IBM Consulting is positioning itself uniquely with an approach it calls the "Science of Consulting".

Defining the 'Science of Consulting

At its core, the "Science of Consulting" is about combining science and technology, including AI, with IBM's deep pool of human talent – its consultants, engineers, and designers – to deliver "outsized results" for clients. This represents an evolution of the traditional consulting model, acknowledging that in the age of AI, human expertise must be augmented and accelerated by technology.

The debut of IBM Partner Plus marked a significant evolution from the previous PartnerWorld program, specifically designed to accelerate partner business velocity in a rapidly changing cloud adoption landscape. Key to this launch were interconnected enablers such as insider access to sales and training materials, a focus on competitive and transparent incentives, and enhanced support for skill development in critical areas like AI and cloud. The program also introduced a simplified IBM Partner Portal offering real-time incentive visibility, an automated deal share engine, and increased co-marketing and co-sell support investments. These initial steps laid the groundwork for the simplified engagement, enhanced partner enablement, and targeted incentives, demonstrating a consistent strategic thread from the program's inception to its current manifestation in driving AI and hybrid cloud adoption through the ecosystem.

By establishing a program designed for diverse partner models and emphasizing transparency and support from the outset, IBM Partner Plus created an environment conducive to the "Build, Sell, Service" pillars and the incentivization of high-growth areas like Software as a Service (SaaS) and AI. The program's foundational goal of aligning with partners expanding their cloud market presence directly correlates with the current strategy to leverage the ecosystem for broader reach and deeper client engagement in AI and hybrid cloud solutions. This continuity underscores IBM's sustained commitment to its partners as central to achieving scale and success in these transformative technology areas.

The strategic alignment with partners, crucial for success, reflects the fundamental reality that in the dynamic world of enterprise technology at the intersection of AI and hybrid cloud, scale is paramount, and achieving this requires not only innovative products but also a robust and interconnected ecosystem. IBM's strategy for driving growth in the AI and hybrid cloud era is deeply rooted in cultivating a vibrant ecosystem – a community of diverse participants, including value-added distributors (VADs), resellers (VARs), service partners, and independent software vendors (ISVs), working harmoniously towards mutually beneficial outcomes.

The objective of IBM's ecosystem strategy is straightforward: to work hand-in-hand with partners to scale the IBM technology business in a way that benefits everyone involved. This requires a deep understanding of each partner type's diverse needs and drivers and aligning those towards common goals, specifically seizing the significant opportunities presented by AI and hybrid cloud.

IBM and Microsoft have an established and successful strategic partnership, marked by significant collaborations like ARO (Azure Red Hat OpenShift). In 2021, the general availability of Red Hat OpenShift on Azure evolved into Azure Managed OpenShift on Azure. In 2023, IBM achieved Partner of the Year recognition with over 13 accreditations across the Microsoft portfolio and seven in 2024.

ARO has been a cornerstone of this partnership, offering businesses a comprehensive hybrid cloud solution that seamlessly integrates Azure services with Red Hat OpenShift. This partnership has also driven IBM’s expansion on the Azure cloud marketplace, where IBM’s technology offerings have gained substantial traction.

In a significant initiative to enhance their long-standing relationship, IBM and Microsoft are expanding the partnership by bringing additional IBM solutions to businesses through the Azure Marketplace. This strategic move aims to provide businesses with a more streamlined and integrated experience, allowing them to access a broader range of IBM software and services directly within the Azure ecosystem.

Both IBM and Microsoft stand to benefit from this partnership, as Techaisle’s research indicates a growing momentum towards Azure Marketplace. 47% of businesses consider it to be secure, 45% find it well-understood, 44% utilize it due to its extensive footprint, and 41% perceive it as a mature platform. These positive perceptions highlight Azure Marketplace’s increasing appeal to businesses seeking reliable, comprehensive cloud solutions.

Expanding IBM's Offerings on Azure Marketplace: A Strategic Partnership

There are few absolute certainties in technology – but one subject that is beyond debate is that the cloud has permanently changed how technology is deployed and consumed within businesses, and AI is the latest disruptive technology. We know that AI is everywhere, but having arrived in a hurry, the changes made in response to its adoption will not leave abruptly.

Techaisle research shows that 72% of SMBs, 97% of midmarket firms, and 100% of enterprises believe technology is critical to business success. However, IT efficiency can be challenging to achieve. As the business pressures increase, the greater is the need for automation and orchestration. Business unit leaders seek inputs from IT to help achieve business goals. In straightforward terms, in 86% of firms, IT is expected to do more and is even seen as a source of innovation. In 79% of firms, IT is expected to deliver business outcomes faster. However, 80% of IT’s time is spent on support and maintenance; in 65% of organizations, IT is left with little time for innovation.

One of the key highlights of this expanded partnership is the introduction of Apptio Technology Business Management (TBM) software to the Azure Marketplace. Apptio, an IBM company, is recognized as a market leader in TBM and FinOps. It empowers organizations to make data-driven technology investment decisions and optimize costs across cloud and on-premise environments.

The roll-out of Apptio's product suite on Azure Marketplace will occur in phases, beginning with IBM Targetprocess on October 29^th, 2024. Targetprocess is an Enterprise Agile Planning (EAP) software that integrates with Azure DevOps, facilitating better budget planning and management across diverse technology environments. IBM also plans to bring its flagship IT financial management solution, IBM Apptio Costing and Planning, to the Azure Marketplace in the first quarter of 2025. These initiatives highlight a commitment from both IBM and Microsoft to provide businesses with a comprehensive suite of solutions to manage and optimize their technology investments within the Azure cloud platform.

Enterprises are grappling with AI's transformative power, a technology poised to automate and elevate both creative and analytical tasks. Despite its early stages, AI adoption holds immense growth potential. Recognizing this, IBM took center stage at Think 2024, showcasing its unwavering commitment to AI innovation.

IBM's leadership in driving enterprise AI is evident through its three key pillars: open-source initiatives, which democratize AI and make it more accessible; leveraging the combined expertise of its consulting arm and ecosystem partners, which ensures the highest quality of AI solutions; and significant updates to the watsonx platform, which enhance the performance and capabilities of AI. These updates are about technological advancements and making AI more accessible and impactful for businesses worldwide. By prioritizing openness, affordability, and flexibility, IBM is breaking down barriers and paving the way for widespread AI adoption.

Open-Source Innovations and InstructLab

AI, a field deeply rooted in open collaboration, has been shaped by a tradition that dates back to its inception. Consider Alan Turing's groundbreaking 1950s paper, 'Computing Machinery and Intelligence,' which introduced the world to AI. This vision turned into reality thanks to the open sharing of work by countless researchers worldwide, laying the foundation for the AI we know today. IBM, a torchbearer of this tradition, continues to place open-source innovation at the core of its latest AI initiatives, inviting users and businesses to be part of this rich and impactful tradition.

IBM has unveiled a family of Granite models, a significant addition to the open-source AI ecosystem. These models, with parameter counts ranging from 3 billion to 34 billion, have been trained in 116 programming languages. They are available in base and instruction-following variants, offering a wide range of applications from complex modernization to bug fixing. These models represent some of IBM's most advanced language and code capabilities and are available under Apache 2.0 licenses on collaborative platforms such as HuggingFace and GitHub. This exciting development opens up a world of possibilities.

IBM's approach to AI development sets it apart from other major companies. While many have chosen to release pre-trained models, withholding the datasets used for training, IBM has taken a different path. It has offered open-source models, democratizing AI development and inviting clients, developers, and experts worldwide to explore new AI advancements in enterprise settings. This unique strategy, coupled with IBM's commitment to quality and efficiency, ensures that these models consistently generate high-quality code superior to many alternative large language models (LLMs) and excel at various code-related tasks, surpassing larger open-source counterparts.

“We firmly believe in bringing open innovation to AI. We want to use the power of open source to do with AI what was successfully done with Linux and OpenShift,” IBM CEO Arvind Krishna at IBM’s Annual Think Conference.

To further its commitment to open-source AI, IBM has announced InstructLab, an open-source project designed to address challenges in fine-tuning LLMs for specialized tasks. This project focuses on scalability by efficiently handling large volumes of data for model training and specialization by tailoring models to specific industry needs.