Latest news with #IBMGranite
Yahoo
23-05-2025
- Business
- Yahoo
IBM vs. Accenture: Which Stock Stands Out in the Consulting Game?
International Business Machines Corporation IBM and Accenture ACN are major players in the digital transformation and consulting space worldwide. IBM's Consulting business focuses on designing, creating and operating various technology and business processes based on open or hybrid cloud architecture powered by generative AI. The enterprise clients collaborate with IBM to build and implement tailored solutions securely and transform their processes with AI and is also a prominent player in the field. Its strategy and consulting services ensure operational improvements, enhance competitiveness, optimize cost and streamline every part of the enterprise's deep industry acumen and a focus on investing in advanced technologies, both IBM and Accenture are strategically positioned to match the dynamic nature of enterprises' digital transformation initiatives. Let us dive a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed in the industry. IBM Consulting business is benefiting from growth in technology consulting, supply chain and business application transformations. The company's robust AI technologies from the software segment, coupled with its broad partner ecosystem, which includes AWS, Microsoft, Oracle and SAP SE SAP, allow it to seamlessly develop intelligent operation services for its customers. The company's IBM Consulting Advantage is an AI delivery platform that equips IBM consultants with industry and business domain-specific AI assistants integrated with IBM Granite and various other leading AI models. The solution is a game changer compared to legacy traditional consulting approaches, allowing IBM to deliver solutions at scale and accelerate time to its partner ecosystem, IBM is expanding its market reach in various sectors. It has collaborated with SAP to tap generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms. The technology focuses on feeding external data such as weather, traffic and local events into the SAP Direct Distribution solution and applies AI to identify optimal store delivery routes to reduce costs. IBM's effort to diversify its portfolio to create new revenue-generating opportunities augurs well for long-term current macroeconomic uncertainty and growing geopolitical volatility continue to impact client spending decisions. This is hindering IBM Consulting's net sales growth. In the first quarter of 2025, the company's consulting signings decreased 10.5% year over year. Intensifying competition from other major players, such as Accenture, Infosys, and Tata Consultancy Services, particularly remains a company is steadily improving its product offerings through innovation and strategic acquisitions to address these issues. IBM recently acquired Hakkoda Inc., a prominent data consultancy provider. Integration of Hakkoda's capabilities in migrating, modernizing and monetizing data estates along with comprehensive generative AI capabilities with IBM Consulting will allow it to match the growing demand for AI-transformation initiatives across industries. IBM is also acquiring Oracle consulting companies to enhance its consulting expertise in Oracle Cloud applications. Growing spending on application modernization and maintenance, cloud enablement and cybersecurity-as-a-service boasts a solid growth opportunity for Accenture. Organizations across industries are prioritizing improving productivity and saving operational costs by transforming their operations through data and analytics, automation and artificial intelligence. These emerging market trends are driving demand for Accenture's managed services company places a strong emphasis on developing a robust digital core by utilizing cloud, data and AI, and technology evolution. It continuously innovates its services and capabilities through early adoption of advanced technologies, including generative AI, blockchain, robotics, 5G and edge computing. Moreover, strategic collaboration with major technology giants like Amazon Web Services, Cisco, Databricks, Google, HPE, SAP, and Oracle drives innovation and boosts competitive edge. The company recently joined forces with Dell and NVIDIA to provide enterprise customers with an open, interoperable, scalable solution that accelerates AI transformation initiatives. The company has been witnessing steady customer growth in the finance domain. The largest financial group in Finland, the OP Financial Group, has recently opted to leverage Accenture's solution to modernize its insurance business processes. Apart from in-house innovation, the company is acquiring a large number of companies to venture into high-growth although this strategy improves revenue generation opportunities and enhances market reach, it also raises integration risks. This could impact organic growth going forward. In the IT services and consulting market, the company faces competition from IBM, Infosys and Capgemini. This put pressure on pricing. Macroeconomic headwinds remain a concern. The Zacks Consensus Estimate for IBM's 2025 sales and EPS implies year-over-year growth of 5.5% and 6%, respectively. The EPS estimates for 2025 and 2026 have been trending northward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Accenture's 2025 sales and EPS implies year-over-year growth of 5.41% and 6.11%, respectively. The EPS estimate for 2025 has remained unchanged for the past 60 days, and the estimate for 2026 has been trending southward over the past 60 days. Image Source: Zacks Investment Research Over the past year, IBM has gained 50.5%, while Accenture has gained 3.1% over the same period. Image Source: Zacks Investment Research Going by the price/earnings ratio, IBM's shares currently trade at 23.02 forward earnings, slightly lower than 23.95 for Accenture. Image Source: Zacks Investment Research Both IBM and Accenture carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks has shown steady revenue growth for years, while IBM has been facing a bumpy road. However, IBM's broad technology portfolio, integration of cutting-edge hybrid cloud and AI technologies, gives it a competitive edge. Better price performance and upward estimate revision highlight investors' growing confidence. Hence, IBM seems to be a better investment option at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
The Star
06-05-2025
- Business
- The Star
IBM CEO makes play for AI market and more US investment
FILE PHOTO: Arvind Krishna, CEO of IBM, speaks during a meeting of the Economic Club of New York in New York City, U.S., October 21, 2024. REUTERS/Brendan McDermid/File Photo (Reuters) -IBM on Tuesday made a play for more sales in the crowded artificial intelligence field, touting tools that could help customers manage a fleet of AI agents for their key business applications. In an interview, Chief Executive Arvind Krishna said he saw an opening to provide software that integrates customers' AI agents from other providers -- among them Salesforce, Workday and Adobe -- and lets them build their own agents for untapped use cases, with IBM's help. "We help our clients integrate. We want to meet them where they are," he said, ahead of IBM's annual Think conference sessions on Tuesday. IBM's tools to help customers create their own agents, a process it said would take under five minutes, draw on the IBM Granite family of AI models, as well as alternatives from Meta Platforms and Mistral, Krishna said. Krishna said that customer interest in using different AI models for different tasks would build demand for IBM, which last month reported that it has built a $6 billion "book of business" on ChatGPT-like generative AI. A small cloud provider relative to Amazon Web Services and Microsoft, IBM has tailored its tech to clients wanting multiple clouds or their own infrastructure to manage their data. "All of these capabilities will only accelerate that rate of growth on those numbers," he said of IBM's new tools. IBM also announced in April that over the next five years, it would invest $150 billion in the United States, where it has manufactured mainframe computers for more than 60 years. It will make quantum computers in the United States as well, Krishna said. "Between mainframe, artificial intelligence and quantum computing, we think there's going to be a very healthy market that behooves us to invest and lean in," he said. Krishna added that the technology focus and reduction in regulations from President Donald Trump's administration would set the economy up for growth. (Reporting by Jeffrey Dastin in San Francisco; Editing by Cynthia Osterman)
CNA
06-05-2025
- Business
- CNA
IBM CEO makes play for AI market and more US investment
IBM on Tuesday made a play for more sales in the crowded artificial intelligence field, touting tools that could help customers manage a fleet of AI agents for their key business applications. In an interview, Chief Executive Arvind Krishna said he saw an opening to provide software that integrates customers' AI agents from other providers - among them Salesforce, Workday and Adobe - and lets them build their own agents for untapped use cases, with IBM's help. "We help our clients integrate. We want to meet them where they are," he said, ahead of IBM's annual Think conference sessions on Tuesday. IBM's tools to help customers create their own agents, a process it said would take under five minutes, draw on the IBM Granite family of AI models, as well as alternatives from Meta Platforms and Mistral, Krishna said. Krishna said that customer interest in using different AI models for different tasks would build demand for IBM, which last month reported that it has built a $6 billion "book of business" on ChatGPT-like generative AI. A small cloud provider relative to Amazon Web Services and Microsoft, IBM has tailored its tech to clients wanting multiple clouds or their own infrastructure to manage their data. "All of these capabilities will only accelerate that rate of growth on those numbers," he said of IBM's new tools. IBM also announced in April that over the next five years, it would invest $150 billion in the United States, where it has manufactured mainframe computers for more than 60 years. It will make quantum computers in the United States as well, Krishna said. "Between mainframe, artificial intelligence and quantum computing, we think there's going to be a very healthy market that behooves us to invest and lean in," he said. Krishna added that the technology focus and reduction in regulations from President Donald Trump's administration would set the economy up for growth.
Yahoo
06-05-2025
- Business
- Yahoo
IBM CEO makes play for AI market and more US investment
(Reuters) -IBM on Tuesday made a play for more sales in the crowded artificial intelligence field, touting tools that could help customers manage a fleet of AI agents for their key business applications. In an interview, Chief Executive Arvind Krishna said he saw an opening to provide software that integrates customers' AI agents from other providers -- among them Salesforce, Workday and Adobe -- and lets them build their own agents for untapped use cases, with IBM's help. "We help our clients integrate. We want to meet them where they are," he said, ahead of IBM's annual Think conference sessions on Tuesday. IBM's tools to help customers create their own agents, a process it said would take under five minutes, draw on the IBM Granite family of AI models, as well as alternatives from Meta Platforms and Mistral, Krishna said. Krishna said that customer interest in using different AI models for different tasks would build demand for IBM, which last month reported that it has built a $6 billion "book of business" on ChatGPT-like generative AI. A small cloud provider relative to Amazon Web Services and Microsoft, IBM has tailored its tech to clients wanting multiple clouds or their own infrastructure to manage their data. "All of these capabilities will only accelerate that rate of growth on those numbers," he said of IBM's new tools. IBM also announced in April that over the next five years, it would invest $150 billion in the United States, where it has manufactured mainframe computers for more than 60 years. It will make quantum computers in the United States as well, Krishna said. "Between mainframe, artificial intelligence and quantum computing, we think there's going to be a very healthy market that behooves us to invest and lean in," he said. Krishna added that the technology focus and reduction in regulations from President Donald Trump's administration would set the economy up for growth. 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
Reuters
06-05-2025
- Business
- Reuters
IBM CEO makes play for AI market and more US investment
May 6 (Reuters) - IBM (IBM.N), opens new tab on Tuesday made a play for more sales in the crowded artificial intelligence field, touting tools that could help customers manage a fleet of AI agents for their key business applications. In an interview, Chief Executive Arvind Krishna said he saw an opening to provide software that integrates customers' AI agents from other providers -- among them Salesforce (CRM.N), opens new tab, Workday (WDAY.O), opens new tab and Adobe (ADBE.O), opens new tab -- and lets them build their own agents for untapped use cases, with IBM's help. "We help our clients integrate. We want to meet them where they are," he said, ahead of IBM's annual Think conference sessions on Tuesday. IBM's tools to help customers create their own agents, a process it said would take under five minutes, draw on the IBM Granite family of AI models, as well as alternatives from Meta Platforms (META.O), opens new tab and Mistral, Krishna said. Krishna said that customer interest in using different AI models for different tasks would build demand for IBM, which last month reported that it has built a $6 billion "book of business" on ChatGPT-like generative AI. A small cloud provider relative to Amazon Web Services (AMZN.O), opens new tab and Microsoft (MSFT.O), opens new tab, IBM has tailored its tech to clients wanting multiple clouds or their own infrastructure to manage their data. "All of these capabilities will only accelerate that rate of growth on those numbers," he said of IBM's new tools. IBM also announced in April that over the next five years, it would invest $150 billion in the United States, where it has manufactured mainframe computers for more than 60 years. It will make quantum computers in the United States as well, Krishna said. "Between mainframe, artificial intelligence and quantum computing, we think there's going to be a very healthy market that behooves us to invest and lean in," he said. Krishna added that the technology focus and reduction in regulations from President Donald Trump's administration would set the economy up for growth.
