Wolfgang Wendt has been managing IBM’s enterprise in Germany, Austria and Switzerland for almost two years. In whole, he has been energetic at IBM for greater than three a long time in all kinds of roles, from customer-oriented roles as Consumer Director to accountability for mainframes and different {hardware} segments. In an interview with COMPUTERWOCHE, he appears to be like again — and ahead.
IBM is over 100 years previous; you your self have been on board for round 30 years. How would you briefly describe the event of the corporate lately?
Wendt : We at the moment are 114 years previous, in Germany virtually 115. I like to explain IBM as an ‘older start-up’ as a result of IBM has undergone many transformations over the a long time. To start with, all the things was strongly characterised by the infrastructure, key phrase mainframe. Later got here the PC increase, a distributed world that we performed a decisive function in shaping.
This was adopted by a part during which we centered extra strongly on the service sector—information middle operations, outsourcing and managed companies. With the beginning of the cloud period, we centered extra on expertise once more, notably on software program, but additionally on {hardware}. And round 5 years in the past, we centered strategically on two key areas: hybrid cloud and synthetic intelligence.
IBM has been working with AI for for much longer than that.
Wendt: Sure, we’ve been specializing in AI for over 30 years. IBM was there early on, consider the chess pc “Deep Blue” or later Watson, identified for its look on Jeopardy! With the emergence of ChatGPT just a few years in the past, the subject has change into enormously well-liked. Immediately, it’s all about utilizing AI sensibly in each massive digitalization tasks and industry-specific functions.
Do you profit from the truth that IBM has been concerned with AI for a very long time?
Wendt: I believe so. We now have an enormous head begin right here, not least because of the openness of our fashions. We now have our personal Granite fashions, however prospects can even use fashions from the open supply surroundings or from suppliers equivalent to Meta.
The fashions run on-premises, i.e. independently of hyperscalers and due to this fact indifferent from the web. This enables firms to study their very own information with none information outflow. In my opinion, this is likely one of the key differentiators.
We additionally comply with the precept of ‘skilled is best’ — in step with what DeepSeek demonstrated six months in the past. We expressly assist the thought of growing customer-specific fashions, i.e. coaching massive language fashions, ‘boiling them down’ and enriching them with the actually related information.
The inclusion of our personal firm information additionally performs a significant function right here with a view to develop it additional and make it usable — that is certainly one of our nice strengths.
One other benefit lies in our “watsonx.governance” module. It ensures the traceability of AI evaluations: The place does the info come from? How are choices made? Who has entry to it? And the way dependable is it? That is one other space the place we clearly stand out from a lot of our opponents.
Our prospects additionally use the watsonx.ai module to combine a number of AI fashions from different producers. We additionally work with well-known companions, equivalent to SAP, which depends on our watsonx expertise in its Joule assistant.
We additionally supply one other highly effective resolution: clever orchestration through brokers. We are able to generate these brokers mechanically inside 5 minutes. However much more essential is the clever orchestration of those brokers: it permits our shoppers to combine different suppliers equivalent to Google, AWS or customary functions equivalent to Salesforce through these brokers and thus make focused use of AI.
IBM was virtually synonymous with reliability. The saying “You received’t get fired with IBM” was proverbial. Does that also apply?
Wendt: Reliability and high quality are nonetheless core values at IBM. We now have been supporting a lot of our main prospects for many years. That’s firmly anchored in our DNA. On the similar time, we’ve continually developed.
What’s essential to me is that we need to present our prospects with confirmed applied sciences. The occasions are fast-moving, new merchandise are continually rising that first have to be examined.
We take a really balanced strategy right here. We name it ‘Consumer Zero’. We take a look at and use the applied sciences that we promote, equivalent to automation and synthetic intelligence, in our personal firm first. The main focus is clearly on course of and value optimization.
After we launched Consumer Zero in 2022, we had focused financial savings of two billion {dollars}. After two years, we will say that we’ve even exceeded the goal with financial savings of over three billion {dollars}.
We need to stay a dependable expertise companion—additionally in consulting—and, as already talked about, along with our ecosystem companions. This consists of hyperscalers in addition to established system integrators.
Right here too, we imagine that much less is extra. We used to outsource on a big scale and handle full information facilities. That is now not our core enterprise; we spun off this space round 5 years in the past with the spin-off of Kyndryl. Immediately, we’re constantly concentrating on expertise, software program and the additional growth of our {hardware} technique, notably within the mainframe and storage sector.
What function does the German location play for IBM? How a lot growth is carried out right here?
Wendt: We are able to look again on over 60 years of growth custom in Germany. I’d notably like to spotlight our IBM laboratory in Böblingen close to Stuttgart. It was established within the Fifties and remains to be a central location with over 1,200 builders right this moment, in a laboratory community with our amenities within the USA and different places worldwide.
We now have been finishing up each {hardware} and software program growth there for many years. For instance, elements of the IBM System Z mainframe system—a key expertise—had been and are nonetheless being developed in Böblingen.
The situation additionally performs an essential function within the area of synthetic intelligence: features regarding information gathering, i.e. the event of a knowledge lakehouse, are being created in Böblingen for our watsonx platform.
As well as, we opened a Quantum information middle in Ehingen final October.
We’re very proud to have the ability to construct on this decades-long custom and that expertise and innovation proceed to be created in Germany. Particularly within the context of discussions about digital sovereignty, that is very effectively obtained by authorities. The state authorities can be proud that we’re represented right here within the “Ländle”—and that is finally additionally of nice significance all through Germany.
IBM
With AI, the mainframe is supposedly experiencing a revival. To what extent do you discover this in your small business?
Wendt: Luckily, the mainframe is experiencing a revival with virtually each technology. We now have now reached the seventeenth technology with the z17.
The nice benefit of the mainframe is that delicate information stays in a protected system. A lot of our prospects—particularly banks, but additionally different transaction-oriented firms—run business-critical functions on these techniques: Core banking techniques, transaction platforms, bank card processing and the like.
Right here specifically, it’s essential that we combine synthetic intelligence straight into these techniques as a substitute of operating it as an upstream module on a separate pc or GPU. This could undermine the integral character of the mainframe.
That is precisely the place our improvements are available: We now have built-in AI — particularly the so-called runtime module — straight into the Telum processor. A easy instance: Once you pay together with your bank card on the checkout, you count on the transaction to be safe and accomplished inside seconds. AI helps this in actual time — for instance with fraud detection, cybersecurity checks or bank card authentication. These checks should be carried out in milliseconds. If AI had been to trigger a transaction to immediately take a minute as a substitute of three seconds, it will be counterproductive. That’s why the analysis should happen near the processor, i.e. straight on the chip — in actual time.
I at all times say: if AI doesn’t discover its manner into our mainframe techniques, then we’re doing one thing flawed.
AI — and generative AI specifically — additionally guarantees to take over actions from workers, which may result in job losses. That is being strongly promoted within the USA, together with by the IBM CEO. What’s your place on this as Head of Germany and Head of Know-how?
Wendt: We proceed to recruit in a really deliberate, thought-about and centered method and on the similar time make modifications the place it is sensible. This can be a regular course of, partly pushed by AI, partly impartial of it.
On the similar time, we’re additionally creating many new, AI-oriented roles. In fact, there are additionally effectivity beneficial properties. In our Consumer Zero venture, for instance, the intention was to optimize buying and HR processes. This may imply redistributing duties or adapting jobs.
As Managing Director of IBM Germany, I’ll proceed to hold out selective restructuring sooner or later. However our main purpose is to offer our workers with complete coaching in AI in order that they’re on the forefront of expertise and consulting.
We don’t see AI as a substitute for individuals, however as assist. Our intention is to not reduce jobs, however to make workers extra productive, extra exact and more practical, with higher output and a decrease error charge. That is the strategy we’re pursuing at IBM in Germany.
Varied industrial sectors in Germany are at the moment weakening, particularly the automotive {industry}. How is that this affecting IBM’s enterprise?
Wendt: As IBM in Germany, we naturally really feel dedicated to the German financial system and are a part of it. What’s at the moment taking place within the automotive {industry} is a profound transformation that we’re actively accompanying and supporting.
In fact, we will see that some consulting tasks are at the moment declining considerably just because many automobile producers are implementing cost-cutting packages. On the similar time, nonetheless, we’re working very intently with the foremost gamers within the {industry}, each by way of expertise and consulting, with a view to make this part productive. In spite of everything, regardless of price strain, an organization should stay revolutionary and artistic with a view to stay aggressive.
Synthetic intelligence performs a key function right here: the place can AI be utilized in a focused method to create effectivity and aggressive benefits? And the place can extra financial savings be achieved by way of the usage of fashionable software program instruments, each by way of infrastructure and operations?
We provide very efficient options equivalent to Turbonomic, Instana and Apptio, which allow firms, together with these within the automotive {industry}, to considerably scale back their IT prices whereas sustaining efficiency and high quality.
Particularly in tough financial occasions, it’s essential to face shoulder to shoulder and discover methods to form the longer term collectively. The automotive {industry} is and can stay the driving drive behind Germany as a enterprise location and we see it as our job to assist them on this.
Are you apprehensive that Germany is falling behind technologically, exactly due to this financial setback? Or do you suppose the nation remains to be heading in the right direction?
Wendt: I believe Germany is again heading in the right direction. Even when we’re at the moment experiencing a dip, I imagine that politicians, particularly the present federal authorities, are doing a variety of issues proper by investing closely in infrastructure.
Immediately, infrastructure means far more than simply roads and networks, but additionally selling innovation — and lots is going on on this space. We at IBM are actively concerned on this, for instance in cooperation with universities and Fraunhofer Institutes, notably in quantum analysis. That is how we preserve and promote information and technological progress in Germany.
In fact, we all know that some applied sciences, so far as their origins are involved, originate within the USA. However with IBM’s location in Germany, we’re bringing innovation and expertise to the nation, which can be used and additional developed right here.
We’re additionally large advocates of open supply parts. This helps the situation enormously as a result of it permits openness and adaptableness. One instance is Purple Hat, certainly one of our subsidiary organizations, which makes globally developed open supply parts prepared for manufacturing and safe to make use of.
I imagine that each one of this strengthens Germany as a enterprise location. And so far as the artwork of engineering and know-how are involved, I nonetheless see this as being very robust in Germany. I’m optimistic: with the joint efforts of politics, {industry} and analysis, we’re heading in the right direction. Bitkom, with whom we work intently, additionally will get to the guts of the matter and has already achieved an important deal.
You may have already touched on the subject of “digital sovereignty.” Have you ever seen that prospects at the moment are putting larger emphasis on this subject, for instance within the type of on-premises options?
Wendt: Sure and no. I can clearly see that demand is growing, notably because of the geopolitical scenario and political discussions worldwide. Many firms, but additionally public authorities, need to regain their information sovereignty, i.e. handle their very own information and retain accountability and management. The decision for this has change into a lot louder.
On the similar time, there are numerous advertising and marketing slogans available on the market. Quite a few producers at the moment are claiming that each one of their {hardware} is now AI-capable and that each product is sovereign. That’s not true, after all. Actual sovereignty solely begins with the air hole. The time period “digital sovereignty” is now considerably worn out. I choose to speak about technological autonomy.
As a result of true sovereignty implies that techniques should be capable to be operated on-premises, utterly separated from the web and exterior affect, whereas remaining open, clear and reliable.
These are values that we at IBM connect nice significance to. We now have to watch out that the time period “sovereign resolution” doesn’t simply change into a label. It’s about substance and accountability, not simply buzzwords.
An excellent instance is our Air Hole options, for instance for patrons within the safety sector: techniques which might be assured to be decoupled from the web and but are AI-capable and fashionable. That’s true technological autonomy.
And sure, the demand for such options is rising, each in enterprise and in politics. It’s now essential that actually accountable and resilient options are provided and we’re working intensively on this.
