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Starbucks announced that it would use AI-developed internal software to replace IBM's device maintenance management system, cutting its technical budget by about $30 million annually.

Although Starbucks tried to build its own AI software, it recently was forced to cancel the project and resume manual inventory due to inaccurate inventory tracking system. This fully proves that non-tech companies have very little fault tolerance for trying to "full self-developed AI replacement", and that the enterprise-level services of traditional IT giants are not as fragile as the market expects.

IBM Plunges 25%, Drags Software Stocks — Is a Style Rotation Underway?
IBM crashed 25.21% to $217 after Q2 revenue came in at approximately $17.2B, up just 1% and missing the ~$17.86B consensus, dragging Salesforce and peers lower. More telling: IBM noted late-June clients were shifting quarterly capex toward servers, storage, and memory to lock in capacity ahead of price hikes — explaining why hardware and semiconductors rallied while software sold off. Is this an isolated earnings miss, or the opening act of a software-to-hardware rotation?
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