As organizations across various sectors seek to modernize their operations, IBM and Amazon Web Services (AWS) are stepping in to facilitate this shift through AI-powered transformation. With increasing demand for cloud services and advanced technologies, many Chief Information Officers (CIOs) are hampered by outdated IT infrastructure. According to IBM research, CIOs allocate an average of 70% of their IT budgets to maintain legacy systems, leaving limited resources for innovation.
To address these challenges, IBM and AWS are collaborating to help businesses and governments modernize their infrastructure, applications, and business processes. “IBM’s proprietary agentic AI framework for application migration and modernization embeds agentic AI into our large-scale migrations to reduce risk and improve efficiency,” stated Dan Kusel, global managing partner and general manager of IBM Consulting’s Global AWS Practice. He emphasized that this partnership delivers the fastest path to impactful return on investment (ROI), resulting in lower costs and enhanced customer satisfaction.
Success Stories Across Industries
IBM and AWS have made significant strides in transforming organizations, exemplified by their collaboration with renowned sports teams like Scuderia Ferrari HP. The iconic Formula 1 racing team boasts a fan base of nearly 400 million people who engage through their app. To meet the expectations of tech-savvy fans, Ferrari HP partnered with IBM Consulting to redesign the app’s architecture and interface. By analyzing user habits, IBM developed a platform that enhanced interactivity and personalization. The outcome was remarkable: within months of launching the new app, active daily users doubled, and the average time spent increased by 35%. The hybrid cloud infrastructure built on AWS enabled Ferrari HP to implement AI-driven automation, accelerating development cycles while improving reliability.
The partnership extends beyond sports, as IBM and AWS explore new ventures across various industries. “We have seen a surge of growth in sectors such as energy, telecommunications, healthcare, financial services, and manufacturing,” Kusel noted. One notable example is Southwest Gas, a natural gas distributor serving over 2 million customers in Arizona, Nevada, and California. Faced with the need to enhance the performance of their data-heavy SAP applications, the company transitioned to RISE with SAP, an AWS service that facilitates cloud-based enterprise resource planning (ERP). This transition, completed in less than five months, resulted in a 35% improvement in SAP application performance, allowing Southwest Gas to process 80 million transactions in under 10 milliseconds.
Advancements in the Travel and Automotive Sectors
In the highly competitive travel sector, IBM Consulting has partnered with major airlines, including Delta Air Lines, to enhance customer experience. Delta aimed to improve agility for its 100,000 front-line employees. Collaborating with IBM, Delta executed a plan that involved the modernization and migration of over 500 applications to AWS. This shift enabled the airline to swiftly launch free in-flight Wi-Fi across 1,000 planes and deliver more personalized in-flight services. With the new hybrid cloud, Delta can manage secure workloads efficiently, enhancing overall customer service.
The automotive industry is also benefiting from IBM and AWS’s collaboration. Toyota Motors North America has partnered with IBM to revolutionize its supply chain processes. By leveraging an Agent AI Assist built with Amazon Bedrock, Toyota has gained instant visibility into its supply chain and improved proactive delay detection, integrating human decision-making into the process.
Global Impact and Future Prospects
IBM and AWS are extending their influence into government sectors worldwide. With the demand for cloud and AI services rising sharply, particularly in the Middle East, both entities are investing heavily in modernization to boost productivity and foster innovative business models. The recent collaboration agreement between IBM Consulting and AWS aims to accelerate technology transformation in the region, starting with Saudi Arabia and the United Arab Emirates.
The creation of an innovation hub in Riyadh will provide local governments and enterprises with hands-on experience in the latest cloud technologies and tailored proof-of-concept projects. “It will be staffed domestically, focused on helping our clients deliver projects with local talent,” Kusel explained, emphasizing the initiative’s potential to create regional job opportunities.
As organizations grapple with the complexities of modernizing in the AI era, IBM and AWS offer unmatched expertise in planning and executing tailored initiatives that promise long-term benefits. By transforming industries and enhancing operational efficiency, the partnership between these two giants stands to redefine the future of business across the globe. For more insights into their success stories, visit the IBM Consulting services for AWS.
