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After shocking quarter, IBM insists that AI isn’t killing the mainframe

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On Wednesday, IBM officially reported earnings and the news was as bad as everyone knew it would be.

While the 115-year-old company still generates boatloads of cash — $17.2 billion in revenue, $9.9 billion in gross profit, nearly 58% margins, and $2.2 billion in net earnings for the quarter — its results fell well short of Wall Street’s expectations.

It was such a bad miss that IBM CEO Arvind Krishna and the board took an unprecedented step of warning investors ahead of time that the earnings “was worse than our expectations,” offering everyone a sneak peek.

He published a “letter to investors,” last week sharing preliminary results. It warned of abysmal revenue in the company’s all-important “infrastructure” category and said that profit margins were also going to take a hit. The company’s stock instantly tanked 25%, it’s biggest single-day decline ever. Until then, the stock had performed well under Krishna’s six years of leadership, buoyed by the AI data center boom that had been lifting all boats.

On Wednesday, IBM also lowered its full-year growth forecasts, meaning this horrible quarter would impact the rest of the year. The culprit? IBM’s cash-cow mainframe business was down 42%.

That’s a cascading problem, because as CFO Jim Kavanaugh explained on the quarterly call with investors, IBM earns $3 in software revenue for every $1 of mainframe hardware it sells.

However, the CEO and CFO spent the call insisting that this was a temporary blip and all would be well soon.

What happened, they said, was that “tens” of customers that were due to buy a new mainframe during the quarter opted not to do so. That may not sound like a lot of customers, but mainframes are systems that cost hundreds of thousands to millions of dollars, and with maintenance contracts and software, generate many millions more.

The same AI boom that lifted IBM’s boat also sank it.

Instead of buying a new mainframe, these clients bought other hardware, Krishna explained. They were faced with astronomically high cost increases of 15% to 30% for data center gear and PCs.

“When they were faced with that issue, then they decided to move budget to those areas where they were having that extreme price,” Krishna said.

Enterprise hardware makers like Dell and HP have warned that rising costs on components like memory, caused by the AI build-out boom, have forced them to raise prices. Apple has said the same.

But Krishna promised that those customers will still buy their new mainframes eventually — along with their new software contracts. In fact, he said some of them have already done so this quarter. “We see no evidence of clients moving off the mainframe,” he said.

We’ll have to wait and see. But the tech industry has predicted the death of the mainframe for many decades now. Maybe even AI won’t kill it.

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Gov Alia receives APC flag for 2027 Benue governorship race

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Alia receives APC flag

Benue State Governor, Rev. Fr. Hyacinth Alia, has received the All Progressives Congress, APC, flag as its governorship candidate for Benue State ahead of the 2027 election during the Tinubu/Shettima rally in Jos over the weekend.

The presentation of the flag by the APC National Chairman, Professor Nentawe Yilwatda, represents a formal affirmation of Governor Alia's recognition and acceptance by the party as its standard-bearer in Benue State for the forthcoming governorship election, as well as an expression of the party's confidence and institutional backing for his second-term bid.

The presentation formed part of the rally's activities, during which APC governorship candidates from across the North-Central region received their respective party flags, reaffirming the party's commitment to its candidates as preparations intensify for the 2027 general elections.

The rally, held at the Zaria Road Stadium, attracted prominent national and regional political leaders, including First Lady Senator Oluremi Tinubu, Senate President Godswill Akpabio, Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, APC governors, members of the party's National Working Committee and other stakeholders.

President Tinubu, who led the national delegation to the rally, reiterated his administration's commitment to national development, particularly the restoration of peace and security in communities affected by violence.

He assured the people of Plateau State of the Federal Government's commitment to rebuilding communities affected by insurgency and facilitating the safe return of internally displaced persons to their ancestral homes.

The Vice-President, Senator Kashim Shettima, and Senate President Godswill Akpabio also addressed the gathering, highlighting the administration's development initiatives and calling for support for the APC in the forthcoming elections.

The rally attracted party faithful, supporters, and political stakeholders from across the North-Central region, providing a platform for the party's leadership to reaffirm its commitment to the 2027 electoral process.

Gov Alia receives APC flag for 2027 Benue governorship race

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2027: Afegbua attacks Sowore over reaction to attack on Tinubu in Abuja mosque

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Edo State Commissioner for Information, Kassim Afegbua, has criticised the presidential candidate of the African Action Congress, AAC, Omoyele Sowore, describing him as a “public nuisance” and questioning his capacity to build a nationwide political structure.

Afegbua made the remarks during an interview on Arise News while reacting to Sowore’s criticism of President Bola Tinubu following the booing of the President by some youths in Abuja on Friday, November 13, 2026.

Sowore had accused Tinubu of hypocrisy, questioning why the President was now advocating peaceful political campaigns after experiencing hostility during his visit to the Shehu Shagari Central Mosque in Area 1, Garki, Abuja.

The incident occurred shortly after Tinubu attended Juma’at prayers at the mosque, where some youths were heard chanting “Ba ma yi, ba ma so”, a Hausa expression meaning “We don't want you” or “We don't support you”, as his convoy departed.

In a reaction posted on his X account, Sowore questioned the President's silence over alleged attacks on opposition politicians and their supporters across the country.

However, Afegbua dismissed Sowore's comments, arguing that someone aspiring to lead the country should demonstrate maturity, responsibility and decorum in public engagements.

“I don't want to listen to all of Sowore's rants because I see him more as a public nuisance,” the commissioner said.

He added that presidential candidates must understand the responsibility associated with seeking to lead a country of more than 250 million people.

“Leadership is a serious responsibility, and you cannot go around making flippant, ridiculous and reckless statements in the name of presenting yourself as a presidential candidate,” Afegbua stated.

He maintained that political ambition should be accompanied by a reasonable level of discipline, insisting that candidates must conduct themselves in a manner that reflects the position they seek to occupy.

The Edo commissioner also questioned Sowore's political reach, describing him as someone who fills a gap in Nigeria's political aspirations rather than a candidate with the organisational capacity to compete effectively nationwide.

According to Afegbua, establishing a functional political structure across all 774 local government areas would be a major challenge for the AAC presidential candidate.

He, however, acknowledged that politicians like Sowore play a role in expressing public frustration and providing an avenue for citizens to communicate their opinions.

Afegbua also defended Tinubu's call for adequate security for presidential candidates, arguing that the President's statement after the Abuja incident was consistent with an earlier directive to security agencies.

He said Tinubu had, two or three weeks before the mosque incident, instructed the Department of State Services, DSS, and other security agencies to ensure that all presidential candidates received adequate protection.

According to him, the President's latest remarks should therefore not be interpreted as a reaction prompted solely by the hostility he experienced in Abuja.

Afegbua further argued that Tinubu's political background gave him considerable experience in political struggles, noting that the President had faced difficult circumstances during his years in opposition.

He nevertheless stressed that occupying the presidency requires a broader sense of responsibility beyond party interests.

“President Tinubu is not just a member of the party. He's also the leader of the entire country,” he said, adding that the President has demonstrated that every Nigerian belongs, irrespective of political affiliation.

2027: Afegbua attacks Sowore over reaction to attack on Tinubu in Abuja mosque

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