IBM: Enabling AI-Augmented Software Development for Enterprise Transformation

Executive Summary

Custom software development (CSD) is undergoing a fundamental transformation, driven by the convergence of artificial intelligence (AI), data-led engineering, and platform-based innovation. As enterprises accelerate their adoption of AI-powered software development, the role of CSD service providers is evolving. This report provides key market trends and an in-depth analysis of IBM, evaluating its approach to AI-augmented software development, cloud-native engineering, and hybrid cloud and open source strategy. The report assesses IBM’s strengths, weaknesses, and market positioning in an industry where automation, AI-driven development, and platform-based innovation are reshaping how enterprises build and maintain software.

For CxOs this report highlights how IBM’s AI-enabled product engineering and hybrid cloud development framework can help enterprises accelerate innovation while ensuring security, compliance, and operational efficiency. As businesses seek to align their IT strategies with evolving AI capabilities, IBM’s expertise in AI-driven automation, multicloud integration, and digital transformation positions it as a key player in CSD. The recommendations section provides best practices for customers evaluating IBM’s services as well as strategic insights for enterprises looking to optimize their AI-driven software development initiatives.