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IBM Launches z17 Mainframe with On-Prem AI, Acquires Hakkoda to Boost Consulting Capabilities

IBM has officially launched its next-generation enterprise computing system, the z17 mainframe, designed to power on-premise generative AI and agentic workloads with high speed and security. The system introduces two cutting-edge components: the Telum II processor and the newly unveiled Spyre accelerator.


AI at Scale, On-Prem and Secure

According to IBM, the z17 system is built for industries requiring high-security, low-latency data processing, such as finance, healthcare, and government. The mainframe is capable of handling 450 billion inference operations per day, effectively doubling the AI processing capacity of its predecessor.

“In industries where data needs to remain secured but accessible with the lowest latency possible, z17 with Spyre will enable businesses to run generative AI models and agentic AI on-premises,” IBM stated.


Spyre Accelerator: Optimized for Next-Gen AI

The Spyre accelerator, designed to tackle modern AI use cases, will officially launch in Q4 2025. Unlike traditional GPUs, Spyre focuses on generative and agentic AI tasks rather than aging classification models. It comes as a 32-core PCIe expansion card to supercharge on-prem AI workloads.

Meanwhile, Telum II, also announced last August, delivers eight high-performance cores running at 5.5GHz, alongside a 40% increase in cache, offering up to 2.88GB virtual L4 cache.


HashiCorp Enhances Security Features

Following IBM’s acquisition of HashiCorp, the company confirmed it would leverage the software giant’s security expertise to integrate advanced controls into the z17 system. The mainframe currently supports over 250 enterprise use cases and processes 70% of global financial transactions, reinforcing its dominance in secure enterprise computing.


IBM Acquires Hakkoda to Strengthen AI Consulting

In another major move, IBM announced the acquisition of Hakkoda, a global consultancy firm specializing in data and AI transformation. The acquisition, finalized on April 2, is expected to bolster IBM Consulting’s generative AI offerings, enabling faster delivery of AI-powered business outcomes.

“With Hakkoda’s data expertise, deep technology partnerships and asset-centric delivery model, IBM will be even better positioned to deliver value faster to clients as they transform with AI,” said Mohamad Ali, Head of IBM Consulting.

While financial details remain undisclosed, IBM emphasized that Hakkoda’s team and tools will be instrumental in scaling AI transformation projects globally.

IBM’s dual announcements—the powerful z17 mainframe system and the Hakkoda acquisition—mark a strategic push toward AI-driven enterprise computing. With industry-leading hardware innovations and enhanced consulting capabilities, IBM is setting a bold vision for the future of on-premise AI.


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