The Unexpected Growth Story Behind IBM Power
Richrd Milone, co-founder and managing director of CNX Valence LLC, explains how the platform has defied predictions of its decline
For years, the narrative around IBM Power was supposed to be a story of decline. Newer architectures would take over, older systems would fade into the background and Power would become a maintenance story—at best. But then a funny thing happened: The market delivered a very different twist, and not only are organizations holding onto their Power investments, many are expanding them.
Growth That Bucks the Trend
The numbers make it clear. IBM Power has consistently posted double-digit ecosystem growth. According to a 2024 earnings report, IBM’s distributed infrastructure segment, which includes Power and Storage, grew seven percent year over year, pushing overall infrastructure revenue to $4.6 billion. This is not just about keeping the lights on with old contracts. Organizations are still betting on Power in meaningful ways.
Tom McPherson, then the IBM Power general manager, points to thousands of partners expanding their offerings and driving the bulk of Power revenue. With more than 55,000 partners worldwide and 12,000 in North America alone, the ecosystem is not just intact but thriving.
Why Power Keeps Winning
At their core, the value propositions have not changed: Performance and security that outpace x86. Modern Power processor-based servers deliver orders of magnitude fewer vulnerabilities and 42%faster inferencing. For enterprises balancing AI adoption with rising security stakes, that combination matters a lot.
The platform’s evolution is also notable. Power11 servers bring new capabilities to AI workloads, while IBM’s watsonx platform provides an end-to-end enterprise AI solution that runs consistently in cloud and on-premises environments. This represents a modernization story that does not require ripping out what already works, the equivalent of reinforcing the foundation of a house without tearing it down.
Organizations are recognizing that their existing Power infrastructure represents significant value rather than technical debt requiring replacement. The foundation metaphor proves apt: replacing core computing infrastructure resembles attempting to replace a house foundation while keeping the structure intact.
“Across industries, we’re seeing tremendous momentum with IBM Power as organizations modernize their mission-critical workloads and prepare for the era of AI,” says Bargav Balakrishnan, VP of product management for IBM Power. “With the recent launch of Power11 and the expansion of our hybrid cloud and as-a-service offerings, clients are turning to Power for the performance, security and flexibility they need to innovate with confidence—fueling real, sustained growth across the portfolio.”
Three Clear Growth Drivers
McPherson highlights three areas fueling momentum. SAP HANA represents the largest opportunity, with IBM serving as the leading platform for HANA deployments both on-premises and in IBM Cloud. The RISE with SAP managed service extends those options with flexible consumption models while maintaining the reliability and security that Power provides.
Industry modernization through Red Hat OpenShift for IBM Power allows organizations to modernize applications and integrate seamlessly with independent software vendors, IBM Cloud Paks and watsonx.ai environments. This interoperability lets businesses preserve their substantial investments in proven infrastructure while gaining modern capabilities.
Everything-as-a-service models through Power Virtual Server on IBM Cloud offer what McPherson describes as a “lower-friction lift to cloud.” These solutions mirror on-premises deployments from compute, storage and network perspectives, giving enterprises more hybrid flexibility through consumption models protected by hybrid cloud credits.
Looking Ahead
One of the most encouraging signs is not found in financial reports but in the energy of younger developers showing up at industry events. Their interest signals long-term vitality for the ecosystem and brings fresh perspectives to time-tested platforms that continue proving their enterprise value.
The market dynamics line up in favor of Power: exploding data volumes, higher security stakes and an accelerating push into AI. The platform’s AI capabilities particularly resonate with modern requirements, with clients training and deploying machine learning models through integrated studio solutions. This positions Power at the forefront of enterprise AI adoption.
What once looked like a slow fade is now shaping up as a compelling growth story. Enterprises that once planned migration strategies are often doing the opposite, doubling down on their Power investments with renewed confidence in the platform’s future. The convergence of robust research and development, expanding user engagement and clear modernization pathways positions IBM Power as the cornerstone of enterprise computing.
In the end, the surprise is not that Power has survived the transition to modern computing paradigms. The surprise is how convincingly they have thrived, with clear modernization pathways and a deepening ecosystem. For organizations evaluating their infrastructure strategies, the smart move may involve building on existing foundations that continue proving their strength.