Welcome to another edition of Talsco Weekly

IBM i Brief: 📈 IBM Q1 2025 Earnings Exceed Expectations with Strong AI Growth and Software Performance. 📊 Economic Headwinds: Challenge or Opportunity for IBM Systems? 💼 Legacy Software Giant Marks 35th Year With Possible Sale.
AI: 🔧 GPUs power the AI revolution. 🧩 Solving Knowledge Gaps in AI Models: RAG vs CAG.
Career: 🌟 Empowering IBM i Developers in the Age of AI.
Development: 🚀 Vibe Programming: What is it and How IBM i Devs Could benefit from it. 🔧 History Log Success Report Tool Simplifies Backup Monitoring.
Database: 💾 Delta Lake revolutionizes insurance data management.
Learning: 🎯 GitHub CEO: AI Will Transform Coding But Not Replace Programmers.

IBM i Brief

📈 IBM Q1 2025 Earnings Exceed Expectations with Strong AI Growth and Software Performance

IBM reports robust first-quarter results with generative AI business reaching $6 billion, up $1 billion from previous quarter, while maintaining positive full-year outlook despite fluid macroeconomic conditions.

📊 Economic Headwinds: Challenge or Opportunity for IBM Systems?

Amidst inflation concerns and market volatility, IBM Systems division confronts mixed signals. While some analysts predict potential downturn impacts, others suggest economic turbulence could drive increased investment in IBM’s infrastructure solutions.

Enterprise customers historically maintain or boost IT spending during uncertain times, viewing technology as critical for efficiency and competitive advantage.

🎯 Key Insights at a Glance:

Economic uncertainty drives increased technology adoption and automation for cost efficiency
Hybrid cloud and data sovereignty gain importance while mainframe capacity needs grow in financial services
Technology investment remains strategic, though consulting services face potential cutbacks

💼 Legacy Software Giant Marks 35th Year With Possible Sale

Rocket Software, founded in 1990, has evolved from a garage startup to a tech powerhouse valued at $10 billion. Under Bain Capital’s ownership since 2018, the company serves over 12,000 customers, including 43 of Fortune 50.

Now, amid the AI boom driving increased tech spending, will Bain considers selling its stake as legacy system modernization gains strategic importance?

Time will tell.

AI

🔧 GPUs power the AI revolution

Graphics Processing Units have evolved from gaming hardware into essential components for artificial intelligence. With parallel processing capabilities and specialized memory, GPUs can handle complex AI computations significantly faster than traditional CPUs. Their ability to process massive datasets simultaneously makes them crucial for training large language models and powering next-generation AI applications.

🧩 Solving Knowledge Gaps in AI Models: RAG vs CAG

As AI models advance, addressing knowledge gaps remains crucial. Organizations are implementing various solutions including hybrid models, continuous learning, and domain-specific training to bridge these gaps while maintaining reliability and accuracy.

RAG vs CAG

RAG (Retrieval-Augmented Generation) – AI system that pulls from external data sources to generate responses.
CAG (Context-Augmented Generation) – AI system that uses conversation history for responses.

While both improve AI outputs, RAG’s external knowledge integration makes it ideal for applications needing current or specialized information.

📹 Watch the detailed video explanation of RAG vs CAG to learn more

Career

🌟 Empowering IBM i Developers in the Age of AI

I believe that IBM i developers are uniquely positioned to thrive in the AI era.

RPG developers, with their deep understanding of mission-critical systems and business logic, can leverage open source languages along with new AI tools like vibe programming assistants (such as Tabnine, Cody AI, and Windsurf, which we’ll explore below) while maintaining their valuable legacy expertise.

As GitHub’s CEO emphasizes, AI won’t replace programmers but rather enhance their capabilities. The combination of traditional IBM i knowledge with modern AI tools creates a powerful skillset.

This hybrid expertise makes IBM i developers invaluable as organizations navigate the intersection of legacy systems and AI-driven innovation.

With the rise of AI coding assistants and vibe programming, natural language is becoming increasingly important in development.

While traditional programming languages remain essential, the ability to effectively communicate with AI tools in plain English is emerging as a crucial skill.

📹 Here is a great video on Generative AI as a Programming Language.

Development

🚀 Vibe Programming: What is it and How IBM i Devs Could benefit from it

Vibe Programming is where developers use AI to generate code from natural language.

Here’s how IBM i developers can quickly get started with AI coding assistants in Visual Studio Code:

Vibe Programming Vendors for VSCode

Tabnine: AI autocompletion tool for vibe programming, predicting code from prompts. VSCode extension supports popular open source languages available on IBM i. Free/paid tiers, high accuracy. Enhances development workflow. See supported languages here.
Cody AI: Sourcegraph’s AI assistant for vibe programming, generating/refactoring code via natural language. Free VSCode integration helps with open source development on IBM i. Boosts productivity with code documentation. See the FAQ for the languages it supports.
Windsurf: Formerly Codeium, rebranded in 2025 is an AI-powered VSCode-based IDE for vibe programming, with predictive code generation. Supports modern application development. Free/paid tiers, DeepSeek integration. Enables cross-platform development. See the FAQ for the languages it supports here.
Amazon Q Developer (FNA CodeWhisperer): AWS’s AI coding assistant for vibe programming, generating code from prompts. Free VSCode extension supports Python and other open source languages. Secure, enterprise-ready suggestions.

The Benefit for IBM i Developers

Traditional IBM i and RPG developers can seamlessly integrate these AI coding assistants into their workflow through VSCode extensions, making the transition to vibe programming accessible and practical.

These tools not only accelerate development but also help bridge the gap between legacy systems and modern coding practices, enabling IBM i developers to leverage AI while maintaining their expertise in traditional platforms.

🔧 History Log Success Report Tool Simplifies Backup Monitoring

A practical solution for monitoring nightly backup success demonstrates how SQL and RPG can streamline administrative tasks. By querying QSYS2.HISTORY_LOG_INFO and generating Excel reports, IBM i administrators can efficiently track and report backup completion across libraries.

Database

💾 Delta Lake revolutionizes insurance data management

Insurance companies are moving away from costly legacy silos to embrace Delta Lakehouse architecture, which provides a unified platform for data management.

This transformation helps insurers streamline operations, reduce IT costs (which can consume up to 70% of budgets), and better handle the increasing data volume from third-party integrations. The modernized approach enables AI-driven innovation while ensuring data security and regulatory compliance.

Learning

🎯 GitHub CEO: AI Will Transform Coding But Not Replace Programmers

GitHub’s CEO, Thomas Dohmke, emphasizes that while AI will transform coding, it won’t replace programmers. Rather, AI acts as a productivity tool that handles routine tasks, enabling developers to focus on complex problem-solving and creativity. He compares AI coding assistants like GitHub Copilot to calculators – tools that enhance human capabilities without eliminating the need for human expertise.

Key takeaways from his message:

AI coding tools boost productivity by automating repetitive tasks
Human creativity and problem-solving skills remain essential in programming
The future of coding involves human-AI collaboration rather than replacement
Legacy systems often accumulate technical debt that requires cleanup and refactoring. AI tools can significantly reduce this maintenance backlog.

💡 Watch the full message from GitHub’s CEO

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