IBM and ServiceNow have announced a new expanded collaboration aimed at helping large enterprises modernize their legacy systems and put their data to work for AI-powered operations.
International Business Machines Corporation, IBM
The deal pairs IBM’s AI, data, and automation tools with ServiceNow’s AI Platform. The goal is to give enterprises a path to run agentic AI at scale without having to rip out decades-old infrastructure.
Both companies pointed to legacy systems and poor data readiness as the two biggest blockers holding enterprises back from real AI adoption. That’s the problem this partnership is designed to solve.
IBM shares were trading around $267 at the time of the announcement, while ServiceNow (NOW) was near $1,046, though neither company linked the partnership to any immediate financial guidance.
The collaboration will target three specific solution areas. First, application modernization — using tools like IBM Bob, Enterprise Application Runtime (Java), and watsonx.data to refactor aging apps without starting from scratch.
Second, enterprise data governance. This extends ServiceNow’s Workflow Data Fabric with IBM watsonx.data, adding capabilities like Data Quality, Observability, and Master Data Management.
Third, autonomous infrastructure operations. This integrates Red Hat Ansible, Instana, HashiCorp Terraform, and HashiCorp Vault into ServiceNow IT workflows to catch and fix issues before they hit the business.
That’s a fairly broad scope — but both companies have emphasized these are real, deployable solutions, not just a framework agreement.
ServiceNow’s John Aisien, SVP and GM of Central Product Management, put it plainly: “IBM brings the tooling to modernize the systems and extend ServiceNow’s data capabilities. ServiceNow provides the platform to put that data to work across every workflow in the business.”
IBM’s Raj Datta, GM of ISV and AI Partnerships, added that AI adoption at scale requires more than just model access — it requires rethinking the systems, data, and governance underneath them.
The language from both sides is focused on outcomes rather than ambition, which is a slight departure from how many AI partnerships have been framed over the past couple of years.
The joint solutions are expected to be available in the second half of 2026.
More than 85 billion workflows run through ServiceNow’s platform annually, giving the partnership a wide surface area to deploy these tools across enterprise customers.
IBM operates across more than 175 countries, meaning the rollout could reach some of the world’s largest government and corporate infrastructure operators.
Neither company has confirmed pricing structures or specific customer commitments tied to the collaboration at this stage.
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