Software

Whistleblower suggests internal security services deployed spyware from 2017 against key domestic and foreign targetsA former member of Morocco’s domestic intelligence service has helped to provide an unprecedented insight into how the north African state used hacking software – including Pegasus spyware – to target journalists, human rights defenders, French politicians and Spanish cabinet ministers and police officers.Pegasus, which is manufactured by the Israel-based NSO Group, allows its operator to access everything on a target’s mobile phone, including emails, text messages and photographs. It can also activate the phone’s recorder and camera, turning it into a listening device. Continue reading...

• IBM shares plummeted 25% following a warning that corporate spending is shifting away from software toward artificial intelligence and cybersecurity. • Despite a strong Q1 where software revenue rose 11% to $7.05 billion and earnings beat estimates, the company admitted it has "faltered" as budgets are redirected. • This downturn threatens IBM's long-term strategy to reduce hardware dependence by leaning on software units like Red Hat for multi-cloud application management.

• IBM's stock experienced a sharp decline following the release of disappointing quarterly financial previews. • The crash has reignited industry fears that generative AI is disrupting traditional software and tech consulting business models. • This downturn signals potential instability for other companies in the software sector that may struggle to adapt to AI-driven shifts.

• IBM warned that massive investments in AI infrastructure are squeezing corporate software budgets, leading to forecasts of weaker revenue growth. • The company reported specific weakness in its mainframe business, which provides critical transaction processing for the banking and airline industries. • Businesses are shifting financial priorities toward cybersecurity to counter the rise of AI-driven hacking capabilities.

• The White House has launched "Gold Eagle," a cybersecurity clearinghouse designed to help federal agencies, critical infrastructure operators, and AI developers patch security flaws identified by advanced AI models. • The initiative will utilize leading frontier models, including Mythos, and is the result of several months of collaborative design and conversation between the administration and industry leaders. • This effort matters as it leverages the power of AI to proactively identify and remediate vulnerabilities before they can be exploited by malicious actors.

• IBM warned that customers are shifting their budgets away from software and toward AI infrastructure, including servers, chips, and data centers. • This shift triggered a selloff in software stocks as investors worry that AI spending is squeezing traditional software budgets. • Market analysts, including IG Group's Chris Beauchamp, describe the situation as an "ugly moment" for the sector, highlighting a pivot toward cybersecurity and hardware.

• IBM warned that corporate technology budgets are rapidly shifting away from software and toward data-center infrastructure to support AI. • Due to this reallocation, the company forecast second-quarter revenue that falls below Wall Street estimates. • This trend highlights a broader struggle for software stocks as enterprises prioritize hardware and infrastructure for AI implementation.

• IBM warned that the rapid AI boom is squeezing corporate software budgets as companies reallocate funds toward data-center infrastructure. • This shift in spending has pressured software demand and negatively impacted IBM's near-term financial outlook, causing its shares to plunge. • The trend highlights a critical transition in the tech industry where infrastructure investment is currently being prioritized over software implementation.