IBM’s new z17 mainframe targets real-time AI for Malaysian enterprises

• Designed to drive business value across industries with over 250 AI use cases

• Era of AI experimentation over, says Dickson Woo, Country GM at IBM Malaysia

IBM unveiled its z17 mainframe and LinuxONE 5 platform in Kuala Lumpur on 22 May, with the new systems capable of processing up to 450 billion AI inference operations daily—a significant scaling capability as Malaysian enterprises move beyond AI experimentation to production deployment.

The z17 launch comes as enterprise AI spending is expected to more than double over the next two years, according to IBM’s latest CEO study. However, with only 25% of AI initiatives alexachieving expected ROI, the focus has shifted from experimentation to production-ready infrastructure that can deliver measurable business outcomes.

Fully engineered with AI capabilities across hardware, software, and systems operations, IBM said its z17 is built to drive business value across industries with more than 250 AI use cases, such as mitigating loan risk, managing chatbot services, supporting medical image analysis or impeding retail crime.

Together with its LinuxONE 5, a Linux platform for data, applications, and trusted AI, these systems represent IBM’s push to bring AI processing capabilities directly to enterprise data centers, at scale.

“Some may think that 450 billion inferences is a lot but not when you consider that about a billion new AI applications are going to be coming out by 2028,”said Alex Gogh, General Manager, IBM Z Stack and System Engagement Global Sales.

He noted that with only 1% of data today using or touching AI today, enterprises have to be able to run AI at scale and incorporate it within the applications as opposed to integrating AI within their existing systems, as no one will want to rewrite their systems. 

Using the example of banks trying to detect fraud, the z17 can analyze every transaction in real-time as it occurs, rather than batch-processing suspicious activities after the fact. This enables banks to block fraudulent transactions instantly ‘at the point of trust’ said Gogh, potentially saving millions in losses. Clearly AI at scale becomes the enabler.

While IBM hasn’t disclosed pricing details, the z17 will be available globally starting June 18, 2025. The LinuxONE 5 represents a significant cost advantage, with IBM claiming up to 44% savings in total cost of ownership over five years compared to equivalent x86 solutions.

“The era of AI experimentation is over,” declared Dickson Woo, Country General Manager and Technology Leader at IBM Malaysia. “Today, true competitive advantage lies in purpose-driven AI integration that delivers real, measurable business outcomes. In Malaysia, AI is set to unlock immense opportunities across the digital economy, driving innovation, boosting productivity, and opening new pathways for growth.”

Robust structure to prep Malaysia for new technologies

The launch was officiated by Gobind Singh, Digital Minister who discussed Malaysia’s AI revolution, emphasizing the importance of building a sustainable structure, “that facilitates and ensures that the country is ready not just for the technology that exists today, but for the technology that we expect tomorrow that will propel us even further into this new digital world that we speak of.”

Gobind stressed, “From a government perspective, we must ensure that our country is ready and we have to start thinking of how we can encourage people to use that infrastructure.”

At this point in time, after 18 months of his ministry being formed, the minister said he understands what needs to be done and things are moving in the right direction.

“I am certain that in the next 24 months, we are able to actually create this structure, that we’re going to build the ecosystem to prepare us for this digital future that we all speak about.” he said.

IBM SkillsBuild with over 1k courses in 20 languages

Supporting this infrastructure development, IBM is addressing the critical talent gap that could limit AI adoption across Malaysian enterprises. It developed a free education program, IBM SkillsBuild, aimed at increasing access to technology education.

“We work very closely with universities, colleges, some of the TVET and schools and even some professionals, training up the executives to be equipped with AI skills,” Dickson said.

Through the program, IBM supports adult learners, and high school and university students and faculty, to develop valuable new skills and access career opportunities. The program includes an online platform that is complemented by customized practical learning experiences delivered in collaboration with a global network of partners.

The open version of IBM SkillsBuild is an online platform offering over 1,000 courses in 20 languages on AI, sustainability, cybersecurity, data analysis, cloud computing, and many other technical disciplines — as well as in workplace skills such as design thinking. Participants can earn IBM-branded digital credentials that are recognized by the market.

The enhanced version of IBM SkillsBuild may also include workshops, expert conversations with IBM coaches and mentors, project-based learning, access to IBM software, specialized support from partners through the learning process, and connection to career opportunities. 

For Malaysian enterprises, the z17 and LinuxONE 5 represent more than new hardware—they offer a path to operationalize AI at scale while maintaining the security and reliability critical for financial services, healthcare, and government applications. 

As Gobind noted, the infrastructure being built today will determine Malaysia’s readiness for tomorrow’s digital opportunities.