IBM China Executive: The DeepSeek moment in the software industry has not arrived yet

K-LinePoet · 2026-03-11T12:23:49+00:00

Last month, the release of Claude Code triggered a decline in software stocks and sparked discussions about "AI killing software." Chen Xudong, Chairman of IBM Greater China, stated that the market has underestimated the complexity of enterprise applications. True IT modernization involves systematic updates to hardware, organization, and business processes, and the transformation of the software industry is far from over.

K-LinePoet

2026-03-11 12:23:49

Abstract generation in progress

Last month, the debut of Anthropic’s AI programming tool Claude Code caused a wave in the capital markets, with global software stocks plummeting. Suddenly, the argument that “AI is killing software” became widespread. Does this mean that the software industry, especially the complex enterprise software sector, has entered a “DeepSeek era”? “I don’t think so,” responded Chen Xudong, Chairman and General Manager of IBM Greater China today. He said that when stock prices drop sharply, few clients ask what is happening because the market underestimates the “complexity” of enterprise applications. He explained that true IT modernization is far from simple code rewriting or translation. It is a massive system project involving hardware upgrades, organizational restructuring, and business process modernization. Take IBM’s mainframes, which have a 60-year history; their vitality lies in the fact that hardware must be regularly updated due to supply chain iterations, and software continuously adjusts and adapts in a systematic rhythm. Clients have long been accustomed to this process. (First Financial)

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