Starbucks looking to build versus buy software from Microsoft and IBM

Reddit r/ArtificialInteligence 07/20/26, 05:43 AM News

Summary

Starbucks is developing internal AI-assisted tools to replace Microsoft and IBM systems, aiming to cut its $400 million annual software spend and signaling a shift in the build vs. buy paradigm for large enterprises.

https://www.forbes.com/sites/sandycarter/2026/07/12/starbucks-just-fired-a-warning-shot-at-microsoft-and-ibm-ai-apps/ Starbucks is disrupting the enterprise software market by developing its own AI-assisted tools to replace Microsoft and IBM systems, aiming to cut its $400 million annual software spend. This move, driven by AI-assisted development making in-house solutions more viable, caused software stocks to dip, signaling a shift in the long-held "build vs. buy" paradigm for large corporations. The strategy emphasizes fixing underlying business processes *before* applying AI, a lesson learned from past failures. The author recommends that business leaders do four things: consider building internal AI tools, watch the new services economy emerge around process redesign, and ensure data ownership remains a business . This signals a focus on diligent process work.

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