Starbucks Taps Tech's Wonder Kid and Serves Microsoft, IBM a Cold Brew
The coffee chain aims to cut $10 million in software spending as it builds alternatives to inventory, maintenance and point-of-sale systems, an internal presentation said.
- Starbucks Corp. is developing in-house artificial intelligence tools to potentially replace software applications currently purchased from Microsoft Corp. and International Business Machines Corp.
- Chief Technology Officer Anand Varadarajan told staff that Starbucks spends about $400 million annually on software as part of a $2 billion turnaround effort. "There's clear opportunities to reduce the spend in software," Varadarajan said.
- The coffee chain is building alternatives to a Microsoft system tracking inventory and an IBM tool managing maintenance, with AI-assisted coding key to developing the platform.
- Shares of Microsoft and International Business Machines Corp. fell during premarket trading on Thursday, with Microsoft down about 1.5% and IBM sinking 4%. Some Starbucks-developed software could roll out by the end of next year.
- Artificial intelligence is shifting the calculus for enterprises previously tethered to technology vendors due to complexity, a trend that threatens legacy software companies facing mounting concerns about fending off competition from customer-built products.
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14 Articles
The Economic Times
Times of IndiaStarbucks taps tech's wonder kid and serves Microsoft, IBM a cold brew
Starbucks is developing artificial intelligence tools internally to replace existing software. These new applications could replace systems currently bought from Microsoft and IBM. The coffee chain aims to reduce significant annual spending on software licenses. Some of these AI-powered tools may be implemented by the end of next year. This strategic shift reflects a broader industry trend driven by AI advancements.
Starbucks starts vibe coding enterprise stack
One of the biggest things going for Salesforce, Workday, and the other SaaS companies threatened by AI has simply been inertia. Uber CEO Dara Khosrowshahi told us in May that the market was overreacting, at least in the short term, to the SaaSpocalypse. “It’s easy for me to vibe code a BS to-do app for myself,” he said on an episode of Compound Interest. “Enterprises are much more obsessed with getting things right. And so I think the pace of ch…
A leading chip plant manufacturer believes that the boom at AI will continue in the next few years. Starbucks wants to become independent from Microsoft and other software – and uses AI for this.
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