Starbucks Taps AI to Reduce Reliance on Microsoft, IBM Software (means buy your own hardware)
u/Primary_Olive_5444 ·
Reddit — r/wallstreetbets
· July 09, 2026 at 11:20
· ⬆ 65 pts
· 💬 54 comments
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AI Summary
Summary
The post reports that Starbucks is developing in-house AI tools to replace Microsoft and IBM software, potentially cutting its $400M annual software spend.
The author argues this shift means Starbucks will buy hardware (e.g., mainframes) to run these systems, making hardware stocks the real winners.
Analysis quality: mostly speculation with a single Bloomberg news link; lacks detailed financial modeling or specific hardware vendor analysis.
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**Takeaways by Bloomberg AI**
* Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.
* The company is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation.
* Starbucks spends about $400 million a year on software alone, and Chief Technology Officer Anand Varadarajan said there's clear opportunities to reduce the spend in software.
[https://www.bloomberg.com/news/articles/2026-07-09/starbucks-taps-ai-to-reduce-reliance-on-microsoft-ibm-software](https://www.bloomberg.com/news/articles/2026-07-09/starbucks-taps-ai-to-reduce-reliance-on-microsoft-ibm-software)
Means they will buy hardware to DIY and have it installed on their own premises.
IBM still sells Mainframes that would probably stick around for a long time, since starbucks will always have to deal with lotsa of transactions. And mainframes are the de-facto in processing that.
Hardware stocks FTW.