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2025 Year-End Review: IBM i Software Enhancements and What the Confluent Deal Means for the Ecosystem

Mark McDonnell
December 2026

2025: A Year of Change for IBM i 

2025 marked one of the most strategically important years for the IBM i platform in the last decade.

With IBM i 7.6, TR1 for 7.6, and TR7 for 7.5, IBM delivered updates designed around three themes: 

1. AI-Assisted Application Modernization 

Watsonx Code Assistant for IBM i continues to evolve as IBM’s flagship AI modernization engine for RPG/COBOL/SQL workloads. 

As of late 2025, IBM is also working on an initiative for IBM i called Project Bob. Project Bob is described as an “AI-powered IDE” that will incorporate the capabilities of watsonx Code Assistant for IBM i and support modern development workflows. 

2. Integrated Security Enhancements 

Power11-enabled Secure Boot and chain-of-trust architecture that verifies every major layer of system startup from firmware to hypervisor to operating-system boot code. Each component is digitally signed and validated against a hardware root-of-trust, preventing tampered or unauthorized code from loading.  

Power11 with IBM I 7.6 also introduces quantum-safe cryptography for key security functions (such as firmware validation and partition migration), helping protect systems against both modern cyberthreats and future “harvest-now, decrypt-later” quantum attacks.  

Complementing the hardware-level protections, IBM i 7.6 introduced integrated Multi-Factor Authentication (MFA) as a native system capability. This enhancement allows organizations to enforce MFA policies directly within the IBM i security model without relying exclusively on third-party add-ons.

The built-in MFA support integrates with: 

  • IBM i user profiles and existing security controls
  • Standard authentication flows (password + additional factor)
  • Modern MFA methods such as TOTP apps, hardware tokens, and external identity providers
  • Audit and compliance frameworks requiring stronger access controls 

This native integration reduces complexity, standardizes authentication across environments, and brings IBM i into alignment with modern zero-trust strategies, which is especially important in regulated industries. 

3. Smarter Migrations, Stronger Virtualization, and Hybrid-Ready Operations 

Enhanced Migration Utilities 

IBM i 7.6 includes updates that support smoother migrations between systems and hardware generations, especially when moving to Power10 or Power11. Improvements in tools such as Migration Utility, save/restore processes, and system copy procedures help reduce downtime and improve reliability during transitions. 

IBM has also introduced new capabilities, such as partition-mirror–based migration, which allows certain migration scenarios to proceed with less disruption and supports side-by-side migrations for HA/DR or datacenter refresh planning. 

Improved Virtualization and Partition Flexibility 

IBM i 7.6 can run on PowerVM in both Power10 and Power11 environments, benefiting from updates in the virtualization layer, HMC enhancements, and refinements to resource allocation, shared processor performance, and I/O virtualization. 

While these enhancements do not radically change IBM i’s virtualization model, they improve stability, performance, and administrative flexibility for LPAR-based deployments, particularly for consolidated environments or hybrid infrastructure. 

Cloud-Oriented Systems Management Updates 

IBM continues to modernize IBM i’s systems management stack with updates to Navigator for i, SQL Services, REST APIs, and integration points commonly used in automation and cloud tooling.  

These enhancements improve monitoring, scripting, and remote operations, making IBM i easier to manage as part of a hybrid-cloud or multi-platform environment. 

IBM i 7.6 also brings expanded support for modern storage, encryption, and virtualization hardware capabilities that improve compatibility with cloud-connected backup, DR, and observability tools.  

These updates do not make IBM i “cloud-native,” but they strengthen its ability to participate in hybrid deployments and integrate with cloud-based HA/DR strategies and automation pipelines. 

IBM to Acquire Confluent: A Turning Point For Enterprise Data 

On December 8, 2025, IBM announced its intent to acquire Confluent. This move is designed to strengthen IBM’s enterprise data + AI + hybrid cloud ecosystem with Confluent’s world-leading data-in-motion capabilities. 

What Confluent Brings :

  • Real-time event streaming  
  • Data pipelines across multi-cloud and on-prem environments
  • Governance and security frameworks
  • Real-time processing and integration for analytics and AI workloads 

IBM describes this acquisition as foundational for a “smart data platform” spanning applications, analytics, AI agents, and cloud environments. 

The acquisition is expected to close in 2026 pending shareholder and regulatory approval.  

Evolving IBM i From Core Transactional Engine to Real-Time, AI-Enabled Hybrid Platform  

These enhancements reinforce IBM i’s position as a modern, integrated, and cloud-capable enterprise platform, not a legacy artifact. But the biggest strategic shift came in December 2025. 

Hybrid Cloud Integration Strengthens IBM i’s Role  

IBM i’s new virtualization, storage, and migration enhancements complement IBM’s push toward unified hybrid-cloud pipelines.  

Confluent integration would serve as the data fabric connecting IBM i transactional data with cloud analytics and AI services. 

AI + Data Governance Without Rewriting Core Systems 

Confluent allows organizations to layer modern, real-time capabilities on top of existing IBM i applications without needing to rewrite RPG or COBOL code.  

By streaming IBM i data through standard interfaces, businesses can enable: 

  • Real-time analytics and dashboards 
  • AI and machine-learning inference pipelines that consume live operational data
  • Event-driven microservices that respond to business events as they occur 

This approach extends the value of IBM i’s transactional systems while preserving their stability and logic. 

It also aligns with IBM i’s modernization direction with Watsonx Code Assistant for IBM i which focuses on understanding and refactoring legacy code, while Confluent provides the data streaming and integration layer needed to connect those applications to cloud, AI, and microservice architectures.  

Together, they support IBM’s broader strategy of enabling incremental modernization by enhancing existing systems rather than replacing them. 

Final Takeaways: IBM i is not Just Surviving, it is Being Repositioned Now and toward the Future 

IBM i :

  • Transaction processing remains its superpower
  • Hybrid cloud extends its reach
  • AI-assisted tools accelerate modernization
  • Real-time streaming via Confluent connects it to the future. 

With 2025’s platform updates and the Confluent acquisition underway, IBM is signaling a clear intent. IBM i is not being sidelined. It is being recontextualized as a stable, intelligent, AI-ready foundation within a modern, data-driven enterprise architecture. 

Businesses that act now, not later, will get the most value from this transition. 


About Us

Briteskies, an IBM partner for 25 years, offers comprehensive services for IBM i (AS400) systems, including consulting, development, staffing, security audits, EDI solutions, and integrations. Our team combines over 40 years of IBM i expertise with fresh talent, delivering both legacy knowledge and innovative perspectives. Skilled in every RPG iteration and modern technologies like Node and API solutions, we seamlessly integrate applications to support business goals. Dedicated to modernization, security, and efficiency, we help businesses optimize and upgrade their IBM i environments for long-term success.

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