What to Expect from IBM’s 3Q17 Earnings PART 6 OF 15
Blockchain technology’s breathtaking adoption
Earlier in this series, we discussed IBM’s (IBM) dominance in the blockchain technology space. We also saw that technology players like Oracle (ORCL) and Microsoft (MSFT) are increasingly drawn toward this space.
According to Statista, the global blockchain technology market was worth ~$210.0 million in 2016, and it is expected to become a $339.5 million market in 2017. It is forecast to grow tenfold in the next six years and become a $2.3 billion market by 2021, as the chart below shows.
IBM’s mounting interest in blockchain
As IBM holds a leadership place in this space, this stream is expected to provide additional revenues and contribute to IBM’s top-line growth. The company is aiming to spread the use of blockchain technology across industries such as financial services, retail, and logistics. IBM partnered with Walmart (WMT) to leverage blockchain technology to tackle food-safety challenges.
According to Eamonn Maguire, global lead in blockchain for financial services at KPMG, “Blockchain creates a single source of truth based on the immutability of the data.”
Maguire believes that blockchain technology would be a job creator, as it has efficiently created “a new set of developing protocols.” Currently, IBM has approximately 1,500 employees working on its blockchain initiative. IBM aims to hire 150 additional workers around the world in this space.
Please read Why IBM, Its Peers, and Banks Are Moving toward Blockchain to know more.