How Blockchain Could Transform IBM’s Fortunes
21st quarter of top-line decline
IBM (IBM) recently reported its 2Q17 earnings results in which its revenue decline extended to 21 straight quarters. The reason IBM’s top line has been in a downward trend in recent years is that its more promising newer businesses aren’t growing fast enough to offset the weakness in its legacy enterprise IT businesses.
However, Blockchain technology could play a key role in accelerating the growth of IBM’s Strategic Imperatives, which is the collective name of the company’s newer businesses (Cloud, Analytics, Mobile, Social, and Security). IBM’s Blockchain offering bundles several of these modern enterprise IT solutions.
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$16.3 billion up for grabs
According to research and consulting firm Ameri Research, the global Blockchain economy could be worth $16.3 billion by 2024, up from $2.3 billion in 2016, as illustrated in the chart above.
Corporations and governments are adopting Blockchain technology because of its high efficiency in underpinning key functions such as asset management, transaction processing, and digital identity management.
Although the Blockchain technology market is starting to heat up with competition against tech giants such as Microsoft (MSFT), which are stepping up their campaigns for market share, the Blockchain economy could be large enough to accommodate many successful players. For IBM, Blockchain is shaping up to be a robust opportunity for the company.
IBM and Blockchain
To better position itself for Blockchain opportunities and serve its expanding Blockchain market, IBM is building more cloud data centers. The company intends to open six IBM Cloud Blockchain data centers in the US (SPY), Canada, Brazil, the UK (EWU), Germany (EWG), and Japan (EWJ).