A Look at IBM’s Blockchain Deals
LSEG taps IBM for Blockchain-based SME platform
IBM (IBM) is emerging as a preferred provider of Blockchain technology (QQQ). The company has recently won several Blockchain contracts with large and reputable global organizations, which also helps raise its profile in the Blockchain business where it competes with Microsoft (MSFT) among enterprise IT vendors.
In July, the London Stock Exchange Group (or LSEG) tapped IBM to provide the Blockchain platform to enable SMEs (small and medium enterprises) to more easily tap into public stock exchanges run by LSEG for credit access. The Blockchain platform IBM is providing would also digitize certificate data, thus formalizing and simplifying SMEs’ operations in the LSEG exchanges.
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European banks embrace IBM Blockchain
In June, a consortium of seven major European banks contracted IBM to help them set up a Blockchain-based platform for trade financing transactions for SMEs.
IBM’s other recent Blockchain contracts include deals with companies such as American International Group (AIG), Standard Chartered Bank, AEON Financial Service of Japan, and AOS of Colombia. IBM has won dozens of Blockchain contracts in recent months.
Top-line growth drivers
For a company struggling with a slowdown in its traditional IT businesses, IBM is looking to emerging technologies like Blockchain to drive revenue growth. The company’s modern IT businesses, reported collectively as Strategic Imperatives, brought in revenues of $8.8 billion in 2Q17, up 7% from a year earlier, as shown in the chart above.
The Strategic Imperatives segment includes operations such as cloud computing where IBM competes with Amazon (AMZN) and Microsoft.