Big businesses to pay $212,000 annually for platform use
IBM (IBM) is pitching its blockchain-based IBM Food Trust platform to businesses in sectors such as retail and logistics as a way to secure their supply chains. The technology could help retailers respond more efficiently to problems that may require that a product is recalled from the market and its origin quickly established.
More that has recently come to light about IBM Food Trust is its pricing. IBM earlier noted that businesses that make less than $50.0 million in annual sales could pay a monthly fee of a few hundred dollars to use its IBM Food Trust platform.
The company has provided additional details and noted that global businesses, meaning those making more than $50.0 million in annual sales, would pay ~$212,000 per year to have full access to the IBM Food Trust platform.
The race for a $60.7 billion revenue opportunity
The disclosure of IBM’s Food Trust pricing for power users offers a glimpse into the technology’s revenue potential for IBM. Although the market for blockchain products and services is only starting to develop, WinterGreen Research predicts that global spending on blockchain products and services is on pace to hit $60.7 billion by 2024, up from $708.0 million last year.
In addition to IBM, Alibaba (BABA), Mastercard (MA), and Bank of America (BAC) are among the major companies in technology and finance that are actively exploring blockchain use cases and how they could potentially monetize the technology.
Alibaba has submitted 90 blockchain-related patent applications, compared to 89 blockchain patent applications submitted by IBM, 80 blockchain patent applications submitted by Mastercard, and 53 blockchain patent applications submitted by Bank of America.
Uptake of IBM Food Trust by retailers
Carrefour, Europe’s largest retailer, recently adopted the IBM Food Trust technology to enable it to track how food items such as eggs and tomatoes move from farms to its stores.
Walmart (WMT) uses the IBM Food Trust platform to enable it to have real-time visibility into how certain fresh food items travel from farms to its stores.