Blockchain technology underpins cryptocurrency transactions. Recently, tech giants Amazon (AMZN), Microsoft (MSFT), Oracle (ORCL), and Facebook have relied on blockchain solutions to build efficient data tracking and security systems. Retail behemoth Walmart (WMT) is also pushing its lettuce suppliers to use blockchain software to upload data about their foods.
According to CNBC, Bank of America research analyst Kash Rangan expects the blockchain technology market to expand to $7 billion, assuming that 2% of servers are used to run blockchain per year at $5,500 per server. Rangan foresees the technology creating more cloud service demand, benefiting cloud computing companies such as Amazon, Microsoft, and Oracle. The technology could also improve supply chain tracking, which would boost efficiency for retailers such as Amazon and Walmart.
Cloud service providers
Amazon’s AWS (Amazon Web Services) is the cloud leader, representing 31% of the market. Microsoft’s Azure holds 18% of the market, while Alphabet’s (GOOGL) Google Cloud owns 8%. These three cloud providers accounted for 57% of the $20 billion spent on cloud computing infrastructure in Q2 2018, according to Canalys.
Though Amazon remains the largest cloud service provider, its growth has been slowing recently. In the second quarter, Amazon’s AWS revenue grew 48%, while Azure and Google Cloud revenue grew 89% and 108%, respectively.