What to Expect from IBM’s 3Q17 Earnings PART 4 OF 15
IBM views blockchain as a revenue avenue
Earlier in this series, we discussed IBM’s dominance in the blockchain technology space. We also discussed its recently announced blockchain trade finance platform. It has been more than a year since IBM began touting its blockchain services. IBM’s blockchain offerings run on its cloud.
In June 2017, IBM announced a blockchain-based platform for seven prominent European (EFA) banks: Deutsche Bank, HSBC, Rabobank, KBC, Natixis, Société Générale, and UniCredit. This platform is expected to be functional by late 2017.
Blockchain is considered a disruptive technology. IBM is investing in disruptive technologies such as blockchain to seek much-needed revenue growth and provide a push to its Strategic Imperatives segment. IBM’s 2Q17 results marked 22 quarters of no revenue growth.
Blockchain technology implementation would bring visibility
IBM isn’t the only technology player with its eyes on blockchain technology as a new avenue for revenue growth. In September 2017, Ernst & Young teamed up with Microsoft (MSFT) and A.P. Moller–Maersk Group to announce its own blockchain platform to secure insurance for the shipping industry.
In April 2016, Microsoft partnered with R3CV to develop blockchain technology. In July 2017, Microsoft, in a blog post, announced software framework and tools to smooth the development of blockchain applications on its Azure cloud platform.
Blockchain technology is rapidly being adopted, as it is seen as the technology that has the potential to ease manual work and solve visibility issues that persist in sectors such as banking, trade finance, and supply chain.
Businesses are considering blockchain technology implementation to bring greater transparency to the supply chain. This trend may have prompted Oracle (ORCL) to recently announce a blockchain cloud platform, which we’ll discuss later in the series.