fbpx

Blockchain Could Be Major Boost to Amazon and Microsoft

Blockchain adoption will eventually be a multibillion-dollar occasion for tech companies like Amazon and Microsoft, according to new estimates from Bank of America. Based on the analysis, the entire total addressable market for blockchain will finally hit $7 billion, though the analysts did not “attempt to put a time stamp” on it, as the technology is not yet widely adopted. The potential beneficiaries could marry blockchain with existing cloud computing operations and improve supply chain operations, according to Bank of America research analyst Kash Rangan. “Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazon’s retail operations more efficient,” Rangan stated in a note to clients Tuesday. The estimates assume that 2 percent of servers will be used to run blockchain, at $5,500 per server, per year. Blockchain is a software protocol which underpins cryptocurrencies like bitcoin. Also called distributed ledger technology, it shares data on a distributed, secure, and unalterable ledger in a way that “databases have not been able to in the past,” Rangan said.

Walmart became one of the first retailers to offer a near-term use case and said last week it would require lettuce suppliers to upload information about their foods to blockchain within a year. While it’s not being used in many other consumer instances yet, blockchain could improve existing parts of “software as a service” or SaaS. Microsoft’s Azure for example, could rely on what Rangan called “blockchain as a service” or “BaaS,” on its popular cloud computing platform. “BaaS on Azure offers services such as smart contracts and other third-party apps and should benefit as use of blockchain on Azure increases,” Rangan said. Bank of America also said Oracle, IBM, Salesforce.com, VMware, and real estate and mortgage players like Redfin, Zillow, LendingTree stand to benefit from blockchain implementation. To be sure, Bank of America said there are a wide range of blockchain estimates out there, and its money-making ability is still unconfirmed. “Many blockchain use cases have been identified, but full products/services have not yet been built out and are not used in production,” Rangan noted.

Prev1 of 3Next

Leave a Reply

Your email address will not be published.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
Does not receive any data from API