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IBM scales down Blockchain activity

Photo of: Nathan VDH
by Nathan VDH

According to sources, IBM’s development in the blockchain would suffer a serious setback with a decline in staff and revenues. A severe step backwards despite bullish communication and announcements?

Is the adoption of IBM’s blockchain technologies going well? There is reason to doubt it, according to sources interviewed by CoinDesk. However, the company is now a reference in the field of private or consortium blockchains.

However, the financial results have not been as good as expected. Far from it. According to some sources, the team in charge of blockchain projects at IBM is even shrinking.

This workforce would thus be reduced to virtually zero, particularly following numerous departures. “There won’t really be a blockchain team anymore. There won’t really be a blockchain team anymore. Most of the blockchain people at IBM have left,” says one interviewee.

As for the American giant’s interest in this technology sector, it would be a serious cold shower. The cause? A plunge in revenues. A source states that the firm’s turnover in the blockchain would be far from reaching the targeted objective.

Revenues would in fact be 90% below this objective in 2021. And we could no longer speak of a first in the matter. This would already be the second consecutive year in this configuration. Expectations in terms of the adoption of the blockchain in companies would not be fulfilled.

However, this information is highly unpleasant for IBM, which formally denies any failure in this sector. “Our blockchain business is doing well, thank you,” says PR manager Holli Haswell.

What are the organizational evolutions in this case? “We have reorganized certain managers and business units to continue to drive growth. We do this every year,” the firm justifies.

However, these statements are hard to convince. In any case, they radically contradict the testimony of former IBM blockchain experts. One source reports significant internal reorganizations.

Big Blue’s strategy is now focusing primarily on the hybrid cloud. As far as the blockchain is concerned, innovation would therefore focus primarily on research and development work.

Moreover, the reference to the blockchain no longer appears in the financial reports of the American giant, whose last fiscal year was characterized by a 6% decline in revenues.