Blockchain will revolutionize business, but it’s going to take bit longer, because blockchain is not a ‘disruptive’ technology, which can attack the traditional business models with a low-cost solution and overtake the incumbent firms quickly, according to research firm IDC.
“Blockchain turns out to be a foundational technology: It has a potential to create new foundation for our economic and social system,” said Ashutosh Bisht, Senior Research Manager at IDC Asia/Pacific. “But while the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure. The process of adoption will be gradual and steady, not sudden, as waves of technological and institutional change gain momentum.”
Today data centers are built as centralized services hubs delivering cloud hosting services and more. But scientists and entrepreneurs would be working on technology that can leverage the power of blockchain to create decentralized clouds. Decentralized cloud management services will have different architectural needs. So data center managers and operators need to be aware of the shift in data center designs to stay relevant in the future, stated international data center operator Telehouse in its recent blog post.
The blockchain is a technology that is predicted to have large implications for industries like finance, health, government, medicine, manufacturing, logistics, transportation, and more. With more blockchain-based applications, there will be a large demand for data centers with the right infrastructure. So, data centers and cloud hosting companies need to prepare to stay competitive.
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Blockchain Adoption Asia/Pacific
In IDC’s latest study on blockchain solutions spending in Asia/Pacific, the research firm reported an increase in blockchain technology spending of 81% over 2018 ($289.48 million) while blockchain spending in this region is expected to reach $522.7 million by 2019. IDC expects Asia/Pacific blockchain spending to grow quite rapidly though throughout the 2018-23 forecast period, with a five-year compound annual growth rate (CAGR) of 59.8% and a total spending of USD 3 billion by 2023.
Asia/Pacific contribute around 19.3% of the overall worldwide spending on blockchain in 2019 and is ranked third in terms of spending, topped by US and Western Europe. Over the forecast period, People’s Republic of China (PRC) would see “phenomenal” spending growth with five-year CAGRs of 65.7%, while Asia/Pacific will record 50.3% CAGR.
“The blockchain trend has been erratic for the past couple of years,” said Jeff Xie, Senior Market Analyst, IDC Asia/Pacific. “With the hype of cryptocurrencies saturating, we can expect to see the underlying technology being utilized.”
Finance, Manufacturing, Retail
From the financial sector’s perspective, IDC sees banking, securities & investment services, and insurance industries will invest $296.3 million combined in blockchain solutions this 2019. The manufacturing and resources sector, driven by the discrete and process manufacturing industries, and the distribution and services sector, led by the retail and professional services industries, are forecast to see blockchain spending of $91.7 million and USD 89.4 million respectively this year. The infrastructure sector will see the fastest growth in blockchain spending over the 2018 – 2022 forecast with a five-year CAGR of 81.2%, followed closely by the public sector with a CAGR of 73.6%.
From a technology perspective, IT services and business services (combined) will represent 60% of the blockchain spending in 2019 with IT services receiving slightly more investment over the forecast period. Blockchain platform under software will be the second largest technology category, accounting for 27.3% of the overall spending in 2019.