IBM Watsonizes Blockchain: Cash Sinkhole Grows

February 2, 2021

IBM had big plans to regain its position as the champion of the digital world wide mud wrestling competition. We know that mainframes generate revenue. We know that IBM’s cloud is at least in the game. We know that the cognitive computing marketing hoo hah Watson thing has struggled to climb in the ring. Now we know that the IBM blockchain superstar made it in the ring but tripped over a rope and plunged to the mat. Yep, dazed and confused before landing a punch.

If the information in “IBM Blockchain Is a Shell of Its Former Self After Revenue Misses, Job Cuts: Sources” is accurate, that’s the pickle on top of the IBM disaster burger. The write up asserts from unnamed sources of course:

BM has cut its blockchain team down to almost nothing, according to four people familiar with the situation. Job losses at IBM escalated as the company failed to meet its revenue targets for the once-fêted technology by 90% this year, according to one of the sources. “IBM is doing a major reorganization,” said a source at a startup that has been interviewing former IBM blockchain staffers. “There is not really going to be a blockchain team any longer. Most of the blockchain people at IBM have left.”

The write up noted:

In its recent full-year results statement, IBM as a whole reported revenue fell 6% on an annualized basis. Looking back to its 2017 financial statement, IBM called itself the “blockchain leader for business.” All mention of the technology is now absent from the company’s statements.

IBM, steeped in cognitive computing technology and confidence replied:

“IBM maintains a strong team dedicated to blockchain across the company. We have shifted some resources but remain committed to the technology, blockchain ecosystem and services. We see blockchain as a driver for our cloud business.”

Good to know. What’s Watson say?

Stephen E Arnold, February 2, 2021


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