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Gartner Predicts 90% of Current Enterprise Blockchain Platform Implementations Will Require Replacement by 2021


By 2021, 90% of current enterprise blockchain platform implementations will require replacement within 18 months to remain competitive, secure and avoid obsolescence, according to Gartner, Inc.



“Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology,” said Adrian Lee, senior research director at Gartner. “Many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals, thus creating unrealistic expectations when assessing offerings from blockchain platform vendors and service providers.”

Fragmented Blockchain Platform Market
Today, the blockchain platform market is composed of fragmented offerings that often overlap or are being used in a complementary fashion, making technology choices confusing for IT decision makers.

“Compounding this challenge is the fact that blockchain platform vendors typically use messaging that does not link to a target buyer’s use cases and business benefits. For example, ‘transactions’ was the term mentioned the most in relation to blockchain, followed by ‘secure’ and ‘security.’ While these may be functions of blockchain-enabling technology, buyers are still confused as to how these functions are achieved or what benefits blockchain adds compared to their existing processes,” said Mr Lee.

Nonetheless, as enterprises’ interest for blockchain technology increases, the number of blockchain platform vendors continues to increase with more new entrants. “Due to the lack of an industry consensus on product concept, feature set, core application requirements and target market, we do not expect there to be a single dominant blockchain platform within the next five years. Instead, we expect a multiplatform world to emerge,” said Mr Lee.

Rapid Evolution of the Blockchain Platform Market
By 2025, the business value added by blockchain will grow to slightly more than $176 billion, then surge to exceed $3.1 trillion by 2030, according to a recent forecast by Gartner. “Product managers should prepare for rapid evolution, early obsolescence, a shifting competitive landscape, future consolidation of offerings and the potential failure of early stage technologies/functionality in the blockchain platform market,” said Mr Lee.

Gartner clients can learn more in the report “How to Position Blockchain Platforms to Increase Adoption” by Adrian Lee and others. Additional blockchain research can be found in the Gartner Special Report “Blockchain-based Transformation.” This collection of research highlights the scope of blockchain’s transformation, how it impacts various industries, and the current state and evolution of these technologies.

About Gartner IT Symposium/Xpos
Learn more about CIO leadership and how to drive digital innovation to the core of your business at Gartner IT Symposium/Xpo 2019. Follow news and updates from the events on Twitter using #GartnerSYM.

Upcoming dates and locations for the 2019 Gartner IT Symposium/Xpo include:
3-6 June: Toronto, Canada
16-18 September: Cape Town, South Africa
20-24 October: Orlando, Florida
28-31 October: Sao Paulo, Brazil
28-31 October: Gold Coast, Australia
3-7 November: Barcelona, Spain
11-14 November: Goa, India

About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organisations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organisations in more than 100 countries — across all major functions, in every industry and organisation size.

To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.

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Tuesday, June 18th 2019
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