The three tech giants of the late twentieth century – IBM (IBM), HP (HPE), and Dell (DVMT) – entered the market around the same time. Each of them quickly carved out a unique niche for themselves in the personal computing business.
The PC market skyrocketed at an average annual growth of 20 percent throughout the 80’s and 90’s when taxes were low and the American economy was roaring – like it is now. However, this growth began to slow down in late 90’s, and between 1998 and 2008, it averaged just about five percent in terms of annual growth rate.
Newly emerging software companies such as Microsoft (MSFT) rapidly ate into the market share of IBM, HP, and Dell, while the hardware business experienced a paradigm shift from PCs to tablets and mobile phones via mainly Apple (AAPL).
Innovative companies such as Microsoft, Apple (just mentioned), and Google (which is under fire for sexual harassment issues and being anti-American) began to dominate the world of consumer technologies, forcing the old warhorses to do a complete rethink for survival.
The blockchain technology is now taking the global industry by storm. Blockchain technology cryptographically links a growing list of records (which are termed as “blocks”). It is particularly effective for recording transactions securely between two parties.
It uses a distributed ledger which is managed by peer-to-peer networks, thus infusing unprecedented security and trust in the system.
Recognizing the potential of this innovative technology, the traditional tech giants have started investing heavily in this area. IBM has launched cutting edge solutions such as Hyperledger Fabric and Hyperledger Composer. These are powerful tools which help to quickly build the blockchain for any business.
Not ready to be left behind in the blockchain race, both Hewlett Packard and Dell have announced ambitious plans to invest in this game-changing technology.
Deals with Tech Companies such as DMG Blockchain
While companies such as IBM, HP, and Dell do not have core competence in the field of blockchain, they have found a way out by partnering with firms specializing in the technology.
IBM has taken a lead by signing an agreement with DMG Blockchain (DMGI). The agreement will allow IBM to utilize DMG’s Blockchain Network and benefit from their wide experience in blockchain forensics and analytics to create new supply chain solutions.
The solutions will enable complete provenance, inventory management, and regulatory compliance for various industries.
Dell and HP are also looking at opportunities for synergistic partnerships in order to stay relevant in the changing tech environment and seize the blockchain market.
Moving from Hardware to Software
The future of technology lies in the software sector, including blockchain, artificial intelligence, machine learning, big data, cloud computing, and the Internet of Things (IoT).
The importance that the traditional hardware companies now attach to software can be gauged by the fact that IBM sold its complete PC division to Lenovo in order to focus on the growing software market.
HP has spent over $12 billion to acquire ArcSight and Autonomy, two firms specializing in advanced software solutions. Dell, on the other hand, owns Pivotal Software Inc. which provides innovative software tools, including big data solutions.
A key difference between IBM on one side and Dell and HP on the other is that IBM has completely shed its traditional hardware business, while hardware still forms part of solutions offered by Dell and HP. Despite the different paths, their determination to embrace blockchain and other emerging software technologies is now clear and irreversible.
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