Firms pessimistic on Blockchain technology, CIOs call for a change in IT infrastructure: Gartner

While blockchain and ICOs are creating a buzz in the market, the fascination is not quite perceived at the CIO level. According to market research firm Gartner’s latest CIO survey, only one percent of more than 3000 CIOs interviewed said they have some sort of Blockchain adoption in the company. While only 8 percent said they are planning to deploy the same.

David Furlonger, Vice President and Gartner Fellow, said “This year’s Gartner CIO Survey provides factual evidence about the massively hyped state of blockchain adoption and deployment. It is critical to understand what blockchain is and what it is capable of today, compared to how it will transform companies, industries and society tomorrow.”

Furlonger added that rushing into blockchain deployments could lead organizations to significant problems of failed innovation, wasted investment, rash decisions and even rejection of a game-changing technology.

New Skills

Over 33 percent said that they had no interest at all in the technology. While 43 percent of the CIOs said it was on the radar but no action is planned. Of those firms that have short-term plans, 25 percent of those respondents pointed out that blockchain requires new skills while the other 14 percent said, the IT department in companies need a huge revamp.

Blockchain and Sectors

The report further added that CIOs from telecom, insurance and financial services indicated being more actively involved in blockchain planning and experimentation than CIOs from other industries.

While financial services and insurance companies remain at the forefront of the technology, the transportation, government sectors are now engaging more to focus on process efficiencies, supply chain and logistics.

“Blockchain continues its journey on the Gartner Hype Cycle at the Peak of Inflated Expectations. How quickly different industry players navigate the Trough of Disillusionment will be as much about the psychological acceptance of the innovations that blockchain brings as the technology itself,” said Furlonger.

He further stated that the challenge for CIOs is not just looking for and retaining talent but finding enough to accommodate growth in resources as blockchain developments grow. Qualified engineers may hesitate due to the technology’s libertarian nature of the blockchain developer community.