SAP Cloud Platform Blockchain Service Selected By Bumble Bee

SAP SESAP recently announced at SXSW conference, that SAP Cloud Platform Blockchain offering is being utilized by Bumble Bee Foods.

With the adoption of SAP's blockchain solution, Bumble Bee attempts to address the evolving customer demand to know the credibility of seafood's sourcing and safeness of consumption.

The distributed ledger technology of SAP's blockchain service enables end-users to track the route of seafood (from ocean to dinner table) in its entirety.

The users can scan the QR code imprinted on "Bumble Bee Foods' Natural Blue by Anova yellowfin tuna" package to obtain comprehensive data of the comprehensive fish-to-market journey on their smartphones.

Per the press release, "Bumble Bee is the first food company to incorporate SAP blockchain technology into its production."

We believe incremental adoption of SAP's blockchain service on the back of robust visibility and traceability features is expected to favor the top line.

SAP SE Revenue (Quarterly)

SAP SE Revenue (Quarterly) | SAP SE Quote

SAP in Blockchain

SAP cloud platform supports Hyperledger fabric, multiple-chain nodes and Quorum nodes to enable customers in innovating and developing robust blockchain tools.

The company is developing a blockchain-based solution along with Boehringer Ingelheim to track pharmaceuticals throughout the supply chain. This will be a notable step against the abuse of drugs.

Notably, SAP Leonardo offering integrates Internet of Things (IoT), Big Data, Machine Learning, Analytics and Blockchain capabilities on the SAP Cloud platform. The solution has been witnessing traction of late. In fact, Barclaycard selected SAP's Leonardo solution in the last-reported quarter.

The company's initiatives to aid its clientele in delivering products with reduced time-to-market by utilizing blockchain technology bodes well. In fact, blockchain technology market is projected to reach $23.3 billion by 2023 from estimated $1.2 billion in 2018 at a CAGR of 80.2%, per data from MarketsandMarkets.

Strengthening Foothold in Blockchain Holds Promise

The secured storage and transmission of data through a decentralized database is the most attractive feature of the blockchain technology. Originally utilized for cryptocurrency transactions, the system is transparent and incorruptible and is meant to provide unaltered information.

Since blockchain uses a distributed consensus, tampering with its records without being noticed by an entire network is difficult. This makes the system extremely safe. With minimum chances of double counting and hacking, the possibility of monetary losses is low. Consequently, we believe SAP's blockchain initiatives in the evolving logistics industry hold promise.

Driven by multi-industrial adoption, blockchain technology has rapidly gained traction over the last few years. In fact, per data as revealed by Reuters, blockchain technology is anticipated to be used by 65% of enterprises by 2020. Given its market presence and growing collaborations, SAP is well positioned to reap the benefits.

The solutions offered by other key players in this domain like International Business Machines IBM , Microsoft, Accenture, have been adopted by the insurance, banking, food supply and automobile industries among others.

Zacks Rank & Other Key Picks

SAP currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. SNPS and Symantec Corporation SYMC , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Long-term earnings growth rate for Synopsys and Symantec is projected to be 10% and 7.9%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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