BlackBerry pulled a shock move this morning when it introduced that it’s purchasing cellular instrument administration seller good technology for $ 425 million in cash.
It alerts that BlackBerry, which has misplaced most of its worldwide handset marketshare, is transferring its focus through expanding its cellular endeavor safety platform.
In a method, this shift is sensible, as BlackBerry has always been about handing over stable cell solutions. It’s simple to put out of your mind now that BlackBerry was as soon as the undisputed leader in endeavor mobility, however when Apple and Android got here alongside, BlackBerry quickly misplaced its dominant position.
To offer you a way of how a ways it has fallen, in accordance comScore, in September, 2009 BlackBerry led US mobile marketshare with greater than 42 %. In the most contemporary record from July, it had plunged to 1.5 p.c. clearly, it’s no longer going to be a player in the handset market.
even supposing it’ll appear to be this transfer comes immediately, in an organization blog submit, BlackBerry COO Marty Beard mentioned it used to be in point of fact only a logical extension of BlackBerry’s current way to make bigger into enterprise mobility throughout structures.
“but while you look more intently, you see that we share a standard heritage in security and our strengths complement every other incredibly well,” Beard wrote.
CEO John Chen said in a press convention that the two firms fit neatly together, especially provided that good’s potential is in iOS, where BlackBerry shouldn’t be as robust.
Chen additionally stated that the corporate needs to modify to a subscription business, and the overwhelming majority of fine’s income comes from subscriptions, giving Blackberry an existing platform to make this transition.
He indicated that the purchase was once part of a broader acquisitions technique as it tries pivoting to an enterprise cellular security platform. BlackBerry sold German voice encryption agency Secumart remaining year. It snagged WatchDox, an enterprise file safety company, again in April.
good technology filed an S1 in may of 2014, but it by no means pulled the trigger on the IPO. there have been rumors of layoffs and the S1 shows great debt of over $ 24 million.
R Ray Wang, founder at Constellation research, says that while that debt ultimately hurt the company, it has probably the most “best possible endeavor mobility administration” products on the market.
It’s now not only a pure mobility play, however as both companies have also begun focusing on web of issues know-how.
Wang stated that this used to be a smart move for BlackBerry, enabling it go pass-platform into iOS and Android. “the result is a powerhouse EMM offering with 70+ safety certificates, but the actual gold here is the power to get to a platform to make stronger internet of things,” he mentioned.
however one trade insider noticed it differently with two struggling firms that may just work better together. “These are each embattled companies which might be seeking to stay relevant these days of cell administration,” the insider said.
overall, this looks like it could be a just right deal for each firms, giving good applied sciences a soft landing without having to chance the dangers of IPOing in an increasingly more adverse market, while filling out BlackBerry’s growing safety platform without hanging out a huge sum of money.
Featured image: Honou/Flickr under A CC through 2.zero LICENSE
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