BlackBerry Software Revenue To DOUBLE on February 1st?


Recently as many of us have seen, the media has started to shift their views on BlackBerry and the future of this iconic brand in Canada.  The doom and gloom stories have been replaced by optimism.  John Chen, in just one year, has began to change the perception among media, analysts, enterprise and of course many consumers.

As you can see in this article from BNN, Peter Misek, a venture partner at DN Capital speak about the future of BlackBerry and the potential of software revenue.

“I’m stunned at what I’m seeing. Everybody is still focused on the hardware”

Misek states that Chen’s goal of doubling software revenue from $250 Million to $500 Million is already well under way.

“It’s pretty exciting for them in that they are actually seeing traction among enterprise. As we talk to big CIOs, they are really showing up again,” said Misek.

BES 12 is set to launch this month and the article touches on what John Chen stated on the most recent earnings call as well as his expectations going forward.

“It’s our plan to aggressively shift our software business from the perpetual license to a subscription base,” said Chen on the call. He noted that while this shift to subscriptions will yield lower revenue in the short-term, the subscription model will produce “more respectable revenue in future quarter.”

Chen expects at least 10 million to join the next fiscal year. The free trial of BES 10, called EZ Pass, is widely expected to expire on Feb. 1 for 3.4 million subscribers.

“On that day, roughly two to three times the number who they are currently charging will start to pay, hopefully. You could see software revenues more than double,” said Misek.

A year ago today, these articles were few and far between and coming across them was our of sheer luck.  After one year at the helm, John Chen seems to have made a shift that many never thought was possible.  The media speaking highly of BlackBerry.  Of course for those of us who have been on board and especially jumped on board with BB10, we already knew all of this.  It’s nice to see the rest catching up to us.