While some critics in the mainstream media and some tech blogs continue to dismiss BlackBerry, it has continued to forge ahead with its turnaround strategy. One of its main components is the diversification of its revenue base to make it less dependent on handset sales, while increasing revenue from software and services.
Another component of this strategy involves forming new partnerships that includes some of its biggest competitors and its entry into the Internet Of Things. BlackBerry has been very active in this area with Project Ion and more recently with a new suite of IoT applications that is in the advanced state of development. This was noted by UTB contributor BrizBerryDevs in an article titled “BlackBerry: Silently Building the Future”
Today I came across an article that appeared in The Economic Times of India. It highlighted BlackBerry’s strategy of focusing on its software and services division and described how it had already begun to show some promising results. It also mentioned BlackBerry’s partnership with Samsung and how both companies could benefit each other by working together.
With the introduction of BES12 last year and the EZ Pass program prior to that, BlackBerry has increased its market-share among enterprise customers in India, a country with a population of approximately 1.2 billion people and a very large tech and enterprise sector.
Sunil Lalvani, Managing Director of Indian Operations at BlackBerry confirmed that BlackBerry’s BES MDM solution now controls approximately 40% of the large enterprise market in India and is now targeting small and medium enterprise customers
“We have a 40% share in the India enterprise segment, which comprises 7,000 large enterprises,” Lalvani told ET. He said the increase in market share has primarily been driven by its latest cross-platform BES12 solution, with the Android platform contributing most to the growth.
In addition to BlackBerry India has experienced a 20% growth in revenue from its software and services division in the quarter that ended on February 28th.
Software contributes 58% and hardware the rest to the company’s global revenue. Lalvani said the ratio is similar in India as well.
Among the products that are fueling BlackBerry’s growth in India are the following:
- BES12 Cloud service, which allows customers to secure its devices without having to invest in infrastructure
- BBM Meeting
- BBM Protected
- Enhanced SIM-based licensing that allows corporate users to subscribe to its service for a fixed monthly fee and is billed by their carriers.
Late last year, BlackBerry announced a partnership with Samsung to help secure Knox while providing an providing an additional layer of security for Android devices.
This partnership is a win win proposition for both companies as Samsung will benefit from BlackBerry’s expertise in security, while BlackBerry will benefit from am increased revenue base with the sale of each Samsung device secured by the BES12/Knox solution.
The company is in advanced talks with Samsung to integrate the marketing teams of the Korean major’s KNOX device security system and Black-Berry’s sales force.
KNOX is Samsung’s enterprise mobile solution, embedded in some Galaxy devices,providing an additional security layer on the Android operating system.
“Wherever there’s a possibility for Samsung to position their devices but needs layers of security, it would bring BlackBerry security architecture,” Lalvani said.
It just goes to show that CEO John Chen and his team are making the right decisions and ensuring that a foundation is in place to fuel BlackBerry’s future growth.
There is an interesting quote from BlackBerry CEO John Chen that puts everything that he is doing into perspective.
BBRY’s Chen once said to me: Why do I care about competitors if I can find a way to profit from their success?
Let us know your perspective in the comments below
Source: The Economic Times