As you have no doubt heard over the last couple of days, Goldman Sachs down graded BlackBerry to a sell causing a drop in the stock price. Goldman cites the tough competition in the EMM space from competitors and also an unsubstantiated “survey” claiming minimal uptake of BlackBerry’s EMM platform.
They also claim that Blackberry has to catch up to its competitors and they don’t see this happening given the competitors have “much better traction”.
First, our surveys
show very low buying intentions for BlackBerry’s EMM solution. Second, its
target implies that it would leapfrog the market leaders in just one year, which
we view as unlikely given the competitors’ much better traction (based on our
Conveniently Goldman fails to give any details on these surveys and how they were done. They also don’t realize that BlackBerry doesn’t have to do any “catching up” to their competitors because they are already the market leader. Goldman also fails to mention one very big and important factor in all of this. They are said to be working with Mobile Iron on an IPO as reported by Bloomberg one month ago. seems convenient that they downgrade BlackBerry a month after this is reported.
The bottom line is that BlackBerry is the gold standard in this sector and anyone who looks at things from an unbiased view will easily come to that same conclusion. BES 12 which was launched last year to rave reviews, only took that exceptional product and made it even better.
Not one company using BlackBerry enterprise services has reported any serious breach over the last year unlike Mobile Iron whose FORMER client the insurance giant Aviva had their mobile phone user data compromised. And what did they do to solve this? Yes that’s right, they moved over to BES. I expect this to happen more and more.
According to principal analyst at Constellation Research, Holger Mueller, many in enterprise still recognize BlackBerry as the leader in Security. I guess Goldman didn’t survey these people?
“Blackberrry is in a much better shape at the beginning of 2015 than it was twelve months ago, as security needs are more present in enterprises than ever after the fallout of Target, Sony and others,” said Mueller. “Twenty fifteen will be key for Blackberry if it can convince enterprises to adopt its security and device management software that it has invested to bring to all key platforms.”
Goldman needs to give a little more information as to how they came to their conclusion. Did it affect the stock? Yes. Is it factual? That’s yet to be determined but given the lack of supporting evidence from Goldman, I find it hard to believe their “survey” is representative of the true market space.
BlackBerry has the opportunity to grow far beyond they ever have in the past on the software side off things. With strategic partnerships with companies like Samsung, monetization of BBM and other BB10 features for enterprise, not to mention an already profitable hardware business, BlackBerry is poised for growth. And what about the IOT? This is just scratching the surface as the gold standard in EMM security is slowly but surely entering a space that nobody else is securing currently and will likely become the go to in this sector as well. More to come on this in the near future.