Blackberry Goes Buying Once more, Buys Good Know-how

Blackberry Goes Shopping Again, Buys Good Technology

Blackberry pulled a shock transfer this morning when it introduced that it’s buying cellular system administration vendor, Good Know-how for $425 million in money.

It alerts that Blackberry, which has misplaced most of its worldwide handset marketshare, is shifting its focus by increasing its cellular enterprise safety platform.

In a means, this shift is sensible, as Blackberry has all the time been about delivering safe cellular options from its earliest days. It’s straightforward to overlook now that Blackberry was as soon as the undisputed chief in enterprise mobility, however when Apple and Android got here alongside, Blackberry shortly misplaced its dominant place.

To offer you a way of how far it has fallen, in accordance comScore, in September, 2009 Blackberry led US cellular marketshare with greater than forty two %. In the newest report from July, it had plunged to 1.5 %. Clearly, it’s not going to be a participant within the handset market.

Though it might appear to be this transfer comes out of the blue, in an organization weblog publish, BlackBerry COO Marty Beard stated it was actually only a logical extension of Blackberry’s present technique to increase into enterprise mobility throughout platforms.

“However whenever you look extra intently, you see that we share a standard heritage in safety and our strengths complement one another extremely nicely,” Beard stated within the publish.

CEO John Chen in stated in a press convention that the 2 corporations match properly collectively, particularly provided that Good’s power is in iOS, the place Blackberry is just not as robust.

Chen additionally identified that Blackberry needs to modify to a subscription enterprise, and the overwhelming majority of Good’s income comes from subscriptions, giving Blackberry an present platform to make this transition.

He indicated that the acquisition was a part of a broader acquisitions technique as Blackberry tries to pivot to being an enterprise cellular safety platform. Blackberry purchased German voice encryption agency Secumart final yr. It snagged WatchDox, an enterprise file safety firm again in April.

Good Know-how filed an S1 in Might of 2014, nevertheless it by no means pulled the set off on the IPO. There have been rumors of layoffs and the S1 exhibits substantial debt of over $24 million.

R Ray Wang, founder at Constellation Analysis, says that whereas that debt finally harm the corporate, it has a number of the “greatest Enterprise Mobility Administration” merchandise available on the market.

It’s not only a pure mobility play, nevertheless as each corporations have additionally begun specializing in Web of Issues know-how as properly.

Wang stated that this was a sensible transfer for Blackberry, enabling it go cross-platform into iOS and Android. “The result’s a powerhouse EMM providing with 70+ safety certificates, however the actual gold right here is the power to get to a platform to help Web of Issues,” he stated.

However one business insider noticed it in a different way with two struggling corporations which may simply work higher collectively. “These are each embattled companies which are making an attempt to remain related nowadays of cellular administration,” the insider stated.

General, this seems to be prefer it could possibly be an excellent deal for each corporations, giving Good Applied sciences a delicate touchdown with out having to danger the risks of IPOing in an more and more hostile market, whereas filling out Blackberry’s rising safety platform with out placing out an enormous amount of money.

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