Report: BlackBerry May Jettison Successful Messaging Service
August 27, 2013 6:33 PM
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Is this the beginning of the end for the smartphone marker formerly known as RIM?
The Wall Street Journal
that even as struggling Canadian phonemaker BlackBerry Ltd. (
) creeps ever closer to death, the company is reportedly looking to strengthen and spin off one of its few products that remains popular.
With BlackBerry sales
hitting fresh lows
and BlackBerry's OS overhaul experiment being
greeted by customer apathy
, BlackBerry executives are reportedly pondering spinning off
BlackBerry Messenger (BBM)
, -- the company's instant messaging service.
Eight years after the service's 2005 launch
, BBM has evolved to sport a visual appealing messaging UI and secure communication based on the service's tried-and-true PIN messaging underpinnings. BBM has around 60 million customers at last count.
In May BlackBerry CEO Thorsten Heins --
under pressure to resign
-- signaled a change announcing the coming availability of BBM for Google Inc.'s (
) Android and Apple, Inc.'s (
). The apps have been floating around both in an HTML5 based browser demo and a full-blown beta test form since the June, and rumor has it that Samsung Electronics Comp., Ltd. (
) will be the first Android phonemaker to bundle the popular messaging client into its devices.
BBM may be jumping off the BB wreck. [Image Source: Forrester.com]
In his May announcement, Mr. Heins remarked, "We will make BBM available as the premiere multi-platform IM solution all around the globe. Why are we doing this now? It’s a statement of confidence. The BlackBerry 10 platform is so strong and support has been so good that the time is right for BBM to become an independent messaging solution."
In retrospect the latter sentence and emphasis on BBM becoming "independent" may have hinted that rather than a bold -- and much needed -- survivalist transition to a service provider, BlackBerry was instead merely looking to prepare the escape pod for BBM.
report claims that BlackBerry has shuffled some executives into the BBM team to enhance its management capabilities, and is adding video chat features to BBM to further enhance its cross platform appeal.
If indeed BB jettisons the successful unit, it will mark yet another fateful loss in the company's
to continue as a smartphone operating system developer, a campaign that pits BB against deep pocket rivals like Apple, Google, and Microsoft Corp. (
Parts of BlackBerry may live on in Android and other platforms.
[Image Source: Despuesdegoogle]
The company's Board of Directors earlier this month announced
it was pursuing "strategic alternatives"
. That could involve a sale or a breakup of the company's business units. Outside of BBM, BlackBerry Enterprise Server (BES) is another part of BB that still is clinging to a strong chunk of business, even if it's less than beloved at times by enterprise clientele. Outside of that, BB's primary value appears to be confined to its intellectual property portfolio (which it's
already partially sold off
) and its manufacturing expertise surrounding its industry-leading physical smartphone keyboards.
If BB does split up its unlikely that BB10's software or devices will survive. While BB10 is in many ways an impressive mobile operating system, it fails to regain ground against Apple and Google's mature efforts. It even was recently passed by Microsoft's Windows Phone.
Customers appear to have more or less decided that BB10 is worthless amidst superior competitive offerings; likewise potential buyers will likely do the same as they look to scavenge the treasures amidst the BB scrap pile.
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RE: Crap Journalism!
8/28/2013 2:42:12 PM
Look, RIM blew it. And they blew it badly. Unfortunately, the leaders of the company lied consistently about their blowing it, and still are. This is what bothers me most. Look at the Heins quote he has here from May. Heins is telling us that BB10 is so strong and well supported that they can do this. The truth is that it's neither strong or well supported. This is a desperation move, as have been all of their other moves the past few years.
None of those moves have helped. This won't help either. It's hard to understand what they can do to keep this company afloat. And this is why they have reiterated what Heins stated last year about being willing to find a suitor for the company. They are so far down the rabbit hole, that soon they won't be able to see any sunlight from the entrance.
It's a shame this has happened, but it often does, to leaders that are so convinced that what they are doing is so much better, and that nothing else a competitor can do will change that. RIM waited too long. If they had this a year earlier, they would have had a chance. But that year was critical, as during it, many government agencies went from the Blackberry to the iPhone (mostly), and it's hardly likely that they will move back. The same thing is true of business.
A problem that Blackberry has now, is that companies and government don't want to rely, long term, on something that they feel uncomfortable about, because of the doubt that it will be around much longer. It's really a downward spiral, and I can't see a way out of it.
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
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