Opinion

The Great Debate

What we learned from the BlackBerry era

BlackBerry changed the world. It made wireless email a killer app that every salesperson and traveling executive absolutely needed to have to get their work done. It gave us devices with batteries that lasted a full week, connectivity that made email feel real-time even over very slow networks, and a user experience that everyone LOVED. And, for IT departments, BlackBerry established a standard of security that protected even the most sensitive information with comprehensive policy support from a central management console.

Great email and great security were the hallmarks of the BlackBerry solution and no one else in the first decade of this millennium even came close to matching them. The term “Crackberry” became so popular to describe the addictive nature of the service that it was selected as the 2006 Word-of-the-Year by Webster’s New World College Dictionary.

But the world changed.

Today, there is no shortage of pundits dissecting BlackBerry’s decline. My goal, however, is to step back and understand the broader implications of the BlackBerry story. Every CIO faces a tactical issue today of how and when to migrate from BlackBerry, but the strategy lessons and corresponding challenges are deeper and further reaching.

Lesson 1: The enterprise smartphone is dead.

Consumerization has won. If a smartphone (or tablet) is not successful in the consumer market, it will also not be successful in the enterprise market. If your mobile device vendor isn’t doing well with consumers, then that vendor will not be financially viable in the long term, because the economics of mobile device production and distribution are based on scale. Also, every smartphone in the workplace is a mixed-use device, regardless of who owns it or what IT policy has been set. Employees don’t want multiple phones, so they will use theirs for both personal and business use. That means the smartphone needs to provide a consumer-grade experience, and any “enterprise” device that does not do so will not be used for work either.

Lesson 2: The NOC does not rock.

From 2000 to 2010, the network operations center (NOC) model of wireless email was the enterprise standard. BlackBerry, then called Research in Motion, ran a NOC through which all corporate email traffic flowed. When external wireless networks were highly unreliable, the NOC delivery mechanism and proprietary BlackBerry protocol were necessary to provide push email, secure transmission, and measurable service quality. However, the NOC also created a single point of failure outside the control of the enterprise. As wireless networks improved and Microsoft’s ActiveSync became the standard protocol for push email, the value of the NOC diminished. Because of the current financial turmoil around the company, the BlackBerry NOC has arguably now become a liability for high security organizations because it is not clear what vendor or country will eventually control this critical component and the data that flows through it. Forbes even argued recently that the foreign bidding for BlackBerry may have the hidden motive of reducing customer confidence in the company.

from Commentaries:

Humbled giants eye business phone market

Nokia e71LONDON, Aug 13 (Reuters) - Once they were warriors battling one another on the digital battlefield. Nowadays, Microsoft and Nokia are worriers, huddling together for comfort.

The world's top phone and software companies need each other to compete with Apple, Google and Blackberry-maker Research in Motion (RIM), whose products increasingly define what users expect from phones and charge premium prices in consequence.

In the market for so-called "smartphones", Deutsche Bank estimates Apple and RIM now take home more than half of all profits, despite producing less than a third of high-end mobile phones. Nokia held a 45 percent share of the smartphone market in June, according to Gartner Inc. (Table 2 in Gartner release)

BlackBerry’s biggest rival may be itself

Eric Auchard– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Research in Motion officials do their best not to laugh when asked if they fear the rise of a BlackBerry-killer, some theoretical device that does everything its coveted e-mail phone does, only better.

But BlackBerry’s biggest threat may come from itself. As the company’s latest quarterly results suggest, there is a gulf between its pricey corporate phones and price-sensitive consumer models that are cutting into margins.

  •