Skip to main content

Why we predicted RIM splitting back in May 2011

One of the latest rumors making its way around the blogsphere is that RIM is going to split into two businesses, one that will sell Blackberry devices and one that will sell the secure Blackberry messaging service.

The article reporting this rumor is sour on the idea, thinking that neither business can survive without the other.

At Grizzly Analytics, however, we've been predicting this split since May, 2011.  Moreover, we think it's a good idea.

What made us think that RIM is considering this? One indication was their acquisitions of Gist and Tungle in early 2011.  Each of these companies has technology for integrating contact and calendar data (respectively) across different devices. These acquisitions would make no sense unless RIM was targeting integration with other devices.

Another indication was comments by a RIM Vice President in January 2011 that RIM was working on a cloud version of their secure service, that can operate without positioning servers inside enterprises.  The VP also commented that they were considering offering their device management services on devices from other manufacturers.

Most of all, the bottom line in the market is that while enterprises trust Blackberry security more than any other device management or messaging system, executives are less and less willing to use Blackberries instead of iPhones.  And RIM has not yet convinced anyone that they can compete device-on-device with Apple or Samsung.

If RIM can deliver its secure device management and messaging, with enterprise-grade security, on iPhones and Android devices, they're likely to cement their position in the enterprise.  At that point, we see their service unit as a likely acquisition target, both by Apple (who's been trying for years to break into the enterprise) or by any number of others.

At the same time, their devices unit can probably keep a reasonable position as a niche-market unit.  They'll never regain their grandeur, but that grandeur is probably lost in any case.

Bottom line, splitting into two units might be a great way to cement their enterprise leadership in the era of the iPhone and Android.


Popular posts from this blog

33 Indoor Location Related Start-up Acquisitions

  Acquisitions Continue in the Indoor Location Industry; Grizzly Analytics Shows Price Growth at the High End and Continuity at the Low End New York, NY, February 22, 2021 - Despite the recent pandemic, M&A deals in the indoor location area have maintained a steady pace of 4-5 deals a year. At the high end of the spectrum, prices have increased to up to $400 Million for the highest priced recent deal and $165 Million for the second highest. At the lower end, many earlier stage companies have been acquired in the $2-3 Million range. A newly updated report from Grizzly Analytics gives prices and strategic details for 33 acquisitions in the indoor location area.  While the highest priced indoor location acquisitions have historically involved chip-based technologies, recent acquisitions have been more varied. “A few years ago the focus of indoor location M&A was all around pure localization technologies. The biggest deal to date is in fact for a chip-based localization ...

Adding real value to smartphone camera pictures

Most technology features follow a similar path, from imitation to improvement to transformation.  First they imitate something that came before, like telephones imitating the telegraphs of yesteryear.  Then they improve on them, like phones entering individual homes. Then they transform the entire endeavor, completely surpassing the previous technology, like phones automatically connecting people without operator involvement, which enabled society to communicate in ways that telegraph users never contemplated. Cellphone cameras are following a similar path.  At the beginning cellphone cameras were imitating digital cameras, adding the convenience of carrying only one device but basically doing the same as digital cameras did.  Then they improved on them, both with quality improvements and with the ability to share pictures wirelessly without wiring the phone to a computer.  The ability to instantly share and synchronize pictures from a phone is somewhat transf...

Sensor-fusion indoor location system in over 30 malls in Singapore

SingTel just deployed indoor mapping and navigation from Swedish start-up  SenionLab  in over 30 shopping malls in Singapore, with 20 more in planning, in the biggest single deployment we've seen yet of customized indoor location technology. The most significant aspect of this deployment is that this is one of the first commercial deployments of indoor location technology that uses a new technology approach called "sensor fusion," which uses sensors in smartphones (gyroscope, compass, accelerometer, ...) to track location by sensing the phone's movements. Most indoor location systems determine location by measuring the signals of nearby Wi-Fi hotspots or cellular antennas, but this risks looking choppy as the phone waits for the radio signals to change to detect the next place it is. Sensing motion using phone sensors makes the system work more smoothly, regardless of radio signal details.  (The SenionLab solution does use Wi-Fi signals as well, to compe...