One of the best ways for Microsoft to jump-start its lagging mobile business is to buy struggling BlackBerry. Why buy a mobile company quickly going south? There are plenty of reasons — here are the top six why Microsoft should pay up and take over BlackBerry.
Reason 1: Microsoft’s enterprise focus
Microsoft’s core business is in the enterprise — Windows, Office, servers and tools, Exchange, and more. BlackBerry’s core business is in the enterprise as well. But Microsoft has been hurt by the BYOD movement, because it allows iOS and Android devices to make their way into enterprises. BlackBerry is valued by enterprises for its secure networks and servers. The New York Times reports that “In its most recent quarterly report, BlackBerry reported having roughly 72 million users worldwide, most of whom were still generating monthly services fees by sending data over the company’s special closed network.” There’s clearly great synergy here for Microsoft.
Reason 2: increase market share
The latest figures from IDC show Windows Phone with a 3.7% worldwide market share, up from 3.1% a year ago. BlackBerry has 2.9% market share. Buying BlackBerry would give Microsoft a 6.6% market share. Given that it took Windows Phone a year to grow by only .6%, this would be a big increase. Over time, Microsoft would switch users from the BlackBerry to the Windows Phone platform, and grow Windows Phone that way, especially in enterprises.
Reason 3: hardware engineers
Steve Ballmer’s vision for Microsoft is to turn it into a devices-and-services company. Microsoft has not primarily been a hardware company up until now, and so it is not rich in hardware engineers. It takes a long time to recruit and hire them. Buying BlackBerry would immediately bring to Microsoft a sizable core of experienced mobile engineers and designers, who could work not just on smartphones but on other Microsoft devices.
Reason 4: increase intellectual property
The Times notes that “Analysts generally suggested that BlackBerry’s most attractive asset is its intellectual property, including some of its software and its various cellphone patents.” In today’s litigious tech world, patents can be used to harm competitors and get very serious licensing revenue from them. Microsoft uses its patent to extract licensing fees from many Android device makers. It’s not clear that BlackBerry has any patents that could be used in this way. But it’s certainly possible, and growing your patent war chest is always a good thing.
Reason 5: Smartcar strategy
One massive mobile market is currently up for grabs: Automobiles. There’s no doubt that all cars will soon become rolling networks and smart devices. No one dominates that market yet. Buying BlackBerry would give Microsoft a headstart on owning it. BlackBerry owns QNX Software Systems, which built the operating system that powers the BlackBerry 10. More important, though, is that the same operating system is being used by GE, Cisco, and notably General Motors. General Motors uses it for its OnStar service, as well as for its Audi and BMW lines.
The Times says that BlackBerry has plans to “use QNX’s automotive ties and its unique global data network to allow car companies to update vehicle software through wireless networks and to monitor vehicles’ mechanical state.” Microsoft could do that and go beyond it, looking to make Windows Phone or Windows the smartcar operating system.
Reason 6: cheapest cost
It’s clear that by itself, BlackBerry has no future. So the company can likely be bought at a bargain price, rather than at a premium. Microsoft is cash rich. It’s time to put that cash to good use, and BlackBerry would be a very good mobile investment at a reasonable cost.
- Six reasons Microsoft should buy BlackBerry (blogs.computerworld.com)
- Speed is the key: How Windows Phone jumped ahead of BlackBerry (zdnet.com)
- Report: BlackBerry Advisers Eyeing Microsoft (hispanicbusiness.com)
- Where Will BlackBerry’s American Tale End? (fool.com)
- BlackBerry’s biggest strength (news.yahoo.com)
- Verizon pushing Bing app to BlackBerry Storm (reviews.cnet.com)
- The Enemy of My Enemy is My Friend: Should Microsoft buy Blackberry? (mayo615.com)
I totally agree with this article; I wrote it in a previous article, the problem of Windows 8 is esstentially a wrong device. And this is why the PC market go down: the problem is not the Tablets market but a lack of innovative approach of PC manufacturers during the last 2 years. But it will change, for sure.
Read my article on it: http://worldofinnovations.net/2013/05/05/q1-2013-pc-down-14-between-1q13-1q12/
- Windows 8.1 ‘Transfer Settings’ Screenshot Leaked (microsoft-news.com)
- The ASUS Transformer Book Trio: Atom + Haswell, Android + Windows 8 (anandtech.com)
- Big surprise: Bill Gates thinks Windows 8 is great (reviews.cnet.com)
- Asus unveils Transformer Book Trio — a Windows 8 and Android hybrid (betanews.com)
The previous photo shows the TOP5 SmartPhone on Feb 2013: Samsung Galaxy S3, Nokia Lumia, iPhone 5, Google Nexus 4 and Motorola Droid.
1 main winner if we compare Feb 2012 & Feb 2013: Android with Samsung phones over 50% everywhere.
In American countries, the progress of Windows is not significant. Black Berry OS and Symbian are not representing anythink in 2013. In Mexico, the progress of Android in incredible from 25,9 to 55,8 in one year.
In Europe, there is 2 main winners. Of course Android with Samsung phones over 70% in Germany! But also Windows with Nokia phones more that 5% everywhere and more than 6,5% in GB and Germany. In Italy Windows is over than 10% with 13,1%. Symbian is nothing in Europe now. RIM is over 5% in GB and Germany.
- Android continues to grow as iOS and BlackBerry shrink (androidcommunity.com)
- Android And Windows Phone Gain, BlackBerry Loses In Smartphone OS Share According To Kantar (techcrunch.com)
- New Quad Core Android Smartphone from China Challenges Leaders Supremacy (prweb.com)
- Windows Phone Increases US Market Share Ahead Of BlackBerry (techweekeurope.co.uk)
The Windows of Opportunity (WOO) Project was inspired by psychological studies indicating car passengers often feel disconnected from their environment, GM asked the Bezalel students to turn car windows into interactive displays capable of stimulating awareness, nurturing curiosity and encouraging a stronger connection with the world outside the vehicle.
“Traditionally, the use of interactive displays in cars has been limited to the driver and front passenger, but we see an opportunity to provide a technology interface designed specifically for rear seat passengers,” said Tom Seder, GM R&D lab group manager for human-machine interface. “Advanced windows that are capable of responding to vehicle speed and location could augment real world views with interactive enhancements to provide entertainment and educational value.”
Since GM has no immediate plans to put interactive display windows into production vehicles, the R&D team gave free reign to the Bezalel students to create applications without concern whether they could be mass produced. Bezalel is Israel’s oldest institute of higher education and one of the more prestigious schools of its kind in the world.
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- GM planning to pilot next-gen EN-V in megacities (reviews.cnet.com)
Using the data from December & January, we get the following market share split by platform.
This projection is likely to be somewhat conservative for Android tablets. Display shipments in February are likely to be closer to January’s figures, as compared to December, which puts the iPad’s market share under even more pressure.
In addition to this, rising demand from emerging markets is likely to continue to boost Android tablet shipments. Meanwhile, Windows 8/RT tablets seem to be following in Windows Phone’s footsteps.
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- Android tablets projected to outsell iPad for first time in 2013 (bgr.com)
- 7-inch Android tablets to overtake iPad in Q1 2013, analyst says (androidauthority.com)
- Sales of Apple iPads to be overtaken by Android tablets (telegraph.co.uk)
- Android tablet sales to overtake Apple iPad for first time in 2013: Report (news.in.msn.com)
- Apple’s iPads to fall behind Android tablets this year: IDC (news.yahoo.com)
- BlackBerry has big plans for 2013; Includes tablet and phablet device (mobigyaan.com)