Posts Tagged ‘RIM’

RIM Reboots: New CEO, New Board, New Plan to License QNX Software

January 23rd, 2012

Blackberry maker Research In Motion had an awful 2011, losing three-quarters of its market value and further ground to competitors on Google, Apple and even Microsoft’s platform. But after founder/CEO Mike Lazaridis and co-CEO Jim Balsillie resisted public calls to change course or resign their posts for so long, now that they’ve done both, it’s still something of a surprise.

The formal announcement will come Monday, but it’s official, confirmed in an extended multi-party interview with Toronto’s The Globe and Mail: Lazaridis and Balsillie will resign as CEOs, making way for Thorsten Heins, currently RIM’s COO of Product Engineering.
It’s not uncommon for a COO or another top executive within a company to step in as acting or interim CEO while the board of directors searches for a replacement. But Heins isn’t talking like he’s an interim anything, and Lazaridis and Balsillie are framing Heins’ succession as an orderly and permanent transition, a passing of the torch from RIM’s founder to a new generation — more like Tim Cook replacing Steve Jobs at Apple than Tim Morse filling in between Carol Bartz and Scott Thompson at Yahoo.

Balsillie told The Wall Street Journal that the timing was right to transition to new leadership and that the co-CEOs had recommended the changes themselves to the board. According to the WSJ, board members and other executives confirmed that neither CEO was pushed out.

“In every successful company that’s developed by founders,” Lazaridis told The New York Times, “there comes a time when it enters a new phase of growth and it’s time for the founders to pass the baton to new management.” Lazaridis also told The Globe and Mail‘s Iain Marlow that he had found it difficult to relinquish control over the company he founded, but added, “the bigger mistake is waiting too long.”

Meanwhile, Heins was confident: RIM is “a fantastic growth story and it’s not coming to an end,” he told Marlow. “What you will see with me is rigour and flawless execution.”

Heins hasn’t been an especially high-profile executive at RIM. Like Lazaridis, he’s an engineer and product designer, responsible for RIM’s hardware and software. He’s been given credit for helping RIM’s Blackberry become popular in the developing world, one of the main growth areas for the company.

Both Heins and Lazaridis are closer to the engineering side of the business than Balsillie, who joined RIM as co-CEO in 1992 and was charged with corporate strategy, business development, marketing, sales and finance. RIM currently has no chief marketing officer, and Heins says one of his first tasks as CEO is to hire one to help rebuild the company’s brand.

Lazaridis and Balsillie will stay on with RIM in a nonoperational capacity as board directors. Director Barbara Stymiest, former director of the Toronto Stock Exchange, will become the board’s new chair, and major shareholder Prem Watsa will also join as a board director.

Heins offers continuity with RIM’s history, but also a chance to change elements of its strategy. For example, Heins emphatically says that he is open to licensing RIM’s new QNX operating system to other smartphone or tablet manufacturers. RIM had resisted this approach in the past, apart from very general statements. But several analysts have argued is the company’s best option to boost revenue and grow its platform.

The theory is that handset makers may be willing to incorporate RIM software partly to gain access to popular features like Blackberry Messenger and the company’s popular enterprise solutions, and partly to have an alternative to Google’s Android freed from pesky and expensive patent claims from the likes of Microsoft.

But it’s hard to say how popular a proposition that would be to manufacturers or customers until QNX actually ships on a smartphone — which won’t even happen on a Blackberry device until late this year.

The launch of the first Blackberry smartphones featuring QNX will be Heins’ first real test as CEO. Even though QNX’s acquisition, its flubbed launch on the Playbook and delayed launch on handsets were the consequence of decisions set in motion by RIM’s now ex-CEOs, by doubling down on QNX, Heins now owns that platform. That includes owning those decisions and their consequences from now on.

Source:http://www.wired.com/epicenter/2012/01/rim-co-ceos-step-down/

RIM to License BlackBerry Software to Samsung, HTC, Others

January 6th, 2012

Research In Motion is reportedly working toward a major transition that will see the company begin licensing its BlackBerry software to third-party vendors including Samsung and HTC.

In a recent research note, Jefferies & Company analyst Peter Misek wrote that his checks confirmed earlier reports that Mike Lazaridis and Jim Balsillie will soon be removed from their roles as co-chairmen. The analyst says current board member Barbara Stymiest is indeed the front-runner to replace the pair, and he calls her one of the top executives in Canada. ”We believe she will initiate a formal strategic review, possibly trim costs in the hardware business, and possibly announce additional partnerships,” Misek wrote.

The analyst sees Stymiest’s appointment as having little near-term impact on the state of RIM’s business, but he believes the firm is already working on a major transition that could be a huge boon for the company, Barron’sreports. Misek thinks RIM has already set in motion a plan that will see its software licensed to other top vendors including Samsung and HTC.

“We think some of this has already been started with RIM likely agreeing to license Blackberry 10 to Samsung, HTC, and possibly others,” the analyst wrote. “This would help create a critical mass for the ecosystem and maintain RIM’s monthly service revenue.” It is unclear exactly how companies like Samsung and HTC would use the software, or what components of RIM’s BlackBerry platform would be licensed.

See more tech stories on the FOX Business Technology homepage.

Misek went on to note that like the transition from Balsillie and Lazaridis to Stymiest as chairperson of the board, the move to license BlackBerry software will have more of an impact in the long term rather than the short term. “It puts more pressure on the hardware business in the short term,” he said in his note. “Longer term, it possibly gets people hooked on the RIM ecosystem and may in fact allow them to sell more BB 10 handsets

Source:http://www.foxbusiness.com/technology/2012/01/03/rim-to-license-blackberry-software-to-samsung-htc-others-report/

RIM delays new phone launch

December 16th, 2011

Research In Motion will not start selling phones with its new software platform until the “later part” of 2012, it has announced, as it took a $485 million (£312 million) inventory-related charge on its PlayBook tablet.

Net income in RIM’s third quarter ended 26 November dropped dramatically to $265 million, compared with $911 million in the same period last year. Revenue declined to $5.2 billion from $5.5 billion in the same quarter in 2010. RIM shipped 14.1 million phones during the quarter, up from 10.6 million in the second quarter this year.

Shipments of RIM’s PlayBook tablet continue to drop. The company shipped 150,000 during the quarter, compared with 200,000 in the second quarter this year. RIM has recently launched new promotional programs aimed at boosting sales, and those efforts have helped it work through most of its inventory, said Mike Lazaridis, co-CEO of RIM.

However, the increased sales from those promotions won’t be reflected until the fourth quarter. In the meantime, the company took a $485 million charge related to PlayBook inventory in the third quarter.

Despite those challenges, RIM remains committed to the tablet market, executives said. The market is in its infancy and it makes sense to be in both the smartphone and the tablet markets, Lazaridis said. In addition, RIM hopes that when it releases an update to the operating system, which will include native email and a player for running Android apps, sales will improve.

The company also took a $54 million charge related to the service outage it experienced during the quarter.

Once the predominant developer of smartphones used in enterprises, RIM has failed to keep up with new competition from Apple, Google and others. It is preparing an overhaul of the software that runs on its phones but must convince people to buy its current generation of phones until that new platform is released.

That is proving to be a challenge already. The company expects to ship between 11 million and 12 million phones in the fourth quarter, down from 14 million in the third. But RIM has now decided to push the launch of that new platform back.

While RIM previously hasn’t been specific about when it would launch the new phone platform, many observers had expected the phones to appear as early as the first quarter of 2012. Now RIM says it won’t ship until the “later part” of 2012 because the company has decided to use a more advanced chipset that will offer improved power efficiency. The chipsets won’t be available until the middle of the year, according to RIM.

In the meantime, RIM promised investors that it would aggressively work to cut costs. “I want to reiterate our commitment to completing this challenging transition. We’ll leave no stone unturned when evaluating the business,” Lazaridis said.

The company is looking at its supply chain, partnerships, licensing opportunities, organizational and management structure, and the number of products it releases for places to cut costs or improve performance. It is not looking at reducing headcount, however, they said.

Source:http://www.macworld.co.uk/apple-business/news/?newsid=3325644&pagtype=allchandate

New RIM security software a sign BlackBerry is over?

November 30th, 2011

RIM just announced a security platform that covers BlackBerry devices — but also devices running Android and iOS. On one hand, it’s a sign that IT managers seek BlackBerry’s renowned security. On the other hand, it’s a sign that RIM is giving up on competing with its functionally superior rivals.

“If you can’t beat them, join them,” wrote telecom analyst Jeff Kagan, in a note. “This looks like RIM’s attempt to remain relevant in a changing marketplace.”

What’s the change? That people aren’t buying BlackBerry handsets anymore, choosing instead phones that run an operating system powered by Google or Apple. RIM’s global sales have plummeted 58 percent in the past year, according to a recent report by Canalys, which said RIM is doing even worse than that in the United States. RIM’s U.S. market share fell from 24 percent this time last year, to just 9 percent now. Meanwhile, the BlackBerry PlayBook tablet has been a total flop.

The new software, called BlackBerry Mobile Fusion, sounds great: IT managers can juggle apps, settings, passwords and other software on phones running all three major operating systems. They can wipe the memory of lost or stolen phones. And the system can handle multiple devices per user. This last bit is a key benefit since a lot of people who were issued a BlackBerry by their company have gone out and bought a cooler phone — to the chagrin of the IT folks.

If RIM’s intent is to shift from hardware to software and services, like IBM did so successfully, then this may make sense. But it’s hard to ignore BlackBerry Mobile Fusion’s acknowledgment of the ascendancy of Android and iPhone, at the cost of RIM’s core business. RIM will also add other platforms such as Windows Phone if there’s a demand, though at the moment, the company is “not hearing” that demand.

BlackBerry Mobile Fusion “will help stem the tide of those companies that may have considered eliminating their BlackBerry Enterprise Servers but it won’t help sell more phones,” Gartner analyst Phillip Redman told Reuters. “That’s what they really need to do.”

RIM discussed the software in a press conference, but Alan Panezic, RIM’s VP of enterprise product management and marketing, did not answer any questions (including our own) about how this changes BlackBerry’s competitive stance against Android and iOS.

Source:http://technolog.msnbc.msn.com/_news/2011/11/29/9091786-new-rim-security-software-a-sign-blackberry-is-over

BlackBerry maker RIM to offer security features on iPhone, Androids with Mobile Fusion software

November 30th, 2011

BlackBerry maker Research In Motion is seeking to cash in as companies switch to rival smartphones with a new tool that offers some of its important security features for sexier devices like the iPhone.

The company said on Tuesday that it will launch its new Mobile Fusion device management software in the first quarter, allowing corporate IT staff to set and monitor rules for passwords, apps and software on a range of devices, including Apple’s iPad and iPhone, and smartphones using Google’s Android operating system.

A company can remotely lock or wipe a lost or stolen device, a key selling point for security-conscious corporations who may have been wary of shifting away from the BlackBerry.

“What our enterprise customers are looking for, and the opportunity for us, is to become the de facto platform,” RIM’s vice-president for enterprise product management, Alan Panezic, told Reuters in an interview ahead of the announcement.

“We will take full advantage of whatever security capabilities are provided by the core operating system. We’re not going to hold that back in any way, shape or form.”

RIM’s BlackBerry was for years the preferred device for businesses and government agencies, who treasured its encrypted data and distributed the device to millions of workers needing secure, round-the-clock email access.

But many workers now prefer using their own Apple and Android-powered devices to access corporate emails, raising security questions for corporations that RIM hopes to address with the new software.

Mobile Fusion will sit next to existing BlackBerry Enterprise Servers (BES) behind corporate firewalls.

Panezic said the software will manage RIM’s PlayBook independently from a BlackBerry after the tablet – which has yet to gain traction with either business or consumer clients – receives a long-awaiting software upgrade, due in February.

He declined to give any pricing details for the Fusion service, but said it would be “competitive” with rivals.

“It will help stem the tide of those companies that may have considered eliminating their BES but it won’t help sell more phones,” said Gartner analyst Phillip Redman. “That’s what they really need to do.”

The new software follows on from RIM’s May acquisition of device management company Ubitexx, which RIM announced in May.

Smaller companies such as Good Technology, MobileIron and BoxTone already offer device management as companies fret about leakage of sensitive commercial information.

“This will definitely rattle some cages” among smaller companies, filling a niche by securing and managing iPhones and other non-BlackBerry devices for corporations, Forrester analyst Christian Kane said.

Panezic said customers had requested a solution to handle Apple and Android devices, but RIM would consider adding support for other systems, such as Microsoft’s Windows Phone, if there was enough demand.

RIM shares closed 3 percent higher at $16.48 on Nasdaq on Monday. They have fallen more than 70 percent this year.

Source:http://economictimes.indiatimes.com/tech/software/blackberry-maker-rim-to-offer-security-features-on-iphone-androids-with-mobile-fusion-software/articleshow/10915085.cms

RIM Delays BlackBerry PlayBook Software Upgrade to February

October 27th, 2011

Research In Motion Ltd. said a software upgrade for the BlackBerry PlayBook that’s expected to include dedicated e-mail won’t come until February, missing holiday sales as RIM tries to revive demand for the tablet.

The PlayBook OS 2.0 upgrade won’t have BlackBerry Messenger, the free instant-messaging service that has fueled sales outside North America, the Waterloo, Ontario-based company said late yesterday in a blog. Messenger will be in a later upgrade, RIM said.

RIM is counting on the new QNX software that’s used for PlayBook and will power future BlackBerry phones to encourage programmers to build more applications for its devices. The company’s phones have lost market share to Apple Inc.’s iPhone and handsets based on Google Inc.’s Android software, which offer a wider range of apps. That drop led to investor demands for RIM to shake up its strategy and management.

“This represents another execution stumble given the company set expectations for an earlier delivery,” RBC Capital Markets analyst Mike Abramsky wrote in a note today. The Toronto-based analyst rates RIM shares “sector perform.”

Shortly after RIM put the PlayBook on sale in April, it promised dedicated e-mail would come in an update this summer. Co-Chief Executive Officer Mike Lazaridis said in September that the upgrade would be demonstrated at last week’s BlackBerry developer conference and released “thereafter,” causing speculation that it would arrive in time for the holiday shopping season to spur PlayBook sales.

Shipments Decline

The tablet’s shipments dropped by more than half last quarter following criticisms of its e-mail shortcomings and lack of apps. Deliveries to retailers such as Best Buy Co. fell to 200,000 from 500,000 in the previous quarter as Apple shipped 9.25 million of its market-leading iPad.

RIM fell 7 percent to $20.72 at 4 p.m. in New York. The shares have declined 64 percent this year.

Today’s announcement “sustains low investor sentiment regarding the company’s ability to deliver competitive software.

Source:http://www.businessweek.com/news/2011-10-26/rim-delays-blackberry-playbook-software-upgrade-to-february.html

RIM’s PlayBook software unit QMX shifts into gear

January 5th, 2011

QNX Software, the system Research In Motion will use to power its PlayBook tablet and future BlackBerry smartphones, may outshine its parent this week as it touts vehicles with the productivity of an office.

QNX is pursuing a long-standing passion for cars even as it draws attention over whether its presence under the PlayBook’s hood improves RIM’s chances versus Apple’s iPad and a slew of contenders vying for attention at the Consumer Electronics Show in Las Vegas.

It is making a play for the connected car — and a particularly high-end car at that — offering email direct to the in-dash display of the 2011 Z4 Roadster from BMW.

For safety, you cannot cleanse your inbox by yourself as you drive; instead the system reads them to you. When stationary, more functions are allowed.

“The content of the electronics in vehicles are growing at such an exponential rate,” said Andrew Poliak, head of business development for automotive applications at QNX, which RIM bought from Harman International. “The quantity of software we are putting in the car is increasing dramatically.”

QNX, whose software underpins systems in more than 200 vehicle models from the likes of Ford, General Motors, Toyota, Nissan and Hyundai, is eager to push up the food chain from a pure operating system provider.

“We are providing more of those upper layers of the front-end, using Flash or HTML5,” and offering a media player, Poliak said, stressing that carmakers still had plenty of room to set themselves apart.

BMW, which has a long history of working with QNX, will be demonstrating the upgrade to its in-car system at the desert gizmo show. In the more affordable price range, Toyota unveiled its QNX-powered Entune system, which links a car-owner’s mobile phone to their dashboard display.

Automakers, recovering from a slump, are eager to cram the latest consumer gadgetry into their vehicles to lure drivers addicted to Twitter feeds, Facebook status updates or in need of a map or a review and directions to nearby restaurants.

WELCOME TO ANOTHER WORLD

RIM bought QNX from Harman for C$200 million in a deal completed in April. Almost a year later it is about to step into a raging battle for smartphone and tablet operating system supremacy.

To one side sits Apple’s iOS on the iPhone and iPad, a sleek interface aided by the iTunes platform for buying, renting and organizing media files.

On the other sits Google’s Android system, offered free to device makers, many of whom jumped eagerly into its arms.

QNX’s lineage, which RIM’s boasts is a strength, causes some concern for analyst Shaw Wu at Kaufman Bros, who has engaged in a dual with RIM in the last week over his charge the PlayBook battery is sub-par.

“From my understanding they are furiously working on fixing these problems,” Wu said. “It’s not going to be easy because they are using an OS that wasn’t designed for mobile.”

While loathe to comment directly on the concerns on the PlayBook’s battery life, Poliak said QNX’s strength was an ability to scale up or down depending on need.

“We have systems running full infotainment systems on very low-end ARM 9 processors,” he said, noting that QNX took steps to ensure its systems running in electric cars such as GM’s Chevrolet Volt did not drain precious resources that would limit the driving range of the vehicle.

“When you go to an electric vehicle, the dynamics change dramatically because every ounce of current drain is effectively range,” he said.

Poliak said QNX expects to announce its presence in two more electric vehicle platforms from major suppliers in 2011.

Source:http://www.reuters.com/article/idUSTRE7044WT20110105

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