As the wireless data market heats up, enterprise-focused Research In Motion Ltd. said it is poised to face the competition.
Competitors point out that while RIM currently dominates the market, its narrow, e-mail-centric focus is bound to become outdated. RIM said what is outdated is the view that the company still has a narrow, e-mail-centric focus.
RIM is changing with the times. Moreover, with its successful device line, a widespread enterprise server software platform and license-able services and applications, RIM has kept its stronghold on the enterprise space and may be in line to move into the consumer space. RIM’s licensing programs, including BlackBerry Connect and BlackBerry Built-In, could lead that charge.
The success of the BlackBerry Enterprise Server-“a corporate standard for wireless data,” according to RIM chief executive Jim Balsillie-led carriers and chief information officers to make BlackBerry applications standard on their networks. There was one caveat: They wanted device choice, a condition that led to RIM’s licensing programs.
Today, Samsung, Sony Ericsson Mobile Communications L.P., PalmSource, Microsoft Corp., Symbian, HTC, Siemens AG, Motorola Inc. and Nokia Corp. are involved in the BlackBerry Connect program, which allows manufacturers to extend the BlackBerry data experience to their devices by connecting to the BlackBerry Enterprise Server.
The BlackBerry Built-In program allows device manufacturers to incorporate BlackBerry software applications, like BlackBerry Email, BlackBerry Calendar and BlackBerry Browser, into their own mobile devices, in addition to supporting BlackBerry wireless services.
RIM is also in the midst of upgrading its enterprise server to version 4.0, which will include automatic wireless synchronization capabilities, launching Novell GroupWise compatibility, upgrading its prosumer application, preparing a Wi-Fi-capable BlackBerry device for market, and growing its carrier and channel partner relationships.
“This market is really starting to bust open,” said Balsillie.
RIM’s view of the market for wireless data and its role in that marketplace offer insight into the company’s success.
RIM views its devices as “wireless data terminals,” or server front-ends to packet data stores, where voice, if included at all, is just another packet application, as is e-mail, Web browsing, messaging, and music, Balsillie explained. “Does the phrase `phone’ really apply anymore?” Balsillie asked.
Wireless data terminals are more broad than cell phones, which are horizontally focused on voice capabilities, and more broad than personal computers, which also offer a distributed computing architecture, but not the constant connectivity wireless devices boast, Balsillie said.
The big question now is whether RIM can gain consumer customers.
“I think there’s a very decent chance,” said Balsillie, emphasizing RIM’s approach of partnering with carriers that can decide to incorporate consumer-friendly applications like messaging, multimedia, music and games, could indirectly give RIM leverage in the consumer space.
Another key entry point to the consumer space could be RIM’s play in the prosumer market, users Balsillie defines as business customers without information technology departments. Those users connect to their corporations via Internet service providers, which also cater heavily to consumers and could provide the links.
None of that is to say RIM will be unsuccessful without the consumer. The company plans to continue to put its expertise in the enterprise and prosumer space, simply acknowledging that higher-end consumers eventually could become part of its customer base, said Balsillie. And RIM plans to continue to focus on running BlackBerry applications on thumb-based data devices, which are inherently geared toward needs of workers.
As for the Blackberry device itself-it will continue to exist as a really good niche device, said Balsillie.
“We are definitely trying to create a really rich applications environment,” said Balsillie. “But we are not trying to be all things to all people as a device company.”
