BlackBerry Acquires Competitor Good Technology For $425 Million

If you had any lingering doubts that BlackBerry’s days as a hardware-1st firm are more than , they’ve just been eliminated. But then once again that wasn’t necessarily a excellent place to be – Blackberry obviously dominated enterprise e mail with its corporate-friendly NOC architecture, and mobile leader Nokia was hot on its heels after its 2006 acquisition of Intellisync. NB the Motorola report also discloses $19m of revenues from the two disposals in Q1 (Very good was sold finish-Feb, Printrak sold end-Apr).

But then it got its second slice of luck – just as Great began to push (once again, no pun intended!) into the enterprise market it founds its greatest competitors RIM and Nokia becoming decimated by the onset of the iPhone. However although they remained tied to the inferior hardware and unable to supply credible enterprise email on iPhones, Great could. BlackBerry announced a definitive agreement to obtain Good Technology for $425M in cash.

The difference is that even though Blackberry’s e-mail services are only obtainable on its hardware, Excellent will give you clients which run on Android, iOS and Windows Telephone 7. This indicates as the end user you don’t require to worry about making certain compatibility/security with all these devices. Excellent has had powerful momentum with its core email/calender/browser app more than the final handful of years, particularly amongst banks.

Good’s second solution is its far more fascinating a single, an app platform called Very good Dynamics launched just over a year ago This takes the exact same infrastructure utilised for Very good for Enterprise, but exposes it to third party apps. In return Great receives each the direct economic benefits, and also the network effect of getting its service (hopefully) ahead of the go-to platform for mobile apps.

At the moment they look to be in the sweet spot of becoming larger than any other rapidly-moving startups (e.g. Enterpoid’s Divide platform or Android specialist 3LM ), and quicker-moving than any bigger established vendors (e.g. SAP’s Unwired platform – a clear competitor for Very good Dynamics – or Citrix ). We know that at the finish of 2008 Excellent Technologies was carried at a book value of roughly $300m (they paid $438m and took a write-down of $123m on the asset in 2008).