Citron Research thinks Blackberry will capture the dominant position in the enterprise market for Mobile Device Management (MDM) solutions. Enterprise business and comparably sized organizations in the public, and not-for-profit sectors need MDM solutions to successfully, manage secure remote data communications between smart phones and tablets and internal networks and data sources.
In a research report titled BlackBerry: Why the Shorts and Analysts Have it Wrong
Citron looks at a $15 Target – Minimum Citron Research argues BlackBerry has been misunderstood by investment analysts and the financial news media. They also like the appointment of John Chen as the new CEO, and his stated intention to transform the company.
There can be little doubt of the depth of consumer interest in an effective MDM solution. Demand for tablet computers is strong. More low cost windows tablet computers are coming to market. At the same time, in April, 2014 Microsoft® will stop supporting the Windows XP® operating system. Some portion of today’s market for windows tablets can likely be attributed to enterprise customers replacing laptop Windows XP PCs. This portion looks to grow even further post April. So Enterprise IT organizations have a burning need for an effective MDM solution.
With regards to smartphones, the lower end of the market is broadening, while the capabilities of leading products in the category is increasing. Once again, Enterprise IT will look to leading MDM solutions to help them protect the internal users looking to communicate with internal networks with consumer grade android, windows, and iOS smart phones.
Citron’s presentation is certainly compelling, but conspicuously absent from the list of BlackBerry’s competitors for this business is IBM. One can convincingly argue IBM is more embedded into enterprise software markets than BlackBerry, and possesses the quality sales force required to service customers. On December 18, 2013, just 2 days prior to BlackBerry’s quarterly report, and Mr. Chen’s conference call, which Citron thinks “[a]ny serious investor in BlackBerry should read . . . ” (quoted from Citron Research’s report on BlackBerry. I’ve provided a link to the full report earlier in this blog post), IBM announced its acquisition of Fiberlink Communications and its MaaS360 MDM application.
A careful study of the landscape of the enterprise software market for MDM solutions should certainly include mention of offers from more appropriate competitors to BlackBerry under Mr. Chen — namely IBM, Microsoft, Oracle, SAP, Verizon and AT&T. Each of these businesses possesses the enterprise software sales teams and experience to make Blackberry’s transformation a bit harder to accomplish.
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