As I wrote earlier in this blog, Blackberry’s recent promotion of free Blackberry Enterprise Service 10 (BES10) to anyone willing to try the product, did not seem fitting for a leader in the enterprise Mobile Device Management (MDM) market. I based my point on some information shared, publicly, by Gartner, during a recent webinar on the enterprise Bring Your Own Device (BYOD) trend. The information reported on a willingness on the part of a substantial majority of survey respondents from enterprise businesses to invest in an MDM solution.
My reasoning amounted to questioning why Blackberry would give BES10, which is an MDM solution, away for free if approximately 80% of the enterprise market plans on buying and implementing a solution. Based on this giveaway, I concluded Blackberry has faced some substantial obstacles in its effort to convince enterprise business to standardize on its MDM offer.
This apparent setback was confirmed, recently, when Gartner published its Magic Quadrant for Mobile Device Management Software. BlackBerry is included in the lower left square of the Magic Quadrant — as one of the “Niche Players” in the market.
This result is, in my opinion, an important signal of some problems in the strategy John C. Chen, BlackBerry’s CEO presented to the analyst community back in December, 2013. Mr. Chen notified the analyst community of his intention to transform BlackBerry into an enterprise software vendor, while, at the same time, lowering the company’s exposure to the mobile smart phone manufacturing business, which exhibits the characteristics of a pure commodity market.
If BES10 can do no better than achieve a slot as a “Niche Player” in the enterprise MDM market, then BlackBerry’s giveaway strategy makes sense. At least Mr. Chen should achieve wider awareness of what BlackBerry offers as a solution for this market as a direct result of this very aggressive tactic. But it will certainly be difficult to convert free users into paid customers at some later date.
It would be useful to learn more about how Gartner reached a decision to include BlackBerry in this lower left square of the Magic Quadrant, directly opposed to the “Leaders” square, at the top right.
Disclaimer: I recently closed a long position in BlackBerry. I am not affiliated with Gartner, Inc.
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