Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Counterparties: Today's Best Links
The $31 million bank whistleblower
A Missouri woman risked her career to blow the whistle on fraud in Citigroup's mortgage department, but was quite handsomely rewarded, Bloomberg Markets reports. Read more at Counterparties
Welcome to the era of the secret IPO
How we could end up in a global recession
Sign up for the Counterparties email!
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Seattle shooting "hero" threw stools at gunman: police
|
31 May 2012
What Are 'Bath Salts' And Are They Illegal?
30 May 2012
Court says marriage law discriminates against gay couples
31 May 2012
Justin Bieber suffers concussion in Paris
31 May 2012
San Diego eighth grader wins National Spelling Bee with "guetapens"
31 May 2012
Discussed
200
Romney’s birth certificate evokes his father’s controversy
153
Romney tells vets dangerous world demands powerful military
153
Obama honors Dylan, other ”heroes” for cultural impact
Watched
A look at the UK’s most beautiful face
Thu, May 10 2012
Cruise ship crunch
Sat, May 26 2012
Something does not compute with layoffs
Thu, May 31 2012
Analysis: RIM's new woes seen speeding loss of BlackBerry users
Tweet
Share this
Email
Print
Related News
Analysis: Even after hiring bankers, RIM running out of options
Wed, May 30 2012
Analysts skeptical as RIM reviews strategy
Wed, May 30 2012
Facebook shares plumb new depths, valuation questioned
Tue, May 29 2012
BlackBerry maker RIM sees operating loss, shares slump
Tue, May 29 2012
Instant View: RIM enlists JPMorgan, RBC in review, warns of loss
Tue, May 29 2012
Analysis & Opinion
RIM doesn’t need to remain Canadian
Leadership lessons from a Wall Street consultant
Related Topics
Tech »
Deals »
Global Deals Review: 2011 Q3 »
Global Deals Review: 2011 Q2 »
Global Deals Review »
Media »
A man walks out of the Blackberry maker's Research in Motion RIM campus in Waterloo April 18, 2012.
Credit: Reuters/Mark Blinch
By Nicola Leske and Jim Finkle
Fri Jun 1, 2012 12:07am EDT
(Reuters) - Research In Motion's appointment of bankers to advise on drastic options, including an outright sale of the BlackBerry maker, may only hasten moves by major customers to offer their employees smartphones produced by rivals.
An increasing number of top companies and government departments that were once devoted to the Blackberry are instead now giving some staff the option of using Apple Inc's iPhone or smartphones running off of Google Inc's Android-operating system.
There is now a real danger for RIM that such switching will gather pace and turn into a much bigger exodus of customers, mobile phone industry consultants and experts warned.
The uncertainty surrounding RIM's future, and the possibility of a sale, is "scary to an end user," said John Hering, chief executive of Lookout, one of the world's biggest providers of mobile security products.
Within 12 hours of RIM's announcement, Hering said, he heard from several corporate technology executives troubled by the news.
"RIM is looking at it as 'How can we maximize the value of an asset' as opposed to 'How can we solve problems for the customer?' That is making customers nervous," he said.
RIM told Reuters in a statement it had not noticed an increase in inquiries from customers after it disclosed the review.
"RIM is in regular communication with our corporate customers to share updates and to keep them apprised of our ongoing efforts to refocus the company and to continue meeting their needs," the statement said. "As such, we have noticed no measurable increase in the number of questions or concerns following (the) update."
On Tuesday, RIM said it had hired deal-making bankers from JPMorgan Chase and Royal Bank of Canada to help it do a far-reaching review of its business. The Canadian company also shocked investors by reporting it expected a fiscal first-quarter loss, and said it was looking at a significant number of job cuts. Sources have indicated it may cut as many as 6,500 of its 16,500 jobs.
The company's share price has collapsed in the past year, and it is now only valued at about $5.4 billion, down from $84 billion at its peak in 2008. Excluding its cash and the estimated value of its patents, RIM's device business and its 78 million subscribers around the world are in aggregate worth less than $1 billion to investors.
LOST CONFIDENCE
Retaining its customers' loyalty is a huge challenge.
"The organizations using multiple devices have lost confidence in BlackBerry as a platform for the long term," said Alex Bratton, CEO of Lextech Global Services, a company that creates mobile applications for companies.
He added that as "people are doing hardware refreshes they are going in another direction."
Fernando Alvarez, head of mobile solutions for IT services company Cap Gemini, said the company is rarely asked to do projects using the BlackBerry platform anymore.
The BlackBerry dominated the market for mobile email until the iPhone was introduced in 2007 but is now third in market share.
General Electric Co now says about one-third of the mobile devices it issues to employees are iPhones. Other big companies that have started to use a range of different devices include Amgen Inc, FedEx Corp, Caterpillar Inc and Cisco Systems Inc.
A spokesperson for the U.S. Department of Defense, one of RIM's biggest customers, declined to comment on RIM's strategic review or discuss any contingency plans if the company gets into further trouble.
Earlier this month, RIM announced that the Pentagon had cleared six new BlackBerry models for use on its networks, extending their long relationship.
The Pentagon has begun small pilot programs using other devices, according to Federal Computer Weekly, a publication that tracks U.S. government spending on technology. It estimates the U.S. military has 250,000 BlackBerrys, 5,000 iOS devices and 3,000 Android-run devices.
EMPLOYEE DEMAND
The trend away from RIM has been fueled partly by demand from workers who crave the usability of devices running Apple's iOS and Google's Android, and do not want to carry several smartphones. A massive network outage last October that meant millions of BlackBerry users lost use of email for many hours also pushed technology buyers to look at alternatives.
"If it were up to IT managers, BlackBerry would still be the device of choice, but with employees bringing their own devices there is no going back," said Dan Croft, CEO of Mission Critical Wireless.
RIM's advantages include what industry experts widely describe as superior security and device-management features that have made the BlackBerry appealing to corporate IT managers and a crucial tool for police, government and military use.
Apple and Google are adding new features in these areas with each new release of their software but have yet to catch up with RIM, said Dino Dai Zovi, a leading expert on mobile device security who is chief technology officer of consulting firm Trail of Bits.
Still, with companies such as Symantec Corp and SAP's Sybase division offering mobile device management software that secures, monitors and controls mobile devices, companies are no longer tethered to the BlackBerry for security reasons.
While those technologies are not yet as advanced as RIM's offerings, they are sufficient for securing and managing email for many corporate workers, security experts said.
Apple's iOS and Android are "ready for prime time" for all but the highest-risk users, Lookout's Hering said.
A company's ability to shift to other devices can sometimes depend on how much mobile equipment it has on its books. Throwing out those devices before they have depreciated in value could have big financial implications, according to Gary Curtis, who works with financial services companies in his role as chief technology strategist at outsourcing company Accenture.
But others say it would not be that difficult.
Lynden Tennison, the chief information officer of U.S. railroad Union Pacific Corp - which is still mainly a BlackBerry customer - said that he had a plan for a worst-case scenario:
"If RIM went away, was bought or went bankrupt what would we do? We could very easily transition to another provider," he said. If it happened overnight "we would be busy for a week or two provisioning phones, but it's not like it would put us in a serious world of hurt."
(Additional reporting by Sinead Carew, Lynn Adler, Phil Wahba in New York, Jim Wolf in Washington, Scott Malone in Boston and Alastair Sharp in Toronto.; Editing by Peter Lauria, Martin Howell)
Tech
Deals
Global Deals Review: 2011 Q3
Global Deals Review: 2011 Q2
Global Deals Review
Media
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.