The IT Nerd

After deep sixing all in house development of BlackBerry devices last week, you knew that BlackBerry would have explain this decision. Thus I was not surprised that a blog post from BlackBerry CEO John Chen has appeared to put some spin on this. In it he says:

Licensing the BlackBerry device software experience allows us to leverage our core strengths to provide secure, connected, and inherently mobile solutions. It also allows us to expand the mobility choices available to our customers by bringing BlackBerry security and productivity applications to a wider audience across multiple platforms and devices.

That of course assumes that there are companies who want to jump in with both feet. So far there’s only one. Could there be more in the pipeline? Who knows? He also said this:

A key element of our strategy is continual development of our Mobility Solutions software products and services roadmap, including the upcoming BB 10.3.3 release, continued commitment to rapid software updates and feature development for our secure Android software platform, and continued repairs and support of in-market BlackBerry devices.

So if you are one of the few people who have a BlackBerry device, you will not be abandoned. At least, not today. Tomorrow however is a different story.

You can assume that this is not the end of this story. Not by a long shot.

I’ve had 24 hours or so to absorb all the news that came out of BlackBerry’s quarterly earnings statement yesterday. And it seems to me that BlackBerry might be positioning itself for a sale. Why do I feel that way? Here’s my logic. There are two key points in my mind:

• With the move to not make its own hardware anymore, BlackBerry is pretty stripped down. They have a pile of patents, QNX which is used in a lot of places including car infotainment systems, BBM which was spun off as a separate entity last month, and their global infrastructure. Nothing is really left that would be a drag on earnings. At least in theory. Thus making all of this valuable in whole or in parts to the right buyer.
• Something that most people missed yesterday is the fact that BlackBerry has a new CFO. Steven Capelli is the guy in question and he brings 25 years of executive experience in the software and technology industry with a strong track record for driving profitable growth and increased operational efficiencies across business and corporate functions. The thing is, he’s never been a CFO which is kind of weird. He also has worked at Pyramid Technology Corporation and Sybase which means he’s buddies with CEO John Chen who has worked with both companies. But the key thing is that both Pyramid and Sybase were eventually bought by other companies while both men were working for said companies. Thus one has to wonder if this is a case of history repeating itself.

While I do think that the short term goal is to get BlackBerry back to profitability, I think that BlackBerry CEO John Chen will not hesitate to pull the trigger on a sale of the company. It’s clear that he is aligning the company for that to be an option. The only question in my mind is when might that trigger be pulled.

From the “It’s about time” department comes this announcement from BlackBerry they plan to end all internal hardware development. Meaning that they won’t be designing smartphones anymore. Instead, their partners will develop hardware. This fact was taken from their Q2 results [Warning: PDF] that came out today:

“We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold,” said John Chen, Executive Chairman and CEO, BlackBerry. “In Q2, we more than doubled our software revenue year over year and delivered the highest gross margin in the company’s history. We also completed initial shipments of BlackBerry Radar, an end-to end asset tracking system, and signed a strategic licensing agreement to drive global growth in our BBM consumer business.”

“Our new Mobility Solutions strategy is showing signs of momentum, including our first major device software licensing agreement with a telecom joint venture in Indonesia. Under this strategy, we are focusing on software development, including security and applications. The company plans to end all internal hardware development and will outsource that function to partners. This allows us to reduce capital requirements and enhance return on invested capital,” continued Chen.

That ties into this press release that also came out today:

BB Merah Putih will source, distribute and promote BlackBerry-branded devices that use BlackBerry’s secure Android software and applications. BB Merah Putih will have full access to the BlackBerry experience, which includes the trusted BlackBerry for Android secure software, for production of new devices in Indonesia. The joint venture was created in support of the Indonesian Government’s efforts to promote the development, manufacturing and creation of locally sourced products, while also increasing the number of value-added LTE smartphones available and sold in the country. It is being led by PT Tiphone Mobile Indonesia Tbk, a leading telecommunication company with the largest distribution network in Indonesia. PT Tiphone is an affiliate of PT Telekomunikasi Indonesia Tbk, which is the largest carrier in Indonesia. The JV and its affiliates account for nearly half of the total Indonesian mobile market.

At this time you have to wonder what Jim Balsillie and Mike Lazaridis are thinking as those two built this business on both hardware and software. I will say that what Chen is doing is likely the right decision and is long overdue. But those two gentlemen may have different feelings on that.

But I digress.

Seeing as this info came out as part of their earnings report, I suppose I should mention that. The company had a $372 million USD net loss in the three months ended Aug. 31, equivalent to 71 cents per share, but broke even after excluding certain items. Revenue was $334 million USD or $352 million USD after adjustments. That was below analyst estimates of $391.75 million USD. Read into that what you will.

BlackBerry has announce the launch of a software licensing program for its Mobility Solutions business by introducing the BlackBerry Hub+ for Android. A suite of BlackBerry applications, BlackBerry Hub+ makes productivity and communication on Android 6.0 Marshmallow smartphones effortless.

BlackBerry’s Mobility Solutions unit manages the BlackBerry smartphone business and development of device software offerings that includes maximizing the best of BlackBerry 10 software features and making them accessible on other platforms.  

BlackBerry Hub+ for Android is a suite of applications that includes the BlackBerry Hub, calendar, contacts, notes, tasks, device search, launcher and password keeper applications for Android smartphones.

Users can download a free trial from Google Play and access BlackBerry Hub+ from any Android device running 6.0 Marshmallow. The trial includes a suite of applications, including the BlackBerry Hub, calendar and password keeper. After a 30-day trial, users can continue using the apps for free with an ad-based experience, or subscribe to the entire suite of apps for 99 cents a month, which will include additional features: contacts, tasks, device search, notes and launcher. Additionally, users can choose to download the full suite from Google Play or just pick their favorite apps.

For users on BlackBerry 10, PRIV and DTEK50 all of these apps come fully integrated for a seamless out of the box experience.

 Key features of the BlackBerry Hub+ include:

Hub: A unified inbox that allows you to:

o   compose email messages and social posts

o   respond directly to messages and calendar invitations

o   snooze items so that you can view them at a later date, time or location

o   quickly select recipients for email messages using suggested contacts

o   file email messages and manage all your folders

o   search for messages or contacts saved directly on your device or on the email server

Calendar: View and respond to meeting invitations directly from the BlackBerry Hub. When you create or change events, you can avoid double bookings by viewing when you’re busy. Using the “Join Now” feature, you can instantly dial into your meetings directly from your event reminder. And with Google Now™ voice commands, booking meetings has never been easier.

Password Keeper: Stores all your passwords, log in information and important records safe in one highly secure spot that is encrypted with a password of your choice. 

Contacts: Stores all your contact info in one location for convenient management. You can interact with your contacts using a variety of methods such as phone calls, text and email messages, or calendar events directly from the Contacts app.  You can also create and manage contact groups.

Tasks: Increase your efficiency at work by creating tasks, setting due dates and reminders to help you stay focused and meet your deadlines.

Device Search: Easily find a contact, a meeting, a file, an email, a song by searching in one universal search bar.

Notes: Keep track of to-do lists or your bucket list, notes for a presentation, action items from a meeting, gift ideas for your family or groceries you need to pick up after work.

Launcher: Turn multi-step actions like sending an email or calling a friend into a one-click task. BlackBerry Launcher lets you organize apps, widgets and shortcuts on customized home screen panels for instant access. 

For more information on BlackBerry Hub+, go to BlackBerry.com. Follow all updates to BlackBerry Hub+ on the Inside BlackBerry blog here.

BlackBerry in the last hour has announced a new smartphone. Called the DTEK50, it is billed as the world’s most secure Android smartphone. 

BlackBerry can make this claim because the DTEK50 encrypts all users’ information, including business critical data and personal data such as pictures, videos and contacts. Malware protection is also built-in along with back-up, wipe and restore capabilities. Additional software provides users with visibility and control over which apps get access to personal info or device features such as the microphone or camera. BlackBerry also delivers security patches on the same day that Google publicly releases information about them, while many popular Android smartphones put the users’ private information at risk of being hacked due to slow security updates.

Key features of the DTEK50 include:

• Rapid Security Patching: BlackBerry has a record of being the quickest to deliver security patches, setting the bar in incident response and patch management to protect your device from malicious threats.
• DTEK by BlackBerry App: Enables users to automatically monitor their OS and apps to know when their privacy could be at risk and to take action to improve it. The DTEK app also tracks applications and notifies you when someone is: taking pictures or videos without your knowledge, turning your microphone on, sending a text message, or accessing your contacts or location.
• Hardware Root of Trust: BlackBerry’s manufacturing process uses a proprietary technique that adds security from the start, allowing for the tracking, verification and provisioning of DTEK50.
• Secure Boot Process: Starting with the root of trust, each stage of DTEK50’s secure boot chain must first verify that the next component is fully intact before proceeding, ensuring your device has not been tampered with since the last restart.
• Android OS hardening: BlackBerry provides additional security patches, improved random number, address space generation and certificate pinning to make it more difficult for attackers to target a device by scrambling application/system memory.
• FIPS 140-2 Compliant Full Disk Encryption: Protects your private information, like pictures or bank information, from being stolen if you were to lose your phone.
• Android for Work and Google Play for Work: Allows for fast, simple and secure integration with an enterprise environment as well as easy access to numerous rich business and IT-managed apps.
• Full Enterprise Mobility Management Support: DTEK50 supports BlackBerry’s powerful suite of EMM applications and secure productivity solutions, including: WatchDox by BlackBerry for secure file-sharing, Good Work for business-class email and collaboration tools, Strong Authentication by BlackBerry as a VPN solution, SecuSUITE for Enterprise for secure voice and instant messaging communication, BBM Protected for encrypted messaging and BES12 for secure cross-platform management.
• BlackBerry Intelligent Keyboard: DTEK50 has a smart keyboard designed to learn from users and increase typing accuracy and speed. It provides word suggestions as you type and includes up to three languages, letting you flick them into place for faster conversations.
• BlackBerry Hub: This unified inbox is an irreplaceable tool for consolidating all of your messages in one place – whether it’s email, calendar, social or phone calls.
• Customizable BlackBerry Convenience Key: With the press of a button, the Convenience Key provides quick access to your most used applications and more.
• Stunning Screen: DTEK50 has a 5.2” full HD display, capable of displaying 16 million colors. The screen is made of scratch-resistant glass and features a specialized oleophobic coating to protect against smudges and fingerprints.
• Expandable Memory: With support for micro SD cards up to two TB, DTEK50 provides the flexibility to add affordable and hot-swappable memory to download, install, capture and share as your needs evolve.
• Dazzling Camera: DTEK50 is engineered to deliver professional-looking photos with an 8MP front facing camera and a 13MP auto-focus rear camera. Plus, features like Phase Detection Auto Focus and a dual-tone LED flash are designed to help the camera focus instantly and accurately for a blur-free, realistic looking photos, even in low light.

The DTEK50 is available to pre-order from ShopBlackBerry.com in the US, Canada, UK, France, Germany, Spain, Italy and The Netherlands for $299 USD. DTEK50 will be available in a number of channels around the world, including more than 40 partners from electronics stores, carriers, VARs and distributors. This includes Rogers, Bell, TELUS, WIND, Videotron and SaskTel among others in Canada. In the U.S., DTEK50 will initially be available in Best Buy, B&H and Amazon. Availability of DTEK50 in additional global channels and countries will be announced in the coming weeks.

For a limited time, customers who pre-order a DTEK50 on ShopBlackBerry.com only will receive a complimentary BlackBerry Mobile Power Pack, a high-capacity portable charger worth $59.99 USD ($69.99 CDN, €59.99 and £54.99) that powers all your compatible mobile devices to maximize your productivity and play time. This offer expires on August 8th at 11:59 pm PST.

Here’s one that will leave you scratching your head. BlackBerry CEO John Chen said he is “disturbed” by Apple’s tough approach to encryption and user privacy, warning that the firm’s attitude is harmful to society:

Chen remarked: “We are indeed in a dark place when companies put their reputations above the greater good.”

Chen was quizzed about his opinion on government requests for user data during BlackBerry’s Security Summit in New York this week, and couldn’t help mouthing off about the situation.

“One of our competitors, we call it ‘the other fruit company’, has an attitude that it doesn’t matter how much it might hurt society, they’re not going to help,” he said.

“I found that disturbing as a citizen. I think BlackBerry, like any company, should have a basic civil responsibility. If the world is in danger, we should be able to help out.”

Well, that’s a wee bit bizarre seeing as BlackBerry has been accused of handing out data to anyone who asks like a gangster rapper throwing money in a rap video. But they have an answer for that concern:

This doesn’t mean that BlackBerry is handing out your information willy nilly, though, and Chen pointed out that a lot of “nonsense” has been reported about the company and its approach to such situations. 

“Of course, there need to be clear guidelines. The guidelines we’ve adopted require legal assets. A subpoena for certain data. But if you have the data, you should give it to them,” he said. 

“There’s some complete nonsense about what we can and can’t do. People are mad at us that we let the government have the data. It’s absolute garbage. We can’t do that.”

I would love to understand the motivations of Chen behind these remarks. It’s almost as if he’s trying to make BlackBerry appeal to the government types out there in some strange way. If that isn’t the reason behind it, then I don’t get it.

BlackBerry had a lot of news that came out at the BlackBerry Security Summit. Here’s a brief overview of each news item:

BlackBerry and AppDome Partnership: BlackBerry and AppDome partner to combine Good Dynamics Secure Mobility into mobile apps. Details are in the release here.

BlackBerry and U.S. DoD Approval: BlackBerry receives approval from the DoD for its multi-OS EMM platform BES12 and BlackBerry OS 10.3.2. Details are in the release here.

BlackBerry and Good Enable Symphony Collaboration: BlackBerry and Symphony Communication services make its Symphony IOS application available via the Good Dynamics Secure Mobility Platform. Details are in the release here.

BlackBerry Mobile Security Report: BlackBerry conducts a new global research initiative that highlights the security challenges and vulnerabilities that persist in mobile communications today. Details are in the release here.

AtHoc and US Coast Guard: BlackBerry’s AtHoc division expands its relationship with the United States Coast Guard to extend capabilities and functionality of the Coast Guard’s award-winning Alert Warning System (AWS) 2.0. Details are in the release here.

AtHoc and US Senate: BlackBerry’s AtHoc division receives a multi-million dollar order from the U.S. Senate Sergeant at Arms Office to power the Sergeant at Arms’ Joint Emergency Mass Notification Systems (JEMNS). Details are in the release here.

QNX and Tubitak Locomotive: QNX Software Systems Limited announces the Scientific and Technological Research Council of Turkey (TÜBİTAK)-Marmara Research Center (MRC) selects the QNX Neutrino Realtime OS as the software platform for its new E1000 electric locomotive. Details are in the release here.

That’s quite a bit of news. I am sure that more announcements are coming soon from BlackBerry so stay tuned.

BlackBerry is making summer a whole lot better by offering amazing deals on all BlackBerry accessories.

From now through to Monday, July 25 all BlackBerry accessories purchased on ShopBlackBerry are available at 40 per cent off. Additionally, all North American customers get free standard ground shipping when they spend over $75 on any ShopBlackBerry purchase.

The complete details on these promotions can be found via Inside BlackBerry.

BlackBerry has announced that it will no longer manufacture the BlackBerry Classic. That is sure to send BlackBerry fans who love this particular BlackBerry which is a throwback to the days when BlackBerry ruled the world into the streets weeping. Here’s why:

For many years, Classic (and its BBOS predecessors) has been in our portfolio. It has been an incredible workhorse device for customers, exceeding all expectations. But, the Classic has long surpassed the average lifespan for a smartphone in today’s market. We are ready for this change so we can give our customers something better – entrenched in our legacy in security and pedigree in making the most productive smartphones.

You’ll still be able to get one or two updates for this smartphone. But don’t expect much beyond that. According to BlackBerry, they are looking towards “state of the art devices”…. Whatever that means. But I guess it means the ones that I told you about yesterday. Who knows for sure. The blog post that this news appeared in closes with this:

I’m excited for what’s to come and looking forward to giving you a new and better experience.

That of course is built on the assumption that anyone still wants their devices.