Abandoning the HSS-RIM

I was recently reading an article from the financial post that stated 12,635 US government employees next phone will be an iPhone rather than a Blackberry thanks to the General Services Administration which procures devices for the government. This comes right after Halliburton announced that 4,500 of its employees would be switching as well.

This is not entirely unexpected after the years of missteps by RIM, it is becoming a lot harder to have faith that they are ever going to do anything about it. Couple this with the 'consumerization of IT', where most people and some companies are willing to forgo a stable and secure e-mail system for one that has new slick hardware and a big repository of apps to select from. I actually think that this is just the tip of the iceburg when it comes to people moving off of RIM to other devices, and here why:


People will bypass enterprise security for features:

Most enterprises around the world have the blackberry for 2 reasons, security and reliability. This more or less means that if you are an enterprise employee in 2012 or before, you are for the most part going to have a blackberry to receive your corporate mail and calendar. That blackberry is most likely not going  to have access to anything useful and will drive those who want access to social networks or apps circumvent corporate security to get the features and applications they want on a phone. Corporate executives are typically the worst offenders for this by either being 'exempt from policy' or using another device that they like rather than the Blackberry.

People want to be social:

Everyone wants to be social, it's almost like now a days there is no choice... you simply have to be on Facebook, Twitter, Google+ and other social networks to find interesting information and connect with friends and family. Especially in the age of Twitter when you can post about everything that happens on your way through life, you want to be able to keep up with people and say what you want. Of course this could be a liability to the corporation especially if someone thinks you are saying something on their behalf, so you will find most devices have Facebook & Twitter locked down and or blocked on the network. This is changing slowly, but for the time being it is restricted for most and makes people do other things again... to get around the problem.

People want to use apps that will enhance their ability to work:

In the beginning there were really no applications that were compelling enough to actually want to put them on your iPhone. But nowadays, the 'app' is not only another way of interacting with customers, but can also be something that is used to enhance the employee experience. Even if there isn't a 'work centric' application for the iPhone, there are plenty of other applications on the phone that can enhance personal productivity. This is one of RIM's biggest weaknesses, as they are in mid-transition to a newer operating system, so their platform is technically in limbo. Would developers know what to develop for? OS7? OS10? HTML5? Are the tools even sufficient? Even if they are or eventually will be, are there enough Blackberry users left for them to make money? Bottom line, there is no comparison for application diversity.

People DO NOT want to carry 2 phones: 

This is an age old problem that started with pagers before the blackberry phased them out. But now that we have iPhones and all our media purchases locked into the Apple ecosystem and most of us don't really feel like using our Blackberries for music or anything else besides mail. So most of us carry the iPhone or Android phone to work for apps and music and the Blackberry only for enterprise email. No one wants to do this anymore, we all want the simplicity of having everything all in one device with some sort of magic protected area for sensitive corporate data.

Summary:

So even though the US government and Halliburton are switching from Blackberry to iOS is a drop in RIMs enterprise bucket, I believe that it is the beginning of a trend. With tablets becoming more commonplace, new apps coming out all the time and the amazing new phone hardware coming out constantly, whatever RIM is doing now is most likely too little too late.

If they are just releasing an update to the Playbook that 'should' have been Playbook 1.0 with no features other than what it should have shipped with initially, it doesn't spark too much confidence in what they will release as Phone OS v1.0. And even though the 'next gen' devices do look amazing from a hardware perspective, my guess is that is all it will be, hardware. RIM is great at hardware but it is the software that is going to make or break the phone and if the software ends up being remotely close to OS7, or its release is much like the original Playbook release, then I am afraid that their boat will be sunk.

I really hope they knock our socks off with that first new device, but we can't get our hopes up given their past promises. But you will definitely see what will become of RIM only a few short weeks after the initial release of the new phone. If it doesn't live up to the hype, they will be severely punished by the markets and will have lost the tiny bit of faith we are all holding onto for them.

RIM needs a miracle

So

o... I seem to be writing an aweful lot about RIM, which is not what I had intended to do on this blog... but I can't help it, there is just so much news about it and I am sad to see them in their current state. I have worked with RIM so long and can hardly remember when I didn't have a Blackberry in my hand, I really do wish I could be writing with excitement rather than frustratio.
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So not too long after I had made my declaration of the RIM deathwatch, we get an earnings report from the company. Which includes:

• nkA significant decline in revenue
• Official delay on the first Blackberry 10 phones until the latter half of 2012
• co-CEOs now working on a $1 a year salary
• Assurances that they will beN turning RIM around once the new smartphones are released.ke 

Essentially things we already knew or expected regarding the decline in revenue and everything else we expected to hear with missed targets and more assurrances.

I am not even sure where to start with this because there really is no hope. Sooner or later all the RIM investors are going to be clamoring for Mike & Jim's heads on a pike and someone to get in there and give them value for their investments. Given that the QNX OS is  not even close to being mature that would lead me to believe we will inevitably see either a split in the company or the sale of it or it's patents.

I am flabbergasted... How can a company with the mountain of mistakes that have been made retain the same structure? Does anyone at all give 2 cents about the fact that the co-CEOs are going to be making $1 a year? The savings are peanuts in comparisons to the money that RIM will be bleeding in the next year or two. Also... does a $1 per year salary make the CEO's any less dilusional (since they will probably make it up in stock)? 

Speaking of delusional, why would anyone think that ramping up spending on marketing the Blackberry 7 platform is a good idea or would even change perception? Does anyone have faith that this will change anything at all? People need an ecosystem and a decent phone experience, I hardly believe that there is a phone store in the world that would be pushing Blackberry phones these days, particularily because of the requirement to lock people into 3 year data contracts. They don't have a plan, that much is obvious from the delays that they keep announcing, particularly the delay to the native e-mail for the Playbook... how hard is that? Everyone has lost faith in you RIM, you need to admit that there is something wrong and do something about it.

I don't think anyone can believe anymore that you can turn it around. You had a good opportunity to build the official iPad competitor, you were in at the right time with the right hardware but with no software or integrated experience. You could have stood a chance and shown the world how good QNX can be, but you rushed it to market as an incomplete product and blew it. Now there is far too much pressure on you to bring your saviour phone to market and when it does come to market, it will be too late. You haven't fixed Playbook, so what should make us think that you are going to have a capable phone with the same OS? The OS is immature and there is not enough time to catch up to the likes of iOS and Android. This next phone will be your make it or break it phone... if you want to stand a chance make sure it is 'actually' ready, just as good as the old ones, but on even footing with all the new smartphones. Anything less will be the last nail in your coffin, as sorry as I am to say that.