The company recently announced it would partner with Microsoft (MSFT) to provide a secure environment for a suite of Microsoft products, including helping users access apps on Apple (AAPL) and Android devices:
The company said it will partner with Microsoft to provide a secure environment for Microsoft Office apps like Excel, PowerPoint or Word. The product will help business users access the apps on Apple and Android devices.
The partnership highlights workers who require high levels of cybersecurity and compliance when they work from their phones: Employees of banks, healthcare providers, law firms, and central governments. The partnership also plays to one of BlackBerry’s strengths, enterprise, from the heyday of its mobile phone business.
The partnering arrangement represents a major coup for BlackBerry. Microsoft Office is a major revenue stream for Microsoft and it could pay handsomely to have it protected. I believe the company was previously conflicted about licensing its best-in-class technology to others. Its ability to monetize its cryptography features could determine whether it becomes profitable in the near term.
The arrangement likely signals the value Microsoft places on Blackberry’s vaunted security. It could also reflect the fact the Microsoft does not view BlackBerry as a major threat in other areas of its business, given BlackBerry’s much smaller size. The question remains, “Can BlackBerry turn the arrangement into a profitable endeavor?” The company has put out bombastic press releases in the past, but showed little results in terms of revenue. Licensing and IP reported $50 million in revenue last quarter. I am curious to see how much revenue it generates this quarter and its projections for the rest of the year.
