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- 02-12-14 01:06 PMLike 0
- Samsung Push Into U.S. Government Sector Threatens BlackBerry
PermalinkCloseFacebookTwitterExpand/CollapseSamsung is revamping its push into the U.S. enterprise and government sector, adding further pressure to the new leadership at the company that once dominated that space, BlackBerry.
By Will Connors
TORONTO—Samsung Electronics Co. is revamping its push into the U.S. enterprise and government sector, adding further pressure to the new leadership at the company that once dominated that space, BlackBerry Ltd.
Samsung recently won an order for roughly 7,000 smartphones from the U.S. Army and is close to an order for several thousand devices from the U.S. National Security Agency, according to a person familiar with the matter.
The Army order is for the company’s Nett Warrior system, which outfits soldiers with a chest-mounted Samsung Note II smartphone to use while on the battlefield. While Samsung already had an initial contract to supply devices for the Nett Warrior system, the new order expands the number of Samsung devices in use there. The NSA order would be for the agency’s Fishbowl Project, an initiative it started several years ago to update the devices used by NSA personnel. Both the Army and the NSA equip the devices with their own, secure software.
A spokesman for the Army didn’t respond to requests for comment. A spokeswoman for the NSA declined to comment.
A Samsung spokesman declined to comment on the specific orders but in a statement said: “We are working very closely with many customers and we’re seeing great progress with adoption of our devices and solutions.”
While those orders pale in comparison to overall phone sales at Samsung, they signal to other companies—especially in highly regulated industries like banking and health care—that Samsung phones can work in sensitive environments, long the bread and butter of BlackBerry.
Cisco Systems Inc., for example, is readying a new product, referred to internally as “Spaghetti Western,” for its government and business customers that aims to monitor employees’ mobile-phone usage, according to Cisco executives. Its exclusive partner on the project: Samsung.
This momentum could spell trouble for new BlackBerry Chief Executive John Chen. Shortly after taking the helm at BlackBerry in November, Mr. Chen said he would focus on winning back enterprise customers.
But his predecessor, Thorsten Heins, said this too, in September. The problem then, as now, is that many of BlackBerry’s enterprise customers have already moved on—and deeper-pocketed competitors like Samsung are encroaching on BlackBerry’s territory. In 2010, BlackBerry had a market share of nearly 70% among business customers in North America, according to IDC. In 2013, that figure had dropped to around 5%, IDC said. Globally, BlackBerry’s business-market share has slipped to around 8% from 31% in 2010, according to IDC.
Mr. Chen has been on the road for the past three months making his pitch to banks and government agencies, but so far there have been few signs of progress.
BlackBerry has announced a handful of clients for its new software in Europe and India. In India, the conglomerate ITC Ltd. said it would deploy BlackBerry’s new enterprise software for its employees. And in Germany, information-technology company DATEV, an existing BlackBerry customer, said it would upgrade to BlackBerry’s new server and order 1,000 BlackBerry phones.
In response to questions about customers in the U.S., BlackBerry said that several companies, including law firm Skadden, Arps, Meagher & Flom LLP and insurer MetLife Inc. have signed up for its new server.
BlackBerry said it has more than 80,000 enterprise customers globally, but 50,000 of those customers are on the company’s older network. And of the 30,000 customers on the new network, many are only testing the service. BlackBerry hasn’t said how many customers have actually installed the new service.
“We have sharpened our enterprise focus to government, regulated industries and other large organizations,” and “have developed a broad vision of how we will serve these companies,” John Sims, BlackBerry’s president in charge of the enterprise, said in an emailed statement. “Customers are listening and we believe they will respond positively to our strategy.”
The company built its reputation and won thousands of customers largely on the strength of its proprietary network, called BlackBerry Enterprise Server. When the company shifted to a new operating system last year, BlackBerry 10, it also tried to shift companies to a new version of its network, called BES 10. Mr. Chen’s job is to convince more customers to make that shift.
The BlackBerry CEO is working on several fronts. He wants to make BlackBerry Messenger a video and chat service for enterprises. But he concedes that this might not be profitable until 2016, and companies like Cisco have been offering enterprise video chat tools for years—and have billions more in cash than BlackBerry that enables them to invest more easily in new bells and whistles or make acquisitions.
Mr. Chen said he wants to ramp up his mobile-device management offerings for companies that use Apple Inc.’s iPhones and Samsung phones. But bigger companies like Microsoft Corp. and VMware Inc. are also in this line of business. VMware recently announced a deal to acquire mobile-device management company AirWatch for $1.5 billion, and just this week Microsoft’s new chief executive, Satya Nadella, said mobile-device management would be a key area of focus for him.
In the meantime, Mr. Chen has his work cut out for him dealing with Samsung, which is hiring former BlackBerry executives to help.
Samsung recently hired BlackBerry’s former chief information officer, Robin Bienfait, to work at its IT services subsidiary Samsung SDS, according to people familiar with the matter. Ms. Bienfait stepped down from her post at BlackBerry in late 2012, just before the launch of the company’s new line of phones.
Samsung also recently hired Carl Nerup, from Washington, D.C., contractor General Dynamics Corp., to lead sales of its enterprise software, according to a person close to the company.
A Samsung spokesman confirmed the new hires.
Samsung had already hired away dozens of executives and employees from BlackBerry and other Washington, D.C., contractors.
Write to Will Connors at [email protected]02-12-14 01:20 PMLike 2 - Commoditization of phones continues:
Smartphones using Google Inc.'s (GOOG) Android operating system remained No. 1 last year, with 79% of the more than 1 billion devices sold in 2013, up from 69% in the year-earlier period, IDC said. Apple's (AAPL) iOS was at No. 2 with 15%, which is down from 19% in 2012. Microsoft's (MSFT) Windows Phone was at No. 3 with 3%, followed by BlackBerry (RIMM) with 2%.
It was the first time that smartphone shipments surpassed 1 billion, although IDC also noted that "the era of double-digit annual growth has only a few years remaining."
The industry group also highlighted an important trend that could be critical for Apple, the growth of the market for cheaper smartphones.
IDC analyst Ryan Reith said sub-$200 smartphones made up 43% of the total market in 2013, up from 31% in 2012 and 21% in 2011. That segment of the market is expected to reach about 54% in 2017, he added.02-12-14 05:03 PMLike 4 - Commoditization of phones continues:
Apple loses smartphone market share to cheaper phones - MarketWatch02-12-14 05:11 PMLike 6 - http://charts.stocktwits.net/product...png?1392142577
Morgan.. Jlagoon... any comments on the above chart?? :-)02-12-14 05:27 PMLike 0 -
Gaining 10% market share each of the previous 3 years but now it will take almost 4 years to add an additonal 11%?02-12-14 06:05 PMLike 6 - Also note worthy is that the article states that sub-$200 phones made up 43% of the total market in 2013, up from 31% in 2012 and 21% in 2011. That segment of the market is expected to reach about 54% in 2017, he added.
Gaining 10% market share each of the previous 3 years but now it will take almost 4 years to add an additonal 11%?02-12-14 06:17 PMLike 3 - http://charts.stocktwits.net/product...png?1392142577
Morgan.. Jlagoon... any comments on the above chart?? :-)02-12-14 06:29 PMLike 7 -
- http://charts.stocktwits.net/product...png?1392142577
Morgan.. Jlagoon... any comments on the above chart?? :-)02-12-14 07:57 PMLike 7 - Samsung Push Into U.S. Government Sector Threatens BlackBerry
PermalinkCloseFacebookTwitterExpand/CollapseSamsung is revamping its push into the U.S. enterprise and government sector, adding further pressure to the new leadership at the company that once dominated that space, BlackBerry.
By Will Connors ....
[/email]
I would like to know the cost per service that Samsung offered to get this sale.
Besides, any modern Android smartphone can be totally revamped to run custom software.
Lol, good thing the army is strapping these things to the soldiers chest, because if the soldier had to handle them, they slippery buggers would be hard to hang onto.
Also, how many silly Samsung 'blips and bloops' would it take before the soldier was discovered and shot at.
I am very confident that aside from this type of scenario that NO Common-Wealth/First-World gov't will run with foreign devices.
this is not a threat to BlackBerry.02-12-14 08:05 PMLike 4 -
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Ha, I like how the restaurant scrambles things around on your plate, to make it look like a lot of food; better order 3!
cjcampbell and bungaboy like this.02-12-14 10:59 PMLike 2 -
Posted using Z30. Best of the best Smart phone in the world.bungaboy and Bacon Munchers like this.02-12-14 11:15 PMLike 2 - Superfly_FRRetired ModeratorI would like to know the cost per service that Samsung offered to get this sale.
Besides, any modern Android smartphone can be totally revamped to run custom software.
Lol, good thing the army is strapping these things to the soldiers chest, because if the soldier had to handle them, they slippery buggers would be hard to hang onto.
Also, how many silly Samsung 'blips and bloops' would it take before the soldier was discovered and shot at.
I am very confident that aside from this type of scenario that NO Common-Wealth/First-World gov't will run with foreign devices.
this is not a threat to BlackBerry.
Though, it's a misery on the image side for BlackBerry: it will harm the stock.
Another great example of Samy's propaganda power: God, they're so good at it ...02-13-14 02:15 AMLike 5 -
I my opinion he is talking a bit too much about keyboard devices and enterprise. It leaves the impression to the ordinary listener, that the current full touchscreen devices are a failure and keyboard devices ar the niche and BBs future.
He should mention, that the current touch screen devices - while a failure in the market - are not a failure when it comes to user satisfaction.
I read many of the reviews of the Z30 at Amazon Germany. So much love for this device...
It has 5 and a half star: ***** 58, **** 9, *** 1, ** 0, * 2 (trolls who never used the devices).02-13-14 02:35 AMLike 3 - Superfly_FRRetired Moderator$hat ... that's not the news we're expecting ...
BlackBerry Loses Peter Devenyi, Senior Vice President of Enterprise Software - N4BB
bc of the noise it'll spread ...
BlackBerry bleeding its executives makes for an interesting outlook. Chen has migrated some of his former Sybase executives. However, with current executives from the “inner circle” dropping out, what does it say about the future and direction of BlackBerry?bungaboy and morganplus8 like this.02-13-14 06:42 AMLike 2 - $hat ... that's not the news we're expecting ...
BlackBerry Loses Peter Devenyi, Senior Vice President of Enterprise Software - N4BB
bc of the noise it'll spread ...
Even if I believe that's 100% normal and Chen is rallying his faithfull troups aboard ...
Posted via CB1002-13-14 07:03 AMLike 3 - I work for a large mining / commodities trading company and we've been bought-out, merged, and sold three times in the past 14 years. Each time new management is brought and with it a complete turnover in the upper ranks.
The turnover under Chen is nothing unusual. Different vision and those that don't share that vision or deemed to not have to performed will move on or be replaced.
Z10 STL100-3 |10.2.1.1925 | Bell | CB1002-13-14 07:17 AMLike 5 - I fear Chen is slowly beginning to look like a bit of a carpetbagger. I'm a bit worried now that he is causing too much bleeding at a time when BlackBerry needs stability as well as progress. Much more of this and he is taking us through another embarrassing public relations disaster. We need solid progress and delivery of promises (BBMx) as well as communication between BlackBerry and the public.
The sunny interpretation is that he is pushing out the people responsible for all the things that have disappointed us in the past, and replacing them with rock stars who will have BBMx fully released within ten weeks, in addition to better pricing and marketing of new phones, and of course the securing of enterprise.
Which seems most likely?? I really haven't got a clue right now.
Posted via CB10georg4BB and morganplus8 like this.02-13-14 07:19 AMLike 2 - I fear Chen is slowly beginning to look like a bit of a carpetbagger. I'm a bit worried now that he is causing too much bleeding at a time when BlackBerry needs stability as well as progress. Much more of this and he is taking us through another embarrassing public relations disaster. We need solid progress and delivery of promises (BBMx) as well as communication between BlackBerry and the public.
The sunny interpretation is that he is pushing out the people responsible for all the things that have disappointed us in the past, and replacing them with rock stars who will have BBMx fully released within ten weeks, in addition to better pricing and marketing of new phones, and of course the securing of enterprise.
Which seems most likely?? I really haven't got a clue right now.
Posted via CB10
I too have gone though changes in Leadership in Companies. The new guy wants loyalty!!! He will surround himself with "HIS" Team. HIS high level performers.
The old guard leaves or gets left.
EVERYBODY is replaceable. Everybody.
This is normal business IMO.02-13-14 08:05 AMLike 10 -
Also, he also seems to be targeting the old RIM user base of the "company" not the END USERS in the company. More end users will want the all touch AND the apps that Balance was supposed to provide. He needs to talk about how BlackBerry solved that end user pain point more. Bottom line, there are only a handful of C-suite users at each company. He needs to talk about the legions of end users. For a few hours each day, the C-suite are also "end users" and will want the same apps the common end user wants.
Posted via CB10georg4BB likes this.02-13-14 08:31 AMLike 1 - I do agree that it's not all that abnormal, but I still don't feel confident that I now have a clear understanding of what is going on at BlackBerry. Chen's arrival brought a lot of big smiles and sparkling lights, but I'm sorry - I don't feel as though I understand what he is going to do, and as an investor, that doesn't make be comfortable.
Whereas a few months ago I felt better about the vision laid out by Chen, now I feel more and more as though I am gambling with my money as opposed to speculating or investing.
A few bold statements Chen HAS made have worried me: 'We are going back to mainly keyboards' - (really??); 'We are going to focus mainly on enterprise...etc.'.
Chen's plans seem to be a harder push at things that got BlackBerry into a mess in the first place. I'm not saying it won't work, but I get the idea that he sees a clear separation between enterprise and consumer, and in my view this attitude and approach could prove fatal. He doesn't seem to be taking the popular culture regarding BlackBerry seriously at all, and I don't feel confident that he understands how important BBMx is to repairing brand image and breaking back into the consumer market, which, as I said, cannot really be cut off from the enterprise market unless he expects people to continue carrying two phones around or stop buying handsets altogether. I don't like any of it if I'm honest, and wonder whether some of the folks who have left felt similarly.
To be clear, I am not saying that I think he is a fool and that he is going to finally ruin BlackBerry. I'm not. I'm simply saying that I have no idea what he is up to, and get the feeling he is creeping further and further away from the things (BBMx, brand culture building, consumer handsets, etc.) that I believe are key to a real recovery.
The 'Alamo' strategy is very, very risky indeed. All it takes is for Samsung or someone else to get a big contract or pass an important security clearance test, and BlackBerry are burnt toast if they haven't got the consumer/social media market to fall back on.
Too much focus on enterprise at the expense of consumers/social media is risky to the point of recklessness, and I think folks should think carefully before making Chen out to be the BlackBerry messiah.
Posted via CB10morganplus8 and plasmid_boy like this.02-13-14 08:32 AMLike 2
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