The turnaround strategy for the struggling Canadian handset maker is now aiming toward cyber-protection.
BlackBerry has tried virtually everything to try to recover its floundering handset business, but the area in which it has remained strong – and where its future may lie – is in mobile security.
The company has underscored that belief in the recent acquisition of Encription, a company based in the U.K.
Encription is a consultancy that is based in cyber and mobile security. The importance of digital security has been increasing in virtually every industry around the world, particularly in the growth in of the Internet of Things (IoT). As the dependence on connected technology increases, so does the demand for security software and related consultancy services. BlackBerry has always been strong in this area and will likely be playing to that strength in order to recover from its suffering hardware business as it recreates itself.
The details regarding the acquisition of the cyber and mobile security firm have yet to be released.
That said, by acquiring this company, BlackBerry will gain access to a large new customer base, in addition to the talent of about 40 professionals in the cyber security industry. These experts have already assisted in testing network vulnerabilities for a wealth of large corporations as well as government agencies.
The head of corporate development at BlackBerry, James Mackey, explained that acquiring Encription was a natural decision for the company and will seamlessly extend BlackBerry to allow it to offer a broader range of cyber security services than it ever has. Moreover, as it solidifies its customer base with the newest additions, it will now become possible for the Canadian tech company to cross-sell its own software products.
Protecting device users against mobile security threats, as well as the creation and implementation of strategies to mitigate those threats and the enhancement of vital IT security standards are some of the areas in which BlackBerry has held considerable appeal among consumers and business customers, alike. Many industry analysts have been predicting this path for the company for well over a year, as the hardware side of the company continues a downward stumble.
John Chen, CEO of the company, announced that the company didn’t intend to step away from hardware and, as a part of that strategy, the company released the Priv smartphone, which was based on Android instead of on its own proprietary operating system. The hope was that the more popular mobile platform, in combination with the exponentially larger availability of mobile apps, would be enough to draw consumers back to the brand. Unfortunately, while it did see an increase in sales, it doesn’t look as though it was enough to rescue its hardware business.