The company also expects approximately $160 million in GAAP revenue from Good Technology in the first year.
On a call with analysts and investors, BlackBerry Chief Executive John Chen was asked about Good’s cash burn. But analysts have questioned demand for the software, dubbed BES12, after the company surprised the market in its fiscal first quarter ended May 30 by including revenue from technology licensing as part of total software sales.
Writing on the Seeking Alpha blogging site, the principal analyst and CIO of Orange Peel Investments, Scott Tzu, noted: “The good news is that BBRY, even after acquiring Good, is going to continue to be cash flow positive and be in the market to make future acquisitions necessary”. Back in November of a year ago, Blackberry launched its BES 12 platform that was designed for businesses to connect with all mobile devices, including Apple iOS and Google Android. The company is constantly exploring alternate business options which should help it offset escalating losses in its smartphone business. The Enterprise Services company of blackBerry offers services and enterprise products.
For more than two decades, Blackberry has been providing the most secure mobility solutions and has been globally recognised by government certifications. In August, the company added support for Samsung Knox and Apple Device Enrolment to its cloud-based MDM service.
This merger will also help BlackBerry battle against Citrix Systems, MobileIron and VMware’s AirWatch in the device-management space, reports The Australian. And that’s good news for BlackBerry because the company needs to focus.
BlackBerry and Good combined will raise the bar in the enterprise mobility market, he said. “Highly regulated or security-conscious industries should consider Good”.
Good will bring complementary capabilities and technologies to BlackBerry, the company says, including secure applications and containerization that protects end user privacy. According to Info-Tech, this approach may prove troublesome for some users.
BlackBerry’s CEO recognises the need to establish the company’s BES product as the cornerstone of a multi-device MDM strategy.
BlackBerry Limited (NASDAQ:BBRY) is a provider of cellular connections and services.
With the acquisition, Blackberry hopes to remedy “one of the biggest struggles for CIOs today”: securely managing devices across different platforms. It drives my handset people insane. “We did the same thing with Black Phone at Boeing [an Android device managed by BES]”. With Good Technology mostly catering to customers using iOS-enabled devices, the announcement of the deal is certainly a smart move by the company.