Blackberry 2015 Annual Report Download - page 17

Table of Contents
8
enterprise environment typically deploy middleware applications to manage the messaging and security of enterprise data
access.
Strategy
The Company is completing its transition to an operating unit organizational structure consisting of the Devices business,
Enterprise Services, BTS business and Messaging. Across all four businesses, BlackBerry products and services are renowned
for productivity and security, and the Company delivers the most secure end-to-end mobile enterprise solutions in the market.
With these core strengths, the Company’s broad product portfolio is focused on serving enterprise customers, particularly in
regulated industries and select vertical markets, including financial services, government and healthcare. The Company’s goal
is to maintain its market leadership in the enterprise mobility segment by continuing to extend the functionality of its BES
infrastructure beyond EMM, to include application management, application enablement and application development and, on
top of this extensive foundation, deliver additional horizontal and vertical applications. To achieve this vision, BlackBerry has
aligned its businesses and operations around the four core areas to drive greater efficiency and speed in bringing new offerings
to market, while optimizing assets and capabilities across all businesses in support of the Company’s overall strategy and
financial objectives.
The four core areas of business focus are as follows:
Devices business
BlackBerry’s strategy in its Devices business is focused on delivering smartphone products that highlight BlackBerry
technology strengths and areas of differentiation, in alignment with specific market opportunities and target segments. As a
result, the Company offers choice to both the enterprise and consumer markets through a portfolio of premium, affordable,
QWERTY and full-touch smartphone products. To drive cost and operational efficiencies, BlackBerry has entered into a joint
device development and manufacturing agreement with Foxconn. The initial focus of this partnership resulted in the rapid
development in early 2014 of the BlackBerry Z3, an all-touch BlackBerry 10 smartphone designed for Indonesia and other fast-
growing markets. The partnership also delivered the BlackBerry Classic, a device targeted for BlackBerry loyalists. This device
features classic BlackBerry features such as the QWERTY keyboard, track pad and utility belt and classic BlackBerry user
experiences and battery life. The Company has also developed a new and innovative form factor device with the BlackBerry
Passport that delivers a large screen working experience to the mobile professional. The Company continues to develop new
and innovative hardware aligned with its target markets.
Enterprise Services
BlackBerry believes it has the largest installed base in the EMM and MDM markets through its BES platform. Security,
reliability and productivity are hallmark strengths of the BES platform and are instrumental to its success in the enterprise
market, particularly in regulated industries. BlackBerry intends to maintain and strengthen its position as a market leader in the
enterprise market through a variety of strategies, including building a high-touch enterprise sales force, focused marketing
campaigns, an expanded partner ecosystem and the identification of alternative sales channels. In line with this focus,
BlackBerry continues to enhance its enterprise offerings and long-term product strategy. New pricing and migration programs
were made available in fiscal 2015 to ease and accelerate customer migration to the BES12 platform, including the EZ Pass
program, under which 6.8 million licenses were issued to customers moving from BES and competitors' MDM programs to
BES12 at the Silver level of service for free, with over 30% of total licenses traded in from competitors' MDM platforms. The
Company ended the EZ Pass program in December 2014.
The Company has released the next-generation BES12 platform, which unifies support for BBOS and BlackBerry 10 devices,
together with that for iOS, Android and Windows Phone. The Company's solutions will maintain a key focus on security,
productivity and collaboration. The BES12 platform delivered significant enhancements including enhanced multi-platform
support, an enhanced architecture for on-premise and cloud deployments, and backwards compatibility allowing unification of
prior versions of BES. BES12 allows businesses to manage the growing IT trend of securely supporting multiple devices and
operating systems, as well as employees’ personal devices, within a single corporate IT infrastructure. BlackBerry intends to
have a continued strategic focus on regulated industries that rely on stringent security needs, as well as on the government
market where BlackBerry is the only MDM provider to obtain both ATO and FOC status with the U.S. DoD.
The acquisition of Movirtu led to the announcement of the WorkLife by BlackBerry solution to provide a virtual SIM allowing
the only true carrier grade split billing solution for mobile devices. WorkLife by BlackBerry allows an enterprise to provision a
work phone number and data plan onto a BYOD device. The acquisition of Secusmart is expected to support a continued focus
on the government and regulated segments. With this acquisition, BlackBerry strengthened its leadership in secure enterprise
mobility with Secusmart’s encryption and anti-eavesdropping capabilities. Secusmart’s technology will bolster BlackBerry’s
end-to-end offerings that provide the highest level of security from the device to the management platform.