Blackberry 2016 Annual Report Download - page 112

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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productivity and security, and the Company believes that it delivers the most secure end-to-end mobile enterprise solutions in
the market. With these core strengths, the Company’s broad portfolio of products and services is focused on serving enterprise
customers, particularly in regulated industries and select vertical markets, including government, financial services, legal and
healthcare.
The Company has experienced a significant decline in revenue and market share due to intense competition and other factors,
as discussed below under “Results of Operations - Fiscal year ended February 29, 2016 compared to fiscal year ended
February 28, 2015 – Revenue” and “Results of Operations – Three months ended February 29, 2016 compared to three months
ended February 28, 2015 – Revenue”.
Strategy, Products and Services
The Company has been executing a strategy to leverage its strengths in mobility management and security to refocus its
business in the Enterprise Solutions and Services space, while maintaining a presence in the highly competitive smartphone and
devices market. This strategy includes increasing the Company’s product and service offerings through strategic acquisitions
and targeted growth in internal investments. The Company’s goal is to maintain its market leadership in the enterprise mobility
segment by continuing to extend the functionality of its enterprise software infrastructure beyond enterprise mobility
management (“EMM”), to offer the most comprehensive and secure mobile platform and, on top of this extensive foundation,
deliver vertical solutions and endpoint management in the Internet of Things (“IoT”).
BlackBerry has aligned its businesses and operations to drive greater efficiency and speed in bringing new offerings to market,
while optimizing assets and capabilities in support of the Company’s overall strategy and financial objectives. Please also see
the “Narrative Description of the Business - Strategy” and “Narrative Description of the Business - Products and Services”
sections in the AIF, which is included in the Annual Report.
The Company’s latest device is the PRIV, running the Android operating system. Its latest BlackBerry 10 smartphone models
are the Passport Silver Edition (“Passport SE”), Leap, and Classic. As at the end of fiscal 2016, the Company had a smartphone
user base of approximately 23 million. The Company’s core software and services offering is the Good Secure EMM Suites,
which integrates the BES12 and Good Technology platforms, and supports BlackBerry 10 and legacy BlackBerry devices, iOS,
Android and Windows Phone® devices, SecuSUITE, and the WatchDox enterprise file sync-and-share (“EFSS”) solution.
Product and business developments that have influenced the general development of the Company’s business over fiscal 2016
include:
Acquisitions
• Acquired Good Technology Corporation (“Good”), a provider of secure mobility solutions, including secure applications
and containerization that protects end user privacy;
• Acquired AtHoc, Inc. (“AtHoc”), a provider of secure, networked crisis communications;
• Acquired WatchDox Ltd. (“WatchDox”), a data security company offering secure EFSS solutions; and
• Acquired Encription Holdings Limited and Encription Ireland Limited (“Encription”), a cybersecurity consulting firm
providing industry-leading assessments in penetration testing and security training services.
Products, Services and Approvals
• Launched the PRIV smartphone, running on the Android™ operating system;
• Announced the new Good Secure EMM Suites by BlackBerry, a comprehensive set of mobile security, management,
productivity and collaboration offerings;
• Announced the launch of a new Professional Cybersecurity Services practice that will further expand the Company’s
security portfolio;
• Announced the new voice encryption solution SecuSUITE for Enterprise;
• Announced BES12 Cloud, a cloud-based enterprise mobility management (“EMM”) solution that offers easy management
of cross-platform devices;
• Obtained the approval of the United States Department of Defense (“DoD”) for the use of Public Key Infrastructure
credentials on BlackBerry OS and BlackBerry 10 smartphones;
• Unveiled a new QNX software platform to enable automotive companies to build a full range of secured automated driving
systems and in-car acoustics; and
• Showcased at the Consumer Electronics Show an IoT over-the-air software platform, as well as BlackBerry Radar, an asset
tracking device and software interface.
Joint Ventures, Partnerships and Other Agreements
• Entered into a long-term patent cross-licensing agreement with Cisco;
• Entered into a joint development and manufacturing agreement with Wistron Corporation;
• Announced a new partnership with T-Mobile US, Inc. to bring the BlackBerry Classic to T-Mobile’s network;
• Announced the planned integration of Samsung KNOX™ with WorkLife by BlackBerry and SecuSUITE; and