Blackberry 2016 Annual Report Download - page 18

Table of Contents
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Land Rover, Maserati, Mercedes-Benz, Porsche, Toyota, and Volkswagen. With its field-proven technology and suite of safety
and security certifications, QNX is also a preferred supplier for companies building medical devices, train-control systems,
industrial robots, hardware security modules, building automation systems, green energy solutions, and other mission-critical
and safety-critical applications. QNX continues to attract new business through a growing portfolio of innovative products,
including, an operating system for automotive safety, a platform for advanced driver assistance systems (“ADAS”) and
automated driving, a comprehensive in-car acoustics solution, hypervisor software that manages safety-critical systems in real-
time, and a wireless framework that enables customers to upgrade their cellular and Wi-Fi hardware without having to recode
or modify applications.
Certicom specializes in applied cryptography and key management, offering both software components and end-to-end security
solutions targeted at bandwidth and resource-constrained applications. Certicom’s asset management technology is deployed in
over 400 million high value ASICs (application specific integrated circuit customized for a particular use) and its certificates
are used in over 100 million IoT devices.
Paratek designs, develops and licenses its adaptive radio frequency (“RF”) antenna tuning technology. With the growth of RF
bands to be covered and stringent performance requirements imposed, RF antenna tuning is becoming a key differentiator to
improve the antenna performance of smartphones. Paratek technology has been adopted by numerous OEMs and has many
handset design wins.
The BlackBerry IoT Platform connects data generators with data consumers via an intelligent platform and application service
modules, all hosted on a global, scalable, multi-tenant network protected by BlackBerry’s recognized security features. The
BlackBerry IoT Platform intends to focus initially on applications for asset tracking, such as BlackBerry Radar, a device and
software interface for tracking trucks and containers, for reporting locations and sensor data, and for enabling custom alerts and
fleet management applications.
The IPPL unit manages the Company’s extensive patent portfolio, which includes both standards-essential patents and
implementation patents and has an average and median remaining life of over 11 years. The Company is monetizing its patent
portfolio through an outbound licensing program, including, for example, through its patent cross-licensing agreement with
Cisco entered into in fiscal 2016.
Messaging
In fiscal 2016, the Company expanded its focus and footprint in the messaging business with the acquisition of AtHoc, a secure,
networked crisis communications solutions market leader. The acquisition of AtHoc enhances the Company’s mission to
provide secure communication solutions and complements the Company’s enterprise portfolio of cross-platform solutions and
trusted global network to enable new capabilities for safety, security and mission-critical business communications.
The Company has expanded the features and functionality of BBM through platform enhancements and innovative services.
The Company monetizes the BBM platform through in-app advertising, a virtual goods store, and the subscription-based BBM
Protected offering for secure enterprise messaging.
Strategic objectives
The following objectives are important to the success of the Company’s strategy in all areas of its business:
• Seeking strategic alliances and relationships. BlackBerry intends to continue developing new and existing strategic
alliances, which may involve closer collaboration with other technology leaders to maintain and enhance the Company’s
competitive position. Potential areas of strategic alliances and relationships include, but are not limited to, software
application developers and companies, global telecommunications carriers, intranet and Internet applications and portal
companies, Internet social networking providers, multimedia content providers, gaming platform vendors, consumer
electronics retailers, OEMs, microchip and other manufacturers, and global systems integrators.
• Targeted acquisition and investment strategy. BlackBerry will continue to evaluate potential acquisitions and make
investments in products that provide opportunities for growth or expansion of the BlackBerry value proposition. These
may include acquisitions and investments related to software, wireless solutions, security and applications, among others.
The Company also intends to continue to acquire rights in intellectual property in various forms and technologies when
appropriate opportunities arise.
• Expanding distribution. The Company’s ability to grow its service and software revenue is dependent on its ability to
expand its distribution capability, including by developing and expanding relationships with indirect partners, resellers and
carriers. The Company is also focusing on building its direct enterprise sales force.
• Achieving best in class operational metrics. The Company has significantly improved its operational metrics through the
Resource Alignment Program and its previous cost and management initiatives. BlackBerry intends to further simplify
business processes and target areas of the business where greater efficiencies can be achieved. The Company is focused on