BlackBerry expects its software revenues to double by fiscal 2016
Earlier in the series, we discussed BlackBerry’s (BBRY) hardware segment and how it continues to struggle against the likes of Google (GOOG)(GOOGL) and Apple (AAPL), with Microsoft (MSFT) vying to become the third alternative.
In the last quarter, BlackBerry earned 46% of its revenues from its hardware segment, 46% from its services segment, and 8% from its software segment. BlackBerry expects its software revenues to be around $250 million in fiscal 2015. But it expects its software revenues to double by fiscal year 2016.
The EZ Pass program shows fast growth
The BES or BlackBerry Enterprise Server is the server that synchronizes emails, contacts, and calendar information with a company’s networks. Under the EZ Pass program, BlackBerry is trying to switch enterprises to its BES 10 platform for free. The company is looking to make money from BES 10 through technology support and encouraging enterprises to buy premium versions of the software that have enhanced security features. This strategy is part of BlackBerry’s target to double its software revenue.
During the conference call to announce its earnings, BlackBerry’s management mentioned that the number of BES 10 licenses has increased from 1.2 million in 1Q15 to 3.4 million in 2Q15. It also added 900 new customers. Management also mentioned that about 840,000 licenses have been traded in from its competitors, such as MobileIron, Good, and AirWatch. BlackBerry also plans to launch the next version of BES, BES 12, on November 13 at a San Francisco event.