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BlackBerry Boosts Security Portfolio with WatchDox Acquisition

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WatchDox acquisition will complete BlackBerry’s security portfolio

On May 7, a BlackBerry press release announced that it has completed the acquisition of WatchDox. WatchDox is a startup software company that allows companies to control and secure files. It gives companies full control over how files are copied, forwarded, printed, or edited by employees.

Last year, BlackBerry (BBRY) also acquired a German (EWG) company, Secusmart, allowing BlackBerry to enhance the security of its enterprise devices. Until then, BlackBerry used built-in security measures only for BBM messages and enterprise emails. Secusmart enhances security related to BlackBerry data, messaging, voice, and text communication as well.

With Secusmart and WatchDox, BlackBerry now offers a complete portfolio for enterprise security, including secure voice, text, emails, messages, and files.

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Competition in the enterprise mobile market increasing

BlackBerry’s security-related acquisitions come at a time when the enterprise mobile market is heating up. Last year, VMWare (VMW) acquired AirWatch for $1.18 billion to enhance its enterprise mobile management and security solutions. Then, Google (GOOG)(GOOGL) acquired Divide, which used to focus on the security of Android devices used by enterprises.

Last year, Apple (AAPL) also forged a partnership with IBM (IBM) to gain a presence in the enterprise segment. Apple is already seeing some positive results from this partnership, which now presents a threat to BlackBerry.

It will be important for BlackBerry to continue to innovate in this market if it’s to meet its revenue targets in the software segment. BlackBerry made $238 million in revenues from its software segment in fiscal 2015. In fiscal 2016, it has nearly doubled that target to $500 million.

The chart above shows BlackBerry’s software segment’s revenue for the last few fiscal quarters.

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