uploads///BlackBerry Software contribution

BlackBerry Faces Pricing Pressure for Its EMM Solution

Puneet Sikka - Author

Aug. 18 2020, Updated 4:39 a.m. ET

Enterprise Mobility Management pricing pressure

In the previous part of this series, we discussed why BlackBerry’s (BBRY) software business revenues fell sequentially. One of the reasons for this fall could be the competitive pricing pressure that the company is facing for its EMM (Enterprise Mobility Management) solution.

According to BlackBerry, only about 10% of mobile devices use EMM licenses. Many enterprises still don’t use EMM solutions or don’t feel the need for them.

However, with the increasing number of security issues experienced by enterprises, this thinking could change. The above chart shows that despite pricing pressure, BlackBerry’s software business revenue contributions rose from 7% in fiscal 2Q15 to 15% in fiscal 2Q16.

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SAP and IBM are big players in the EMM market

According to John Chen, the chief executive officer of BlackBerry, there aren’t many serious players in the EMM market. During the fiscal 3Q15 earnings call, he mentioned that SAP’s (SAP) Afaria and IBM’s (IBM) Fiberlink are some of the bigger players in this market. But neither of these companies reveals its subscriber numbers.

There also are some pure-play players such as Citrix (CTXS) and VMware (VMW), but overall, there aren’t many players in this market.

However, BlackBerry is trying to cope with competitive pricing pressure in the EMM market. Let’s look at the next part of the series to understand how it plans to do this.

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