BlackBerry’s software business achieved YoY growth of 18% in the last quarter
In the previous series on BlackBerry (BBRY) titled Could BlackBerry Exit Its Smartphone Business Next Year? we discussed mainly the company’s smartphone business. However, the more important business for BlackBerry now is its software business. This is where it derives its growth.
As the chart above shows, BlackBerry’s software and technology licensing revenues grew from $62 million in fiscal 2Q15 to $73 million in fiscal 2Q16, a year-over-year growth rate of 18%.
BlackBerry has mentioned in the past that its BES12 solution is mainly driving this growth. BES, or BlackBerry Enterprise Server, is the server that securely synchronizes emails, contacts, and calendar information with a company’s networks.
BlackBerry achieved 2,400 customer wins in the last quarter
During the fiscal 2Q16 earnings call, BlackBerry mentioned that it booked around 2,400 software transactions in that quarter. These customer wins include TD Bank, Berenberg Bank, Peugeot, Airbus, Herbalife, Siemens, Nippon Express, Visteon, and LG Electronics.
BlackBerry is making efforts to grow its software business. In this regard, it strategically recruited Carl Wiese in July this year as its president of global sales. Weise came from Cisco (CSCO), where he was focussed on the growth of Cisco’s collaborative business.
BlackBerry is also working closely with its partners Google (GOOG) and Samsung to enhance their security programs. These programs are Google’s Android for Work and Samsung’s KNOX.
QNX, BlackBerry’s infotainment and telematics platform used in automobiles, is another growth driver for the company’s software business. During the announcement of its fiscal 1Q16 earnings, BlackBerry’s management noted that it had signed a deal with Intel (INTC), which chose QNX for its smart car initiative.
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