Integration with third-party apps
BlackBerry (BBRY) recently made a move that could be a shot in the arm for its software-oriented turnaround efforts. The company has moved to allow integration of its BBM Enterprise messaging feature into third-party apps.
By opening BBM Enterprise SDK (software development kit) to third-party developers, BlackBerry has also unlocked a new revenue stream in its Software and Services segment. The company could take a cut from the sales of third-party apps integrated with its BBM Enterprise feature. The chart above shows BlackBerry’s annual software revenues.
Software revenues to grow 30%
BlackBerry’s Software and Services revenues increased 16% YoY (year-over-year) to $160 million in fiscal 3Q17.[1. fiscal quarter ended November 30, 2016] The company’s management guided software sales in fiscal 2017[2. fiscal year ended February 28, 2017] to increase 30% to ~$640 million. Software revenues totaled $494 million in fiscal 2016.
How third-party integration would work
According to ZDNet, Uber could take advantage of BBM Enterprise third-party integration to improve the connection between customers and drivers. The functionality could be enabled so that when an Uber driver is en route to pick up a client, his or her status changes to “E” and then to “A” upon arrival.
By making the third-party integration move, BlackBerry has also sharpened its competitive edge against International Business Machines (IBM), MobileIron (MOBL), and Citrix (CTXS) in the enterprise software market.