uploads///bbry

How BBM Enterprise Could Impact BlackBerry’s Software Business

By

Nov. 20 2020, Updated 3:22 p.m. ET

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.