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The demise of Research In Motion (RIM)

March 30th, 2012 | Category: Technology

The BlackBerry maker Research In Motion faced with declining sales has announced yet another risky proposal to concentrate only on business users, license its BlackBerry software or to sell the business itself. Once mighty BlackBerry continues to struggle to survive in the face of the completion from Apple’s iPhone and other similar smart phones running on Google’s Android software. While RIM’s global market share of smart phones dwindle down to 8.2 percent in the fourth quarter from 14 percent for the similar period a year earlier, the Apple’s share rose from 16 percent to 24 percent. Its stock meanwhile plunged from high of $140 in 2008 to $14 in late March 2012.

The company’s three main functions; managerial, social and entrepreneurial functions, all failed in their capacity. RIM is trying to stay alive by focusing on enterprise services and targeted consumer segments. In the face of more and more companies allowing their employees to bring their own iPhones to work this may be difficult at best.

In coming weeks and months, the company needs to prove to its existing customers that it can compete with Apple, Google, Microsoft and others. Failure to do so could cost the company to succumb to intense competition.

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HP and Cloud Computing

February 22nd, 2012 | Category: Technology

Clouds provide a service rather than a product. For companies it provides convenience, efficiency and cost savings. Even though the concept was initially talked about as early as 1960s, widespread use of cloud started in early 2008.

Corporations are increasingly unloading their data centers and IT operations to service providers who are performing more efficiently. This cloud computing phenomenon is threatening servers, storage and networking products marketed by conventional behemoths such as Hewlett-Packard (HP).

Increasingly, cloud computing facilities are looking for parts that they can assemble and operate on their software. Cloud service providers are also looking for bundles that can be put into service immediately. This has been a problem for HP. HP needs to grab the trend in order to become a super power in this arena. HP currently generates $22 billion from selling servers, storage and networking products. It has a giant share of the server market.

HP also needs to get into the production of data-center switches used by cloud computing services. Cisco is the leader in this area. HP attempted to enter into this market by buying 10% of 3Com in 2010. However, they are in a struggle with Cisco for control of the new acquisition.

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Will the BlackBerry survive?

January 30th, 2012 | Category: Technology

The Waterloo, Ontario based BlackBerry maker Research In Motion (RIM) announced that they are replacing their co-Chief Executive Officers, Jim Balsille and Mike Lazaridis with COO, Thorsten Heins (a former Siemens executive) on January 22, 2012. The RIM is under lot of shareholder pressure lately due to its poor performance and slower growth.

The current plan as explained by the new CEO is to continue investing in hardware and software, and replace Black Berry operating system with new BlackBerry 10 (BB10) software from a company they acquired recently. They also hope to generate new revenue from BB10 licensing.

The BlackBerry dominates emerging markets such as Mexico and South Africa. They have 75 million subscribers worldwide.

However, they are faced with an intense competition. Microsoft is focusing on its partnership with Nokia and building an operating system. Samsung is thriving on Google’s Android operating system and Google bought Motorola Mobility. Competition from Apple iPhone is a major blow to BlackBerry. Apple’s last quarter profits ($13.1 billion) is twice the revenue of RIM ($5.2 billion).

Can RIMs BB10 exceed the quality of Apple’s iPhone and Android devices? Consensus is that they may not succeed. Corporate buyers who are hooked on to BlackBerry may have to support.

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