BlackBerry's tale of two markets

Enterprises like BES 10, but Wall Street doesn't like BlackBerry's financials

In the enterprise market, BlackBerry appears to be doing well. But on Wall Street, the company is faring poorly.

Last week, the company said it had installed 18,000 BlackBerry (NASDAQ: BBRY) Enterprise Service 10 servers with enterprise customers, including 60 percent of Fortune 500 firms.

Yet, BlackBerry failed to meet Wall Street's expectations for its financial results and BlackBerry 10 shipments, sending the company's stock price into a tailspin on Friday.

On the good news side, BlackBerry appears to be making headway with enterprise customers, particularly those who have security as a top most concern.

For example, BDO Canada decided to deploy BES 10 last year and is upgrading its corporate devices to the Z10 smartphones, Kim Watt, chief information officer at BDO Canada, told FierceMobileIT.

"We implemented BES 10 about a year before the BlackBerry 10 came out as part of our BYOD strategy. With the old Blackberrys, we had those devices locked down so tight that nobody could do anything with them," Watt said.

BDO Canada is an accounting, tax and advisory firm with 3,600 partners and staff, and more than 100 offices in Canada. In addition to the BES 10, the firm has deployed more than 1,000 BlackBerry smartphones as their corporate device.

"We went with the BES 10 because of new security features, the ability to have the secure work space. We were excited about that because we were able to open up our devices, both for staff with corporate-owned devices and for staff with personally-owned devices. Those with personally owned devices can now access corporate email, calendar and contacts without locking down their personal stuff," Watt related.

BES 10 enables BlackBerry Balance, which provides separate corporate and personal workspaces on BlackBerry 10 devices. "We are waiting for the Service Pack 1 to come out so that we can implement secure work space for the iOS and Android devices," Watt noted.

BDO Canada need wait no longer. BlackBerry announced last week that the Secure Work Space for iOS and Android devices is now available. BlackBerry previewed the Secure Work Space in March and has been conducting trials with the product since then.

Secure Work Space extends the separation of corporate and personal workspaces available through BlackBerry Balance to iOS and Android devices.

On a personally-owned device, users with Secure Work Space can get access to email with attachment viewing, calendar and contacts, as well as secure browser access to intranets and document editing capabilities. With corporate data separated and controlled within the Secure Work Space container, these apps can be deployed to employees together with other apps chosen by the company.

Watt estimated that around 90 percent of BDO Canada employees use corporate-owned devices, while 10 percent use personally owned devices. "Anyone who needs corporate data and needs to connect to the network has a corporate BlackBerry device," she said. "Nobody can touch the BlackBerry security," she added.

On the bad news side, BlackBerry reported an operating loss of $169 million for the quarter ending June 1, compared to an operating loss of $12 million for the previous quarter, and a $635 million operating loss in the year-ago quarter. The firm said it shipped 6.8 million smartphones, only 2.7 million of which were BlackBerry 10 handsets.

Wall Street analysts had expected an operating income of $25 million and three million BlackBerry 10s shipped, according to The Guardian newspaper. In response, BlackBerry's share value plummeted by 28 percent on Friday, dropping to levels not seen since last December, before the BlackBerry 10s were launched.

For more:
- see BlackBerry's releases on BES 10 installations and Secure Work Space
- check out BlackBerry's financial results
- read The Guardian article

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