BlackBerry Business Model – How Does BlackBerry Earns?

In the last article, we saw how BlackBerry became the perfect example of riches to rags. But BlackBerry is still working, right? What is its Business Model now?

If you thought that BlackBerry has shut down its business and filed bankruptcy then – Picture Abhi Baaki Hai Mere Dost 😛

[You must Read: Why BlackBerry Failed?]

It is not out of business yet. It is leveraging its USP of being highly secured and meant for enterprises.

The mobile segment failed. So what? We will enter cybersecurity and business services.

Of course, the business and revenue are not that great but it is reviving. At its peak business year of 2011, BlackBerry made 19 Billion USD. However, in 2019, it made 904 Million USD.

BlackBerry Business Model - Revenue Distribution From 2008 to 2019

But as we saw in our previous article that BlackBerry ceased its smartphone segment. Then how is it still making money?

BlackBerry Business Model & Revenue Distribution

Times have changed.

BlackBerry Business Model consists of 3 major parts now – Enterprise Software & Services, Technology Solutions, and Licensing Business.

To make itself stronger in the cybersecurity business, BlackBerry bought Cynance for $1.4 Billion.

[Know More About: Cynance]

Today BlackBerry is serving every major industry using its security services – Financial sector, Government Security, Educational sector, Healthcare, and even Professional legal services.

Most importantly, it has a major contribution to Automotive and Railways using its technologies. It is even providing its automation services to Manufacturing hubs.

BlackBerry Office Building

Products

  • Spark, Optics, Protect, Persona – These are some products that secure the networks from attacks, find threats, and safeguard the operations.
  • SecuSUITE, BBM Enterprise – These 2 products provide strong security for the communication of Govts and large enterprises. Basically they are messaging and calling platforms.
  • BlackBerry AtHoc Crisis – Organizations around the world use BlackBerry AtHoc software to communicate and collaborate in times of crisis
  • BlackBerry UEM, IAM, Workspaces Content Collaboration are some applications for enterprises to manage their workflow.
  • Digital Workplace – To share files remotely
  • Dynamics Apps – Too many productivity apps similar to Google Notes, Calendar, etc.
  • Marketplace – It is like an App Store for large enterprises
  • BlackBerry Radar – An asset tracking solution providing visibility to trailer, chassis, containers, and equipment in the transportation industry

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Licensing

BlackBerry bought Cynance for a reason. They integrated it with their existing licensing segment QNX and now providing a combined license.

It’s not about directly selling the products. It is more about customizing a product and taking royalty fees from the enterprises.

BlackBerry Autonomous Cars

QNX is working with too many projects dominating the security of autonomous vehicle projects, railways, and others.

[Refer: BlackBerry QNX]

Technology Solutions

BlackBerry is even providing its cybersecurity services in Antivirus, Mobile threat defense, Internet of Things, and even for Ransomware.

Moreover, it has a wide range of consultation clients for cybersecurity and enterprises.

It even powers some of the software aspects in some smartphone brands. Those brands are not present in India though.

Other Revenue Sources

It’s not the case that BlackBerry completely stopped selling hardware and devices. So, a small portion of income comes from there as well.

Since they sell software and hardware, vast income comes from SAF (Subscriber Access Fees). The reason is that it does not operate on the freemium model. You need to pay a lot.

In short, BlackBerry is believed to not sell consumer data. Hence the fame for security.

Summarizing the Revenue Sources of BlackBerry As Per 2019

BlackBerry Business Model - Revenue Distribution

According to Statista, BlackBerry generated a revenue of 904 Million USD in FY2019 as compared to 932 Million USD of FY2018.

Here is a distribution of Revenue Sources:

  • Enterprise Software and Services = $355 Million
  • Licensing = $286 Million
  • Technology Solutions = $204 Million
  • Subscriber Access Fees = $46 Million
  • Devices = $13 Million

So yeah, a slight dip in the overall revenue but it seems these services will uplift the company.

Software and Internet Based Services are the future!

[You might also like: Zomato Business Model]

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