RIM: BlackBerry’s replaced within certain large enterprises

Things are starting to get difficult for Research in Motion and their BlackBerry handsets. After questions about their data encryption services and threats from large enterprises and institutions that they would abandon Blackberry services, RIM’s stock price has consequently taken a hit.

Canadian manufacturer Research in Motion (RIM) has never shipped so many Blackberry Smartphone’s but, paradoxically, their economic model continues to be eaten away. While trying to find solutions to demands made by governments in relation to their data encryption methods (India, Middle East) large institutions have now started to evaluate options other than the BlackBerry for their staff.

Dell announced last week that they would provide their own handsets to their 25 000 employees rather than BlackBerry Smartphone’s. The news was hardly surprising as the American group is now also a mobile telephone manufacturer, although one of RIM’s founders stated that he had trouble working out where Dell will be able to realise the stated economies.


Clients already looking to make a break
But there are already rumours that the Blackberry is being abandoned by large banks that are afraid of the worst. Bank of America and Citygroup are looking at the possibility of moving to iOS rather than continue with the BlackBerry messaging service.

It didn’t take much for RIM’s share price to lose 3% as investors showed concern about RIM’s prospects following these announcements made by other companies. Even if the Canadian group’s service remains a reference in today’s mobile messaging market, large corporations are ready to study the possibility of migrating to other platforms.

The loss of clients like Bank of America and Citygroup (more than 250 000 employees each) could cost RIM, but the group has confirmed that BlackBerry OS remains the best corporate solution, be it through handsets provided by companies or Smartphone’s purchased by employees themselves which are then adapted to the enterprise environment.