RIM admits patent suit hurting its business
My take on the article and the NTP fiasco:
1) RIM's sales and customer support staff are busy putting out fires and calming down anxious customers. Productivity and morale is really low at RIM right now. Any 1-hr sales call on potential customers now is really a 30-minutes sales call with the other 30-minutes defending RIM's inept legal strategy.
2) Rival sales and marketing execs are using the uncertainty to plant seeds of doubt amongst RIM's largest customers that future blackberry products will be delayed and buggy due to RIM losing focus on customer needs and having to expend an enormous number of engineering manhours to migrate to a new code base that doesn't infringe on NTP patents. Those non-recoverable manhours are essentially of no-benefit to RIM's existing client base since real functionality will not be enhanced.
3) A reasonable percentage of new and existing customers will delay orders until RIM's NTP woes are over (sales growth non-existent or negative). Some customers will demand expensive concessions for signing this quarter rather than waiting for an NTP settlement (lower margins). There is enough existing inventory already in the pipeline to meet lower demand. Expect RIM to miss quarterly revenue and margin targets by a wide margin.
4) NTP is in no danger of running out of money. Any delay in settling is to their benefit since they know RIM is the one that wants to desperately settle ASAP. A larger RIM settlement will set a higher baseline figure that other email providers will pay NTP in the future.
5) Management has lost all credibility with the investment community (lies will do that!). Even if NTP agrees to a lowball settlement tomorrow--don't expect to see a pop in Rim�s pps. At these lofty levels, a settlement is already priced into the share price. RIM is no longer the darling of analysts and momentum investors. There are many other excellent wireless companies out there that can be purchased at more reasonable multiples.
RIM will drop quickly after options expiration this Friday.
Does anybody know why everything goes through Waterloo?
Why couldn't the routing centre be anywhere?
Why couldn't there be multiple ones and the military have their own.
As for towers, the military always have "towers" over everything. I think you call them AWAC planes?
BlackBerry blackout continues
July 7, 2005
"I don't have any clarity about when it will be fixed," Mr Bruem said. Telstra thought it had fixed the problem on Wednesday night, but users have continued to report issues with the service.
Telstra had compensation arrangements in place for business customers, Mr Bruem said. "We have established policies in place of business customers if they feel they have experienced a loss due to loss of service," he said.
Outage hits Telstra's BlackBerry network
By Steven Deare, ZDnet Australia
07 July 2005
Telstra's BlackBerry network is recovering from a nationwide outage that occurred yesterday and caused a data backlog that is still hampering users of the handheld device today.
A network link problem in Canada, where all BlackBerry e-mail traffic is routed to before returning to Australia, triggered the outage at 10am yesterday, according to Telstra spokesperson Rod Bruem.
As a result, the network became heavily congested throughout Wednesday, causing a backlog of data to build up, he said.
BlackBerry customers who called Telstra's support line told ZDNet Australia they were told the fault was a 'severity one' outage.
The customers said they were still experiencing problems receiving e-mail on their devices this morning.
The problem was fixed at 5pm yesterday, and service should return to normal sometime today, Bruem said.
"The network has not been operating as it should and we certainly apologise for that."
Telstra's Business and Government division was contacting corporate customers this morning to notify them of the situation, Bruem said.
What products could possibly have more gotta have it now cachet than the newest Blackberries? It is today's ultimate power statement to be the executive/lawyer/CIA agent able to check emails on your Blackberry during meetings while tuning out the ramblings of your lowly minions.
Fashion sense alone is a deep enough moat around the Blackberry echosystem to keep Microsoft out of the high-end wireless enterprise messaging space for decades. The brand is the thing and Warren Buffet will soon compare it to Coke.
Tell him you don't want all of his office emails going through a private server in Canada. National Security and all that.
"Better than Blackberry, Microsoft claims
Microsoft has moved to address this demand for additional features in the latest rollout of Microsoft's Mobile 5.0, he said. Released last month, version 5.0 is looking to woo IT managers away from Research in Motion's popular BlackBerry service by integrating a push email system. However, the architecture used by Microsoft, Zhang said, employs a more direct approach for linking users with email, cutting out the proprietary servers used by RIM as part of their service package.
"There is no middleware, no server... that impersonates you to get all your data that is then passed through a network center to the device. That is a zigzag approach. We are also cheaper. You don't have to pay for the server and the user doesn't have to pay the service fee," he said. "It is also more secure. RIM has to use a lot of encryption along the way because data has to be directed to multiple places. In our case, there is only one set of encryption you need to use, from your server to the device. And we use a standard encryption protocol: SSL. We don't need anything else." "
Couple of things:
"It is also more secure. RIM has to use a lot of encryption along the way because data has to be directed to multiple places. In our case, there is only one set of encryption you need to use, from your server to the device. And we use a standard encryption protocol: SSL. We don't need anything else." "
Really, Zhang? Ask any enterprise customer if SSL is enough. You will get a resounding "Hell no". Ask Gartner who, even before release, is questioning the security model:
"Gartner believes this pack, and earlier deals to license Microsoft's Exchange Server ActiveSync protocol, will make the company's mobile e-mail offering a "good enough" solution for some organizations. Security remains a problem, and enterprises should use third-party security products if they choose to deploy Microsoft's e-mail solution"
"There is no middleware, no server... that impersonates you to get all your data that is then passed through a network center to the device. That is a zigzag approach. We are also cheaper. You don't have to pay for the server and the user doesn't have to pay the service fee," he said."
If the new version is anywhere close to the old version, your bandwidth costs will be outrageous. That and the battery life of the device will be crap as well. That network center is what provides the security that the enterprise wants.
Bottom line, there is no way in hell MSFT is a player in this space for at least two years. Look at their history of new product releases: Never on time, always buggy. Add on top of that the fact that MSFT only supports Exchange 2003, which is less than 30% of the total Exchange market. Even with those running 2003, Exchange admins loathe Service Pack updates and typically wait until the first or second patch before applying them.
Look, I think RIMM is going down as much as anyone else. They are not disappearing, they are not going bankrupt, however, their dominance is slowly going away. However, MSFT is NOT going to be the reason why. Companies like Good, SYNC and Visto are the reason. All three of them have a MAJOR headstart on MSFT and while MSFT figures out how to do things, they will be taking away the RIMM market share that MSFT is after. MSFT will be a factor, but not for quite awhile.
I think this is the first time I've actually become aware of exactly what the "partnership" was between MS & RIMM - it's instant messaging.
And you gotta think about this statement, "There is no middleware, no server... that impersonates you to get all your data that is then passed through a network center to the device...."
>>Interview with the head of Microsoft's mobile division.
Oh please, the words of Microsoft carry little weight. It's just MS's BS to try to take away its competitor's steam. Just recently Bill Gates proclaimed that ipod is doomed because of cellphone, while Steve Balmer claimed that Google will be out of business in 5 years. In both cases, Microsoft is seriously outmatched by both Apple and Google.
Saw it and the one for the Treo and the one for the audiovox, and the one for the samsung, and motorola, and LG. They all offer so much more than BB, features that most of the market, especially those under 40 want. RIMM is your father's smart phone!!
Tell me you all wouldn't have liked a nice $2 pop. Then when eveyone figured out that the lawsuit is not good news (still uncertain and market doesn't like uncertainty) and competition grows by the hour it would back off and make us all some $$$. Oh well, shorts still making money, just not as much as we could have.