As Research In Motion’s woes deepen amid lay offs, outrageous losses five times bigger than projected and news that its long-expected BlackBerry 10 software won’t arrive until next year, a significant number of high-profile and profitable corporate customers are readying contingency plans, a tell tale sign that, unfortunately, the window of opportunity for the BlackBerry as we know it is closing fast…

Scott Moritz and Olga Kharif, reporting for Bloomberg:

Research In Motion Ltd. customers from GoDaddy Group Inc. to asset manager Thames River Capital UK Ltd. are preparing for the worst: the loss of the BlackBerry service their employees depend on to communicate.

Here are some of the quotes (it doesn’t get any worse for RIM’s pride than this).

Lopez Research founder Maribel Lopez:

In the past three months there’s been a lot of concern that the BlackBerry platform won’t be around in the future. It’s not unheard of for a large phone manufacturer to go out of business.

MobileIron CEO Bob Tinker:

CIO’s are now asking us: ‘What do we do if RIM gets acquired or if they restructure’.

GoDaddy CIO Auguste Goldman:

GoDaddy, an Internet domain-name and hosting company, could switch users to iPhone or Android devices “within hours,” said Auguste Goldman. In the event of a “significant outage” for BlackBerry devices, GoDaddy has a plan to migrate users to other platforms, Goldman said in an interview.

Nationwide Mutual Insurance Co. tech director Robert Burkhart:

You could see that RIM started to decline. We are well on our way to having a dual environment, so if RIM did go out, we’d be okay. If people are starting contingency plans now, they are behind the eight ball. They should have been looking at this all along.

Thames River Capital is one of the many corporate customers cited in the article that expects much of its staff to switch to the iPhone or Android devices and is readying contingency plans should BlackBerry service be shut down, disrupted, or if a competitor snaps up the company.


A mockup of phones running yet-to-be-released BlackBerry 10 OS

This terrible news couldn’t have come at a worst time for RIM, a company that literally kick-started the smartphone industry. However, a series missteps by its stubborn co-CEOs and their refusal to accept the iPhone (and later Android) challenge and respond to it appropriately has cost the company precious time.

That, and Mike Lazaridis’ and Jim Balsillie’s awfully misguided bet that touchscreens were a fad and that business people would continue wanting to type email messages on the clickety-clack physical keyboard that BlackBerry devices are famous for.

Put simply, RIM fell behind the market realities so badly that it’s now virtually impossible to turn the company around. Here’s a quick video tour of BlackBerry 10, courtesy of The Verge.

I’m giving them a couple quarters until the management announces a sale of assets. RIM recently hired bankers to “explore options”. I doubt there will be a buyer for its BlackBerry devices division: who wants a shrinking handset biz based on the aging software platform or the yet unproven BlackBerry 10 software?

Besides, I doubt RIM can withstand the impact of Windows 8 that Microsoft today confirmed will launch in October. As for RIM’s messaging and corporate software, Microsoft or even Oracle could make some use of it, but any potential buyer will likely employ the waiting tactics until RIM gets devalued to the point that its assets could be bought for peanuts.

Thoughts?

  • himynameisBLiNK

    Duh.

  • jose castro

    down goes blackberry

  • Rim is the the Jedi Order. About to be wiped out by iOS and Android (The clones). Luke Skywalker (OS 10) is their only hope.

  • I never used Blackberry and it’s failing ;p So bye RIM and keep growing
    Apple & Android(AA) <<< xD

  • 2008crna

    RIM going under is old news. Heck, most of the cell phone users have known this for months. Like the Nokia story, I dont know why this keeps making headlines.

  • One OS to rule them all. iOS ofcourse xD

  • Manuel Molina

    Apple should just buy RIM, then it would be all over for their pain and suffering. Lol. Of course, that’s a joke but I do feel bad for them.

  • Chris

    R.i.p

  • Apple and Android are learning how to creep into the business market while BB looses what WAS a potential dominance. They got cocky and now they pay the price. And now they think treating employees like slaves is gonna win them friends. What would be most embarrassing is if Windows phone took a chunk of their market. The world makes no sense. MS buying them may be a.sensible route… Hmmmm

  • old news

  • RIM needs a “Steve Jobs person”, someone who CAN lift them! If someone doesn’t step in there the last minute, then the company will die for sure… :/

  • SimonReidy

    “literally kick-started the smartphone industry”

    Um no. If they literally kick started the phone industry that means they literally kicked their feet into the phone industry to start it.

    While we all know what you meant, you can’t use a metaphor like “kick started” after the word literally. It makes no sense.

  • Larry Masika

    Sadly but true…another case of frankengarnet OS (palm OS A.K.A Web OS)

  • RegisteredUser9999

    I was a Blackberry fan and I’ve tried my darnest to defend Blackberry at work.

    But after so many defects in the Blackberry Bold 9900, Torch 9800, Torch 9810, Blackberry Porsche, and rep not returning my calls, Playbook’s failure, and 5 ignored email follow ups and 5 ignored follow up phone calls… this did not look good to CEO, CIO and IT team.
    it’s time to *DROP* Blackberry. Done deal. Blackberry, it was nice knowing you…but now… it is iOS and Android to shine.
    After playing with iPhone 4S and Samsung S3, I loved them sooooo much over Blackberry. All the Business tools are there and all useful apps are all on iOS and Android. Blackberry, you should fire the marketers for boasting that “we need tools, not toy” crap message. I’ve used iPhone 4S and Samsung S3 and iPad. They are Business Tools too.
    iOS and Android can have multiple Exchange account setup natively. Blackberry? Only 1 Exchange account on Blackberry phones and Playbook. That’s it. Blackberry is a useless “tool”.
    I’ve checked *ALL* of our vendors for apps for Blackberry and *ALL* of the vendors say the same thing… Blackberry is DEAD. They only make apps where iOS and Android have the largest market share.

    All of the stock brokers we know all say the same thing. Don’t touch RIM stocks. BB10 will not be the game changer. All hype and no beef. All boast and no meat. All talk and no walk.
    BES is no longer relevant and Blackberry Mobile Fusion is pointless and useless in managing iOS and Android. Better off with CompuTrace, Good, IronMountain and other MDM solutions. Exchange 2010 and 2012 ActiveSync kicks BES butt.
    So… in a nutshell… Blackberry.. you suck.