Struggling smart phone vendor BlackBerry is looking to diversify its business by launching a cybersecurity consulting service, focusing in part on the Internet of Things, and providing related tools to customers.
The Ontario smart phone vendor, an early standard bearer for multifunction mobile phones, announced that it has acquired UK cybersecurity consulting firm Encription. The company did not disclose the terms of the completed deal.
BlackBerry’s move into cybersecurity consulting is not a huge leap, as the company has long positioned itself as a security-minded vendor. Late last year, the company launched the Priv, a security and privacy-focused smart phone running a modified version of Android.
The company has significant cybersecurity expertise in house, and the new consulting practice will build on those assets, a spokeswoman said.
The company noted the global cyber security consulting industry generates $16.5 billion (€14.9 billion) in business a year, with huge growth predicted.
BlackBerry posted a net loss of $89 million (€80.8 million) for its third quarter, which ended on 28 November. Still, for the previous nine months ending on that date, it posted a net profit of $30 million (€27.2 million), compared to a net loss of $332 million (€302 million) over the same period in 2014.
BlackBerry’s cybersecurity services will focus on helping customers with security strategies and providing technical assistance, the company said. The company will specialise in automotive and Internet of Things security and in detection, testing and analysis.
The growing move into cyber security is a “smart move for Blackberry, especially as security is in the headlines” with a recent fight over smart phone encryption between Apple and the FBI, said Jeff Kagan, a mobile analyst.
Still, it is unclear if cyber security consulting will be a long-term winning strategy for the company, he said.
“BlackBerry is having a tough time finding growth areas,” Kagan added. “Before we get too excited, we’ll just have to see whether this moves the needle at BlackBerry.”
IDG News Service
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