U. S. Corporate and Government Clients Cut BlackBerry Out

by Jordan Richardson on February 13, 2012

Research In Motion has been struggling to instil confidence in investors and customers alike by shuffling the deck at the top of the board and making some ambitious changes to its advertising strategy, but it’s beginning to look like the company’s roll downhill is an avalanche that is impossible to stop.

The National Oceanic and Atmospheric Administration has joined other U. S. agencies in kicking out RIM’s BlackBerry as their devices of choice. To add salt to the wound, NOAA will be replacing BlackBerrys with iPhones from Apple. They will also be getting rid of the servers that power RIM’s smartphones.

The trouble, at least in this case, comes down to money. RIM charges a fee for server and data centre use. In turn, the company provides email encryption, compression and protection of sensitive data. This has made the BlackBerry the tech weapon of choice for many government agencies, corporations, bankers, and politicians.

But with companies and agencies under pressure to cut costs, RIM may be on the outside looking in. “It all comes down to economics,” Joe Klimavicz, NOAA’s chief information officer, said. “I’ve got a lot of pressure to cut our operating costs.”

Several banks in the U. S. have made similar switches, while Haliburton has also announced plans to switch some 4,500 BlackBerry-carrying workers over to, you guessed it, the iPhone.

RIM has had trouble winning over the “average consumer” in the United States, but up until now it has almost always been able to count on government agencies and corporations for its market foothold. With that avenue of the market changing too, RIM’s decline is looking graver by the day.

For now, the company is hanging in there. It insists that its security is second-to-none, noting that its latest operating system has received certification from Canadian and American authorities. “RIM continues to work closely with its more than one million government customers in North America who rely on the unmatched security of the BlackBerry platform,” spokeswoman Tenille Kennedy said.

In these days fuelled by cost-cutting measures and market insecurity, RIM is going to have to start banking on more than its security to stop the fall.

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Written by: Jordan Richardson. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitterFacebook, or YouTube.

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