Gartner tells IT shops that it's 'game over' for BlackBerry
computerworld.com
computerworld.com
They filled this sheet out, sent it off and forgot about it. From 20 pretty generic questions that ended up being answered with some pretty fluffy and marketing jargon laden bullshit, Gartner is able to tell if someone is a market leading software vendor or not. It's total bullshit. It turns out that it was just 1 guy doing this quadrant as when he left, Gartner stopped doing it(at least that is what I e been told)
The company I worked at even sent 8 people to the Gartner conference in an effort to boost visibility and hopefully quadrant status. I can't believe anyone would take it seriously, let alone base a purchasing decision from it.
An interesting question would be, "What's the return on investment in getting into the right quadrant?" It truly is a marketing decision that should be compared alongside advertising, conference attendance and direct mail.
I have worked with companies that cared more about getting into some quadrant of some Gartner graph than they cared about the quality of their products.
Is Gartner more than just a corporate badge? Do they purely provide the wall for the giant corporate pissing contest?
The tool we were primarily looking at, we could hardly recognize from Gartner's description - it was filled with factual errors.
Make you wonder what the quality of other Garner reports are...
Edit: Typo
I call this "shifting the burden of responsibility"[1] and it basically boils down to this - imagine you're an IT manager and your boss says "Should we support Blackberry anymore?" Who is the authority to say whether the answer is Yes or No to this question? If you (the IT manager) think you are...What happens when you're wrong? Hence why you simply shift this over to someone or some organization who has established themselves as the authority.
This is why the analyst industry exists.
[1] - http://www.techdisruptive.com/2013/07/18/shifting-the-burden...
Is this just because non-IT managers don't trust what IT managers say?
If so then this is a case of shifting the burden of responsibility of “shifting the burden of responsibility”. Non-IT managers blame IT managers for their use of analysts as a comfort blanket.
I realise there are analysts for all kinds of industry but I can't think of another example where analysts wield the kind of power that Gartner hold over the IT industry.
> Is this just because non-IT managers don't trust what IT managers say?
Yes, but the non-IT managers are even more uninformed. Everyone at some point is to blame, unless you can point that blame outside of your organization. Imagine this conversation going all the way up to the CEO. "But Gartner said to stop supporting Blackberry" holds some good value to her.
> Non-IT managers blame IT managers for their use of analysts as a comfort blanket.
I'm sort of confused by this comment, is this a statement you're trying to make? Either way, as you said, the key decision maker is usually the non-IT managers (usually at VP level or higher).
> I realise there are analysts for all kinds of industry but I can't think of another example where analysts wield the kind of power that Gartner hold over the IT industry.
I don't know many other industries that (1) have so many solutions (2) available to them globally (3) at so many different price points (4) with such a complexity of features. Finance rings a bell, but the competition is much higher.
Some good comments about the woes of the analyst industry in big tech: http://blog.softwareinsider.org/2013/08/09/personal-log-the-...
Blackberry is dead?!? What?! A company and device that sells 6.8m handsets is dead?!
its 6.8m handset sales in the quarter to the end of May[1]
> but right now it is obvious
Is it? Let's play a game...
Groupon and Twitter are/were built using Ruby on Rails. This is obvious, right? Does it mean IT depts should be ditching their .NET/Java shops for Rails? That answer is obvious right?
[1]http://www.theguardian.com/technology/2013/jul/18/nokia-reve...
Rough number: (sell 6.8M handsets per quarter) / (expected $1B loss this quarter) = they're losing $147 on every handset.
They'll have to raise the price on the device (every device sold) some 33% just to break even. And that's assuming sales don't plummet as a result of a significant price increase.
"I'm dead, I just haven't stopped moving yet." - Zaphod
That's not how it works.
$934 million of that $965 million loss comes from a non-cash charge for inventory and supply commitments. In other words, they lost money on the phones they did not sell. Assuming they can scale down linearly, this will not be a recurring expense.
Excluding non-cash charges, and adjusting for taxes, Blackberry lost $248 million last quarter. This is how much they lost on the phones that they actually did sell.
But even that's not quite good news. Because Blackberry sold only 3.7 million smartphones last quarter -- the 6.8 million number was for first quarter. So $248 million / 3.7 million = $67 loss per phone.
Hence Gartner coverage can be a great channel for acquiring b2b enterprise customers. It also helps establish credibility.
Someones not going to buy a product just because a Gartner paper, but it provides a starting point for evaluating vendors.
Similarly no company is going to look at this and stop using Blackberry tomorrow, but it puts evaluating BB usage/potential migration onto their radar.
What's more, given that Microsoft is known to have shipped backdoored code, and known to have been the fastest to cooperate with NSA etc., it's not clear where your last sentence comes from, that someone would trust MSFT code before Apple and Google code.
That said, yes, Windows phone absolutely should have had an enterprise push to appeal to the IT crowd depending on Active Directory, Exchange, Sharepoint, etc. They should have sidestepped the iOS vs Android battle and defined a "blue ocean" strategy with two prongs: (1) corporate/enterprise (targeting IT departments and white collar wage earners), (2) feature/smart phones (targeting kids in those households).
While iOS and Android (as seen in Apple, Samsung, and Droid adverts) are competing to be fiercely individualist choices, MSFT should have gone after groups/communities/companies/families. Groupware is a recognized Microsoft strength.
I agree iOS 7 has the best security and security functionality right now of iOS or Android, but there isn't a single out of the box solution which does what BES/bb7 provides. Setting up Apple's config manager is a pain, and the commercial MDM products aren't amazing.
Sure, other products vastly outsell it and it's been "defeated" in a product category it created. But in most other markets moving 6 million units of a product that costs over $100, in just 3 months, ought to mean you get to stick around indefinitely, at least as a niche player.
There are still lots of legacy BB shops, and those shops are still hiring new employees, replacing lost or outdated phones and so forth. BB may be selling 6 million units per quarter, but if they are losing marketshare rapidly (as they appear to be), those sales most likely aren't worth much. Additionally, if they are staffed up for 20 million units a month (eg: tons of office space, lots of personnel), then 6 million is not enough to sustain the company. We've already seen signs of this in the form of massive layoffs.
Also, this isn't a market where you can stagnate, so they won't be around indefinitely unless they have the R&D team to keep pace with new trends, plus create a couple of innovations.
They can probably stick around for a long time as a niche player, but that's not going to provide the kind of big returns that the investors expect.
This doesn't mean that they're going to go out of business and everyone needs to race to abandon ship, though.
Compare to, say, GM a generation ago. They had massive factories that needed maintenance whether being used or not, plus union contracts that kept unemployed workers in a 'job bank' that paid 80-90% of wages, on the (incorrect) assumption that any job loss would be temporary.
* I consider the iPhone to be the first "smartphone" by a reasonably modern definition of the word.
I'm pretty happy the on-screen keyboard "won" in mobile. I never found the tiny buttons on full mobile keyboards to perform far enough beyond the virtual keyboard to warrant the physical space they took up. Seeing as nearly everyone who battled the iPhone early on was featuring at least a slide out keyboard, I wonder how long it would have taken manufacturers to eliminate physical keyboards as they have, had the iPhone not come along.
I actually thought the Blackberry Torch had the ideal form factor for me, but I didn't want their software (nor their price).
I still carry around 2 phones: a Galaxy phone which I use as an internet-browsing tablet, and a Nokia slider (N86) which I love but which has inferior software for everything but calling (the hardware is much better than Samsung's though).
But they can't.
Blackberry sold 6.8 million phones in Q1 of fiscal 2013. But only 3.7 million phones in Q2. This is not a good trend -- even for a Q2.
Q3 runs from September 1 to November 30. We'll find out at the end of December how they're doing in the current quarter.
If only. Even if BBOS was forked from an old version of android (like, 2.3 or something) you'd still have some baseline of compatibility, a place to build an ecosystem.