Feeds

BlackBerry Messenger unleashed: Look out Twitter and Facebook

Ignorant tech pundits just aren't down with the kids

  • alert
  • submit to reddit

Application security programs and practises

This isn't Skype, it might actually be worth something

Put all these advantages together, and BBM not only has a lot of tangible advantages to the user on a daily basis, but is also a much richer platform on which to build things. When it comes to building reliable services, most of its rivals simply are not fit for purpose. For example, it isn't hard to imagine a "BBM Money". But it's quite a stretch to imagine a "WhatsApp Money". The world of VoIP and messaging apps is essentially parasitic, and that kind of business attracts opportunistic startups.

BlackBerry tried building a music service on top of BBM, but it didn't succeed. That may be because the demographic being targeted is acutely price sensitive, and the offering was an incremental expenditure and not a bundle.

One new service has already been announced, but rather disappointingly, it's a me-too: BBM Channels. This is really a marketing tool for brands, giving them engagement analytics (hey, we don't make this jargon up) “assess and monitor follower engagement and interaction." It's more subtle than blasting advertisements at BBM users, but not a great innovation.

Yet there is a genuine revenue stream in VoIP, it's just not well known, for it exists in the shadowy hinterlands that lie between the traditional POTS and GSMA phone world, and the IP-based OTT world. When you make a call to a mobile number, the network receiving the call sends a bill for the termination fee to the network making the call. However, new services can offer to terminate the call for you - acting as a kind of pseudo network.

They draw on numbers acquired from the international number pool, and provide and terminate to this number instead. So, instead of you calling Bob on a classic 077 number, you'll be calling Bob on a number drawn from the pool. The termination rate can then be divvied up in new ways. This, in turn, has allowed all kinds of new services to be offered, such as short-term disposable numbers. Examples include a number for a one-off commercial promotion, or a voicemail box for a dating service, as well as the better known branded OTT services like Pinger.

We discussed the implications of this here and here.

For all the coverage about the rise of VoIP and IP-based messaging, much of it focuses on pure IP-to-IP communications: not on these fascinating new use cases and hybrids. BlackBerry can offer much here, not merely to the punter but to third parties, because its BBM platform is more sophisticated.

So. What next?

The arguments raging in the tech press and fan forums this week focus on whether opening BBM is good or bad for BlackBerry. Let's remember that BlackBerry does not exist to keep fanbois happy, but to maximise shareholder value, and leave that for another discussion. What's pertinent is whether BlackBerry chooses to manage BBM as if it were the sole product of a new and ambitious start-up, or as a legacy product; for this will make a huge difference to its fate. And right now we don't know, because BlackBerry's long-term strategy is the subject of legitimate speculation.

It's clear from BlackBerry's more recent public statements that it's sympathetic towards platform licensing - and it now has two platforms, BB10 and BBM, to license. What's less clear is whether it wants to stay in the handset business, too. Designing and marketing smartphones requires high investment and reaps a high reward, with enormous cash flow - while a platform licensing business is a much smaller, but lower risk game. Until BlackBerry CEO Thorsten Heins offers a clear strategy instead of hints, we don't know whether BlackBerry will sell off the hardware, or instead focus on the most attractive hardware niches.

Several scenarios could play out.

One is that cross-platform BBM is a dud, as Apple and Android owners fail to notice its value, or don't care, and ignore it - while BlackBerry's hardware business fails. The network dies. In another scenario BBM fails, and BlackBerry's hardware business, against the odds, succeeds. In another, BBM catches fire, while BlackBerry's hardware business - shorn of its most unique asset - goes down the pan. Or… it's trebles all round, as a successful BBM creates a halo effect on BlackBerry, rescuing its hardware business.

Unchuffed: a BlackBerry user thinks BlackBerry has stolen his toy

BBM may well live a more promising life outside BlackBerry than within it. If it's moored to the mothership, the BBM business has to raise capital through the parent. If it's spun out, BBM as a business will be viewed more differently, and may enjoy more freedom. Today, nobody really queries Twitter's infrastructure costs; they look at growth and try and guesstimate revenue, and so Twitter has little difficulty raising capital. But within BlackBerry, BBM's costs because they're viewed as a drag on BlackBerry.

Critics are correct when they say BBM is entering a crowded field. But they tend to overlook its USPs. And BlackBerry received an unexpected boost this week, from Google. At its I/O developer conference, Google announced its long-awaited unified voice and messaging service. And guess what? It's decided to anchor it to the flop Google social network Google+.

Just as Microsoft responded to the internet by trying to make every web technology look like Windows, or supplant it with a Microsoft-brewed alternative, Google ties everything to Google+. Now that BlackBerry no longer has to hitch BBM to its BlackBerry hardware, this is could give it a most unexpected advantage. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.