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Blackberry eyes cyber security business in Indonesia

Amid fierce competition from other tech giants such as Samsung and Apple, Canadian technology company Blackberry has set its sights on the cyber security sector in Indonesia, in addition to expanding the sales of its mobile handsets

Farida Susanty (The Jakarta Post)
Jakarta
Sat, August 12, 2017

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Blackberry eyes cyber security business in Indonesia

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mid fierce competition from other tech giants such as Samsung and Apple, Canadian technology company Blackberry has set its sights on the cyber security sector in Indonesia, in addition to expanding the sales of its mobile handsets.

Blackberry CEO John Chen, who has helmed the company since 2013, said recently that Blackberry’s track record in managing cyber security for governments and enterprises would set it apart from other companies.

“I believe that the future is going to rely more on security, cyber security. I want to build a very strong enterprise [software] business that takes advantage of all the security know-how of Blackberry,” he said.

Chen continued to say that its competitors in enterprise software, like United States tech firm Microsoft, are not focused on security, but more on functionality.

The company also emphasized the cyber security service it provides for the German government, among others, as well as its 30 years of experience in the field.

Chen said that the company has held discussions with the Indonesian government, particularly with Communications and Information Minister Rudiantara, to offer Blackberry’s services.

“I was pleased that the government of Indonesia may be considering our technology, the same technology that the German government has been using. Of course, this is something we very much welcome. I hope it becomes a reality,” he said.

However, Blackberry also predicts that like its business in the US and Canada, the market share of Blackberry’s cyber security software in the enterprises segment, such as for banks, insurances and legal firms, has thus far dominated its business, compared to its service for governments.

Blackberry has been notably transitioning from being a hardware company to focusing on software. It also licenses its software rights to other firms.

The Waterloo, Ontario-based company shifted its business focus after scrapping production of its once-iconic smartphones, which lost favor with the arrival of sleek and fully touch-screen handsets.

Sales of its smartphones nosedived after reaching a peak in the last quarter of 2010, during which around 14.6 million Blackberry smartphones were shipped worldwide, according to statistics portal Statista.

Blackberry’s market share reached 0.31 percent globally in 2015, down from 20 percent in 2009, versus 80 percent for Android smartphones as of early last year.

Chen maintained that the company would still manage its consumer business, including the handset and massaging app Blackberry Messenger (BBM) through its local partners in Indonesia.

The company outsourced the development of its smartphone last year, signing a deal with Indonesia’s local smartphone maker PT BB Merah Putih to make and distribute new Blackberry-branded devices.

In March, it launched the Blackberry Aurora, a new phone that marks its return to one of the world’s fastest growing smartphone markets.

Blackberry is working with Indonesian media company PT Elang Mahkota Teknologi (Emtek) to revamp its BBM app.

“I am a strong believer that in order to compete with the big boys, you really need to get the local people supporting your technology,” Chen said, adding that it has also signed similar deals with China’s TCL and India-based Optiemus Infracom Ltd.

However, he also questioned whether it was realistic for Blackberry to take over from big players like Samsung and Chinese brands like Oppo, due to the fragmented market.

“Coming in and displacing some of those players on the high-end [segment], we could do that. Low-end? That is probably not what we do best,” he said.

Meanwhile, Emtek vice president director Susanto Hartono said that the number of BBM active users is still considerable, as is its popularity; the app has consistently been in the top five of the most downloaded apps in Google Play, with 100 million downloads.

“Our homework is to introduce new features, from just a chat [messaging app]. Now, [BBM has] a social media-like feed,” he said.

The BBM app will also be able to do transactions as the company is preparing its own e-payment system, which will be ready in six months.

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