BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s decision to stick around and attempt a comeback is predicated almost entirely on its famously secure platform and its strong relationships with corporate IT departments, but an old rival is giving companies a good alternative to the failing mobile company. Good, which was founded in 1996, has seen its user base grow 50% in the last three quarters with a big bump in the last month, just as Fairfax Financial Holdings Ltd (TSE:FFH) (OTCMKTS:FRFHF)’s attempt to buy out BlackBerry was falling through, reports Kayla Tausche for CNBC.
BlackBerry’s security
Regulated industries, including finance and health care, supply many employers with BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s phones because they need to be sure that communications are secure, but upgrading to the next model phone comes at a considerable cost. Good works on both Apple Inc. (NASDAQ:AAPL)’s iPhone and Android devices, allowing companies to institute Bring Your Own Device policies that have proven to be popular and save money on both data plans and the devices themselves.
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“For a long time, we’ve seen users carrying around multiple devices,” Good CEO Christy Wyatt told CNBC. “Increasingly, we see users being able to converge those two.”
And Good’s technology is certified as Common Criteria Evaluation Assurance Level 4 Augmented (EAL4+), the highest internationally recognized security ranking available, and what is often considered to be “government grade.” So Good is just as secure as BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), and it’s the only company that can make that claim across all major platforms.
Good’s acquisition by Motorola
Good isn’t a new company, and Motorola acquired Good in 2006 for the express purpose of taking on Research in Motion (now BlackBerry). While Motorola’s plan didn’t work, now that the market is essentially wide open, Good is well-positioned to capture market share as it opens up, and there are rumors that the company could hold an IPO sometime next year.
Many analysts have said that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s best move is to close shop and sell its assets before it loses any more money, but Good’s recent gains show another downside risk the company is facing. The longer it holds on to the notion that it can recover, the less its business may be worth when does finally look for buyers.