John Chen spoke with Rich Karlgaard about BlackBerry’s turnaround. Chen said he turned down the CEO position three times before finally accepting the challenge. In a nutshell, BlackBerry lost its way when it did not open its API. Profitability was massive at the time, while Apple’s growth was in its infancy. In 2007-08, why change?



BlackBerry’s core competency is in security. From its roots in mobile phones, Chen is leading the company towards the privacy and security markets. Though falling, there are still 30 million subscribers on BlackBerry. The same microkernel, QNX, is used in around 60 million automobiles. Securely connecting things, or “IoT” (internet of things), end-to-end is an opportunity for BlackBerry.

BlackBerry is building its technology stack through acquisitions. Just before the long weekend, for example, BlackBerry said it was acquiring Good Technology, which offers secure applications and containerization that protects end user privacy.

“You may be surprised by this news as BlackBerry and Good are part of a very competitive market that’s constantly evolving,
the company said in a statement alluding to the two firm’s legal skirmishes. “But, this move brings together complementary capabilities from both companies to create the most comprehensive secure mobile platform in the market.”

BlackBerry is aware the revenue potential is there, but few actually make money in this market. The company will make applications to capture the growth potential in the IoT market.

BlackBerry Leap smart phone

Carving Out a Niche

When Chen turned around Sybase, he made sure the company would not head towards manufacturing or retail. This meant avoiding IBM, Oracle,  and Microsoft as competitors. By carving out its own space, Sybase’s sales flourished.

Chen’s background

When asked how engineers may move towards executive leadership, he said engineers had the advantage of logic. It also helps having strong communication skills, a comfort for management, and liking people. Having an engineering background also means know how technology works, so rational decisions are based on technical facts.

Image from
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BlackBerry stays in Devices businesses

The company’s strategy is providing an end-to-end solution, from the server to the end device, whether it’s a truck or a smart phone. Chen said getting out of smart phones is a possibility, if it is not profitable. However, the big BUT is that the company would stay in the software business for phones. This is a necessary move: IoT requires point to point messaging, end-to-end.

BlackBerry Android?

android security apps

Tech websites are convinced BlackBerry will release an Android version of the BlackBerry Slider. This is conceivable: there are few, if any, mainstream Android devices that have a physical keyboard. Instead of making security central to the operating system, BlackBerry would containerize the secure app within Android. Chen hinted in the past Android’s operating system security was not secure. Still, boosting market share by device volume while getting the containerized BBM, Hub, messaging, and other BlackBerry services in Android is a good move. Eventually, BlackBerry APKs for Android would work on all devices. The company would effectively grow market share in the future without relying on physical devices.

Here are some sites showing images of the Slider Android device.






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