BlackBerry Makes Another Bet on Services

“The creation of our Professional Cybersecurity Services practice and acquisition of Encription reinforces our commitment to customers to provide the industry’s most secure mobility solutions to help assess and mitigate risks”. BlackBerry says will be using the acquisition to help it kickstart a new consulting business, Professional Cybersecurity Services. The company launched its Professional Cybersecurity Services today and as a part of its program, also acquired the UK-based cybersecurity consultancy firm, Encription. The acquisition of Encription was completed on February 19, 2016.

The growing move into cyber security is a “smart move for Blackberry, especially as security is in the headlines” with a recent fight over smartphone encryption between Apple and the Federal Bureau of Investigation, said Jeff Kagan, a mobile analyst. It offers services including hardware and software security technical consulting, white hat hacking, and penetration testing.

No official statement exists on the ins and outs of the Encription deal, but more details should soon come to light. BlackBerry is also the trusted mobility partner of all G7 governments, 16 of the G20 governments, 10 out of 10 of the largest global banks and law firms, and the top five largest managed healthcare, investment services, and oil and gas companies. This includes a number of acquisitions in the security field.

Moreover, the security solutions provider will incorporate Encryption’s consultancy tools and services in its own security services.

CEO John Chen said: “We recognize that security vulnerabilities are a top risk concern for public and private sector organizations alike”. The solutions comprise quick cyber-threat identification, development of effective mitigation strategies, and software implementation to counter potential cyber-attacks. They’ll bring with them experience in testing network vulnerability for large business and government organizations, which makes them valuable talent for Blackberry’s newly formed security practice.

“At BlackBerry, we are constantly working to do more for our enterprise customers, especially when it comes to securing their increasingly digital and interconnected mobile world”.

After purchasing Good Technology, Blackberry said it expects to realize approximately $160 million in GAAP revenue from Good in the first year following the transaction.

BlackBerry had been performing penetration testing with advanced automotive systems being developed by carmakers, but needed to add more resources to meet the demand. The push into software and services could be an initial indicator that the company has refused to pin its hopes on the smartphone division.