BlackBerry: A High Stakes Turnaround After Cutting Cylance, Powering QNX Expansion
BlackBerry Limited, the Canadian multinational corporation known for its smartphones and enterprise software, has recently made headlines with its decision to sell its cybersecurity business, Cylance, to a private equity firm. This move comes as part of BlackBerry’s larger strategy to focus on its QNX business, a leading provider of operating systems for automotive, industrial, and IoT markets.
The Sale of Cylance
The sale of Cylance, which BlackBerry had acquired for $1.4 billion in 2018, was reportedly driven by a need to focus on core business areas and reduce costs. The deal, valued at around $1.1 billion, was announced in February 2021 and is expected to close in the second quarter of the year. The proceeds from the sale will be used to strengthen BlackBerry’s balance sheet and fuel the growth of its QNX business.
The Future of QNX
BlackBerry’s QNX business has been a consistent performer for the company, generating revenue of $362 million in the last quarter of 2020. With the infusion of funds from the sale of Cylance, BlackBerry is poised to expand its QNX business and increase its market share. The company plans to invest in research and development, as well as sales and marketing efforts, to capitalize on the growing demand for secure and reliable operating systems in the automotive and industrial markets.
Impact on Consumers
For consumers, the sale of Cylance and the focus on QNX could mean improved security and reliability in various industries. BlackBerry’s QNX operating system is already used in over 120 million vehicles on the road and in various industrial applications. With increased investment, we can expect to see more innovative and secure solutions from BlackBerry in these markets.
Impact on the World
The sale of Cylance and the focus on QNX could have far-reaching implications for the technology industry and beyond. With the increasing importance of cybersecurity and the Internet of Things (IoT), BlackBerry’s QNX business is well-positioned to play a significant role in securing these systems. Moreover, the success of BlackBerry’s QNX business could set a precedent for other companies to focus on their core competencies and divest non-core businesses to fuel growth.
Conclusion
BlackBerry’s decision to sell Cylance and focus on its QNX business is a bold move that could pay off in the long run. With the proceeds from the sale, BlackBerry is well-positioned to expand its QNX business and capitalize on the growing demand for secure and reliable operating systems in the automotive and industrial markets. For consumers, this could mean improved security and reliability in various industries. For the world, it could set a precedent for other companies to focus on their core competencies and drive growth through strategic investments. Only time will tell if BlackBerry’s bet on QNX pays off, but one thing is certain: the future of technology is looking brighter with companies like BlackBerry leading the way.
- BlackBerry sells Cylance to focus on QNX business
- QNX is a leading provider of operating systems for automotive, industrial, and IoT markets
- Proceeds from sale will be used to strengthen balance sheet and fuel growth of QNX
- Increased investment in research, development, sales, and marketing
- Impact on consumers: improved security and reliability in various industries
- Impact on the world: sets precedent for other companies to focus on core competencies
