RIM Bounces Blackberry Devices Off the Channel
Acting as a "master VAR," Intel is brokering relationships between its channel partners and telecom carriers, enabling resellers and systems integrators to sell RIM Blackberry devices, develop new applications and build infrastructures around the clients.
In an interview at the Intel Solutions Summit in Scottsdale, Ariz., co-CEO and chairman Jim Balsillie explained that RIM hasn't effectively engaged the channel, partly because of its long-standing relationships with the telecom carriers and its business-to-business relationships.
As RIM enters the next phase of its evolution, Balsillie sees the channel as a strong conduit for building out innovative wireless infrastructures around Blackberry devices. The channel, he believes, is the agent to integrate them with other existing technologies, such as CRM applications, Web services and conventional PBXs.
"The channel plays a big role because it has a higher element of touch with the end customers," Balsillie said. "VARs are the ones who take these platform-enablers and translate them into solutions. For things like real-time computing and PBX integration, you need VAR to sell, support and extend it."
RIM hasn't tried to engage the channel mostly because of the activation requirements of its devices. To sell and enable a Blackberry, you need to be an agent of a telecom carrier, something most resellers wouldn't want. Intel, acting as a master VAR on a reseller's behalf, brokers the SIM activation of RIM devices.
With the Intel arrangement, RIM "wants VARs to mirror the carriers' channel," Balsillie said.
Turning on the channel switch won't be easy, Balsillie admitted. RIM will be working closely with Intel and VARs, providing training on its products, integration strategies and development tools.
Tapping into the channel could be a boom for RIM, which recently settled its long-running patent-infringement lawsuit with Canada-based NTP. RIM agreed to pay $612.5 million for the rights to use its "poke and pull" e-mail synchronization technology. NTP alleged that it developed the technology; RIM still lays claim that it owns the technology and developed it independently of NTP.
RIM is also facing renewed competitive threats from the likes of Microsoft, which recently released its own real-time e-mail synchronization technology for its Windows CE operating system that runs on PDAs by Hewlett-Packard and Palm. Balsillie is not concerned about the Microsoft threat. While the lawsuit at one point threatened to shut down RIM's Blackberry devices, Balsillie said the company saw few customers drop their service or competitors gain market share.