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Weekend rant: Should Microsoft buy RIM?

By: , IntoMobile
Saturday, July 14th, 2012 at 1:36 AM

Yesterday we talked about potential buyers for Research In Motion. What was once the most profitable company in Canada keeps struggling as it faces competition from Apple, Google and its partners, most notably Samsung. Of all the companies we mentioned yesterday, we think Microsoft may be best suited to acquire the BlackBerry maker or make some other deal with them.

It’s not about technology

First of all, and as I said it before, RIM doesn’t have technology its competitors would want. Push-email was cool when BlackBerry was the only device that could handle it, but today any smartphone can do the trick. BlackBerry Enterprise Server along with other services isn’t something Microsoft is interested in as it already has its own technology (Exchange Server). So what could the Redmond giant get for its money?

It’s all about the users and expanding ecosystem

Microsoft doesn’t need RIM’s hardware business, it needs its user base. That said, perhaps they don’t need to buy the whole company, just to pay them enough money to switch to Windows Phone, like they did with Nokia. In fact, some reports suggested that Microsoft cashed out $1 billion to the Finish company to adopt the new platform. As far as I can tell, that would be a win-win scenario as far as RIM’s and Microsoft’s shareholders are concerned. BlackBerry user base is a different story – they would hate such a deal.

But it’s not that easy

You see, Nokia has a big patent portfolio, awesome supply chain and equally impressive distribution. RIM, on the other hand, doesn’t have any of that at least not on the level comparable to Nokia. So if Microsoft would pay the Canadian company some amount to adopt Windows Phone, I’m sure it would also ask for a share of the company. Now I don’t think Ballmer & Co. should get into day-to-day operations at RIM, but they should certainly need to have a say on the company’s strategy.

RIM’s autonomy

Finally, Microsoft should leave some space to RIM to develop its own software that would run on top of Windows Phone, again just like it did with Nokia. RIM should strive to keep the BlackBerry-like user experience, while benefiting from the growing user and developer base of Microsoft’s mobile platform…

To conclude – Microsoft could really make something out of a deal with RIM. It doesn’t necessarily need to acquire them, but to make some other arrangement that would push BlackBerry users to Windows Phone. That, of course, won’t be easy – but Microsoft is serious about mobile and it has enough money to handle the challenge.

Any thoughts?

About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.

  • Anonymous

    Nah, HMMM..  MSFT may be best interested to acquire Blackberry’s patents than buy the company. MSFT is Patent collection troll as always!

    • jamesz

      So its okay for me to take what belongs to you then, if someone infringes on your patent its only right they pay. You are always bashing microsft , get a life.

    • http://www.intomobile.com Dusan Belic

      I would say Google is a bigger patent troll. No other company ever paid that much for patents – i.e. acquisition of Motorola.

  • MVZ

    RIM is behind the eight ball MSFT is always a day late and a dollar short. WP is not a good OS ’cause MSFT is trying to merge all their OS’s into a single user interface which is no good. RIM does not have the financial/technical background to push an alternative OS on a timely manner say goodbye to RIM it was nice knowing you! right before Nokia and Ericsson as a mobile handset makers

  • Gregory C Newman

    Nokia is the best bet for Microsoft to buy into because of their patents and superior smart phone designing group and world wide brand name and overseas markets. Rim’s best value to Microsoft would be it’s brand name which has been tarnished but still has loyal fans among the Business Enterprise group. if Microsoft buys Rim it should let Rim finisfh and sell it’s BlackBerry 10 OS phones as well as have some blackberry smart phones run it’s Windows Phone 8.If Rim’s sales pick up Microsoft should sell Rim off but Keep Nokia  I agree with the author that Microsoft should let Nokia and or Rim run as independent companies and when they are solvent sell them off. I think however once Microsoft buys Nokia it will probably keep it so Microsoft can have some Windows smart phones on the market place because if Windows 8 smart phones do not sell better than Window 7 series smart phones have been selling then Nokia will be the only OEM selling more than one model Microsoft Windows smart phone other OEM partners might only male just “ONE” model Windows smart phiones