BlackBerry Ltd.’s acquisition of U.K.-based Encription Ltd. that is launch from the new cybersecurity services division produce a lot of sense.
It permits the Waterloo, Ont.-based company to leverage its core strengths in security and mobile technology, while consulting presents a fresh income opportunity that may increase BlackBerry’s share of corporate IT spending.
Since Encription has under 50 employees, the sale is unlikely to get a major impact on BlackBerry in the near future, but TD Securities analyst Daniel Chan noted the Canadian tech company’s entry in to the consulting space allows it to utilize its understanding of most of the highest-growth segments from this services.
Research firm Gartner estimates the earth cybersecurity consulting industry does about US$16.5-billion cost of business annually, with that figure set to develop to US$23 billion in 2019.
Chan also realized that Encription’s customers are in verticals where BlackBerry had been strong, for example government and financial institutions.
“When the consulting clients are successful, BlackBerry can scale e-commerce for it across its global distribution platform and then sell on consulting services alongside its products,” Chan said in the research note.
In accessory enterprise cybersecurity, BlackBerry is individuals reassurance from the automotive space as well as other segments of the Internet of merchandise – the network of physical objects that collect and exchange data.
