BlackBerry announces reduced pricing for BlackBerry Enterprise Service 10 CALs

By Bla1ze on 19 Aug 2013 08:02 pm
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If you're an Enterprise customer looking to deploy BlackBerry Enterprise Service 10 in your workplace, the pricing for the offerings has just been reduced. As announced on the BlackBerry Blog for Business, effective August 19, BlackBerry Enterprise Service 10 EMM Corporate Annual Client Access Licenses (CALs) will now be $19 MSRP a year, or less than $1.60 per month per device, compared to the $59 pricing previously. 

To go along with the price reduction, BlackBerry is also offering several other promotions and deals for those looking to move to BES 10 or upgrade their already existing services. Since launching in January 2013, 19,000 commercial and test BES10 servers have been installed by customers around the world and many companies are making use of the expanded feature set that BlackBerry Enterprise Service 10 offers:

  • Complimentary BlackBerry Support providing 12x5 telephone access to technical experts, responsive online support, access to training, productivity and diagnostic tools.
  • A single intuitive management console to manage your devices, users, groups, apps and services.
  • Mobile device management (MDM) for BlackBerry 10 and BlackBerry OS devices.
  • MDM for iOS and Android devices through the same management console used to manage BlackBerry devices.
  • BlackBerry Balance, providing a secure Work Space and Personal Space on BlackBerry® 10 devices.
  • BlackBerry World for Work: a fully integrated corporate app storefront.
  • Manage your organization’s BlackBerry Enterprise Server 5 and BlackBerry Enterprise Server Express environment through the single console.

If you're looking to learn more about the new pricing you can check out the BlackBerry Blog for Business posting or hit the link below to visit the BlackBerry Enterprise Service 10 website to learn more about all of the available options.

Learn more about BlackBerry Enterprise Service 10

Topics: BES 10 Enterprise

54 comments

R Field

Hopefully this leads to more BES10 adoption.

CB10- BlackBerry Z10

i7up2001

The way I see it , is now that BES10 is open to IOS and Androids. they can easily triple if not more the adoption rate for about the same fix cost. If they can get more than 3 times the amount of phones they should be making more revenue and hurt the competition.

yasmar

hopefully that increases BES10 adoption rates

birdman_38

Sounds like they need to drive sales before the next earnings call.

JBML007

Finally they're dropping prices!....yes blackberry yes!

Posted via CB10

Trick_Deck

Hope this bodes well for the future

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nick canada

hope this triggers some huge adoption of bes10, and that there is still enough money at that price

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masterful

Like it

Posted via CB10 from my BlackBerry Z10

mobilesync

This makes BES service profit close to 0.

However this is good for BB. This wipes out the competition. Good's cost is already much higher than BB (at $59). Now Good's inferior service (Can't build a generic transport after 6 years of trying. Fail big !) will go down the drain.

This essentially establishes BB as the single viable Enterprise mobile management service provider. BES user base will for sure skyrocket.

Now BB needs to find a way to monetize since $1.6 / month is just break even, especially considering packets routed via the NOC. There is another way to reduce cost and ultimately scale up BES/NOC, which I can't elaborate here. I hope BB still has the resources to re-architect BES/NOC to fit $1.6 / month.

Good Luck BB.

BBPandy

Yea I never understood how Good & Mobile Iron could get away with selling less for more & actually build their subscriber base. I figgured the ONLY reason was because they were providing MDM for something some corporations really wanted (Android & iOS) With BES10 I can't see any logical reason for anyone to go with them, even B4 the price cut.

I see this price cut as being good in that it will hopefully attract quicker & higher adaptation of BES10, but I hope it's temporary because BlackBerry needs to make a profit in their enterprise, if only to offset their losses in the comsumer market.

Supa_Fly1

Ita because Mobile Iron was the first solution for ios. That and a good rating by Gartner. Mdm cloud services like Air watch and others are already at this price range and they offer ios, Android, Windows Phone management as well.

There are over 25 in Gartners magic quadrant - which I really don't give a funk about because it's paid placement - that are above BES10. Go figure.

There is plenty of competition out there so don't think it's all said and done yet. BlackBerry still needs to do more and it's hi time to go full on to with the QNX team to do M2M business with car companies and FAST! Raise that stock and company value!!

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mobilesync

Gartners magic quadrant is a joke. I have been looking at since it started. Ouch ! If you don't believer, look back to see how they predicted market.

I would call it Gartners random quadrant.

New_Z10

Is this about revenue or about trying to increase value for a sale? The latter I suspect.

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mobilesync

On the business side this also tells me BB still thinks hardware profit is the key. By doing this, they will quickly sell more BB10 devices to enterprise. If BB can keep the existing enterprise base and also cuts cost (say to 8000 employees), it will turn profitable again and thrive. I think the existing enterprise user base is very easy to keep since those who don't need real mobility already left. The price reduction further seals the base. Now, the only concern I have is the QUALITY of BES 10. I hope I will have a chance to personally check it out. If so, I will report back to the community.

Anyway, a right move by BB.

chrysaurora

Good move. As far as I know, BlackBerry hasn't cut prices of CAL in years. $59/license/year was quite expensive, given that there is competition in this space now.

I think this will certainly help them retain existing customer base. Think from a CIO's point of view: let's spend $250K and migrate everyone from BES to (Good or MaaS or Mobile Iron etc). Savings from cheaper license fee (of competition) alone will be more than $250K spent on migrating from BES to a competitor.

But now - BES is much cheaper, and it's already installed and it manages ALL devices (BlackBerry, iOS and Android). So, business case for moving away from BES no longer holds.

While this means slightly lower revenue (remember that cheaper license doesn't mean lower revenue because previously licenses/CALs were only for BlackBerry devices. But now companies are going to be buying licenses for all devices - whether BlackBerry or iOS or Android. So, although revenue per unit will decrease, the total number of units (licenses) will increase).

So, yeah, while service revenue might face a small hit, it will probably drive more BlackBerry 10 device sales/upgrades as well. So, that should add to bottom line as well.

Posted via CB 10 app on my Q10!

mathking606

+100000000000000000000000

Playbook007

You make a very logical point. Also your fixed costs of developing and maintaining the software gets divided up over more licenses, so economies of scale play a major role. Also BES10 is the vehicle for BlackBerry to get more devices out in the market. It's not the consumer who is going to drive the comeback. It is the corporate and government bodies that will distribute the devices. This will put handsets in the hands of people that would not naturally buy a BlackBerry anymore. However once they try BB10, they will be hooked. Then they will on turn sell the phone. BlackBerry is starting to become a bit more focused and it is where they should have focused in the first place.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

MidnightSociety

Less = more in this case. The MDM landscape is so competitive BBRY could not compete with the cost structures or AirWatch, Mobile Iron and such. Good Mobile Messaging pricing is a joke. For those who liked GOOD's DLP solution you can see BBRY easily taking business away from them. The question is, is it too late to get business from enterprises that have deployed AirWatch and Mobile Iron?

mathking606

Wow a 40 dollar price reduction. That might hurt revenue but lets hope they can make it up in BB10 uptake if this leads to that.

Spades1234

BlackBerry is in a position where it needs market exposure more than profit (short term). If this is orchestrated properly, this could be a very wise move.

aloomis76

Did anyone read if this is just a promotion or a permanent price reduction?

This does lower the amount of revenue that will initially be coming in but they should easily be able to make it up in volume which should double if not more because of the ability to manage both IOS and Android devices now too.

Great move BB!!!

nt300

This is GOOD NEWS....

alan510

I hope that the company loudly announces any significant up takes in business clients with this news. They need to show some momentum to turn around all those reports when companies such as Qantas and Home Depot (among others) switched to Apple. That made news then and BlackBerry needs to capitalize on any progress they make with this pricing change.

Posted via CB10

Patrick Pierobon

Does this mean that more people will purchase this for home use? I know I would love to use BB Balance even if its just my phone. I would love to have the power to switch from my work account, Daytime Use to Personal, Nighttime Use.

Unless we can't do that. Needless to say, right on BB.

BB_BxNyc

Yes yes...same this is great esp for home or independent contractors. As an independent contractor this would be ideal to have BB Balance. And I think many many people in general would be willing to have BES if they could in order to have such. So besides the enterprise uptick, I think the general user would have a great interest...and even more, small business, home business and independent contractors.

Patrick Pierobon

Hopefully they are moving to this direction. In my eyes, Blackberry Balance was a huge part of their promotional material and many people loved the idea but could not use it. Hopefully this is the direction BB is going and that the "general" public will soon have this feature.

SuperionMaximus

Definitely a smart move for BlackBerry to cement their position as THE mobile device management solution. They will make up the lost per unit revenue on volume through secure workspace with Android and iOS.

kfh227

How the hell are they going to pay for support?

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kfh227

12x5 tech services. I get it. As soon as someone has an emergency, they have to upgrade.

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mjgallaway

BES was too little too late.

andy_jan

Time to cut Q10 price as well, BB needs to improve its marketshare. It does this with Z10 with numerous cash back initiatives and now with enterprise angle..when is something happen for Q10?

lnichols

So BES10 sales were obviously not going as well as as BlackBerry led everyone to believe..... Shocking!

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Kriilin Namek

I think management is still smarting over letting iOS and Android get entrenched in their market, because Basille was preoccupied with buying an NHL franchise instead of taking care of business, and won't allow that to happen in the Enterprise space.

the_sleuth

Price maybe still too high, MobileIron price per device is $14.70 (min. 100).

HotFix

No mention of a price change for their Secure Container (iOS/Android) CAL, which means you can get a BB 10 device with separate personal/work (aka Balance) for $19 a year, or a non-BB 10 device with separate personal/work (aka Secure Container) for $99 a year.

That just plain crazy to have over 5 times the cost for non-BB 10 devices. It's like they are trying to get you to not use the BES 10 product to manage non-BB 10 devices.

I posted a comment asking for an update on the linked Business blog, and unless a moderator kicks it out hopefully they will respond to it.

Parthiv Shah

Generally the only time when Blackberry reduces prices is when their products or services are not selling well. This scares me as it seems the adoption of BES 10 or 10.1 has been very poor. A very scary thing for the company itself.

nt300

Its been 8 months now, its about time they drop the price. I take this as a positive and an incentive to go full out BES10.

fhk100

How many Fortune 500 firms have BES10 or have identified plans to have it? That is a key to increased market penetration and BlackBerry's survival.

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nt300

More than 60% of Fortune 500 have gone BES10 and/or are planning to. BES10 is just too good for a company to pass up, it does circles around the competition.

cgk

Where do you get this 60% figure from? Many have *downloaded* it but BBRY have been very very care to never give an actual number of who is using it on a day to day basis for their devices.

ChrisFricke

I have an installation of Mobile Iron and BES10. BES does not run circles around the competition. Not even close. I can't speak for other MDM solutions but BES still has some catching up to do compared to MI.

BBNation

As usual BB makes such moves after it gets hit hard...do not learn from the past. Did same with PlayBook...started with expensive when it was almost the only one tablet in it space...reduced the price too late. Same with BB10 devices..too expensive..First get market share to get apps, rebuilt..Just like all others do. whatsup, vibers..etc.
Same goes for BES...it was too expensive comparing with others while it needed to market share..My work always argued saying BES expensive

bcuffy

Wow! The people who hates BlackBerry really have time to bash every move BlackBerry makes. They want BlackBerry to fail so they can steal it's patents. That's all it is.

Foreverup

I was actually holding out for something like this. Now, seriously going to look into getting my BES upgrade.

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longtermBB

The company I work with will be on this for sure. Only 55 devices worldwide but over half are legacy and due for upgrade. I see they are offering free license incentives as well for BB10 phone upgrades. Smart move to get the enterprise crowd moving. The BlackBerry sales reps should be making more outbound calls than ever to spread the word. 12/5 may be ok for support but they should be signing up accounts 24/7!

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Carroll Lee

BB just terminated 100 sales reps today.

Zezel

I didn't see this coming but considering the two free BES licenses they were promoting with every Z10 sale, this in line with it.

BES 10 seems to have had a weaker than expected uptake. And services revenue from BES or even monetizing BBM could never replace hardware revenue.

So BES is back to what it always has been from a business case: a leveraging point to drive hardware sales.

For those who are concerned about BlackBerry dumping out of hardware this move is a positive step.

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martinjdub

As a BES Admin requiring 2000 CAL's , this is great news and it puts BlackBerry in a very favourable position in the MDM market place. Huge value

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jgrzadka

Is this something I could try for my own company which only has one employee? I would love to activate blackberry balance on my phone just to play around with it. Has anybody else tried this yet?

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NoOrdinaryRabbit

You have your own Exchange server? Download the trial version of BES10 and go to town. I think you'll find Balance is more of a pain than a pleasure, though.

jgrzadka

Thanks for the info, I am tempted to check it out.

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Fatboy40

I'm much more interested in the 'EMM Regulated' CAL that should be out early next year, then maybe Regulated activations will actually work and BES 10 can move on from being partially working solution that was released far to early !