Blackberry’s quest for its future

BlackBerry stakes its future on increased enterprise security concerns and the internet of things

This is the unedited, submitted version of ‘is BlackBerry ripe for a comeback‘ that appeared in Technology Spectator on 30 July, 2014.

“What do we well?” is the question Blackberry CEO John Chen asked when he took the reigns of the Canadian communication company last November.

Chen was speaking on Tuesday at Blackberry’s Security Summit in New York where he and his executive team laid out the company’s roadmap back to profitability.

Since the arrival of the iPhone and Android smartphones, times have been tough for the once iconic business phone vendor as enterprise users deserted Blackberry’s handsets and the company struggled to find a new direction under former CEO Thorsten Heins.

Back to BlackBerry’s secure roots

In Chen’s view, the company’s future lies in its roots of providing secure communications for large organisations, “It became obvious to us that security, productivity and collaboration have to be it.”

“This is not to say we are not interested in the consumer, but we have to anchor ourselves around the enterprise.” Chen said in a clear move distancing himself from his predecessor and products like the ill fated Blackberry Playbook

An early step in this process of focusing on enterprise security concerns is the acquisition of German voice security company Secusmart which was the cornerstone of Chen’s New York keynote.

Blackberry’s acquisition of the company is a logical move says the CEO of Secusmart, Dr Hans-Christoph Quelle, who points out the two organisations have been working closely together for several years.

“It fits perfectly,” says Quelle. “We are not strangers having worked together since 2009,” in describing how Secusmart technology has been increasingly incorporated into Blackberry’s devices.

Secusmart’s key selling point has been its adoption by NATO and European government agencies; the Snowden revelations on the US bugging of Angela Merkel coupled with the Russian FSB leaking intercepted US state department conversations along with the release of Ukrainian separatist conversations after the shooting down of MH17 has focused the European view on the security of voice communications.

Launching new services

Along with the acquisition of Secusmart, Blackberry will also be launching an new enterprise service in November, the new Passport handset in December along with a range of security applications including BlackBerry Guardian, a new service that will scan Android apps for malicious software.

Blackberry’s executives were at pains to emphasise their products aren’t focused on any single smartphone operating system and not dependent on customers buying their smartphones although to get the maximum security benefits.

“We will provide the best level of security possible to as many target devices out there as possible,” said Dan Dodge who heads Blackberry’s QNX embedded devices division.

Longer term plans

In the longer term, Blackberry sees QNX division as being one of the major drivers of future revenues as the Internet of Things is rolled out across industries.

QNX was acquired by Blackberry in 2010 to broadband the communication company’s product range, now it is one of the pillars of the organisation’s future as Chen and his team see that connected devices will need secure and reliable software.

Dodge says: “With the internet of things, you can have devices that can change your world.”

While QNX is best known for its smartcar operating system – it underpins Apple’s CarPlay system being rolled out for BMW as well as its own system deployed in Audis – the company’s products are used for industrial applications ranging from wind turbines to manufacturing plants.

Despite Blackberry’s announcements in New York, the company still facing challenges in the marketplace with the Ford Motor Company announcing earlier this week it will drop the Blackberry for its employees by the end of the year and replace them with iPhones.

Chen’s though is dismissive about Apple’s and IBM’s moves into Blackberry’s enterprise markets, “what we do and what they do is completely different.”

Focusing BlackBerry

The focus for Chen is to differentiate Blackberry and play on its strengths, particularly the four markets it calls ‘regulated industries’ – government, health care, financial and energy that the company claims makes up half of enterprise IT spending.

Whether this is enough to bring Blackberry back on track remains to be seen but Chen says this is where he sees the company’s future, “This is why we are so focused on enterprise and so focused on these pillars.”

For Blackberry, the emphasis on enterprise communications is a step back to the profitable past. It may well be successful as businesses become more security conscious in a post-Snowden world.

Paul travelled to the Blackberry Security Summit in New York as a guest of the company.

A big reset button on business

Business is like a petrie dish says Internet pioneer and Cluetrain Manifesto author Doc Searls about companies on the web.

“Every large company is just another color of a spore in a petrie dish.”

For the latest Decoding the New Economy video Internet Pioneer Doc Searls discusses The Respect Network, online privacy and the future of business on the web.

Doc Searls is one of the internet’s pioneers who helped write The Cluetrain Manifesto that laid out many of the ideas that underpinned the philosophies driving the early days of the internet.

Searls’ visit to Sydney was part of the rolling worldwide launch of the Respect Network, a system designed to improve internet users’ privacy through ‘personal clouds’ of information where people can choose to share data with companies and others.

A big reset button on business

In many ways The Respect Network shows how the internet has evolved since the days of the Cluetrain Manifesto, something that Searls puts in context.

“We wrote the Cluetrain Manifesto in 1999,” says Searls. “At that time Microsoft ruled the world, Apple was considered a failure – Steve Jobs had come along and they had the iMac but it was all yet to be proven – Google barely existed and Facebook didn’t exist at all.”

“On the one hand we saw the internet, we being the four authors of the Cluetrain Manifesto, and this whole new thing in the world that basically hit a big reset button on ‘business as usual'”

“It did that. I think we’re vindicated on that.”

Resetting business

“What we have now are new industrial giants; Apple became an industrial giant, Microsoft are fading away, Nokia was the number one smartphone company and they’re all but gone.”

One of the key things with today’s markets in Searls’ view is the amount of information that businesses can collect on their customers; something that ties into the original Cluetrain idea of all markets being conversations.

With the evolution of Big Data and the internet of things, Searls sees challenges for companies using old marketing methods which rely upon online tracking. Something that’s a challenge for social media services and many of the existing internet giants.

“The interesting thing is there’s a lot more intelligence that a company can get directly from their customers from things they already own than following us around on the internet.”

Breaking the silos

Searls also sees the current trend towards the internet being divided into little empires as a passing phase, “every company wants a unique offering but we need standards.”

For Searls the key thing about the current era internet is we’re only at the beginning of a time that empowers the individual,  “the older I get, the earlier it seems.”

“Anyone of us can do anything,” Searls says. “That’s the power – I’m optimistic about everything.”

Electrocuting elephants – the cost of competing standards

We’re bad at setting standards but we have moved on from electrocuting elephants

A constant theme when new technologies appear is the inevitable war about standards that often sees bitter arguments over how the new methods should be used.

Over the centuries we’ve seen fights over railway gauges, video tape formats and even the shape of lighting conductors.

The struggle over lightning rods between the English and French camps in the eighteenth century was parodied by Jonathan Swift in Gulliver’s Travels where the two tribes fought over which end of a boiled egg should be broken.

Probably the nastiest dispute in modern times was the battle over DC and AC electricity transmission between Thomas Edison and George Westinghouse, a fight made worse by Edison’s former employee Nikola Tesla taking his patents over to Westinghouse.

The fight became so fierce that Edison actually electrocuted an elephant to illustrate how dangerous AC electricity would be to householders.


Tesla and Westinghouse eventually won the argument, but it came at a cost to Topsy the Elephant.

While we may draw the line at electrocuting elephants in these enlightened days, we aren’t much better at settling standards. That’s why it’s fascinating watching how technologies like the smart car and the connected home will evolve.

Apple builds the iHome

Apple makes its stake for the smarthome while Canada builds the smart fridge

On the seventh anniversary the release of the iPhone, Apple makes it clear they see smarthome as the next opportunity.

The latest Apple ad showcases the iPhone at the centre of the connected home controlling baby monitors, GPS enabled pet collars and smart lights. The massage is Apple’s iHome brings families together.

While Apple is showing its cuddly side, those vendors who think an iHome is going to a great opportunity may well find they’re working with a ruthless competitor as reports claim Apple is about to launch its own range of smart home devices.

Meanwhile in Canada, they have better things to do with smart kitchen appliances…..

Jailbreaking the Internet of Things

Jailbreaking the smarthome opens some complications for the Internet of Things

The news that hackers have turned their attention to Nest thermostats raises some delicious possibilities for the Internet of Things.

Jailbreaking smartphones has been normal for years as people circumvent restrictions to add features or software and there’s no reason that this can’t be done to smart thermostats, light bulbs or kettles.

Almost all the smart devices being deployed have processors and capabilities far greater than what’s needed to carry out their designed purpose, so an imaginative hacker can do some interesting things with a jailbroken home automation system.

Using your kettle to control your lights or fridge to open your garage door is a bit of gimmick but there’s plenty of potential for doing some cool, and mischievous, things.

While hacking the smart home for kicks might be relatively harmless, tinkering with industrial devices could have unintended and disastrous consequences. It’s another example why security is one of the top concerns as the Internet of Things is rolled out.

Security in the age of connected kettles

We need to start demanding more of our government and business leaders in enforcing online security

A few weeks back I gave a presentation to the Australian Seniors Computer Clubs Association as part of Staying Safe Online Week.

The presentation, Security In The Age of Connected Kettles, looked at where we are today with online security and some of the challenges facing individuals, businesses and communities as threats become more pervasive with cloud computing, personal technology and the internet of things while the people creating these risks become more professional.

Overall, it’s not a cheery scenario and I end with a call to action that we have to start insisting business, public sector and political leaders start taking online security seriously as a public safety issue.

Over ten slides we covered where we are today in personal and small business online security and some of the challenges facing individuals as computing moves onto the cloud and smartphones.

The ongoing online safety battle

Online safety is evolving as we move from PCs to tablets and smartphones, today the risks are increasingly appearing on our mobile devices although the desktop computer and email scams remain the biggest risk.

It’s increasingly about the money

A change to the security landscape in recent times has been the rise of professional malware. While a decade ago most of the hacks and viruses we saw were the work of people demonstrating their skills or causing mischief, today there is big money in compromising computers and capturing data.

The rise of ransomware

One of the best examples of the professionalisation of the internet’s bad guy is the rise of ransomware.

Ransomware locks your computer with a demand for payment to release your data; if you don’t pay you lose all your information.

Many of the online threats though are far more subtle; the theft of data from Target, compromises of Sony’s customer databases and ongoing security breaches illustrate how the risks are far greater than just on our desktop.

Smartphone lockups

Ransomware has moved off personal computers onto smartphones with both Android and Apple systems being attacked.
The ‘hacked by Oleg Pliss’ message is a good example of how Apple’s products are just as much at risk as other companies’ platforms.
Also the ‘hacked by Oleg Pliss’ lockup shows how the security aspects of cloud computing services are going to become more important to the average person.

Security basics

The basic advice for the average user remains the same;

  • Strong passwords
  • Don’t use common passwords
  • Be careful what you click on or visit
  • Keep your systems up to date
  • Have good security software

However times are changing and many security issues are out of the average person’s control.

Lessons from Heartbleed

The Heartbleed Open SSL bug illustrated the limits of individuals in protecting their information. As a bug in the secure socket layer software, the Heartbleed Bug could expose sensitive data on websites using the service.

The disappointing thing with Heartbleed is that people following good security policies were vulnerable.

Probably the biggest threat with Heartbleed however is the Internet of Things, where relatively simple devices – the connected kettle – could expose security credentials.

The Target hack

Another example of how security is beyond the control of the individual user is the Target hack. Hackers found their way into the US department store’s network though an airconditioning contractor. From there, they were able to steal millions of customer payment details.

The Target hack is one of dozens of similar coporate security compromises and this will continue until security is taken seriously by company directors and regulators.

A pocket sized security breach

As the Oleg Pliss hack showed, smartphones are not immune to security breaches.

With our phones gathering increasingly more data on our behaviour, protecting the data they gather is going to become one of the biggest challenges facing us.

Rich data

Smartphones are not just gathering location data, as technologies like iBeacons roll out more information is being gathered from more sources.

When we go shopping, attend a football game or visit the doctor these technologies are collecting information on our personal habits and behaviour.

Not a generational issue

One of the myths around security and privacy is that concerns revolve around the generations.

The idea that only older people care about privacy or that younger folk understand technology is a myth.

Unfortunately however our political and business leaders come from a segment of society that doesn’t care about or understand the technology or issues.

If meaningful change is to be made in securing our information, then we’re going to have to demand our business and political leaders take these issues seriously.

Insurers and the internet of things

Microsoft’s partnership with American Family Insurance shows how insurers are adopting the Internet of Things, is the community ready for real time monitoring of risk?

Earlier this week, Microsoft Ventures announced a partnership with American Family Insurance in an accelerator for home automation services.

The insurance industry has an obvious interest in the Internet of Things (IoT) as constant monitoring allows them to make more accurate assessments of risk and quickly adjust policies or premiums when circumstances change.

“We are focused on helping early stage companies bring new products and services to market that can make our policyholders’ homes and lives safer,” Microsoft’s media release quotes Dan Reed, American Family Ventures’ Managing Director as saying.

For consumers and the public at large, there a serious implications of constant monitoring by insurance companies, marketers and government agencies.

As Business Insider points out, Google already holds a massive amount of data on us all with Apple, Amazon, Facebook and Microsoft not far behind.

One of the key questions of the next decade is ‘do we we want our smart smoke detectors spying on us?’ and, if so, do we want it giving that data straight to the insurance company?

Amazon and the battle for your pocket

Will an Amazon phone succeed in tethering customers to the company?

Today Amazon is expected to launch a smartphone which the New York Times suggests will tether consumers to the company.

With 240,0000 apps in its Kindle store, Amazon will be formidable competitor to Google Android devices and Apple. Like iTunes, Amazon also have a strength in already knowing the customer’s credit card details.

The question is can Amazon be trusted? As we see with the Hachette book publishers dispute, Amazon is a company that’s ruthless in bullying suppliers and has a mandate to do so from its shareholders.

With the smartphone becoming the centre of the connected lifestyle, the stakes are high as whoever controls the customer’s pocket controls the customer’s smarthome, smartcar, retail and health applications.

Of course whoever wins this battle, they’ll still have to pay Microsoft for patents.

 

Heating up the smarthome race

Proving that incumbents can strike back, Honeywell takes on Google’s Nest smart thermostat

Last week Apple sent a big message to the smarthome industry with their announcement of the Homekit, this week industrial control giant Honeywell has released its answer to the Google owned Nest smart thermostat with the Lyric.

The Lyric smart thermostat system is quite an impressive package; along with the smart thermostat, it includes a smartphone app and cloud service that lets users control their home heating remotely.

Other features are maintenance alerts, personalised heating settings and geolocation services for turning systems off and on when occupants are approaching or leaving home. To boot, Honeywell claim the Lyric can save households $200 a year.

The big incumbent

It’s a strong push into the smarthome market which Honeywell has been part of since the concept began thirty years ago and it shows incumbents don’t always sit back and wait for disrupters to steal their markets.

The Lyric’s strength is Honeywell’s massive installed base and its army of experienced contractors; the likely way the smarthome market will evolve is that most installations are going to be carried out while homes are being built or refurbished which gives the incumbents even more strength.

Open standards

What’s missing in the media releases and review is whether the Lyric’s cloud services will offer open APIs to other developers and what format household data will be available in. If it’s a relatively open system then it will have a big advantage over Google’s Nest which all indications show is going to be closed to other providers.

No doubt we’ll also be seeing compatible air conditioning units and heaters entering the market soon as well which will drive a standard of some sort to develop in the HVAC field, again the question of how open those protocols will be remains to be seen.

The next move is Google’s, it will be interesting to see how the company will react to the incumbents fighting back and Apple’s strong positioning to dominate the market.

Touring the Barcelona smart city project

A slideshow on how Barcelona is using the Internet of Things to build a smartcity.

Last year I posted the Geek’s Tour of Barcelona, looking at the town’s smartcity initiatives after visiting the city for Cisco’s Internet of Things World Forum.

At the Australian Internet of Things Forum in Newcastle last month I cobbled together a quick presentation around the topic to illustrate what smartcities can deliver.

This was particularly topical for Newcastle as the New Lunaticks and the local business community are supporting the Kaooma project run by Vimoc Technologies in one of the city’s entertainment districts.

Kaooma – which is an entrant in Cisco’s IoT Innovation Grand Challenge – is particularly interesting because it’s a wholly private project with little, if any, formal government support as opposed to London’s Regent Street Internet of Things initiative that’s part of a billion pound regeneration of the precinct.

Australia’s Newcastle, the world’s largest coal port, has a number of challenges itself as the country’s once in a century mining boom unwinds and city deals with a neglected downtown in the face of a rapidly changing economy.

While the Barcelona project is in early days, the presentation shows how cities are using the Internet of Things today and gives us some hints on how those uses will evolve over time.

Paul travelled to Barcelona as a guest of Cisco Systems

Regent Street fights back

London’s Regent Street shows how main street retailers can use new technology to reinvent themselves

Main street shopping strips have had a hard time over the past forty years as supermarkets and big box stores have steadily drained customers away, however the new wave of retail, manufacturing and logistics technologies may be an opportunity to revitalise them.

A good example of shopping strips using new technologies is London’s Regent Street with its smart shopping app that integrates with iBeacon location devices,  the website Contactless Intelligence reports how shopkeepers, landlords and the local authorites are rolling out an initiative as part of a £1 billion regeneration project.

London’s Regent Street is a fairly unique mainstreet in that it’s extremely upmarket which gives it a lot of advantages over most neighbourhoods, but it does point the way for how other shopping strips can use new technologies to reinvent themselves.

Apple goes for the wearable market

Apple’s gets its message out about wearable technology

“You’re more powerful than you think” is the message of Apple’s current iPhone advertising campaign.

Their latest advert in the campaign features joggers, gymnasts, swimmers and golfers all using iPhone apps to connect with their wearable technologies.

It didn’t take long after Monday’s World Wide Developer Conference announcement of Apple’s Healthkit for the company to get its message out about wearable technology.

Undoubtedly we can look forward to soon seeing the Homekit smarthome campaign showing how Apple’s products make life easy in the smarthome.

What’s absolutely clear is Apple’s determination to be the hub of the domestic internet of things, whether the vendors of those fitness and smarthome devices want to be locked into the world of Apple remains to be seen.