Research In Motion (NASDAQ:RIMM) has endured plenty of drama lately. The stock fell 8% after announcing fiscal first-quarter results, and the company also suffered the embarrassment of a network outage. To redeem itself, management just announced a new line of software offerings, which seems to me like a smart move.
The new software will let Microsoft (NASDAQ:MSFT) Windows Mobile devices operate as virtual BlackBerry smartphones, all in the click of an icon. It's common for companies to use multiple mobile devices of various makes and models. Standardizing on a single platform with fewer smartphone models should make life easier for information technology (IT) managers, and considerably simplify employee training.
"This opens up RIM's wireless push network to an entirely new class of smartphone devices," said Steve Beauregard, president of REGARD, which has developed applications for BlackBerry smartphones for the past 10 years. "Not only does RIM win by selling additional software licenses and support fees to enterprise customers, but the company receives a small recurring fee from the carrier for each user sending traffic over the BlackBerry network."
That worthy goal still faces several significant challenges. RIM has tried this strategy before with its BlackBerry Connect system for Palm (NASDAQ:PALM), Nokia (NYSE:NOK), and even Windows platforms. The company discovered that it was a tough feat to pull off, and its software gained little traction.
Keep in mind that RIM does not expect to release its new software until later this year. For investors, this development probably won't move the needle for a while yet -- if at all.
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Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 2,719 out of 25,386 in CAPS.
