Research in Motion’s (RIMM) BlackBerry still leads in the enterprise market across Latin America region, but that position could be threatened by upcoming smartphones from Microsoft’s partnership with Nokia.
“I am not optimistic for the consumer market, but among enterprises Microsoft/Nokia might gain market share due to Microsoft previous relationship with the enterprise market, but it is not for now or next year,” said Tuong Nguyen, principal analyst at Gartner’s Consumer Research group.
Microsoft has a strong background in selling products to CIOs and due to this experience company seems to know what enterprise customers need. In addition, Microsoft has a strong background with security, which is important when you want to target the enterprise market. Although Nokia has declined to comment, the company has manufactured smartphones focused on the enterprise market, such as its E-Series.
“They are both big players, and together they are a threat to not only RIM but others too,” said Bruno Freita, market analyst at IDC. IDC projects that by 2015, the Microsoft/Nokia combo will be among the top three manufacturers of smartphones worldwide.
“We are strong at corporate market. I believe that Windows Phone, not only with Nokia alliance, will make it even stronger,” said Cristina Palmaka, director for consumer channels at Microsoft Brazil. The company recently unveiled its first Windows Phone 7.5-powered device in Brazil with the HTC Ultimate.
However, taking RIM’s position in the corporate market will not be likely in the short term. RIM maintain a strong presence in Latin America, despite dropping market share in other regions.
“RIM’s leardership will continue for at least a short period. There’s a lot interest from CIOs. I believe that RIM will keep leader for a medium term, but the competition will be greater when Microsoft/Nokia begin to play,” added Freitas.
In addition to Microsoft/Nokia, Gartner’s Nguyen also highlighted Android as another threat to RIM in the enterprise market. “They will take market share from RIM, but I don’t know if any of them is taking BlackBerry’s position as No. 1. Their support to enterprise are not equal.” Nguyen calculates that among enterprises RIM has more than half of the market share in Latin America, a position that will continue for at least next year.
“I don’t see Microsoft/Nokia as a threat. Our core business is corporate. It is how we were founded, so enterprise is in our DNA. I don’t see others companies taking it. We have the most security accreditation and we focus on cost savings,” said Peter Gould, RIM’s general manager for Brazil.
Security and support are main topics when building mobile strategic for enterprises. That’s why others operating systems have faced some difficulties in scoring well among corporate security policies. Traditionally, enterprises have a strict policy on hardware and software as they need to be in compliance with several internal and external rules.
“Google is working to make the Android platform more secure to enterprise users, but I don’t think that effort will be enough to take RIM’s place.” noted Microsoft’s Palmaka. “Security requirements are a natural for Microsoft. But I see that other platforms are working to improve security.” Google was not available for comment.
New phenomenal
What is happening in some companies is a phenomena called “consumerization,” when employees bring their personal mobile devices (such as mobile phones, tablets and notebooks) in the workplace. Consumerization has gained traction around the world, especially in Brazil. “Consumerization is increasing and becoming more common as people bring their devices into the office and access corporate application through them,” said IDC’s Freitas.
It is exactly what is happening to Apple’s iPhone and iPad devices. Apple has a very strong brand share and several executives buy products for themselves and bring them into the corporate environment. They want to use these devices to work, so they ask IT to provide support. However, this is not a formal enterprise agreement, and in these cases Apple does not offer support.
The same is happening with Android devices. But in both cases it’s not an IT strategy, and security is the main concern at the moment. That could explain why RIM will continue to lead in the enterprise market, said Nguyen. “RIM has certain features, such as encryption, dual profile and data optimization, that is very sensitive for enterprise need.”
On the other side, since RIM traditionally has focused on enterprise, the company faces problem in selling to the consumer market. This is different from Apple, which has shown less interest on targeting enterprises in the Brazilian market. “It is a good strategy; people are bringing its devices anyways,” Nguyen said.
In the first half of the year, Android had 35% market share of the Latin American market, followed by Symbian (28.9%), RIM (28.7%) and Apple (6.2%). The consumer market is about 80% to 85% of the total Latin America market.
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