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Energy giant Halliburton to hang up BlackBerrys

A BlackBerry smartphone.
A BlackBerry smartphone.

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Date: Tuesday Feb. 7, 2012 9:22 PM ET

TORONTO — Energy services giant Halliburton Co.'s move to replace BlackBerry smartphones with Apple's iPhones continues a trend that has been eating away at Research In Motion's traditionally dominant position in the workplace, analysts said Tuesday.

In another shot to the troubled Canadian smartphone maker, U.S.-based Halliburton said Tuesday that it will phase out 4,500 BlackBerrys from its operations and replace them with iPhones over two years.

"It's not, `Oh, oh Halliburton went and everybody is going to go this way,"' said technology analyst Alkesh Shah of Evercore Partners.

"But it's indicative of a long-term trend that RIM is fighting against," Shah said form New York.

For example, some companies are allowing employees to use smartphones like the iPhone as a trend known as "bring your own device" takes root in the workplace, Shah said.

Halliburton said it was making the change after deciding that Apple's technology works better with the programs it uses in the field.

"We are making this transition in order to better support our mobile applications initiatives," said spokeswoman Tara Mullee Agard.

Halliburton, based in Houston, Texas, and Dubai, is one of the world's largest energy drillers and has operations in more than 70 countries.

Shah said Halliburton began to allow its 70,000 employees to use other devices a few years ago and is phasing out the remaining BlackBerrys in the organization.

But employees who need emails instantly delivered and want a high level of security would be the last clients to leave RIM, he said.

"That core user base is probably never going to leave RIM or they're going to have attrition that happens very slowly."

While the loss of any market share can be concerning to investors, the shift of corporate clients away from RIM is more troublesome because they are widely considered a reliable source of income.

Research In Motion (TSX:RIM) has made its reputation and much of its earnings on corporate and government clients that value RIM's direct email delivery and strong encryption.

Caldwell Securities Ltd. doesn't have a policy requiring its employees to either have a BlackBerry or an iPhone.

"But if the firm is paying for one, it's a BlackBerry," said Tom Caldwell, chairman and CEO of Toronto-based Caldwell Securities.

"You can use any system you want to, but typically the partners use BlackBerrys. You still have better security," Caldwell said.

Toronto law firm Osler, Hoskin & Harcourt LLP allows iPhone operating systems 4 and 5 for the iPhone and iPad along with some third-party products.

"We do not have a full 'bring your-own-device' policy in place," said chief information officer Peter Bier.

"Instead, we have security guidelines for devices and if a user device meets these guidelines, then it can be used to connect to our corporate data," Bier said.

RIM has made a strong push in the consumer market in recent years but has been struggling against Apple and other smartphones phones that use Google's Android operating system. Challenges to RIM in the corporate market come as employees bring their consumer smartphone tastes into the workplace.

Technology analyst Troy Crandall said corporations are moving beyond BlackBerrys but not necessarily completely away from RIM.

"We have seen more and more companies saying that they're allowing other devices into the enterprise, even for testing," said Crandall of investment firm MacDougall, MacDougall & MacTier.

And he said pharmaceutical and health-care professions are geared to the iPhone.

"Most of the medical apps are developed for the iPhone. Talk to any doctor, they don't have a BlackBerry. It's generally an iPhone because that's what most of the medical apps are developed for."

RIM has been under close scrutiny for the past year as its shares have eroded more than 75 per cent, with its most recent plunge coming after co-CEOs Jim Balsillie and Mike Lazaridis stepped down from their leadership positions.

The shakeup followed a bad year that included 2,000 layoffs as well operational problems and public relations gaffes.

The Waterloo, Ont.,-based company's stock closed up 12 cents at $16.65 Tuesday on the Toronto Stock Exchange.

Comments are now closed for this story

ray
said

funny thing is iphone has maybe the most restriction than any other phone. I will never own a iphone or a blackberry because they are both the same devil. They decide what is good for the consumer not the other way around. Blackberry falls this year...Next year iphone will fall...few years later so will Android.Who will be next??/Who will bring us technology that brings us too the future. A talking phone is not special but a phone that has a touch blue screen that can be use on the wall is amazing.


jr
said

Here's what is going to happen. Apple is going to use the ass load of cash they're sitting on to buy up RIM. Then they are going to do away with the BB brand name altogether but use BB's technology for corporate applications.


Joe Mc
said

Sorry to Say, it's an American company that has been advised to "Buy American" to support their companies from losing jobs. Also, if a respectable company wants a "play toy" instead of a business tool, then nothing RIM can do to change their mind. Can't wait for them to find out the hardway they made the wrong decision.


JOHN
said

Recently changed over to an iPhone 4s, but it sucks for texting. Going back to my BB 9900 - best communication handheld around.And, for those living in apartments or condo, who own a Playbook, and are getting poor WiFi, you need to go into your router settings and change your Channel settings to anything other than the default, which everyone is defaulted to the same Channel.RIM will be back.Watch and see


Doug ^^^ BC
said

A couple of posters have made an interesting point about a possible "Buy America> policy. I don't know if it's true,but it is a point to keep in mind as we move forward. In this case,because RIM is having a lot of problems,it's hard to conclude anything.But RIM is still the most secure,as far as I know.Add this to the decision by Caterpillar,and things start to look a little fishy.We would be wise to watch US based corporations very closely. The thing they want the most in the USA,is a lot more jobs.They cannot afford to repatriate the jobs they lost to China,but they can repatriate jobs from Canada.Since they now see us as more economically stable than their own country, I expect them to attack us.Our economy is relatively small.We are dependent on access to the US markets for our exports.We have few other choices when we go out to buy imported food.And American corporations are under attack for "outsourcing" jobs. I'd say it's to soon to conclude anything.But it's certainly not to early to start keeping a close eye on what goes on from here on.Perhaps even consider other options for trade.Deal more with other nations,for example. If the USA doesn't see trade with Canada as a good thing,there will be a huge price to pay here, and not a damm thing we can do about it.


edncda
said

72,000 employees using 4,500 Blackberrys? Something doesn't add up.My BB certainly seems long in the tooth. The iPhone is absolutely more intuitive and SIRI has great potential but where are the business apps? ANY business apps?Now if I could run my MS PC-based software on my iPad - that would truly be a life-changer.


James
said

If it were up to me, this would signify an increase in RIMs share value... Yeah, Hell-a-burnin' is a big company but no big loss.


BCWetCoast
said

Hah, look at all the Blackberry fanbois coming out to defend the sinking ship.RIM has become irrelevant because they sat back and decided not to plan for the future. It's just that simple.


Canadian RIM
said

Just a correction to those who think RIM is a Canadian company: The electronics and communication parts of RIM products are developped and made in israel and the devices are assembled in Malaysia and other asian countries. Canadian job market and tax system does not profit from RIM. We are only subsidising their managers with our taxes.


Andrew in Dundas
said

Many of my clients and friends who switched to the iPhone and Androids have moved back to the BlackBerry... The grass isn't always greener... Apple has a lot of glitches, especially in their web browser and email security.


Tim
said

All technology has it's lifecycle. iPhone, like Blackberry, will come and go. I don't think Halliburton is dumb to use iPhone for mission critical app if it has not already done their due diligence. Otherwise, Halliburton is playing with fire and inviting a massive law suit.


Al - Ottawa
said

Media sure loves to highlight anything about RIM that is less than positive. Never report any of the positive news. Oh, and how come they always use a photo of an old BlackBerry that came out 5 years ago instead of using a photo of a new one?


Craig from NS
said

They'll be back to BlackBerry's inside of six months. The iCrap is not ready for the enterprise environment. Why is this even news worthy?


Bump in the hightech highway
said

I would be more concerned about Samsung not Apple. Samsung is going to eat Apple's lunch if Apple doesn't get with the program. Fine to be sitting on a pile of cash but unless you can come up with another NEW winner may prove to be daunting in the face of Korean competition. As for RIM, they will return in my mind. Pierre loves his 64g Playbook so that's all that matters right now eh!!


James
said

How are they going to mange their new fleet of iPhones? Oh right, Blackberry Mobile Fusion.


CDN_Realist
said

Just wait for the fallout when one of these iPhones is hacked and a whack of 'sesnsitive' messages get released publicly.


Not a Blackberry owner
said

Guaranteed this is more of a 'Buy American' thing, rather then Apple having a better product for business applications.


Mike
said

I can't wait to be update don Halliburton's next major change, I wonder which toilet paper brand they will switch too.


George in Calgary
said

With all this working against RIM it is now time for RIM to get working. Time to develop something new, something different but radically different such that we all feel we need one (or two or maybe a family pack?). RIM can do it, they have the know how but maybe what they need is something like a cupid's arrow to point them on the right course.


Max in Vancouver
said

That's it Haliburton. Profit from your services in Canada but support the Asian manufacturers. You will regret this once you have a chance to play with the iPhone toy.


Heyoo
said

Just because they don't use Blackberry devices does not mean there RIM is out of there. They might have went to blackberry fusion.


James, Ontario
said

The Dell BlackBerry will do just fine in the business market.


PBW
said

Evolution at work here: adapt or die. In the fast-moving electronic/communications world, RIM did not adapt fast enough. It remains to be seen whether RIM can produce a product that can compete head on with iPhone and Android phones instead of same-old with tiny improvements. Whether the new management can overcome the corporate inertia left by Balsillie remains to be seen; if not RIM will follow the footsteps of Nortel. Are the ex-CEO's of Blackberry muttering "I coulda been a contenda" into their breakfast cereal? They had their chance - and blew it. Why do Canadian industries with a winning product rest on their laurels instead of pushing boundaries ALL the time to keep those laurels?


Studley53
said

Too bad Mr. Balsillie wasted his focus on pursuing a hockey team rather than his business. I suspect the bell is now tolling for RIM. The market is definitely unimpressed with the latest reorg at the top. I doubt that the company will be able to staunch the bleeding now nor the loss of clientel.


JD
said

Unfortunately, the world moves faster than RIM can keep up.


Steve J.
said

HA HA Apple Haters!!! What what????


Cracker Berry
said

Halliburton is a very prominent US company who former Vice President Dick Cheney is still very much involved with. I have a suspicion that this has more to do with a patriotic move to an American product then having an all American company using a foreign Canadian product. Don't know if that is completely accurate, but I have my suspicions.


Prof. Pye Chartt
said

Another egg on the head of the "all-knowing" techies who scoff at the notion that business people could actually make superior use of an iPhone. (Keep your eyes closed.)


Goldens
said

I forot to add. Rim is hireing again in Halifax. Oh but that is possitive news. Don't print that.


goldens
said

Apple is having their own problems. Seems they were infringing on android patents and have been ordered to shut Apples icloud service down in Germany and now they have been orded to pay. I guess that doesn't make as much news because it in not RIM having difficulty.


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