BlackBerry fading, quarterly results disastrous

In the summer of 2008, a year after Apple released the iphone, the BlackBerry, which once dominated the mobile computing market and nearly 82 billion dollars in market capitalisation, announced what analysts called "disastrous" quarterly results, operating at about $1 billion trillion, and announced that it would lay off 40%, Its share price plunged by 17% in Friday.

BlackBerry now has a market capitalisation of just 4.6 billion dollars, and basically only one shell remains, even though its products are still good. When smartphones became a consumer phenomenon, the company missed out on good opportunities and failed to see that the shift would weaken its position in the corporate market. For now, BlackBerry is increasingly likely to sell assets, be leveraged or sold to another tech company, though no one can imagine who will buy it.

As of the end of last quarter, BlackBerry has 6 dollars per share of cash, but R.W. William Power, an analyst at Baird, said in Friday that the company could consume $500 million trillion or $1 a share per quarter, and that BlackBerry's patent value could be about $3 trillion per share, William Bauer. BlackBerry and Nokia are similar, they have the same lesson, that is replaced by the FN can not restore the past glory.

This fact explains why the performance of companies such as Microsoft has dimmed over the past 10 years with the advent of smartphones and tablets. The fear of the destruction of the original market can partly explain why these forces have made it difficult for established companies, such as Microsoft, to rise. These salesforce.com or challengers, including the workday and the challenger, are replacing Oracle and SAP products with cloud computing software.

Cloud software runs in large data centers built by software vendors rather than on customers ' computers. This greatly reduces the cost of software maintenance for customers and also affects the sale of traditional packaged software for Oracle and the rest of the company. Workday is not profitable, but its market capitalisation is 31 times times its projected sales this year, compared with Microsoft's 3.2 times-fold. Whether Salesforce is profitable has long been a perennial issue for Wall Street, which is expected to earn 34 cents a share this year, at 155 times times earnings, because they do not have the cost of stock options.

All this is due to the prospect of revenue growth. Salesforce expects revenue to grow 30% this year, while Oracle is only about 3%, while Workday's growth rate is likely to reach 63%. In this changing world, the growth of challenger revenue comes from the failure of old ways of doing business, so investors are selling shares of companies such as Microsoft and Oracle, and buying the shares of these challengers. Just as BlackBerry has seen its irreversible failure in mobile computing, it is clear that established companies in the software industry will need to develop their own business.

At a meeting of technology companies, the cloud change is often heard, and they are increasingly not buying software, but simply renting related functions and saving on the cost of computer equipment and software, which is a big expense for new ventures. Ed Maguire, an analyst at CLSA, Eder Marquille the consequences in Friday, giving Salesforce a buy rating and thinking the company is changing the economy of the technology industry.

McGuire says software is becoming self-service, and people who are not responsible for it can also log on to the site and purchase functions such as human resources management or customer relationship management. And marketing executives are increasingly becoming people who can make it decisions. When the enterprise becomes more and more the constant marketing entity, the person who controls the technology expense is not the technical personnel, but the brand and the image personnel.