The End Of An Era
Indeed I do remember a time, back when days were long, and you had to trek uphill both directions in the snow, and after all was said and done, cellular phones had buttons. Oh, what joy! What splendor! Feeling purely effervescent every time an opportunity arose to type out a piece of electric email or send a text message to a colleague, what a time to be alive! Back then, there was no better piece of technology perfectly crafted to fit the clickity-clackity needs of consumers than a BlackBerry (BB). The company responsible for the delectably archaic devices was known as Research in Motion and was founded by two Canadians with a dream worth more than all the maple syrup in the country.
At one time the BlackBerry (BB) was the business person’s weapon of choice when entering the corporate battlefield, but the era of devices with tactile keyboards is no more. Gone are the days of ‘CrackBerry’ fiends rushing to an urgent care facility to cure their ‘BlackBerry Thumb,’ as well as the notion that anyone seen with a BlackBerry in hand must have a seven-figure net worth. With the creation of the Apple (AAPL) iPhone and the outbreak of dozens of other smartphones and tablets, the BlackBerry (BB) didn’t stand a chance…poor fellow.
Quantum What?
Alas, in an effort to avoid total financial destruction, the Canadian firm responsible for our fallen keyboard-clad friends, BlackBerry Limited (BB), found shelter in the cybersecurity sector of the tech industry. Last month, the firm announced the release of their new quantum-resistant code signing service. Quantum-resistant code offers a solution to the cybersecurity threats posed by quantum computing, a new method for processing information that uses quantum mechanics.
When the first computer, known as the Universal Automatic Computer (UNIVAC), was invented, the inner machinations of the infantile tech was based on binary code. Computers store data in the form of bits, and at the heart of every bit is either a ‘1’ or ‘0’, hence binary code. In a quantum computer, bits can be stored as both a ‘1’ and a ‘0.’ A quantum computer can solve issues and process information at exponentially faster rates compared to traditional computers, which poses a threat to cybersecurity because quantum computing could be used to breach a non-quantum device faster than it would take the hacked device to respond.
BlackBerry’s (BB) foray into cybersecurity and quantum computing present a solution to a technological problem that doesn’t exist yet. As it stands, fully functioning quantum computers, capable of breaking current encryptions on our devices, do not exist.
“By adding the quantum-resistant code signing server to our cybersecurity tools, we will be able to address a major security concern for industries that rely on assets that will be in use for a long time. If your product…needs to be functional 10 – 15 years from now, you need to be concerned about quantum computing attacks.”
–Charles Egan, Chief Technology Officer, BlackBerry
I find it incredibly ironic that the company responsible for the last known cell phone with a keyboard is the first one to have boots on the ground for an issue created by technology that is still on a chalkboard somewhere in Silicon Valley.
The Sound of Cylance
BlackBerry (BB) took a huge step further forward into cybersecurity technology on Friday when the company announced their acquisition of Cylance, a company that uses artificial intelligence, machine learning, and other tactics to analyze and detect threats to cybersecurity, according to TechCrunch. The acquisition deal only cost BlackBerry (BB) about $1.4 billion, making it the company’s largest deal yet.
The market responded positively to BlackBerry’s (BB) deal with Cylance, as the company’s stock shot up over 4%, trading at $8.94 per share.
Cylance was founded in 2015 by two former McAfee/Intel employees and has since raised over $300 million from multiple rounds of funding, including investments from Blackstone, DFJ, Dell (DVMT), and KKR.
“Cylance’s leadership in artificial intelligence and cybersecurity will immediately complement our entire portfolio…We are very excited to onboard their team and leverage our newly combined expertise. We believe adding Cylance’s capabilities to our trusted advantages in privacy, secure mobility, and embedded systems will make BlackBerry indispensable…”
–John Chen, Chief Executive Officer, BlackBerry
Closing Thoughts
The potential opportunities in the undiscovered realm of quantum computing are as astounding as the processing power of the conceptualized technology, itself. For the sake of BlackBerry’s (BB) shareholders and leadership team, it would be unfortunate if they spent all this capital on research and development, and costly acquisitions, with it all failing to create revenue.
