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CIOs talk about not renewing RIM Contracts - Next Six Months Critical

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Wednesday, 23 November 2011 in Mobile Computing

At a meeting of CIOs over the last few days, several IT executives indicated that they plan not to renew their enterprise contracts with Research in Motion (RIM) when renewals come up over the next six months.

We discussed in several research notes the strategic issues that RIM is facing. RIM already faces a tough couple of quarters as it attempts to manage a product transition to a new operating system. Till recently, CIO have been taking a tack of no longer mandating Blackberry use. Now, as more mobile applications are being rolled out by companies, many have realized that their new handset landscape allows them to retire their Blackberry Enterprise Server implementations and shift those budget dollars to new mobile applications. This is an additional headwind that will negatively impact RIM EPS and may force more corporate users off the Blackberry handhelds. The next six months will be critical to company survival.

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