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What You Think About BlackBerry Is Wrong

Services

BlackBerry's current enterprise system has been estimated to equip of 60% of the mobile-device-management (known as MDM) servers among the largest enterprises. Not only will BlackBerry continue to take share with its superior products, but the announcement of BES 12 and EZ Pass should help increase these numbers (and revenues).

Currently, BlackBerry has more than 30,000 BES 10 commercial and text servers, and with the emergence of BES 12, more businesses should switch over and upgrade.

These additions not only allow BlackBerry to provide customers with one of the most advanced MDM products in the world, but BlackBerry will also generate revenue from the installation of these servers. BlackBerry announced the EZ Pass program, which will make it easier for companies to manage all of their smartphones, even if they're from different manufacturers and use different operating systems.

BBM

BlackBerry Messenger is perhaps one of the most undervalued aspects of the company. Active monthly users have increased by 5 million over the last quarter, to 85 million, with 113 million downloads.

While BlackBerry has not revealed a set plan for the monetization of BlackBerry Messenger, there are currently three prevalent methods that could be ideal for their application. Either an advertisement-based, enterprise-based, or "add-on" solution.

The add-on method is already in use with the ability of BBM users to purchase stickers in the application. This won't support a large revenue flow, but it will gauge the users and allow BlackBerry to better understand its user base.

Linking BBM with an enterprise solution could be profitable for BlackBerry and separate it from the competition, but an advertisement-based revenue model seems superior.

Using BlackBerry's .64 CPM (cost per thousand impressions), BBM could generate upwards of $225 million in yearly revenue in its current state.

Combined with the additional information that BlackBerry obtains about its users through BBM Channels, as well as a possible desktop expansion, BBM may explode into another major social media network and even be a step ahead of many of its competitors.

"But the more interesting thing, and the more exciting thing is, because so many of our users are also consumer, professional consumers, they use our BBM on a daily basis longer in duration every day, almost like 90 minutes on average, than anybody else. So this is really a very exciting area," CEO Chen said on the latest earnings conference call.

BlackBerry's penetration into both the consumer and enterprise markets combined with its wide array of products and services should not only allow it to become profitable in the current fiscal year (FY2015), but also establish the company as a force in the enterprise and hardware markets.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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