BlackBerry Leaps After Deal With Amazon Cloud Business

BlackBerry shares were higher after the company signed a deal with Amazon to create a cloud platform to help automakers.
Author:
Publish date:

BlackBerry  (BB) - Get Report shares surged on Tuesday after the security and software services company signed a multiyear global agreement with Amazon's  (AMZN) - Get Report cloud business to develop a software platform dedicated to automakers.

Terms weren't disclosed.

Shares of the Waterloo, Ontario, company at last check jumped 51% to $8.87. Shares of Amazon, the Seattle online-retail and tech giant, were little changed near $3,173.

As part of the deal, BlackBerry and Amazon Web Services will develop and market BlackBerry's intelligent-vehicle-data platform -- called Ivy -- to help automakers create in-vehicle services.

"Data and connectivity are opening new avenues for innovation in the automotive industry, and BlackBerry and AWS share a common vision to provide automakers and developers with better insights so that they can deliver new services to consumers,” said John Chen, executive chairman and chief executive at BlackBerry. 

“This software platform promises to bring an era of invention to the in-vehicle experience and help create new applications, services, and opportunities without compromising safety, security, or customer privacy.”

BlackBerry Ivy will be able to use vehicle data to recognize hazardous weather conditions such as icy roads or heavy traffic and make driving recommendations like traction control, lane-keeping assist, or adaptive cruise control, the two companies said.

Ivy could then provide automakers with feedback on how and when those safety features are used, allowing them to make targeted investments to improve that.

Drivers of electric vehicles could choose to share their car’s battery information with third-party charging networks, using BlackBerry Ivy to reserve a charging connector and customize charging time according to the driver’s current location and travel plans.

And for parents of teenage drivers, BlackBerry Ivy could use vehicle sensors to provide insights when, for example, the number of passengers changes or the driver appears to be texting, distracted or not observing speed limits.