Research In Motion’s great big BlackBerry blackout seems to have subsided, but it couldn’t have come at a worse time for the company. Several quarters of lackluster performance have already made investors restless; now many enterprise customers are likely displeased with RIM as well. Meanwhile, HP swerves, Sprint tries a tricky maneuver, and Netflix pulls a Qwik u-turn.
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The Great BlackBerry Blackout of ’11 is clearing up, and not a moment too soon for users who rely on Research In Motion’s (Nasdaq: RIMM) technologies for critical business communications. The problems started early in the week for customers in Europe, the Middle East and Africa, then spread to India and South America before making its way into North America, including RIM’s home turf in Canada.
The official cause of the conniption was the failure of a dual-redundant high-capacity core switch, according to RIM. So it sounds like something deep in the bowels of the company failed, the backup behind that failed, and problems just mushroomed from there. Service was slow, messages were delivered hours late, and communications broke down at probably thousands of companies and organizations.
RIM acknowledged there was a problem relatively early on, but there was much confusion about which services weren’t working and which were. Some users claimed to have no problems whatsoever, while others in the same region said their phones were practically unusable. RIM’s still trying to discern the root cause, but it has apologized quite frequently over the past few days, and at the time I’m saying this things seem to be getting back to normal.
There’s never a good time for a service outage like this, but it’s an especially bad moment for RIM to fall on its face. The company’s endured quarter after quarter of disappointing business, its phones struggle to compare with top-shelf Androids and iPhones, investors are growing restless, and its two CEOs are under growing pressure to justify their own existence.
Meanwhile, Apple’s (Nasdaq: AAPL) bragging about selling 1 million iPhone 4Ss on pre-order alone, despite the fact that the phone got kind of a ho-hum reception, by Apple’s standards. Android phones have been getting plenty of good attention at the CTIA confab this week, and even though Google (Nasdaq: GOOG) delayed the debut of Ice Cream Sandwich, it’s still going to happen soon. And Microsoft’s (Nasdaq: MSFT) just about ready to jump in with its Nokia (NYSE: NOK) phones. All these are growing into bigger threats to the enterprise business that RIM has relied on for years.
Then a massive outage comes along and irritates people who use their BlackBerries the most — the core customers RIM can least afford to lose.
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