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10 Compelling Reasons for Microsoft to Buy RIM
By Don Reisinger on 2011-08-10



When you think of smartphones and mobile devices, Microsoft isn't the first name that comes to mind. Research In Motion is doing better, but its BlackBerry smartphones are losing out to Apple's iPhone and the myriad Android devices popping up from vendors like Samsung and Motorola. Other companies simply offer more compelling options to both consumers and enterprise users. But what can RIM and Microsoft do to try and capture a greater slice of the mobile market? It's not clear whether they need new strategies or if they will eventually see success from walking their current paths, waiting for customers to see the value in what they offer. But what if the two joined forces and merged? That may be the best chance for both of them to keep the Google/Apple juggernaut at bay. Maybe the best option would be a merger between the two in which RIM becomes a division of Microsoft. Admittedly, such a move would be controversial. But at this point, for the good of both companies, Microsoft must buy Research In Motion. Flip through the following slides to find out why:
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RIM Still Has Enterprise Appeal

If nothing else, Microsoft should acquire RIM for its enterprise appeal. The handset maker is offering products that IT decision-makers around the globe still want. Right now, Microsoft isn’t appealing to that important customer base. With RIM’s help, it can.

Windows Phone 7 Isn’t Cutting It

Windows Phone 7 just isn’t working out. Consumers want nothing to do with the platform, and enterprise users are disappointed by it. However, if Microsoft buys RIM, it will have many more options like incorporating Windows Phone 7 into BlackBerrys or running both OSes for different market segments.

The Shareholders Would Go for It

Now is a prime time to buy RIM. The company isn’t performing as well as it could, and shareholders are concerned that management isn’t doing a good enough job of preparing it for the future. At this point, many shareholders would be happy to sell off their share to Microsoft at a premium.

It’s a Multi-Market Strategy

Microsoft would have several options available to it if were to buy RIM. However, the best option for the company would be to offer Windows Phone 7 to consumers exclusively, and offer up BlackBerry 7 OS to enterprise users. By doing so, Microsoft can offer the right products for the right groups.

The Employees Need a Jolt

Recently, an anonymous RIM employee wrote an open letter criticizing the company’s management for their inability to adapt to the changing times. For Microsoft, that can be an opportunity to reinvigorate RIM's employees.

The Enterprise Features

RIM has been an enterprise winner, especially with BlackBerry Enterprise Server. Not only can it be integrated with Windows Phone 7, but if Microsoft were to decide to keep BlackBerry OS in place, the company could capitalize on it with its other products. Simply put, BlackBerry Enterprise Server should be central to Microsoft’s decision-making.

It Stymies Google’s Growth

With nearly 50% of the market, Google's Android is a front-runner. With the BlackBerry’s help, Microsoft can go a long way in stopping Google's landslide. If the company can make its Nokia partnership work and combine that with RIM’s worldwide market share, Microsoft can establish itself in the eyes of customers and advertising partners—a key sector for the company—as a real competitor.

Apple Won’t Make Enterprise Inroads

Over the last year, Apple's iPhone and iPad have been catching on with enterprise users. However, if Microsoft were to acquire RIM, the software giant can go a long way in stopping Apple from becoming a corporate threat. Will it stop things entirely? Probably not. But it might be able to at least slow Apple’s progress.

RIM Is Profitable

RIM's financials are appealing. The BlackBerry maker generates billions of dollars in revenue and millions in profit each quarter. From a financial perspective, no one would blame Microsoft for acquiring RIM.

It Has a Tablet Strategy

Microsoft doesn’t have a good tablet strategy. Right now, it looks like most Windows tablets won’t even come out until next year. That’s a problem. However, RIM has a tablet and a tablet strategy, even though it’s not selling as well as it could It might not be an iPad-killer, but it’s at least better than Microsoft’s ideas.

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