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Research In Motion and the Blackberry

Research In Motion and the Blackberry

Update: 2022-06-17
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Lars Magnus Ericsson was working for the Swedish government that made telegraph equipment in the 1870s when he started a little telegraph repair shop in 1976. That was the same year the telephone was invented. After fixing other people’s telegraphs and then telephones he started a company making his own telephone equipment. He started making his own equipment and by the 1890s was shipping gear to the UK. As the roaring 20s came, they sold stock to buy other companies and expanded quickly.

Early mobile devices used radios to connect mobile phones to wired phone networks and following projects like ALOHANET in the 1970s they expanded to digitize communications, allowing for sending early forms of text messages, the way people might have sent those telegraphs when old Lars was still alive and kicking. At the time, the Swedish state-owned Televerket Radio was dabbling in this space and partnered with Ericsson to take first those messages then as email became a thing, email, to people wirelessly using the 400 to 450 MHz range in Europe and 900 MHz in the US. That standard went to the OSI and became a 1G wireless packet switching network we call Mobitex.

Mike Lazaridis was born in Istanbul and moved to Canada in 1966 when he was five, attending the University of Waterloo in 1979. He dropped out of school to take a contract with General Motors to build a networked computer display in 1984. He took out a loan from his parents, got a grant from the Canadian government, and recruited another electrical engineering student, Doug Fregin from the University of Windsor, who designed the first circuit boards. to join him starting a company they called Research in Motion. Mike Barnstijn joined them and they were off to do research. 

After a few years doing research projects, they managed to build up a dozen employees and a million in revenues. They became the first Mobitex provider in America and by 1991 shipped the first Mobitex device. They brought in James Balsillie as co-CEO, to handle corporate finance and business development in 1992, a partnership between co-CEOs that would prove fruitful for 20 years. 

Some of those work-for-hire projects they’d done involved reading bar codes so they started with point-of-sale, enabling mobile payments and by 1993 shipped RIMGate, a gateway for Mobitex. Then a Mobitex point-of-sale terminal and finally with the establishment of the PCMCIA standard, a  PCMCIP Mobitex modem they called Freedom.

Two-way paging had already become a thing and they were ready to venture out of PoS systems. So  in 1995, they took a $5 million investment to develop the RIM 900 OEM radio modem. They also developed a pager they called the Inter@ctive Pager 900 that was capable of  two-way messaging the next year. Then they went public on the Toronto Stock Exchange in 1997.

The next year, they sold a licensing deal to IBM for the 900 for $10M dollars. That IBM mark of approval is always a sign that a company is ready to play in an enterprise market. And enterprises increasingly wanted to keep executives just a quick two-way page away. But everyone knew there was a technology convergence on the way. They worked with Ericsson to further the technology and over the next few years competed with SkyTel in the interactive pager market.

Enter The Blackberry
They knew there was something new coming. Just as the founders know something is coming in Quantum Computing and run a fund for that now. They hired a marketing firm called Lexicon Branding to come up with a name and after they saw the keys on the now-iconic keyboard, the marketing firm suggested BlackBerry. They’d done the research and development and they thought they had a product that was special. So they released the first BlackBerry 850 in Munich in 1999. But those were still using radio networks and more specifically the DataTAC network.

The age of mobility was imminent, although we didn’t call it that yet. Handspring and Palm each went public in 2000. 

In 2000, Research In Motion brought its first cellular phone product in the BlackBerry 957, with push email and internet capability. But then came the dot com bubble. Some thought the Internet might have been a fad and in fact might disappear. But instead the world was actually ready for that mobile convergence. Part of that was developing a great operating system for the time when they released the BlackBerry OS the year before. And in 2000 the BlackBerry was named Product of the Year by InfoWorld. 

The new devices took the market by storm and shattered the previous personal information manager market, with shares of that Palm company dropping by over 90% and Palm OS being setup as it’s own corporation within a couple of years. People were increasingly glued to their email. While the BlackBerry could do web browsing and faxing over the internet, it was really the integrated email access, phone, and text messaging platform that companies like General Magic had been working on as far back as the early 1990s.

The Rise of the BlackBerry
The BlackBerry was finally the breakthrough mobile product everyone had been expecting and waiting for. Enterprise-level security, integration with business email like Microsoft’s Exchange Server, a QWERTY keyboard that most had grown accustomed to, the option to use a stylus, and a simple menu made the product an instant smash success. And by instant we mean after five years of research and development and a massive financial investment.

The Palm owned the PDA market. But the VII cost $599 and the BlackBerry cost $399 at the time (which was far less than the $675 Inter@ctive Pager had cost in the 1990s). The Palm also let us know when we had new messages using the emerging concept of push notifications. 2000 had seen the second version of the BlackBerry OS and their AOL Mobile Communicator had helped them spread the message that the wealthy could have access to their data any time. But by 2001 other carriers were signing on to support devices and BlackBerry was selling bigger and bigger contracts. 5,000 devices, 50,000 devices, 100,000 devices. And a company called Kasten Chase stepped in to develop a secure wireless interface to the Defense Messaging System in the US, which opened up another potential two million people in the defense industry

They expanded the service to cover more and more geographies in 2001 and revenues doubled, jumping to 164,000 subscribers by the end of the year. That’s when they added wireless downloads so could access all those MIME attachments in email and display them. Finally, reading PDFs on a phone with the help of GoAmerica Communications! And somehow they won a patent for the idea that a single email address could be used on both a mobile device and a desktop. I guess the patent office didn’t understand why IMAP  was invented by Mark Crispin at Stanford in the 80s, or why Exchange allowed multiple devices access to the same mailbox.

They kept inking contracts with other companies. AT&T added the BlackBerry in 2002 in the era of GSM. The 5810 was the first truly convergent BlackBerry that offered email and a phone in one device with seamless SMS communications. It shipped in the US and the 5820 in Europe and Cingular Wireless jumped on board in the US and Deutsche Telekom in Germany, as well as Vivendi in France, Telecom Italia in Italy, etc. The devices had inched back up to around $500 with service fees ranging from $40 to $100 plus pretty limited data plans. The Tree came out that year but while it was cool and provided a familiar interface to the legions of Palm users, it was clunky and had less options for securing communications. The NSA signed on and by the end of the year they were a truly global operation, raking in revenues of nearly $300 million. 

The Buying Torndado
They added web-based application in 2003, as well as network printing. They moved to a Java-based interface and added the 6500 series, adding a walkie-talkie function. But that 6200 series at around $200 turned out to be huge. This is when they went into that thing a lot of companies do - they started suing companies like Good and Handspring for infringing on patents they probably never should have been awarded. They eventually lost the cases and paid out tens of millions of dollars in damages. More importantly they took their eyes off innovating, a common mistake in the history of computing companies.

Yet there were innovations. They released Blackberry Enterprise Server in 2004 then bolted on connectors to Exchange, Lotus Domino, and allowed for interfacing with XML-based APIs in popular enterprise toolchains of the day. They also later added support for GroupWise. That was one of the last solutions that worked with symmetric key cryptography I can remember using and initially required the devices be cradled to get the necessary keys to secure communications, which then worked over Triple-DES, common at the time. One thing we never liked was that messages did end up living at Research in Motion, even if encrypted at the time. This is one aspect that future types of push communications would resolve. And Microsoft Exchange’s ActiveSync. 

By 2005 there were CVEs filed for BlackBerry Enterprise Server, racking up 17 in the six years that product shipped up to 5.0 in 2010 before becoming BES 10 and much later Blackberry Enterprise Mobility Management, a cross-platform mobile device management solution. Those BES 4 and 5 support contracts, or T-Support, could cost hundreds of dollars per incident. Microsoft had Windows Mobile clients out that integrated pretty seamlessly with Exchange. But people loved their Blackberries.

Other device manufacturers experimented with different modes of interactivity. Microsoft made APIs for pens and keyboards that flipped open. BlackBerry added a trackball in 2006, that was always kind of clunky. N

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Research In Motion and the Blackberry

Research In Motion and the Blackberry

Charles Edge