BlackBerry Boosts Enterprise Mobility Management Strategy With WatchDox Buy

BlackBerry said its move Tuesday to acquire file security and secure document gateway company WatchDox is aimed at further solidifying its portfolio of security-related tools for the enterprise market.

In interviews with BlackBerry partners, they said they see WatchDox's ​file-sync-and-share security solutions as a valuable addition to the Waterloo, Ontario-based company's Enterprise Mobility Management portfolio and BES12 scalable security architecture.

"This is key for the enterprise space. Now that BlackBerry is getting a solution to track and audit files, it represents a pretty powerful side of security," said Rick Jordan, director of mobility sales at Tenet Computer Group, a Toronto-based solution provider. "This solidifies that the enterprise market is the direction BlackBerry is going for. And BlackBerry's doing it through acquisitions, not through cool phones."

Related: Partners: The Channel Will Play A Key Role In BlackBerry's Revenue Turnaround]

Terms and conditions of the transaction were not disclosed. The Wall Street Journal reported that BlackBerry is dishing out $70 million to scoop up the file security company, citing sources.

Palo Alto, Calif.-based WatchDox offers software that allows customers to protect and utilize their files on any device, adding huge value to BlackBerry's Enterprise Mobility Management portfolio, which offers end-to-end security, mobile device management, and mobile app management features.

WatchDox's enterprise file-sync-and-share solution enables business network administrators to remotely access and delete files, and allows for secure mobile productivity in both cloud- and infrastructure-based repositories.

’This acquisition represents another key step forward as we transition BlackBerry into the premier platform for secure mobile communications software and applications, supporting all devices and operating systems," said BlackBerry CEO John Chen in a statement. "Together with last year’s Secusmart acquisition, Samsung partnership, our own internal development efforts, and now the acquisition of WatchDox, we now have capabilities to secure communications end to end from voice, text, messaging, data and now enterprise file-sync-and-share.’

To ensure file security, WatchDox offers data encryption and other enhanced end-to-end safeguarding measures. WatchDox's customer base extends to multiple vertical markets, including health care, financial and government.

"Enterprises require secure mobile solutions that enable users to more easily collaborate and increase their productivity. WatchDox meets this need by uniting data-centric security with a user-friendly experience that is highly valued by our customers," said ​WatchDox CEO Moti Rafalin in a release. "The combination of BlackBerry's security leadership and EMM portfolio with WatchDox technology will bring the most productive and collaborative mobility solution to organizations that need innovative ways to conduct business securely and efficiently."

BlackBerry has been investing in the enterprise mobile security market over the past year through a flurry of acquisitions. In September, the company acquired U.K.-based SIM service company Movirtu, which targets BYOD policies through services that enable users to have a company and personal phone number on one device.

BlackBerry in December acquired SecuSmart, a German company specializing in voice and data encryption. BlackBerry also partnered with Samsung and IBM in March to unveil SecuTablet, an ultra-secure version of the Galaxy Tab S 10.5, an ultra-thin HD tablet equipped with SecuSmart's micro-SD security card.

For partners, the acquisitions show BlackBerry's renewed commitment to the enterprise market, as opposed to previous years when it attempted to go head-to-head in the consumer market with Apple and other vendors.

"BlackBerry's trying to further enhance their reputation by being the most security-conscious mobile company," said David Felton, founder of Norwalk, Conn.-based solution partner Canaan Technology. "I think customers are starting to understand the value of security, and that security should be a higher concern. BlackBerry's building a really strong arsenal of enterprise-grade high-security acquisitions. I do think for an enterprise or government who considers security a number one priority, it would be compelling to look at BlackBerry."

Looking forward, partners said BlackBerry needs to continue strengthening its mobile security investments to attract more enterprise clients.

"BlackBerry is a company that has risen to the top and fallen to the bottom … they're still trying to find their way," said Tenet Computer Group's Jordan. "From the enterprise side, this acquisition solidifies what direction they're going in. Before, BlackBerry was lost, going after the consumer market. Now, as a partner, and more importantly with our customers, we're seeing an increased focus on security breaches and data protection."

PUBLISHED APRIL 23, 2015