BlackBerry (BB) Stock Soars on AWS Deal for Smart Vehicle Data
BlackBerry Limited BB recently inked a multi-year global agreement with Amazon Web Services, Inc. (“AWS”) — the cloud computing platform of Amazon.com, Inc. AMZN — for the development of a secure and intelligent connected vehicle software platform for in-vehicle applications. Dubbed BlackBerry IVY, the scalable cloud-connected software platform would seek to integrate BlackBerry QNX real-time operating system with AWS’ IoT services in the cloud and in the car to develop a comprehensive edge-to-cloud offering for diversified car brands. The transformative deal, which is likely to redefine the dynamics of the automotive sector, led to one of the biggest single-day gains in its history, with the stock closing at $7.00 on Dec 1, 2020 — up 19.3%.
Each vehicle model typically includes a unique set of proprietary hardware and software components from different suppliers, which often limit developers’ abilities to decipher and interact promptly with data from diverse sensors. Blackberry IVY intends to address this issue by leveraging ML techniques to generate predictive insights and provide automakers a consistent and secure way to read vehicle sensor data, driver habits and engine reliability metrics. This, in turn, will enable automakers to create responsive in-vehicle services that enhance driver and passenger experiences.
While QNX software allows automotive OEMs to develop and run a common software platform across in-vehicle systems such as gateways, TCUs, engine controllers, digital cockpits and emerging domain controllers, AWS capabilities help to securely and easily access data from vehicle sensors. The vehicle data is then used to build software applications and ML models, and is deployed inside the vehicle to enable in-vehicle inference and actions that could potentially lead to less accidents in driverless vehicles.
Despite running within a vehicle’s embedded systems, Blackberry IVY will be managed and configured remotely from the cloud, offering automakers greater visibility and control over it. The standardized platform with integrated capabilities will facilitate automakers to share data and outputs with developers and outside technology partners without fear to deliver new features, functionality and performance-enhancing attributes. This is likely to unlock new revenue streams and business models built on vehicle data without compromising on customer privacy and security by controlling the access to vehicle and app data. It could also lead to reduced costs of maintenance and repairs by promptly identifying the first signs of potentially faulty parts and initiate corrective action. Notably, BlackBerry IVY is likely to complement and run seamlessly with new digital vehicle architectures developed by leading car manufacturers like Volkswagen AG VWAGY, General Motors Company GM and others.
BlackBerry’s foray into the automotive industry was marked by the seamless integration of navigation, infotainment and critical driving functions. The company leverages its extensive technology portfolio to extend the best-in-class security and reliability features. These include a unified endpoint management solution that provides comprehensive multiplatform device, application and content management with integrated security and connectivity, embedded systems, enterprise applications and related services.
Operating as a leading player in the enterprise mobility management, BlackBerry is widely recognized for its productivity and security innovations. The company delivers one of the most secure end-to-end mobile enterprise solutions in the market through a broad portfolio of products and services. It offers an end-to-end software and services platform for the Enterprise of Things, which includes computers, vehicles, sensors, equipment and other connected endpoints within the enterprise that communicate with each other to enable smart business processes.
The stock has gained 30.1% in the past year against a decline of 14.5% for the industry. It remains to be seen if such technological collaborations can continue to boost the stock in the long run.
BlackBerry currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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