BlackBerry Creating New Technology Unit

BlackBerry Ltd. said it would create a new business unit to hold what it called its innovative technology assets, including its QNX software and Project Ion.

The Waterloo, Ontario-based company said it has hired Sandeep Chennakeshu, a former president of Ericsson's Mobile Platforms division, to lead the new unit, BlackBerry Technology Solutions. The unit will also include BlackBerry's Certicom cryptography applications, its Paratek antenna technology assets and its portfolio of 44,000 patents.

The development comes as the smartphone maker attempts to turn around its fortunes in part by positioning itself as a market leader in offering mobile security technology for governments and large enterprises.

QNX, Certicom and Paratek have the potential to address the much wider global markets for secure, reliable communications and embedded applications, while Project Ion creates a platform that enables secure machine-to-machine communication required by the growing number of end-to-end, Internet of Things applications. Combining these assets and the company's large patent portfolio in one unit "will create operational synergies and new revenue streams, furthering our turnaround strategy," BlackBerry Chief Executive John Chen said in a statement Monday.

BlackBerry has lost a number of corporate and government clients to rivals over the last several years as its new devices fell flat in the market. Mr. Chen is counting on updated software that handles security for company-issued devices to win back customers. Firms can use the technology whether employees use BlackBerrys, iPhones or other devices.

BlackBerry is also counting on the success of its QNX software to help drive its turnaround. Auto makers use the technology to allow drivers to connect with their in-car multimedia systems using their mobile devices. BlackBerry also expects this technology to play a key role in allowing businesses and people to connect to an array of machines over the Internet using mobile devices.

Ben Dummett contributed to this article

Write to Carolyn King at [e-mail]

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