Tech Broiler

Jason Perlow and Scott Raymond

Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire

By | January 23, 2012, 10:21am PST

Summary: The shamed former Co-CEO’s of Research in Motion will be always remembered as the Bob and Doug McKenzie of the smartphone industry rather than the giants they should have been.

I don’t consider myself to be a particularly vindictive person. Everyone says I’m a really nice guy and am just the most awesome and most warm and funny person to hang around with.

But dammit Research in Motion, you have to go and interrupt my GIANTS WINNING THE NFC CHAMPIONSHIP because you think it’s a great time to tell me that after what has seemed like an eternity, you finally threw out the two clowns that ruined your company? NOW? NOW YOU WANT TO TELL ME THIS?

This couldn’t wait until first thing Monday?

Okay, so let’s talk about the two hosers that built a smartphone empire and effectively flushed it down a toilet, shall we?

Mike Lazaridis and Jim Balsillie were once guys that had vision. In the early 1990s, Lazaridis, along with Balsillie’s help, formed one of the earliest two-way wireless data communications companies whose efforts would eventually result in the creation of the first true smartphone, the BlackBerry 6200 series in 2004 (the original BlackBerry, released in 1999, was merely a two-way alphanumeric pager.)

There was literally nothing else like the BlackBerry 6200 series when it was released. It had the ability to send and receive secure email, do web browsing, integrated personal information management with desktop calendar synchronization and it could also run apps.

All of these things we take for granted in smartphones today.

Indeed, there were other players that did pioneering work in smartphones, but they were never able to achieve the traction or the product loyalty of RIM.

Companies like Microsoft and Palm attempted to keep up with RIM and the BlackBerry during those early years of the smartphone industry with their Palm OS and Windows CE/Windows Mobile products, but their efforts failed.

RIM practically had an iron grip on the corporate customer, and their dominance of the mobile messaging industry seemed practically impenetrable.

One of the reasons why RIM was able to succeed and the others were unable to thrive is that Lazaridis and Balsillie were able to see the huge value corporations as well as government agencies would put in running their devices on a secure private communications network.

With BlackBerry Enterprise Server and Research in Motion’s global network operation center in Waterloo by which all messaging was “pushed” to and from handsets, the BlackBerry established itself as the de-facto mobile data device for corporations and government.

There was literally nothing else in the early to mid-2000’s that could possibly threaten the company’s business.

All of this changed in 2007.

In 2007, two landmark products were launched. The first being Apple’s iPhone, and the second the introduction of Google’s Open Source and Linux/Java-based Android operating system, which resulted in a first-generation handset product, the T-Mobile G1, that was launched in 2008.

Both of these products demonstrated technology that was clearly superior in capability to the BlackBerry OS 4 on RIM handsets. This should have been a warning sign for the company, but it was ignored. Arrogantly.

In July of 2008, after a phenomenal year of sales after its initial product launch, Apple launched the iPhone SDK, and their App Store, which caused massive disruption in the smartphone industry generating yet again an entirely new industry of mobile app development.

In October of 2009, Verizon wireless introduced the first Android 2.0 handset, the Motorola Droid, which began a chain reaction of Android handset growth on multiple wireless carriers.

Like the iPhone’s App Store, the Motorola Droid launched with the Android Market, which allowed for 1-click smartphone application installations via the Cloud.

RIM would not follow suit with its own application ecosystem/App Store, the BlackBerry App World, until April of 2009, nine months after Apple’s own App Store launch.

Despite Google’s inability to control the OS’s fragmentation, Android has become a wild success, and now occupies approximately 45 percent of the global smartphone market.

[Next: Ignoring the signs and portents of iPhone and Android]»

Topics

Jason Perlow, Sr. Technology Editor at ZDNet, is a technologist with over two decades of experience integrating large heterogeneous multi-vendor computing environments in Fortune 500 companies.

Disclosure

Jason Perlow

My Full-Time Employer is IBM. I write as a freelancer for ZDNet.

Disclaimer: The postings and opinions on this blog are my own and don't necessarily represent IBM's positions, strategies or opinions.

I own no investments or direct financial instruments in the companies I write about.

Biography

Jason Perlow

Jason Perlow, Sr. Technology Editor at ZDNet is a technologist with over two decades of experience with integrating large heterogeneous multi-vendor computing environments in Fortune 500 companies. A long-time computer enthusiast starting the age of 13 with his first Apple ][ personal computer, he began his freelance writing career starting at ZD Sm@rt Reseller in 1996 and has since authored numerous guest columns for ZDNet Enterprise and Ziff-Davis Internet. Jason was previously Senior Technology Editor for Linux Magazine, where he wrote about Open Source issues from 1999 to 2008.

In his spare time, Jason is an avid amateur chef and food writer, where his work reviewing New Jersey restaurants has appeared in The New York Times. He is also the founder of the popular food web site eGullet and blogs about restaurants and cooking at OffTheBroiler.com.

Talkback Most Recent of 40 Talkback(s)

  • The video says it best
    "we're nearly out of time, heh"
    ZDNet Gravatar
    davebarnes
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @davebarnes As a Canadian, I believe it's "eh?" not "heh". As in asking for affirmation, which Mr. Heins isn't getting for wanting to do more of the same.
    ZDNet Gravatar
    kpashuk@...
    23rd Jan
  • ZDNet Gravatar
    nomikhokher
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    OK, I really don't get it? You fire the two in charge for basically staying the course and not innovating, yet the first thing the new boss says is were staying the course? WTF...
    ZDNet Gravatar
    ewell44
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @ewell44
    That was the first thing I noticed...why new leadership if no change in direction?
    ZDNet Gravatar
    kris_stapley@...
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @kris_stapley@... sounds like a hoodwink to me! You can't put new wine into old wine skins...
    ZDNet Gravatar
    drice01
    24th Jan
  • ZDNet Gravatar
    otaddy
    23rd Jan
  • Simple!
    @ewell44 ... because they just shuffled another rat to the front of the sorry, sinking mess that is RIM. Dumb and dumber, if you will .. a la, shuffling the deck chairs on the Titanic (...yep! that'll work!)
    ZDNet Gravatar
    thx-1138_@...
    24th Jan
  • Typical loud mouthed NY fan
    In case you missed it no one was "thrown out". Jim and Mike are on the board with a new title and still own controlling share of RIM. So they played musical chairs and put their buddy in charge to keep the status quo going.

    We get it, ZDNet is an Apple funded blog and does no wrong. RIM's issues have been discussed and berated for 3 years now. Either you hope for them to get this right with BB10 / QNX or you don't care - which my mother used to tell me "If you don't have anything good to say, keep your mouth shut".
    ZDNet Gravatar
    MobileAdmin
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @MobileAdmin

    So they should just post good things or only things you agree are news worthy?
    ZDNet Gravatar
    ewell44
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @ewell44
    No, but jeez it is a nasty bit of writing.
    As far as I am concerned they are innovators, plain and simple - the key in the end seems to be the all-too-familiar and all-too-human hubris that comes with heady success.
    Everyone was screaming at the company to do "something" so they do and they get skewered. They are not yet a software company, so no kidding that the PLaybook was not quite ready for prime time.
    Really, the worst misstep with Playbook was simply price - had they opened up with a starting price of $299 the Playbook would have flown off the shelves irregardless of all the tech bloggers who want to kill RIM.

    A mistake, that was - nevertheless, Perlow's nasty piece of smack is a tad insulting. If he would drop the insults, perhaps people could look at him in a kinder, more reasonable manner, and not just consider Perlow to be a *********** .. oh, sorry, I guess maybe I shouldn't resort to this kind of silly name-calling, hmm Jason?

    How about it? You know tech like the back of your hand - stick to that and please drop the silly smack.
    ZDNet Gravatar
    respighifan
    23rd Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @ewell44

    Not at all, when something needs to be called out - do so. In the RIM case it's been said a hundred times by everyone on what RIM should do. If they choose to run the company into the ground then so be it.

    They have been making progress, Playbook OS 2.0 has some solid features, the price points are attractive. Development has improved.

    Regardless what RIM does it doesn't reverse sentiment as the majority of those screaming the loudest don't even use Blackberry or want them to succeed.
    ZDNet Gravatar
    MobileAdmin
    23rd Jan
  • @MobileAdmin ... You're kidding, right?
    @ewell44 " ... They have been making progress, ... "

    Hmmmm, so let's gauge RIM's "progress" and put it in perspective ... so was Hitler's VI Army on it's slow trudge towards Stalingrad ... so was the Hindenburg ... so was the Titanic as it slid through the icy cold, North Atlantic, south of Nova Scotia one fateful night in 1912. Yep! So I guess you could classify it as "progress", for RIM, when your yardstick is major catastrophes in modern history.

    Just, Wow! You apologists are so full of it ...
    ZDNet Gravatar
    thx-1138_@...
    24th Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @ewell44
    If Perlow was worth the bother, they would take him to court for slander. What an Arrogant piece! As if he has ever created anything. These two created Blackberry and it still has millions of happy users. If Perlow does not like what they have done, then he knows where he can stuff it.

    If blogs could be flagged, this one should be. Truly sick.
    ZDNet Gravatar
    jorjitop
    25th Jan
  • RE: Lazaridis and Balsillie: The two RIM hosers that destroyed the BlackBerry empire
    @MobileAdmin

    While I agree with most of your sentiments, I believe Jim and Mike each own 5% of RIM's share, for a total of 10%. I doubt with only 10% of the shares, anyone can qualify as "still own controlling share of RIM"?

    But who knows?

    As for the past board & company control they held, good riddance IMHO. They've had their chance. And really messed it up.

    ~~~~~~~~~~
    Often it is fatal to live too long.
    ~ Racine

    Success is not final, failure is not fatal: it is the courage to continue that counts.
    ~ Winston Churchill

    You always pass failure on the way to success.
    ~ Mickey Rooney
    ZDNet Gravatar
    WinTard
    23rd Jan

Talkback - Tell Us What You Think

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
Click Here

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources