BlackBerry Ltd (BB) on Tuesday announced that it has inked a multi-year deal with Amazon Web Services (AWS). The two companies will mutually design and market BlackBerry’s intelligent vehicle data platform, called IVY, as a part of the agreement.
Shares of BlackBerry
IVY is a cloud-based software platform that will enable automakers to read sensor data of the vehicles in a secure way. Subsequently, they will be able to develop personalized in-vehicle services after analyzing that data.
The two companies said in a joint statement that the platform will reduce the time needed to develop, deploy, and modify in-vehicle apps and connected services across several brands and models. It will also help automakers to easily interact with a bigger pool of developers to speed up the rollout of new services.
Speaking on the latest collaboration, Chief Executive Officer at BlackBerry, John Chen said in a statement that “data and connectivity are opening new avenues for innovation in the automotive industry, and BlackBerry and AWS share a common vision to provide automakers and developers with better insights so that they can deliver new services to consumers.”
Takeaways for BlackBerry from the deal
The latest partnership with AWS will further strengthen its position in the connected automobile industry. BlackBerry’s existing automotive operating system, called QNX, is already deployed in more than 175 million vehicles.
BlackBerry’s financial performance
The company’s security software products and patent licensing business made a significant contribution to its overall revenue in the second quarter. On an adjusted basis, it reported earnings of 11 cents per share, significantly higher than the consensus forecast of 2 cents per share.
Revenue from the QNX car software segment also improved in the quarter. The performance of the segment was previously affected by weakness in the U.S. auto market due to the Covid-19 pandemic. Comparatively, BlackBerry’s core security software Spark also performed well in the quarter, as demand improved after an increasing number of businesses and individuals started working from home. Moreover, the company generated $108 million from its patent licensing segment in the quarter.
Currently, 10 analysts are maintaining price target for BlackBerry
BlackBerry Stock performance