FAC12: Chapter 4 Article

http://money.cnn.com/news/newsfeeds/articles/marketwire/0587289.htm

Summary

Research in Motion Ltd. (RIM), a leading designer in mobile communication has recently introduced the BlackBerry Enterprise Server Express. The new software wirelessly synchronizes BlackBerry smart phones with Microsoft Exchange or Microsoft Windows Small Business Server. This new server software will be free of charge for all BlackBerry smart phone owners. Research in Motion has decided to provide this software for free in order to address two key market opportunities. Their first key market is the small and mid-sized businesses that desire the enterprise-grade security and manageability of the new software but don’t require all the advanced features. Their second key market is the increasing amount of BlackBerry smart phone owners. With the new software, IT departments will gain a cost-effective solution that enables them to let employees connect their BlackBerry smart phones to their work email. With an already great product, Research in Motion will be raising the bar for smart phones all over the world with this new cost-effective solution.

Connection

The connection between the article, “RIM introduces BlackBerry Enterprise Server Express” and the Financial Accounting textbook is the cash-to-cash cycle. As a leading designer in mobile communication, Research in Motion Ltd. has a large number of shareholders. With the large amount of money from the shareholders, RIM has acquired new software for their product. In a way, the new software acts like a promotion since it is free of charge for all BlackBerry smart phone owners. With the new software, customers will have a stronger urge to buy BlackBerry smart phone over any other smart phone. The new software will be available via download, so no delivery will be required. If the new software is a success, Research in Motion will be collecting a good amount of revenue in their sale of smart phones.

Reflection

With an already great product, RIM’s new BlackBerry Enterprise Server Express will widen the already large gap between BlackBerry smart phones and other smart phone in the market. I think it’s great that BlackBerry owner’s will be receiving this new software for free. I also think it is very generous of RIM to provide the software for free since RIM makes most of their revenue from service fees as stated on page 247 of the financial accounting textbook. Not only do I think that the new software will help promote the purchase of BlackBerry smart phones but provide current BlackBerry smart phone users with a great software. The new software can wireless synchronize email, calendar, contacts, notes, and tasks, manage email folder, search email on the mail server remotely, book meetings and appointments, access files stores on the company and many more. As a leading designer in mobile communications, I can't wait to see what RIM has in store for its consumers.