RIM Sells Cloud Service Division to SynchronossResearch in Motion (RIM) is further streamlining its business with a surprising sale of its cloud business unit Newbay to mobile software developer Synchronoss for $55.5 million in cash.
RIM acquired Newbay in 2011 for a rumored $100 million with the intent to use it as a foundation for its cloud-based content services. While Newbay's flagship product LifeCache is used by carriers such as T-Mobile, AT&T and Verizon, the expected enterprise public cloud product has not materialized. This left RIM with a consumer product that was direct competition with Apple's iCloud.
Synchronoss said that "Newbay’s cloud services are delivered to millions of user and stores billions of media files for live operator services around the world," which would help "further [establishing] Synchronoss as the clear leader in providing cloud based mobile content services for mobile operators around the world."
Synchronoss expects the acquisition to be neutral to slightly accretive to its full year 2013 financial results.
Wolfgang GruenerWolfgang Gruener is a contributor to Tom's IT Pro. He is currently principal analyst at Ndicio Research, a market analysis firm that focuses on cloud computing and disruptive technologies, and maintains the conceivablytech.com blog. An 18-year veteran in IT journalism and market research, he previously published TG Daily and was managing editor of Tom's Hardware news, which he grew from a link collection in the early 2000s into one of the most comprehensive and trusted technology news sources.
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