RIM's Single Point of Failure
I've got to chime in with Jon Gruber of Daring Fireball on this: No matter how much Research in Motion (RIMM) promotes their NOC approach to running its Blackberry service, it's still a single point of failure for all Blackberry subscribers. And given that this weakness has been demonstrated to Blackberry subscribers with two multi-hour outages in the last 11 months, at some point, businesses are going to scream "Fix it!" I'm surprised someone from the high-availability computing world hasn't pilloried RIM already.
For those who don't think RIM's outages are any big deal, here's a fun fact. If RIM were trying to meet a 99.999% availability for its Blackberry service, the three-hour outage on February 12, 2008 would have used up its allowed downtime for the next 34 years. Oops.
It's easy to forget that until the Internet came along and demonstrated that distributed and decentralized networks really were more reliable, most of the major computer companies built networks with centralized command and control systems, yet those networks never achieved anything like the resilience of the Internet. It's a shame Anywhere business customers using Blackberrys are going to have to learn that lesson again the hard way. It's not a question of if that will happen; it's a question of when.
Meanwhile, everyone who wants to avoid the Anywhere school of hard knocks should repeat after me:
I will not accept single points of failure in my Anywhere service. I will not accept single points of failure in my Anywhere service. I will not accept single points of failure in my Anywhere service.
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- Apocalypse Dow: The Search for Scapegoats
- Reading the S&P 500's Crashing Waves
- On a Return to Normalcy: Dow 8,500
- Looking Back at Lehman: Lying, Scapegoating and a General Lack of Accountability
- iShares ETF Tracking Error: Risks and Explanations
- U.S. vs. the World: Sectors Matter
- Full list of Editor's Picks »
- Nation's Debt: It's Not Being Rescued, It's Being Moved Around »
- Crazy P/E Ratios »
- Clueless - Cramer's Mad Money (10/8/08) »
- Wall Street Breakfast: Must-Know News »
- Cramer: Dow Could Drop Another 14%, Oil's Going to $50 »
- Roger Wiegand: 'Severe Bull Market' Ahead for Gold »
- Awaiting Apple Earnings and Guidance »
- Four Ways to Protect Money During the Fallout »
- Ford, GM on the Chopping Block? »
- Earnings Preview: General Electric »
- Cramer Should Be Suspended »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- 'When There's Blood in the Streets', Buy Biotech Stocks
- Midstream MLPs Crashing, Present Opportunity
- A Fresh Look at Shipping Company Stocks
- Panic Selling in InterOil: What Now?
- Potash Corp.: No Liquidity Problems Here
- The Year of the Bear
- Cobalt: More Than Just Blue
- Investors Can Find Comfort in Big Blue
- Hershey: The Perfect Recession Investment?
- Applied Materials Leads by Example
- Full list of Long Ideas »
- The Short Case for General Electric
- Too Late to Short SPY? An Historical Perspective
- Henderson Group: Profit Warning Surprises Short Investors
- Decreasing Chipotle Traffic Could Spell Trouble
- Why I Sold Lowe's Short
- Accor, Host and Marriott: Short Interest Heats Up
- Global Financial Crisis Makes Oil a Great Hedge
- Michael Page International: Stock Down on Market Weakness
- Gaming Stocks Still a Poor Bet - Barron's
- After Coming Rate Cuts, Some Appealing Short ETFs
- Full list of Short Ideas »
- Bulls Take a Stand - Cramer's Stop Trading! (10/10/08)
- Clueless - Cramer's Mad Money (10/8/08)
- Torpedo Dry Ships - Cramer's Lightning Round (10/8/08)
- Chocolate Lover - Cramer's Mad Money (10/7/08)
- Yield is King - Cramer's Lightning Round (10/7/08)
- Goldman Disses Solar - Cramer's Stop Trading ! (10/7/08)
- Time to Hoard Cash - Cramer's Mad Money (10/6/08)
- Buyers On Strike - Cramer's Stop Trading! (10/6/08)
- Still Bullish on RIMM - Cramer's Lightning Round (10/6/08)
- The Cramer Crash?
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »




This article has 12 comments:
If you are going to pump your stock by criticizing another, at lease have the common courtesy to state your long positions. I expect better from Seeking Alpha! www.thestreet.com/_yah...;cm_cat=FREE&c...
For the record, I'm long both AAPL and RIMM.
guy
and......by the record. I don't use anything in the technological that doesn't go down at least twice per month and that includes satellite, cable, wireless and whatever else being foisted on the U.S. consumer complete with glitches.
You must not work in corporate America..i.e. a fortune 500 company where things like down time for systems of any kind happen at least 4-5 times in any year. I have and employees exalt these times as favor from above.
That being said, I believe this piece is comedy. RIM's "single point of failure" could be compared to iPhone's "single" point of failure if EDGE on ATT were to go down and one didn't have wifi access. Then what?
RIM's long term service reliability speaks for itself and as one poster above noted, the core system is extremely reliable with outages only occurring when upgrades or tweaks are being applied. This doesn't excuse the outage, but it is a noteworthy point, that the core system just tends to work (kind of like a Mac!). No doubt I do hope RIM increases the number of NOCs from 2 to 4 or 8 to achieve redundancies on top of redundancies. It should be noted, though, that there currently is a third secretly located NOC for certain customers that require 100% uptime (read US gov't) that was put in place after the outage last year.
I'm long both AAPL and RIMM because it obvious to see the growth of smartphone adoption worldwide is huge and both are positioned in the space to benefit. (There are many more reasons than iPhone to own AAPL, but that's for another time)