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Samsung Close to Inking Deal with Two Large U.S. Agencies (BBRY)

July 19, 2013 8:09 AM
BlackBerry (Nasdaq: BBRY) has previously prided itself on security above and beyond its peers, making it the number one choice for enterprise and governments worldwide. But, that advantage seems to be eroding each passing day.

The WSJ reports that both the Federal Bureau of Investigation and U.S. Navy are close to signing deals with Samsung for use of its devices. Samsung generally uses Google (Nasdaq: GOOG) Android as its base operating system, though the South Korea-based device giant has also invested large sums in campaigning for larger government contracts.

Offerings for the FBI and U.S. Navy would include Samsung's KNOX security offering, which adds another layer of protection to that already provided by Android.

Approval by the two agencies would add-on to a win earlier in the year, when the U.S. Department of Defense approved usage of Samsung devices.

Apple (Nasdaq: AAPL) has also seen its iPhone and iPad devices approved by several large corporations and agencies.

It should be noted that governments don't just switch and approve devices on a whim; there's a months-long testing process to ensure that handsets and tablets are capable of the utmost security measures. BlackBerry's release of BB10 might have come too late to sway enterprise and government from making a switch as security with iOS and Android have shown marked improvements over the last 12 to 18 months.

Into the open, BlackBerry is indicated higher.

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