Big Blue and Big Apple are locking arms and marching forward in a partnership that may be as much about stiff-arming the competition as it is about building their own businesses.
In the wake of the announced joint program between IBM and Apple (not their first -- remember the PowerPC processor?), meeting rooms at Microsoft, Google and BlackBerry are a-buzz with executives "ideating" new strategies for pushing back against the combined might of Apple and IBM usurping the enterprise mobile and cloud markets.
What's worse, Apple and IBM already have most of the leverage in this battle, meaning that competitors will have to redouble their efforts to grab a bigger piece of the action.
As Barclays analyst Ben Reitzes explained, "With the consumer market more competitive, Apple seems very well-positioned to attach the enterprise market where companies like BlackBerry are ceding ground and Samsung is having trouble gaining a foothold," in a research note. "The deal could help Apple gain the critical support and distribution to tap into enterprise environments -- an opportunity that still seems nascent."
Apple holds a strong position in the enterprise mobile device market, though; according to Apple CEO Tim Cook, "over 98 percent of the Fortune 500 and over 92 percent of the Global 500 are using iOS devices in their business today."
It's not just about the hardware. As reported by the management firm Good Technology, Apple iOS experienced 72 percent of total activations in the first quarter of 2014, Android saw 27 percent, while Windows totaled 1 percent.
"Not surprisingly, iOS enterprise app activations mirror the stronghold iOS continues to have on the device market and recorded 93 percent of total app activations this quarter," it wrote in its report.
Certainly, IBM would like to be a part of that 93 percent. With Apple championing their cause, IBM can promote its enterprise apps, cloud services and analytics products while making a few bucks on the sale of iPads and iPhones. These devices will naturally feature IBM apps and services, and customer support for these devices will be provided by Apple.
Ginni Rometty, IBM chairman, president and CEO, says "Mobility -- combined with the phenomena of data and cloud -- is transforming business and our industry in historic ways, allowing people to re-imagine work, industries and professions. This alliance with Apple will build on our momentum in bringing these innovations to our clients globally, and leverages IBM's leadership in analytics, cloud, software and services."
The partnership is focused on four core strategies -- to create a new class of more than 100 industry-specific enterprise solutions for iPad and iPhone; to offer unique IBM cloud services optimized for iOS; establish new AppleCare service and support tailored to the needs of enterprise; and provide new packaged offerings from IBM for device activation, supply and management.
