Between the allure of the iPhone and the ubiquitousness of the iPod, office workers are demanding Macs. Is business ready? Is Apple?
Ever since Apple moved to the Intel processor in 2006 Macs have been able to run Windows. This has opened the minds of many business decision-makers to the possibility of Macs in their offices.
A number of companies are finding that IT departments are getting heat from employees who use Macs at home and want them at work as well. Several companies have run tests, letting a limited number of workers use Macs instead of Windows PCs.
Apple isn’t pushing the Enterprise market, curiously enough. Their sales force doesn’t join the deluge of companies trying to claw a piece of the corporate computing market. Apple seems totally indifferent.
The ’80s and ’90s were hard times for Apple. They mounted campaigns toward the business market and failed. Steve Jobs returned in 1997 and turned the focus of the company toward consumers and education. Consequently, Apple doesn’t have the corporate sales force nor the numbers of repair personnel waiting to leap into action every time a component fails. Apple is all about creating the coolest new thing for consumers…
Mac sales grew 51% in the first quarter of 2008 over the same period in 2007, over 3 times the rate for the industry. Without the iPhone or iPod, whose sales leapt from 5.2 billion in ’02 to 24 billion in ’07. Share price is up 2300% over 5 years, topping HP, Intel and Dell.
Macs are on fire! Apple predicts an increase in 2nd quarter revenues of 33% in the face of an economic slowdown!
Business users are taking notice. My clients are small businesses, and I’ve seen a remarkable jump in interest from PC users inquiring about Macs, and more often than not, following up with a purchase.
Corporate decision makers are feeling pressure from workers to use Macs, and a recent survey found 87% of 250 diverse companies have some Macintosh computers in their offices, nearly twice the result from 2 years ago.
There’s always been this archipelago of Macintosh use” among graphic artists and advertising managers. My sense is that CIOs are more willing to see that expand without putting up as much resistance as in the past.
Scott Teissler, chief information officer of Turner Broadcasting System
Mainstram users who learned to love their iPod, who lusted after the iPhone are driving this demand. Mac fanboys have been telling anyone who would listen about Macs forever, but without much impact. Corporate users are realizing that Macs are cool. Even IBN and Cisco are running tests to determine if Macs will work out in their offices. Google has allowed employees to choose their computers for years.
This kind of demand is picking up. IT departments are often reluctant to approve, as they haven’t a clue about Macs, and don’t want to hire additional people for Mac support.
Steve Jobs doesn’t need a sales force because he already has one: employees like the ones in my company.
Mark Slaga, chief information officer of Dimension Data
Steve isn’t talking about the Enterprise market. He seems to feel that it is difficult for a company to satisfy both consumer and corporate buyers.
The current approach Apple is taking is not a bad one. PCs sold to business last year was a $150 billion market. Apple held about 2.2%. A 1% increase is about $1.5 billion in sales without even trying, on top of existing market growth.
iPhones are the crowbar to pry open the Enterprise market. This is an market Apple has specifically planned for the corporate market. The coming software upgrade is designed to allow the iPhone to interface with corporate email systems (Exchange and others) allowing customers to create customized iPhone programs for expense or inventory control. Apple reports more than 160 major corporations are testing the software.
Another marketing tool for Apple’s entry into the Enterprise market is, strangely enough, Microsoft Vista. So far, Vista is looking like the biggest blunder in tech history. Lacking compelling new features, Vista requires the purchase of more expensive PCs. Expensive training and more down-time are adding to corporate costs. Microsoft was planning to stop shipping XP June 30, but under pressure from their core customers, is re-thinking continuing sales.
Microsoft has let this happen. They’ve created a huge opening for Apple.
David B. Yoffie, a Harvard Business School professor and Intel board member
Apple may never become a big player in the corporate world. The cost of building sales and support staff to handle enterprise customers will be huge, and Apple keeps information close to the vest, which may make development of strong relationships with corporate tech buyers difficult.
Microsoft is working on their successor to Vista, Windows 7. Due in 2010 or 2011 (if all goes as planned). Apples ad campaign “I’m a Mac” is pushing hard at Vista, but if Microsoft gets the new OS right, they may be able to push back. In the mean time, Apple is looking like a better fit than ever to the business world.
In a few years the competition between the two companies may not be so relevant. If web-based software services grow, services that are not platform-dependent, both companies may find themselves being “replaced” by the Internet.
There are plenty of large organizations moving towards the Mac, including the New Museum in Manhattan, which recently went 100% Mac. They were about 50% Windows because of software and databases that were Win-only. Last December they made the switch.
The ability to run Windows made the Mac the perfect solution for us on a very practical operational level.
John Hatfield, deputy director
Companies with more complicated systems and strict rules for IT practices will not be so amenable. The headaches of dual platform support alone will turn CIOs off Apple. Extra training and staff outlays, software limitations, Microsoft Exchange hassles make Macs off-limits in many companies.
The decisions made by Steve Jobs will determine Apple’s progress in the enterprise market. He is unlikely to change licensing or model policy to satisfy CIOs. Another point; mounting a major corporate campaign may well not improve Apple’s short-term interests. Profits come from it’s focus on consumers and students, and those who are wiling to pay for Apple “Cool”. Corporate buyers want to “squeeze the nickle ’til the buffalo bellows”, as my father used to say. Apple is happy with its price points as they are.
Of course, Steve said Apple wouldn’t sell videos on iTunes, or get into the cell phone business. Until he changed his mind. He can change it again, if the corporate market begins to look like a good bet.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
