Apple and IBM Team Up For Major Enterprise Mobility Partnership

[tdale]

Yes, awesome I am glad that we are both right Cook has extensive experience at IBM, as well as experience at Compaq, two companies with deep roots in enterprise computing. One interesting thing, though, is that Macs are not part of this partnership. My guess as to why this is is that Macs are premium machines that are priced above what most companies want to pay for, with most of their traction in video and audio production houses, as well as other organizations that need the extra power of the Mac. Most companies buy computers that are just good enough to run their spreadsheets, word processors, and database applications, without the need for the added graphics, audio, and processing horsepower that Macs bring to the table.

However, as this partnership rolls out, there may in fact be a "halo effect" that draws customers to the Mac, especially since Apple has added Continuity features to OS X Yosemite, making iOS and Mac work very closely together in ways that they have not before... What do you think?

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This will increase the amount of business software available on Apple platforms, possibly event he Mac. Apple has added Continuity features to OS X Yosemite and iOS 8, which make iPhones and Macs work together more closely than they ever have. So the halo effect may bring more people to Mac, which will bring more software options to Mac, which will benefit everyone an drive innovation in new cool technology. This is a win for everyone!

Bang on.

The change to OSX is more a biggie, at least for larger corporations, but I can see it happening when Apple/IBM do it together. IBM tell Apple whats needed in Enterprise OSX, Apple adds it. OSX and IBM's services combine to give the solution

I dont think the so called premium on Macs is an issue. Percieving higher quality, businesses can justify that by stretching the hardware upgrade path by 50%, maybe 100%.

 

[Solomani]

IBM apps for iOS are rubbish. They can't design an app to save their lives. I really hope they get their **** together before inflicting their apps on enterprise users.

Which is why this new official partnership is even more important. With this partnership enabled, maybe the future enterprise iOS apps from IBM will stop being rubbish. Apple's part is to make sure they are not rubbish.

 

[Quadrant4]

Nothing good can come of this!

IBM is still the enemy! If I was Apple I would buy IBM, take what they wanted/needed and shut the rest down.

IBM isn't the enemy. Thinking that they are would be outrageously igornant about what IBM currently does. IBM sells nothing that goes against anything Apple does. Do you even understand IBM and what they actually sell? They sell high end Enterprise applications, database, high end servers/mainframes, cash register systems, services, etc. Do you know how many people could potentially use an iPad/iPhone for restaurants/retail stores/hospitals that use iBM systems? LOTS. And that's just part of IBM's business. IBM is also working with financial institutions, healthcare, insurance, Governments around the world, etc. etc..

Apple can't go to these same customers with an end to end solution by themselves. But IBM can do that and all they would do is bundle a ton of iPhones or iPads on the deal. It's a much simpler way to do business because IBM is already entrenched in their clients at a level Apple can't do. PERIOD. Apple simply doesn't have the same value proposition as IBM.

Apple doesn't have more than $200 Billion in cash. Remember, they have some debt from the recent stock repurchase and dividend payout and they haven't been able to bring in what cash they have from ireland without paying taxes. The Market Cap for IBM is currently $190 Billion, but if IBM was to sell to Apple, they would go for a premium and probably have to pay an additional 25 to 30% or more over that to get the deal. IBM is not hurting and doesn't need to sell to Apple. IBM does have partnerships with Oracle, Cisco, SAP, Dessault, and others. When IBM gets involved with selling iPads or iPhones, they will probably be selling tens or even hundreds of thousands on a single deal and they would be bundling other hardware, custom software and services.

I think it would be kind of a culture clash for them to be together, but as partners I think it could work quite well.

If Apple was able to buy Oracle, that wouldn't be as big of a culture clash since Ellison was on Apple's Board, was close friends with Jobs and I think he knows more about Apple than anyone at IBM. Both Oracle and IBM have their advantages in the Enterprise space. But if I had to choose between the two, it would be a tough call, but I think Oracle might be the better choice and the two companies (IBM and Oracle) are closely valued at about the same Market Cap.

 

[Amazing Iceman]

If you listened to the interview, then it does make sense. apple already has the common end-user through the use of iDevices and the OSX devices. Tim even said they already use apple in the corporate world for email and other simple tasks. What Tim specifically said was going after big data and bringing it to the mobile business user. This is not 99 cent app you are going to download. This is how to make an ipad or iphone based UI that integrates well with IBM server based software. At least that is what I took from it. IBM does not have Peoplesoft Financials or SAP. What they do have is word class servers with world class analytics. They also bought Cognos which is a world class application. So common user, no this is the enterprise, the knowledge worker, the decision makers. They are the ones making the decision on million dollar investments that are required to do big data analytics. And if they can get them to buy the IBM solution that will interface perfectly and exclusively with apple products that will drive apple sales.

Sounds great! Get the old fart CFOs to approve it, and Apple has a Multi$$$ deal!

 

[tdale]

Originally Posted by wordup60 View Post
IBM apps for iOS are rubbish. They can't design an app to save their lives. I really hope they get their **** together before inflicting their apps on enterprise users.

If IBM apps for iOS ARE rubbish, then they exist. How can then it be "before inflicting their apps on enterprise users."

 

[Rogifan]

Why do people keep posting a 30 year old photo and saying Steve would be rolling in his grave? There is nothing IBM does right now that completes with Apple. They don't build personal computers, phones or tablets; they don't design desktop or mobile operating systems. They excel in the areas Apple doesn't. Apple is a mature company now. Cook smartly recognizes what Apple's strengths are and partners with others where Apple isn't strong. For me the jury is still out on Beats but I think this IBM deal makes a lot of sense. And announcing it during Microsoft's Windows Partner Conference was genius.

 

[DonJudgeMe]

Old meets new... This is either REALLY bad, or semi-ok. Not sure what Cook thinks this may be.... I'm leaning towards: creepy idea(as per the audience) .

 

[tdale]

Old meets new... This is either REALLY bad, or semi-ok. Not sure what Cook thinks this may be.... I'm leaning towards: creepy idea(as per the audience) .

Audience? Here? Most IMO seem to favour it, with wide eyes no less.

Apple has no enterprise presence, almost literally
IBM has enterprise presence.
Collaboration to an Apple/IBM enterprise solution is a magic idea.

Sales of iOS devices go up
Sales of Macs I am sure will be added over time
The business presence will add traction to non Apple users.

I'd be worried if I was MSFT. Even a partial market share success would be massive.

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Why do people keep posting a 30 year old photo and saying Steve would be rolling in his grave? There is nothing IBM does right now that completes with Apple. They don't build personal computers, phones or tablets; they don't design desktop or mobile operating systems. They excel in the areas Apple doesn't. Apple is a mature company now. Cook smartly recognizes what Apple's strengths are and partners with others where Apple isn't strong. For me the jury is still out on Beats but I think this IBM deal makes a lot of sense. And announcing it during Microsoft's Windows Partner Conference was genius.

SJ had many partners, I am sure given zero overlap and the potential he would be gasping for it too

 

[wigby]

So, like everyone else in the world, IBM has announced that one of these days it's going to make an iPhone app. That plus their consultants selling hardware seems to be the big news.

I'm not in enterprise (whatever that is), so that's my lay take on it. Apple has historically been direct, but this sounded like word salad to me that you expect from Microsoft when they talk about the future and opportunities, etc., etc.

You're right that it is word salad but that's the nature of services. When you have no physical product that you can hold and demonstrate like an iPhone, you end up looking and sounding a little silly. But one of Apple's weaknesses has always been cloud and services. This addresses that in a powerful way that can only trickle down to their consumer products and services. They will learn a lot from IBM and IBM will get a lot from Apple too.

 

[JAT]

I would like Apple take on a partnership with Microsoft to take on Google and make them irreverent.

Pretty sure Google already is.

 

[Crzyrio]

Old meets new... This is either REALLY bad, or semi-ok. Not sure what Cook thinks this may be.... I'm leaning towards: creepy idea(as per the audience) .

This is huge! The major reason for the lack of presence in the enterprise market was manageability, support and compatibility with existing IT networks.

If IBM is in fact going to dedicate 100,000 employees to this project, we will start seeing apple taking over a larger share of the enterprise market.

 

[dampfnudel]

IBM was Apple's first enemy.

Then Microsoft was the enemy.

Today Google is the enemy.

Any idea on who their next enemy will be?

Only themselves if they're not careful.

 

[tdale]

Pretty sure Google already is.

Apple has a partnership with Google, Google pays a billion plus to have it as the default search engine. Apple also paid Google a huge amount for Google Maps, no more though

 

[TouchMint.com]

This is pretty huge and hurtful to msft

 

[MikeSmoke]

Corporate customer to IBM salesperson - "Hey, can you throw in a pair of those Beats headphones?"

 

[Michaelgtrusa]

IBM is still relevant?

Yes as china wants to buy it up.

 

[moxin]

Two words. Lotus Notes

lol, still used in my office

 

[mbh]

Cmon Tim? The change from Flight Manuals to Ipads are saving the airlines money on fuel. Give me a break. Worked in the airline industry and they weigh less than 2 pounds.

Instead of carrying a 40 pound flight bag, assume a pilot has a 1.3 pound iPad 2. Let’s be generous and say she doesn’t have one of those smart covers and has even decided to keep her flight bag at home. The iPad weight savings is 38.7 pounds or 77 pounds with a two-person, two-iPad cockpit.

Link

 

[simonmet]

I wonder if this will see a newfound push for OS X server in enterprise with IBM doing more to make its software and services compatible (with both companies providing enterprise-class support). If so I'm very happy to see this.

Let's not forget that Microsoft server licenses are a huge part of their business. They use dodgy (arguably corrupt) tactics to maintain and further this dominance. I've seen even the last bastions of organisations that maintained independence (universities) fall by the wayside. Now most organisations I've ever worked in tell me I have to buy Microsoft because IT don't want to or can't support anything else.

Apple and IBM need to work together to combat Microsoft in enterprise because MS software is crap, overpriced and the entire Microsoft IT industry is disgustingly inefficient as a result.

 

[Rad99004]

IBM is still relevant?

That was my first thought, second was what do they do anymore that applies to where I work. Nothing that comes to mind.

I think they should have partnered more with Microsoft then again am I missing something.

last thing I recall IBM doing is giving up on OS/2 and becoming a services only company, do they even make servers any more? Or have they sold those to Lenovo too?

 

[JVo]

Meanwhile 22 years ago...

1 out of the 3 areas where Apple and IBM collaborated in the early 1990's was fruitful (PowerPC). See "The Secrets of Pink, Taligent and Copland" http://www.roughlydrafted.com/RD/Q4.06/36A61A87-064B-470D-8870-736DD59CEF48.html Wonder how it will go this time...

 

[CrazyBear]

I work with IBM products in the financial sector and I can certainly see that this tie up will be benficial for both parties.

There appear to be many mis-informed people on this forum that don't understand what IBM offer these days in terms of the enterprise.

 

[RobertMartens]

Don't spoil the joke

Anyway Siri was designed to be a lady. The designer was going to name his daughter that but they had a boy.

I don't buy that baby name story

His company was called SRI International's Artificial Intelligence Center

Stanford Research Institute.

Don't that look a lot like SIRI to you?

 

[quackers82]

Bang on.

The change to OSX is more a biggie, at least for larger corporations, but I can see it happening when Apple/IBM do it together. IBM tell Apple whats needed in Enterprise OSX, Apple adds it. OSX and IBM's services combine to give the solution

I dont think the so called premium on Macs is an issue. Percieving higher quality, businesses can justify that by stretching the hardware upgrade path by 50%, maybe 100%.

Or the fact that you don't pay for the Mac OS, unlike Windows , take MS Licensing out of the equation and the Mac starts to look more attractive.

 

[Solomani]

This is pretty huge and hurtful to msft

1-2 sucker punch to MSFT this week. First, Apple and IBM announce a huge collaboration. Second, Microsoft CEO Nadella tells his employees he's going to fire thousands of them.

Ouch! It's a bad time to be working at Microsoft.