Institute of Business Value: Infrastructure Study Part 2

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IBM-Apple Strikes in Enterprise Mobility with “AppleCare for Enterprise”

This week, Apple has launched a new AppleCare for Enterprise website as the first output from the Enterprise Mobility Deal that Apple (AAPL) and IBM made in July 2014.

Apple enterprise customers will be able to receive round-the-clock phone support to priority on-site repairs and personalized assistance from Apple experts so that businesses can keep their Apple devices working smoothly.  Each company subscribing to AppleCare for Enterprise will get a “personal liaison” to handle its account, who can respond to urgent issues within an hour. Businesses can sign up for onsite hardware service for either two or three years provided by IBM Global Technology Services.

Customers can also get free replacements for “up to 10 percent” of covered iOS devices — so if one out of 10 of your employees has fumble fingers and cracks their screen, businesses can get those iPhones and iPads replaced without additional cost.

Let’s check out what else is in store from  enterprise app pact of Watson meets iPad that the two IT heavyweights Apple and IBM had forged in July 2014.

The Apple-IBM Enterprise Mobility Deal

Dubbed the IBM MobileFirst for iOS, the collaboration includes:

• Apple and IBM will create more than 100 vertical-focused enterprise apps built only for the iPhone and iPad. Target markets include retail, healthcare, banking, travel and transportation, telecommunications and insurance starting in the fall.
• IBM's cloud services such as device management, security and analytics will be optimized for iOS. Private app catalogs and productivity suites will be available. Services will be available on IBM's Bluemix development platform.
• AppleCare will be tailored for enterprise deployments with support on-site via IBM.
• There's a commitment to use IBM's Fiberlink MaaS360 for mobile device management. 
• Apple is standardizing on IBM's analytics and big data apps. 
• IBM will package device activation, supply and management for the iOS partnership. IBM will also sell industry-focused iPhones and iPads as a bundle.
• Big Blue's 100,000 consultants will push Apple wares in the field.
• And finally, IBM's financing arm will be in on the deal.

What’s In It For Apple

While Apple's iOS dominates the consumer market space, it is no where to be seen as Androids rule in the enterprise space.

Apple’s CEO Tim Cook faces increasing competition in the consumer space, saying “The market opportunity reference is critical. Apple has been knocked for lack of an iTV or iWatch (at least for now), but if it mines the enterprise better it'll keep the cash cow going for years.”

With IBM’s vast army, Apple can now get into the enterprise space without having to exclusively build and market to corporations.

Jefferies analysts Sundeep Bajikar and Mark Lipacis said to investors that the Apple-IBM partnership could bring in 42 million new users for Apple. That could amount to billions in iPhone and iPad sales, giving Apple a needed boost to iPad sales in particular — especially in the enterprise.

Apple’s Tim Cook adds, "We're putting IBM's renowned big data analytics at iOS users’ fingertips, which opens up a large market opportunity for Apple. This is a radical step for enterprise and something that only Apple and IBM can deliver.”

What’s In It For IBM

IBM CEO Ginni Rometty said the alliance will transform "the way people work, industries operate and companies perform."

Besides the “cool” cred, IBM now gets to resell the devices, have them configured out of the box, preloaded with apps, software and policies such as security that the enterprise needs.  IBM gets the supply, activation and mobile device management (MDM) business.  IBM will also offer app development for custom-built apps, using its big data, analytics and software stack.

Apple's Tim Cook shares about the apps, "We think that the core thing that unleashes this is a better go-to-market, which IBM clearly brings to the table. But more importantly, apps written with mobile first-in-mind. Not all of the enterprise apps written for iPad have been ported from a desktop arrangement and not taken full advantage of mobile."

IBM Gets A Head Start in Mobile Enterprise Leadership

Forrester analyst Frank Gillett believes, “The Apple IBM partnership is a landmark agreement. Given IBM’s market strength and coverage, this partnership gives Apple enterprise capabilities and credibility at one stroke -- and gives IBM a premium advantage in the race for mobile enterprise leadership.”

The AppleCare for Enterprise is only the first. Watch this space for more new innovations to come.