Can Macs Crack the Corporate Market?
For all the chatter about how the Mac has suddenly emerged as more than just a well-design niche product as more people jump off the Windows bandwagon, an interesting issue is whether the Mac will be embraced by the corporate market. Some analysts suggest the Mac’s stability, elegant design and Intel architecture are making the Mac an easier choice for CIOs, who have used the “No one’s been fired for buying Microsoft (and, for that matter, HP, IBM and Dell)” for many years.
As much as consumers love the Mac because it’s cool, its chances of taking significant market share in the corporate marketplace are, at best, slim. For one, Macs are more expensive to buy at a time when Windows-powered desktops are going for $400 a pop and laptops can be had for as little as $600. Using a Mac is like learning a different language in many ways to the cost for many companies (retraining, short-term productivity loss) can be a deterent. Then, there’s the software issue as Microsoft pushes its Windows-powered products first.
In some ways, the Mac’s biggest advantage and perhaps most appealing sales tool for business and consumers is Vista’s lack of sizzle. Other than looking prettier (and some better, but annoying security features) Vista doesn’t scream “You need to upgrade now!”. For many people Vista is a non-event, and this lack of excitement choudl provide Mac and Linux with a window of opportunity in places where they have yet to have much traction yet.
February 28th, 2007 at 11:15 am
Apple simply lacks the hardware flexibility to make major inroads into the corporate market. Some things, such as XServe have a chance, but not in the broader sense as there is a very limited choice of other hadware and corporations are looking for total solutions, turnkey deals. Look at some of the big accounts that Dell has secured for this very ability.
Unless Apple acquires SUN and uses it as the business unit, with Apple remaining the consumer/small business unit there just is not much chance that Apple will penetrate the larger corporate market. The only other way that Apple stands to make large changes in their market penetration is to spin off the OS and sell it as a stand alone product. Conventional wisdom is that Steve would never permit this, but he may not be around for long anyway, both because of legal problems and his apparent desire to work more in the entertainment sector. Whoever succeeds him will have to address these and other issues as to the objectives of the business.
February 28th, 2007 at 2:09 pm
I agree with RB. Mostly in terms of hardware flexibility. The most glaring practical incompatibility are the absence of docking stations. As a former Northrop Grumman desktop guy, I can tell you that without docking stations at a bare minimum, NG would never look at Apple.
The other problem is less tangible and that is customer base. With large entities, such as NG or Lockheed Martin, so much business comes from the “project space” where compatibility with existing customer architecture, development in native customer environments, etc would put a quick end to company-wide support for Apple. Think government. 90% of U.S. government agencies are Windows shops. Old school stability as opposed to cutting edge tech. Stability. Familiarity. Large scale concerns.
Better the devil you know, than the devil you don’t.
February 28th, 2007 at 3:39 pm
I think your poll results suggests more about your readership than it does anything else. Too bad though – just imagine how cool the help desk would become….
February 28th, 2007 at 4:11 pm
As CIO’s become more knowledgeable they will definitely realize the following:
- Open source made simple! As Apple OS X Serve matures, so will the easy to the interfaces that take advantage of FREE and very customizable solutions for business enviroments. MySQL, PHP, Apache Server, LDAP….
- One CD fixes all! One CD of OS X will be able to restore any system with in your business, rather than keeping a different cd of os and drivers for each model the business owns.
- No licensing fees per workstation.
- Spotlight! No need to purchase a Google Appliance.
We could continue on, and on, about all the financial advantages that using Apple Computers would bring to a business. The CIO’s are more aware of the Computers and Networks options and benefits out there, no more will they be bullied by IT’s and their wish to overcharge for fixing Windose…
February 28th, 2007 at 5:25 pm
It is not cost effective for Apple to go after Corporate Market. The reasons are –
1. Decision making chains corporations are too complex.
2. It takes atleast five years for a corporation to make a decision and effect a change.
3. Corporate market is too small when compared to consumer and small business market.
4. Corporations are atleast 3 to 4 years behind in their technology infrastructures when compared to consumers and small businesses.
5. Apple’s technology and production innovation cycle is 1 to 2 years, and large corporations can not keep up with this type of rapid change.
6. Corporations are like “giant oil tankers”, while consumer and small businesses are like “speed boats”.
7. Executive and managerial power in Corporate IT departments are based on the number of people and budgets in the departments. Apple’s product support require less number of people and smaller budgets. It is therefore not in the interests of Corporate IT departments to go with Apple products.