Cupertino based tech giant Apple (NASDAQ:AAPL) has once again created a buzz with its new partnership with IBM (NYSE:IBM). This new joint venture aims to create new development especially among the enterprise customers. One time rivals, Apple and IBM have joined hands to create new apps mainly focused on the iOS. Through the partnership, both the companies stand to benefit hugely. Let’s take a look at it.
Terms of the Partnership
IBM will design around 100 specific apps which will provide tools for security, analytics and device management. It will especially cater to the business sector by selling the iPhones and iPads to them. In order to facilitate this, IBM is also recruiting some 100,000 consultants and software developer to help them out in creating the apps, as well as offer packaged services like deployment and give on- site services to the customers.
- Warning! GuruFocus has detected 8 Warning Signs with AAPL. Click here to check it out.
- AAPL 15-Year Financial Data
- The intrinsic value of AAPL
- Peter Lynch Chart of AAPL
Till date iPhones and iPads were limited to their traditional customers only - mostly the youth of the nation. But this new partnership will be a giant leap for the company and push them into the enterprise world. The tech giant will have to figure out how to deal with corporate culture since this will truly be a new experience for it.
What Competition Has To Say
The biggest loser from this partnership is Microsoft (NASDAQ:MSFT). It had planned to take over the business customers through the Windows 8 phones, but now this idea seems to be a little farfetched. In 2011 Apple tried to join forces with Microsoft and include their Mobility Technical Competency in the Apple Consultant Network.
With the growing demand of iPhones and iPads, they thought if Microsoft experts would back them with speedy deployments, which their network consultancy lacks, and then their gadgets would be the best in the world. The partnership between Apple and Microsoft wasn’t a success. However, the partnership between Apple and IBM might turn into a success because both of them don’t consider each other a threat and feel that the collaboration will nurture both of them.
Apple’s another big rival to be taken aback by this new relationship is Google (NASDAQ:GOOG). Google itself is the big daddy of the tech space. Its Chromebook is already offering stiff competition to the iPads after the tie up between Hewlett Packard and Dell. Google has very strong foot in the IT sector but it only lacks in the sale side which also it has covered up with new tie ups with Microsoft and Cisco Systems.
The deal between Apple and IBM will be fruitful for both. It will give a new definition to Apple tablets and phones by transforming them into decision making gadgets. IBM has the potential to bring big data analytics for the users at their fingertips. Again, IBM can add greatly to the reliability on the devices providing better security features that will help keep valuable data confidential. Apple will be able to make its mark among the enterprise customers through this collaboration and IBM will get a chance to boost their mobile strategy, thus resulting in a win-win situation for both.