Apple: Friend or Foe for Solutions Providers?
As Apple (NASDAQ: AAPL) prepares to announce quarterly results on Tuesday, April 24, here’s a question designed more for The VAR Guy’s audience: Is Apple a friend to solution providers or an enemy? Take your time. There’s no rush. Think about it.
When I posed this question recently to some of my channel sources, it caused them to pause. Hmm… They would start talking about how valuable the coveted Apple medallion (remember that word) used to be (many, many moons ago) and how the iPhone and iPad are helping to fuel the mobile computing revolution. But then they would stop themselves and ponder the question a bit more.
Then the conversation would turn a bit sour. While enthusiastic about the bells, whistles and adoption of the iPad, the “all knowing” teenagers working at the Apple Store is a sore spot. Heck, even some solution providers admitted to secretly tapping into them for advice from time to time.
While praising Apple for getting C-level executives on board and into tablet computing (mainly because it is cool and hip), many IT departments are feeling their way in the dark on how to integrate them securely into their existing IT environment and how to load it up with enough business apps to actually make it an enterprise tool and not just a luxurious video player and Web reader.
My Personal Views
It’s quite the conundrum isn’t it? Well here are my two cents — and please note that they may not reflect the opinions of The VAR Guy himself.
I don’t trust Apple and haven’t since I’ve been covering the channel from 1990. With me, it all started 20 something years ago when Apple’s Jim Buckley stepped onto a stage at a channel event and told the channel audience that Apple wants to get closer to them. This came right after a quiet direct selling campaign from the vendor.
I remember good ole Ron Cook of Ron Cook’s Connecting Point in Las Vegas standing up and shouting out “I don’t know if I’m comfortable with Apple as my business partner” or something to that affect. The comment brought the house down and the dye was cast. And you know something, since then the sentiment on Apple and its channel relationships haven’t changed much.
To be honest, I don’t get the consumer love affair with their products and they certainly aren’t ready for prime time enterprise-class application use. Sure, units inside the company such as FileMaker is looking to change that with a set of customizable database applications, but it falls short of what enterprises and SMB’s competing with enterprises really need.
The new applications tackle such mundane tasks as managing contacts, projects, digital content. And who knows if it ever will see wide-spread business adoption unless Apple opens up the OS more for application development. But there is no reason to believe they will anytime soon.
Within My Own House…
Take me for example. I got an iPod 2 about 6 months ago but I rarely use it as a business tool. My kids like to take silly photos with it though. Further, my 16-year old daughter had to make two important tech decisions lately: what type of smartphone to buy and what laptop she wanted for her 16th birthday. She chose the latest Blackberry over the iPhone (not even considering the future of RIM) and an HP laptop over the Mac.
What was her reasoning? She said both were more conducive to her needs, which are communications, Web browsing and productivity tools. She went for functionality rather than acceptance. This is an over simplification but the point is productivity won out over glitz.
For corporations and the channel that supports them, it’s the same thing. The consumerization of IT fueled by employees bringing in the mobile device of their choice and demanding support is helping to heat up the Apple hot air balloon. However, its restricted OS and push to fuel support to the Apple Store is at odds with its channel and I don’t see that changing in the near future.
As one channel executive told me “Apple was my first great partner. Back then it was an honor to be an Apple provider. Today the epitome of the Apple ‘mystique’ is the Apple Store. It’s where you go. You don’t even think about an IT provider. Will that change as Apple tries to recapture more corporate mainstream? It will have to, or they will fail. Apple is the least open of all systems no matter what they tell you. Apple has ended up where Steve Jobs started, putting Apple II’s into schools so those kids would grow up with ‘Apple’ meaning ‘computer’ to them,” he said.
So the question still stands. Yes, Apple has helped reinvigorate the tech sector, industry perceptions and Wall Street valuations — but are they your friend or foe? Are they creating business opportunities or headaches? Take your time. There’s no rush. Think about it.
Knock ‘em alive.
Right on as usual Elliot but for me HP turned out not to be a good partner either could send you some good emails on that one as well. Have an iPhone and an iPad but not good for business applications and neither work to open all of my email attachments so I need to open my email with my HP lap top later as well. My wife ended up with the iPad. It’s good for the music she listens to and all the we browsing. But as a partner …. Still they have made a lot of money off of slave labor in China and all the faux liberals that buy their products.
Take care friend.
I have found that being right in life does not always mean that you win.
Ron Cook
Ron,
You’re still the best quote guy in the business as us reporters like to say. Send me what you got on any company you got. You know how I roll. Last I checked, you are winning and not the Charlie Sheen way.
Elliot,
Your question about Apple is one that I ask nearly every day. My company has been an Apple Reseller for over 20 years. In that time I have watched them go from a pure channel player on both the retail and education fronts to a company that competes directly with me on every level. Combine that with their complete elimination of the traditional dealer channel to sell or service iPads and iPhones and you have a culture of mis-trust being formed. Apple has an opportunity to take a major step forward into the enterprise via the iPad and iPhone but their “Apple Store” consumer mentality will not work in a market that is driven by professionals such as us. If they are unwilling to share a piece of their pie then why should I waste my time and effort to promote their products? If they want me to promote their “cool products” I have a message for them, cool does not put food on the table and the Apple Store can never replace the staff and experience of thousands of dealers.
Let’s get real. No vendor is a friend of anyone other than those who are helping them make money. If a channel player can dope out the secret sauce for making money with Apple-based solutions then Apple will find a way to be their friend, just like Citrix or any other channel vendor. The days of personal relationships in the channel are pretty much over. Everyone now listens to the same favorite radio stations, WIIFM (What’s In It For Me)
I did a webinar yesterday helping Microsoft partners figure out how to get the most out of the upcoming annual Worldwide Partner Conference (WPC) and one attendee asked why Microsoft employees would want small partners partnering with small partners. My reply was “why would you care what Microsoft employees want? They don’t care what you want. It’s all about YOU and what what YOU as a Solution Provider in this channel want. Let the vendors worry about themselves. What vendors WANT is for you to sell their products. If you do that, they don’t care what else you do.”
@ Gregg. Right on Gregg. Covering the channel for the past 20 years…Apple has been a yo-yo to the channel. Very frustrating….but Howard is right…vendor loyatly is out the window…they care about volume…that is why it is so important to focus on managed and cloud-based services and get out of the cost game and get into the value pricing game.. thansk as always for your feedback..
Elliot