Apple’s Secret Small Business Weapon: OnForce?
Apple is quietly partnering with OnForce to build a nationwide IT support network for small business customers, The VAR Guy has learned. The Apple-OnForce relationship could create new opportunities for certified Apple professionals, while potentially disrupting some established Apple channel partners, The VAR Guy believes. Here’s the scoop.
The secret Apple-OnForce relationship apparently connects the dots between Apple Stores and U.S. small business customers that need on-site IT support. During recent business trips, The VAR Guy visited Apple Stores in California and Massachusetts. During some of those visits The VAR Guy spotted Apple employees using an OnForce portal to manage local support requests from small business customers. Neither Apple nor OnForce could be reached for comment.
The Apple-OnForce engagement is not to be confused with Apple JointVenture, a separate small business IT training effort. OnForce is an online marketplace – an eBay of sorts for IT experts – that allows VARs and IT support professionals to bid on consumer and corporate IT support projects. The OnForce marketplace is available in the U.S. and Canada.
Big Plans for Small Business
It’s no secret that Apple has been gearing up for a small business push. The big question: How would local Apple Stores potentially support local SMB customers? Some folks suggested Apple would build its own Geek Squad – the consumer and small business IT support model promoted by Best Buy.
Instead, Apple has apparently partnered with OnForce to service small business customers. Sources close to the Apple Stores say Apple has been testing a custom-built OnForce system in California, Massachusetts and other states. The sources estimate roughly 140 of roughly 240 Apple U.S. stores now use the OnForce system.
The OnForce network allows Apple Stores to dispatch certified technicians for specific small business projects – everything from MacBook Pro network deployments to MacOS-to-Windows integration projects. Apple Stores can use the OnForce system to check the status of each local SMB project, The VAR Guy believes.
The SMB support technicians are not Apple employees. Rather, they are certified Apple support professionals seeking to deliver the Apple Store experience within small businesses, according to sources familiar with Apple’s SMB strategy. The sources suggest Apple and OnForce could announce the SMB support system in May 2011. Neither OnForce nor Apple replied to The VAR Guy’s inquiries for comment.
Opportunities and Challenges
The Apple-OnForce relationship presents potential opportunities and challenges for Apple’s channel partners.
- On the upside, Apple Stores will route SMB customer support opportunities to hundreds (or more) Apple certified technicians across the U.S. The best technicians could earn repeat engagements, since each Apple Store generates roughly three SMB support engagements per week, The VAR Guy believes.
- On the downside, Apple has been walking away from selected channel partners in recent months, leaving selected partners alienated and confused about Apple’s channel strategy. Also, chatter about a potentially growing Apple-OnForce relationship on The Unofficial Apple Weblog explores concerns from Apple Consultants Network members.
From where The VAR Guy sits, it looks like Apple Stores will increasingly sell direct to SMBs, while directing SMB support engagements and IT projects to channel partners within the OnForce network.
Upside for OnForce
Meanwhile, OnForce could benefit dramatically from the Apple engagement, The VAR Guy believes. In recent months, OnForce has been particularly silent – apparently focusing on R&D while an emerging rival called Work Market prepared a next-generation IT support network. Work Market was launched by former OnForce CEO Jeff Leventhal, and the company has been making new moves in recent days.
If Apple and OnForce can deliver an insanely great SMB customer experience, it’s a safe bet more technology companies will explore OnForce and its network of IT professionals.
Of course, The VAR Guy is getting a bit ahead of himself… Neither Apple nor OnForce confirmed the alleged business engagement. But The VAR Guy has a 100 percent hunch (that’s a guarantee…) the Apple-OnForce partnership is real.
The reason: Simply visit an Apple Store to see how Apple is routing service technicians to SMB customer sites. The answer, in a growing number of cases, appears to be OnForce.
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This makes perfect sense now. We are an AASP until the end of this month because Apple has decided not to renew our service contract. They would never give us a reason as to why, so we never knew if there was somthing we did wrong or not. We asked, they said they couldn’t tell us and therefore we lost two fairly lucrative partnerships.
Those partners both had to scramble to work out a deal with another AASP who will probably get the same letter we did when their contract ends.
I wont miss Apple.
Apple once again showing the channel the door.
You definitely hit the nail on the head with the opportunities and challenges mentioned.
While OnForce’s approach allows the SMB to pick from a long list of experts, I question a few things.
Namely, whether or not the SMB actually wants/has the time to do the leg work to search for someone each time something goes wrong. And, if an onsite, reactive repair job is actually necessary/the best solution in most cases.
If this is their chosen strategy, I suppose Apple is hoping providers will use OnForce as a marketing tool. However if the customer is being trained to use a portal like this where price is likely the biggest factor in assessing their options; in my opinion it will hinder the process of establishing any kind of on-going relationship rich with all of the business benefits for partnering with an MSP or VAR.
Time will tell I suppose.
Dan Goldstein
http://www.gmsliveexpert.com/xeblog
Craig, Jay: The VAR Guy has heard from multiple solutions providers in the past 24 hours. Most say they’ve been shown the door… The VAR Guy continues to dig around for more details…
Thanks for your readership.
-TVG
What they’ll get is people who don’t want to truly make money. OnForce isn’t paying too well. Most good folks won’t take those gigs when they’re making better money and building real relationships without OnForce.
To be blunt – I think an ISV using OnForce or Workmarket as its de-facto partner program warrants serious consideration.
One glaring mistake in the article and the program. Apple Consultants Network members worked very hard to satisfy Apple’s request for certifications for 100% of the membership. This took a couple of years and has been great for the quality of the entire network. Apple requested, and we delivered. Also AASPs have always been certified and well trained. But the mistake in your article and OnForce description is that the technicians that are taking the jobs are NOT CERTIFIED! OnForce nor Apple requires this for this program, leaving the customer to believe they will be getting quality service. I believe the issue to be one of number. So many more customers are choking the queues at Genius Bars that Apple HAD TO FIND an alternative, but IMHO does not care if the customer gets quality service or not. Too bad, loyal fans, you are getting screwed!
Guy@4: The VAR Guy
Harry@5: Yes, there’s a lot to like about OnForce, Work Market and other exchanges that allows IT professionals to find quick engagements. And the online systems can help VARs to increase their staff utilization rates when business is a bit slow. But on the flip side, quite a few Apple partners have reached out to The VAR Guy stating that the new Apple approach is alienating portions of the channel…
Larry@6: The VAR Guy will double-check with his sources re: your point on certification. If the professionals who visit SMB offices are not certified, Apple surely won’t be able to deliver the Apple experience to those SMB customers… In that case you’d be right: Big mistake by Apple. The VAR Guy is investigating.
-TVG
“Apple has been walking away from selected channel partners in recent months”
Apple should be careful not to alienate itself from its most loyal supporters..
Richard: The VAR Guy thinks it’s safe to say that Apple has alienated more than a few channel partners, based on private mails that have regularly reached The VAR Guy’s inbox this year…
-TVG
We were in the process of finalizing a partnership with Apple around the first of the year (or so we thought). We just stopped hearing from them, period. No goodbye, we’ll call you later- nothing. We are now preparing to open a new store with prime retail frontage and exposure and were hoping to showcase Apple (closest Apple Store gt;40mi). Apple is missing out on a huge opportunity with just this one location, what else are they missing?
One final note, any further articles or info on this VAR GUY?
Alex@11: The VAR Guy has heard some updates from the OnForce camp. It sounds like Apple and OnForce continue to march forward together on this effort. The VAR Guy will try to dig up some official updates for you.
-TVG