UBS: Apple “dictating the terms” in relationship with IBM

Last July, when IBM and Apple announced their pact to deliver enterprise-class iOS apps to businesses, it was portrayed as a push into vertical industries like banking and retail. The first of these apps were released in December.

But now UBS analyst Steven Milunovich said the companies are posed to go broader, with IBM building more horizontal supply-chain and other business applications that work across industries.

Milunovich’s comments came in a research note Monday which also put [company]Apple[/company] in the driver’s seat here, mandating that IBM sales reps carry Macs pre-loaded with Apple-created presentations. To which I can only say whoo boy. If you know the old [company]IBM[/company], you know that IBMers are very attached to their foils, er, I mean slides.

From Milunovich’s note:

Our checks also indicate that Apple is dictating the terms of customer engagement. IBM sales people are only to have Macs with them running Keynote presentations developed by Apple. This partnership probably has more teeth than most given the one time competitors are highly complementary today and have opposite strengths. Will the speculated 13″ iPad Pro play into the enterprise push?

Barron’s has more on the note.

The Apple-IBM partnership was seen as a win-win back in July with Apple gaining front-door entry into corporate accounts. Up till then, Apple got into corporate accounts mostly because execs insisted on using their not-sanctioned-by-IT personal iPhones and iPads in the office. On the other hand, IBM, which lags in mobile, got more credibility in that space. And those applications, I’m assuming, run against IBM SaaS backends which means more client business for IBM.