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

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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.

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

  1. ewalsh5

    You have to give it to Apple for being perhaps the dominant partner, not least because of their experience in delivering highly refined UX, prototyped for cross platform experience and greater comfort level with dynamic layout, WYSIWYM app canvas etc. But you’d have to think IBM devs could’ve leveraged something like Kony Visualizer and dealt with on more equal terms – – Eamon Walsh, commenting on behalf of IDG and Kony

  2. Big Blue

    I am a member of the IBM Mobile sales team and we do not have Macs. We do have iPads which are a great asset in demonstrating iOS apps, but not Macs. Still on a Lenovo, but thanks for trying Steven. Ms Darrow, perhaps you should verify things before you present them as fact. I understand that you were simply restating what Mr Milunovich had included in his research note, but your restatement lends it credence when it isn’t deserving.

  3. Putting dictating in quotes creates a false impression of authority.
    Consider: Apple sells Macs. IBM does NOT make PCs. It is in IBM’s interest to lead with the Mac, which highlights their value-add vs. HP or others selling into the enterprise. What does HP have to offer? A commodity PC. And on the Mobile side, HP offers a hodgepodge. Some are excellent values, but confusing. But it’s not about HP. It’s about Apple and IBM with a consolidated offer vs. Windows desktop, Windows Mobile, MSFT Cloud, Android, and maybe Cyanogen, and Oracle and HP cloud offerings, and more.
    The IT department will be delighted to have IBM package a solution that the IT department resell internally to departments on a charge back basis per user per month.
    Who cares about the screen for the sales pitch? (12 hour battery life doesn’t hurt.)

  4. Don’t see the big deal and it makes complete sense. Why wouldn’t you want to demonstrate the capability of the platform (by all members) and apps? As a IBM BP I would venture to guess that Apples templates are probably a bit more updated with slicker graphics as an ode to their graphics reputation. iWork which is now Pages, KeyNote and Numbers is their version of MSFT Office and very low cost to the average consumer and probably free for IBM to use. Sun used OpenOffice for years. IBM used their version of OpenOffice for several years (forget the name). If somebody was giving me a iPad and Macbook but said you must use iWork and these templates. I’d say thank you for the toys. Thank you for saving me from having to build them myself and can I get a Apple TV as well to use Airplay?! :)