Apple Making Its Way Onto Enterprise Radar

For some observers, Apple's (Nasdaq: AAPL) recent switch to Intel (Nasdaq: INTC) processors adds to a growing opportunity for the company in the broader business market, but others question whether IT shops will take a bigger bite from Apple if the company maintains its current strategy.

There is agreement on one thing, however, that Apple's chances to move beyond its traditional graphics and media niches and pockets within IT departments depend more on the company's own actions -- such as allowing other vendors to sell Apple hardware, or promoting and providing enterprise applications -- than on the processors powering Macs.

Kevin Langdon, chief executive of San Diego-based Apple dealer Crywolf and executive director of the Apple Specialist Marketing Co-op (ASMC) told MacNewsWorld via e-mail that the co-op's discussions with clients indicate greater openness to using Macintosh computers in the business world.

"Our members are reporting more instances of adding Macs outside of the graphics department and even instances of switching entire departments of previously non-Mac businesses," he said.

Helping Its Cause

Langdon said Apple's announcement to move to Intel processors last month seems to have helped the business case for Macs because many of the buyers in this market know and trust Intel, adding credibility to the user-friendly computers.

"But this is just one of many factors," he added. "Being on the cover of Fortune and being featured in Businessweek and Business 2.0 as 'The World's Hottest Company' has added greatly to the pro-Apple buzz. The whole iPod 'halo effect' is helping too. Apple is viewed more positively and more often in the mainstream press than ever before and this makes Apple seem like a safer bet to many more business buyers than it would have just a year or two ago."

Nevertheless, Langdon -- who listed ease of use and easy learning, built-in networking, lower support costs, bundled software, hardware-software integration and security -- added the biggest hurdle for Apple at the office is psychological.

"Getting past the Windows-only mindset is still the biggest challenge for Mac adoption in many businesses," he said. "The applications are largely there, networking and inter-platform communication are robust and dependable in Tiger. Educating the customer to let go of their anti-Apple prejudices is the most important thing Apple Specialists do when talking with enterprise and small business clients. The difference today is that more business clients are willing to listen."

Marketing the Mac

Yankee Group senior analyst Laura DiDio agreed that Apple's success with iPod and move to Intel were opening the opportunity for Apple in the enterprise.

"The Intel switch helped," she told MacNewsWorld. "It's mainstream and it's out there, but it's a piece of fabric in an overall quilt that Apple is making."

DiDio referred to Apple's efforts to embolden its faithful users to push for more Macs at the office, beyond the graphics and media IT shops that are already using Apple technology.

"IT administrators are at worst neutral and at best positive [about using Macs]," she said.

However, DiDio added despite Apple's efforts to entice enterprise users, the company's success among them is largely dependent upon software support from others, such as makers of anti-virus, software drivers, and performance management tools.

"Can it happen? Yes," she said. "The probability of that -- Apple breaking out of small niche to larger niche to mainstream -- depends on a number of things, including Apple marketing and third-party support."

No Signs of Sea Change

Gartner (NYSE: IT) research vice president Mike Silver told MacNewsWorld that Apple technology in the enterprise boils down to software, not hardware, and the availability, or unavailability, of business applications.

"It's the software," he said. "If the software I need isn't there, it's going to be a problem," he said.

The analyst was skeptical of Apple's chances in the broader enterprise market, indicating that even if Apple hardware was available from a number of competing vendors that lowered prices, there are still issues.

"You still have this big application migration problem," he said. "Companies with Mac pockets that are doing purchases are now second-guessing themselves," Silver added, referring to a timeline for Intel-based Macs that may take longer than signaled.

While Apple has promised the first Intel Macs next year, Silver said it may be a matter of two years before other hardware and software vendors migrate to the different platform.

"There's nothing here right now that says we're on the verge of a change, unless Apple does something different," he said.