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Apple's Enterprise Success Not Limited by the Technology

by , 11:25 AM EST, February 28th, 2007

Apple has continued to make steady inroads into Enterprise markets, especially those that have technically astute IT managers. However, the Apple infrastructure, the products of the past, and general customer perception have kept the growth modest according to Network World on Wednesday.

Apple has made steady progress in improving their enterprise offerings. They've moved to the Intel architecture, they've added directory services and hooks to Windows storage, added clustering and storage technology with Xserve RAID and Xsan, and added a myriad of open source software to their flagship Mac OS X server. However, John Fontana reports, it still hasn't been enough to generate substantial growth in that market.

"Despite these goodies, however, Apple isn’t pushing into corporations with a defined desktop strategy. The company still does not have a formal division focused on developing software for the enterprise or supporting it," Mr. Fontana wrote.

Van Baker, an analyst with Gartner agreed. "“Because of the switch to Intel, success of the Mac OS X, the stability and elegance of the platform, the Mac is a very viable alternative, but it would require a dramatic shift in the company’s resource allocation to go after the enterprise," he said.

In some cases the cost of migrating to Vista and supporting software has led to the idea that the migration to Apple would be no more difficult. Tom Gonzales, a network administrator with the Colorado State Employees Credit Union in Denver said that the thought of moving to Apple is not as scary as it once was.

In fact, Apple has worked hard and steadily expanded the scope and capability of their enterprise software. Mr. Fontana pointed out that "OpenLDAP lets the Mac OS X Server plug into Microsoft’s Active Directory and Novell’s eDirectory. The server’s Kerberos infrastructure supports single sign-on, and the platform integrates with NT Domain services, so the server can function as a Primary Domain Controller or Backup Domain Controller in a Windows environment. That configuration lets Windows users authenticate against Mac OS X Server directly from their PC logon."

In addition, the new Apple iCal server [which will be in Leopard Server], when combined with other open source servers, aims to provide many of the capabilities of Microsoft's Exchange server.

The conclusion was that the only thing holding Apple back in the Enterprise is Apple. "To be successful with businesses, they would have to build up an enterprise selling organization if they wanted to gain greater growth in corporate environments,” said Tim Bajarin, an analyst with Creative Strategies.

Barring that, it seems to come down to getting Apple products into the hands of the right people and letting the platform woo converts. The passage of time may also lessen the biases of the old-time network managers who still think of Macs as hard to network or that they still use AppleTalk.

Apple has come a long way since those days.

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Observer Comments

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Close Name:vasic Posts: 215 Joined: 09 Aug 2005
Subject: Enterprise demands very different dynamics

Probably main reason why Apple isn't aggressively pursuing enterprise money is all the attached strings that come with it. Large-scale enterprise (clients such as GE, GM, P&G, etc.) have very specific legacy demands. Vista (as well as all prior Win iterations) is such a bear because it HAD to be able to run truckloads of legacy code. Without this ability, none of the big accounts would be migrating. In a way, some of these big enterprise clients may be holding MS hostage when it comes to innovation. While we can debate the merits of putting words MS and innovation in the same sentence, it is certain that Apple wants the flexibility to turn on a dime. None of these big corporations would have allowed Apple to move from 68k to PPC, from OS9 to OS X, and worst, from PPC to Intel, that easily. Ask Adobe, Macromedia, even MS's MacBU. They can all share the frustration of having to rewrite code for their flagship products from the ground up because of Apple's decisions to move from one architecture to the next with only marginal legacy support (emulation in PPC for 68k code; 'Classic' mode; Rosetta). No enterprise with sizable IT assets is willing to put their eggs in such a basket. Neither is Apple interested in pursuing the stodgy CIOs of these large companies.

As long as there is creative content and those who are creating it, as well as the entire home market, Apple has plenty of room for growth.

View Name:Guest
Subject: Legacy code runs fine
Close Name:brett_x Posts: 307 Joined: 24 Jan 2006
Subject: high hopes.

Quote
vasic wrote:
None of these big corporations would have allowed Apple to move from 68k to PPC, from OS9 to OS X, and worst, from PPC to Intel, that easily. Ask Adobe, Macromedia, even MS's MacBU. They can all share the frustration of having to rewrite code for their flagship products from the ground up because of Apple's decisions to move from one architecture to the next with only marginal legacy support (emulation in PPC for 68k code; 'Classic' mode; Rosetta).


My opinion: There are 2 ways of doing things. Keep it forever backwards compatible, or move on providing some legacy support for a few years and provide a better overall product. Could Apple be where they are today if they had taken the MS approach of keeping things forever compatible? No way. It's easy to complain about something and not offer a solution. So, vasic, I would like to know what you would have liked Apple to do instead of what they have done. Progress is a tough road to travel. Would you rather apple stayed on 68k processors?
How I understand what Apple has done (I'm not a programmer, so I may be a little off on this): Apple has offered tools to convert code over the years. Some of those companies that you mentioned (MS, Adobe) did not take Apple's advice in developing the later releases of their applications with Apple's tools (i.e. "Apple Developer Tools"), but rather took the shortcut of updating their legacy code with legacy tools (i.e. "Code Warrior"). MS Office X and 2004 applications are still Carbon applications. If they had done the work to write Office 2004 components as Cocoa applications, their conversion to Intel (Universal Binary) would have been far simpler and quicker.Sure, it would have taken more time to get the 2004 product out, but I'm betting they would have been far better off at this point.

Back to the real topic: Apple in the Enterprise.
So now that Apple is on x86 CPU (Intel, for now.. AMD maybe later?).. and they have a UNIX platform to stand on.. what are the chances that it actually stays this way for many years to come? If so, does that mean that their legacy of abandoning legacy applications is in the past? It is possible, right?
Here's my take: Apple doesn't care about the enterprise until the enterprise cares about Apple. Will they? I think so. I think we're on the verge of something big. Let Vista take a huge chunk out of CFO's budget each quarter with their nickel-and-dime tactics and I think we might start to see something. There's already movement towards Linux in some enterprise/government environments. It would be far easier to switch to Macs. It might really only take a few large companies with a couple of success stories to get CFOs on board to take the plunge.
Here's to hoping.

Close Name:angleiron Posts: 3 Joined: 01 Mar 2007
Subject: It's the details, too.

It's not just allocation of manpower on the marketing side. They need engineering support, too.

For instance, while OS X Server 10.4.x was marketed as having GUI-enabled spam protection via Spamassassin and ClamAV, as of the latest version there are still directories misconfigured in the default installation. It's not a tough fix, thanks to helpful people out there, but I figured by 10.4.2 they'd have that fixed. But no...

I've got a dozen Macs running OS X Server, but until Apple gets serious about follow-through and QC it's going to be a niche product.

Close Name:vasic Posts: 215 Joined: 09 Aug 2005
Subject: Doing the right thing

TO answer Brett_x, Apple is doing exactly the right thing. When one compares the state of the Mac OS to the state of the Windows OS, this is as clear as a sunny day. While the Adobes and Microsofts (MacBUs) of this world have the right to complain about this constant change, they will ultimately be the ones to benefit from the platform that is truly innovative, secure, stable, and attractive.

The move to Intel (and UNIX) might indicate some continuity for a longer period in the future. However, we need to remember that this is still Apple. If UNIX (and Intel) become eventually obstacles to future innovation, they will be easily abandoned just like before. And by then, hopefully, the enterprise market will realise that these changes are not as expensive as constant upgrade cycles with MS.

View Name:Guest
Subject: Not ready for prime-time
View Name:Guest
Subject: Attitude
Close Name:zewazir Posts: 364 Joined: 03 Dec 2002
Subject:

Apple has never really gone after enterprise, and IMO with good reason. As stated above, a large enterprise account would be a drag anchor to the manner Apple moves things forward. Big enterprise has far too much inertia behind its requirements. Apple does not need- nor want, to be dragged down by he inertia of large enterprise accounts.

Instead, Apple is making a big success out of aiming at the consumer market. A large part of their success is based on their repeated ability to make the consumer go "WOW!" The drag of conforming to the slow-moving requirements of big enterprise would detract from their ability to make consumers go "WOW!"

Additionally, aiming at the consumer is having some enterprise benefits. There is a definite and growing trend for people to work from home rather than drive into the office every day. Adding to this trend is the formation of virtual offices, in which people use modern communications technology to conference from home - where sometimes those homes are even in differing states! The people who work from home also have the desire to do the things Apple is famous for providing: music, home movies, etc. They do not want to be forced into having a computer for work and a computer for personal use. But Apple has provided a means - via Intel and Parallels/bootcamp - for these professionals to be compatible with work, and have their hobbies all on one machine. So, when Apple makes these professionals go "WOW!" from the consumer end, they are having an indirect effect on enterprise, too. Professionals working from home - especially ones in higher management - are starting to demand their IT departments work to be compatible with THEM, rather than them being forced to be compatible with work. By making professionals who work at home go "WOW!", Apple is making far more progress into the enterprise field than they ever will by catering to a stodgy old board of directors. And they are doing so in a manner that will allow them the continued freedom to work on future "WOW!" products.

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