NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 


Thu, Jan 11, 2007 14:36 EST

Why Apple i-Anything Is a Non-Issue for CIOs and Corporate America

Blog: Fully Mobile

Current Rating: 4 Comments: 19

You might think with all the media frenzy over Steve Jobs' announcement the other day that Apple had found a cure for cancer or brought peace to the world or solved the global warming problem. In fact, he (and his company) did none of those.

What Jobs did do was introduce a sleek mobile phone that can play movies and music, and surf the Web. In a stainless steel nutshell, that's about it.

While Apple zealots surely rejoiced at the news, a collective yawn rose from the CIO ranks, those IT staffers who manage the fleets of enterprise devices, and the rest of the white- and blue-collar world who rely on mobile devices to get their jobs done. (And, of course, a sigh of relief could be heard from the RIM folks all the way up in Waterloo, Canada, because they know the BlackBerry will still be safely ensconced as the knowledge worker's No. 1 best buddy.)

While the Apple iPhone has many things going for it -- an exceptionally cool form-factor tops the list  -- there are so many ways in which it's not poised to explode (like the iPod has), especially in corporate IT departments.

Here are just a couple reasons why that is so.

Corporate America Doesn't Use Macs. It's a simple fact. Macs and Apple-related products are usually just too different and too expensive for most companies, and Apple hasn't been able to infiltrate the corporate PC domain. The iPhone runs the Mac OS, and according to a report on the iPhone from Jack Gold, founder and principal analyst at researcher J. Gold Associates, "this is a major constraint, since few third-party application vendors (for example, Good Technologies for a push e-mail client) runs on the Mac." (See our story on "The Great OS Experiment" for more on the OS debate.)

Device Availability. The iPhone is still in the advanced prototype phase. Apple says it should be ready to go by June for U.S. customers.

Single Source and High Cost. Right now, the iPhone is available only through Cingular, and the top model is selling for $599. (Hey, for that price, I can get a PlayStation3 ... if one was available). According to Gold's report, "even if the price were cut in half from $600 to $300, that is a pretty steep price for a phone device these days, even one with additional features. How many consumers are willing to pay that much for a device, and then also have to pay $40-$80 per month additional for services?"
In addition, Gold wonders in his report just who the target audience is for the device, because, historically, $300-plus mobile devices have not sold well in the consumer realm.  "In the past," Gold writes, "most high-end phones have been sold to business users who were willing to pay for a fancy phone with capabilities they wanted. But these users almost universally demand connectivity to corporate systems, especially push e-mail and Outlook integration. How well the iPhone does at integrating to these systems remains to be tested."

Software Limitations. The iPhone can't open Microsoft Office documents. (But, really, who even uses those anymore?)

"A Delicate Flower." The iPhone is beautiful, like a delicate piece of china. No argument there. However, we all know what happens to a delicate piece of china when you drop it. Crash! As The New York Times' technology guru David Pogue points out in his "preview" of the device, "You may worry about putting all your digital eggs into one losable, droppable, glass-front basket." For those IT staffers reading this, just remember how many handhelds and cell phones were dropped or damaged last year.

Video on Small Screen. Please don't confuse me with the Cranky Old Guy, but video on a small screen still doesn't work that well for me. And I just love the fact that the iPhone is being touted as a "wide screen" iPod. What? I'm sorry, but when the term "wide screen" is used, I'm usually thinking about a movie theater or a 50-inch plasma TV. Not 3.5 inches' worth of viewing pleasure.

Pending Litigation. Cisco announced on Wednesday that it was suing Apple to stop it from using the name iPhone, because that name is a registered trademark of Cisco's Linksys division. The companies have been in negotiations for two years over whether Apple would license the name from Cisco. Apparently, Apple decided to go ahead anyway.

In the end, it's more than likely that Apple execs don't want their products and services to go "corporate," which seems perfectly plausible when you look at Apple's anti-PC ad campaign -- you know, the nerdy guy in the bad suit talking with the hip, young kid. In all of the ads, the dweeby older guy (the staid PC) always ends up looking like a moron, and the hip twentysomething (the Mac) always seems bewildered by the older guy's eccentric behavior. I wonder, if this time, the tables might have turned just a bit.

UPDATE: My colleague, Ben Worthen, author of the Net Effect blog, thought my post was all wrong. Read his take on the Apple iPhone here. Who's right? Who's wrong? Let us know.


You do not have flash or javascript support.
Average (1 vote)
4
 
 
Fri, Jan 12, 2007 14:41 EST
Anonymous user
Posted by: Will Simons
Rating: 70

What a silly piece of writing.

Not until your last paragraph do you allude to the fact that, actually, the iPhone is not intended for corporate use, which seems a rather stupid way of concluding a piece about why the iPhone would not make a suitable corporate phone. Why not just cut to the chase, tell it like it is, and save the rest of us your somewhat tedious arguments.

 
Fri, Jan 12, 2007 18:12 EST
Anonymous user
Posted by: ceg
Rating: 10

I agree with the basic premise of your article. What is missing from your analysis is the key factor that has accompanied Apples rise in the last 5 years. The COOL factor.

The iPhone is cool. And although the IT Manager may not want Apple in the network. the C level users will be getting these devices. And where the C goes. the plankton will follow.

 
Fri, Jan 12, 2007 18:18 EST
Anonymous user
Posted by: Anonymous
Rating:

This is possibly the best "iPhone gripes" piece I've read. The others look like written by people paid by Motorola, RIM, Palm or even Microsoft. I don't think the iPhone is a business tool. I think the iPhone (or whatever name it gets after the lawsuit) is basically an iPod that makes calls. When you think about it, it's the natural evolution of the iPod since it was created. People rap too much about the price, but if you remember how expensive were DVD players, digital cameras, flatscreen TVs and so on when they first came out, you know how it goes. Early adopters pay the price. Right PS3 owners?

 
Sun, Jan 14, 2007 1:12 EST
Anonymous user
Posted by: Jeff Peck
Rating:

People simply want to do more with their existing web-enabled phones, and both the content and handset players are ignoring this large market segment. The major telecom companies have rained on their own parade of products and services by creating confusing and expensive data plans and locked-down mobile websites. That appears to be changing for the better. The majority of web-enabled phone users don't own smartphones, nor wil they for the next few years. There are a few good .mobi sites like http://a1r.mobi (for guys) and http://a1r.mobi/me (for women) that work well on typical mobile phones. No so for Yahoo! Go 2.0 which is compatible only with a limited number of handsets, and must be downloaded. The iPhone market is a subset of the smartphone community. Business applications for standard web-enabled phones are at present very limited and ill-conceived. What is interesting about business user adoption of standard mobile-friendly sites is that many of us are increasingly reluctant to use our corporate websites or VPN for recreational or personal surfing due to surveillance by our companies. Many of us are turning to our cell phones to check our personal e-mail, searches, visits to Digg or Yahoo! News. Except for the a1r.mobi sites mentioned earlier, few sites have really done a good job of aggregating mobile-friendly links and business content. This is true for Yahoo!, MSN, and Google, all of which tend to ignore each other due to competitive reasons. Book marking good sites isn't all that easy on many mobile phones, nor is surfing, so any site that aggregates all the best mobile content and applications will be quite useful for the majority business users having standard web-enabled mobile phones and even those with smartphones.

 
Sun, Jan 14, 2007 10:41 EST
Anonymous user
Posted by: Ole Tange
Rating:

The biggest issue I find with the iPhone is not being able to install new software. The Open Source iPhone, Neo1973, solves that. It is even cheaper than the iPhone and available worldwide before the iPhone.
http://www.linuxtogo.org/gowiki/OpenMoko/iPhone

About this Blog

Keeping up with the hype, headaches and hurrahs from the wireless and mobile communications universe.

Start a Conversation
Click to post

Got something to say? We want to hear it! Click the Post button to get started. GO»

EXPERT ADVICE
See our roster of experts.

Advice & Opinion from more than 108 of IT's most insightful thinkers.

  PARTNERS       WEBCASTS    
 

Preparing for the Next Cyber Attack

Ensure you are up-to-speed on the latest security technologies available to keep your network safe in this Executive Guide. Get a thorough assessment of the corporate security threat landscape. Protect your network with data leakage protection, NAC and other technologies explained in this report.

Sponsored by Qwest  Read this Executive Guide »

 

Cloud Building: 8 Ingredients for Internal Clouds

Cloud computing: a fundamentally new way to deploy IT services and functions cost-effectively and quickly. Learn how the VMware vCloud initiative dramatically improves how consumers access their information and experience applications as well as the 8 ingredients to get you going.

Sponsored by VMWare  Read this White Paper »

 

Investing in Business Analytics Technology

You're thinking now is the time to take the plunge into business analytics, but you still have some unanswered questions. This research summary addresses the most common questions and concerns surrounding the successful launch of a business analytics initiative. It also includes real-world examples of organizations already getting return on their investment.

Sponsored by SAS  Read this White Paper »

Resource Alerts

Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

Improving Transparency and Accuracy in IT Cross Charging

During this Webcast you'll learn how KBC Group implemented SAP BusinessObjects Profitability and Cost Management and realized many benefits.   View Now »

 

Cost Savings and Risk Reduction with Effective Systems Management

Join us and see how Novell can help you respond to today's economic challenges by increasing productivity, reducing costs and aligning IT initiatives with overall business goals.  View Now »

 

Capitalize on Your SAP Content

Learn ways to improve your content management by viewing these Open Text webinars today.  View Now »

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

 
NEWSLETTER

Sign-up for the Blogs & Discussion Newsletter

 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Introducing the new HP ProLiant G6 server family

Accenture: Outsourcing for Competitive Advantage. More...

Better spam protection with Postini for just $1/user/mo

Introducing the new HP ProLiant G6 server family

infoBOOM! - The Mid-Sized Company CIO's Exclusive Community

Accenture IT Consulting: Logical meets technological. More . . .

The Fraudster Economy Model: Operating a Business in the Underground

Trade in your old laser printer and get up to $1000 back!

Taking the Service Desk to the Next Level

Revolutionizing Enterprise Application Deployment

Why Data Loss is Increasing--and What You Can Do About It

Data Loss Prevention: A Better Way to Approach Security

Learn how to managing client systems in the enterprise.

Build a High-Performance Open Web Platform

Mid-Sized Company CIO Community: infoBOOM!

Enterprise PBX Comparison Guide

Getting Value from Outdated Networking Equipment

Losing Ground: 2009 TMT Global Security Survey

Stop Application Fraud at the Source with Device Reputation

Learn about the VMware vSphere (TM) & Intel (R) Xeon (R) Processor 5500 Series

Learn how a virtualized enterprise can help your company reduce costs

Why Isn't Server Virtualization Saving Us More?

Learn how to save 30% through project & portfolio management.

How Open Source is Changing the Face of Enterprise Software

8 Key Ingredients to Building an Internal Cloud

Accenture IT Consulting: Enabling high performance. More...

Top Five CIO Challenges

Insight makes it easy to spend your Microsoft subsidy check.

Five minute business analytics assessment. Immediate results.

Dangerous Collaboration Practices: 5 Ways IT Can Minimize Risk

Accenture: Outsourcing for uncertain times. Click to learn more.

The Case for Investing in Business Analytics Technology. Read white paper.

Live Webinar: Applying Business Analytics. Click here to learn more

Seven Ways ITIL Can Help You in an Economic Downturn

Developing A Dynamic, Real-Time IT Infrastructure

Maximizing the Business Value of the PC Infrastructure

Communications and Collaboration Needs at Business Organizations

Using Open Source to Deploy Web Applications

Cloud Computing: Read about VMware's compelling vision & set of products

Enterprise PBX Buyer's Guide

Secondary Market Primer: Your Network at Half Price

How Interactive Viewer Reduces the Effort to Meet Visualization Requirements

Top-line Performance that's Bottom-line Efficient

White Paper: 8 Key Ingredients to Building an Internal Cloud

Read about virtualization and consolidation effort best practices

Building the Virtualized Enterprise with VMware Infrastructure

The Global Marketplace Today: Strategies for Tough Times

Top 10 Business and IT Drivers for the Wealth Management Sector

5 Steps to Automating Accounts Payable

Bottom-Line Benefits of Virtualization