Posted by: Peter Burrows on March 12
Apple’s plan to develop an iPhone software ecosystem is off to a flying start. Business plans are flowing into Kleiner Perkins, the venture capital firm that announced a $100 million iPhone software fund. And Apple today disclosed that developers have downloaded more than 100,000 copies of the software developer kit.
At least one of those downloads was by business software giant SAP. “Apple saw an opportunity to move into the enterprise, and it’s great to see,” says senior vice president Mike de la Cruz. He says Apple did a great job addressing the glaring reasons CIO’s have been loath to support the iPhone so far—particularly lack of Exchange compatibility.
But having crossed out one round of problems, a new crop will inevitably appear. For example, many big companies—maybe 20% of them—use software other than Exchange, such as IBM’s Lotus Domino. Also, Apple may need to give big companies the ability to deploy iPhone apps as they please, without having to get Apple’s okay (currently, the p[lan is that only software that Apple makes available on its App Store can be used on the iPhone). Says SAP vice president Vinay Iyer, “most enterprises don’t have to go to someone else’s portal to deploy their applications.” Having developed sophisticated software deployment processes, many big companies won’t want to spend the time and money to include the App Store. Nor can they rely exclusively on the App Store, since those iPhones will undoubtedly have to integrate with legacy applications.
They also have other questions. For example, CIOs will no doubt have loads of questions about deploying iPhones and iPhone apps. How will Apple deal with all those calls? Who, precisely, will CIOs be able to call for answers? “There’s no such thing as an out-of-the-box solution that works for every company,” says Iyer. And what about companies that don’t use the network of AT&T, Apple’s exclusive partner for iPhones in the U.S.?
All this said, these SAP execs give Apple very high marks so far. “They’re starting simple, as they should,” says de la Cruz, with an approach that’s sure to appeal to smaller developers, smaller companies, not to mention consumers (As Engadget reports, gamers seem to be jumping all over this). While SAP created a web-based version of its CRM software for the iPhone last December, he expects them to build software based on the SDK as well. “We want to be there.”
You seem to have missed the fact that Apple is developing a separate "store" for enterprises to deploy their in-house apps. This was discussed in the Q&A after the iPhone SDK presentation last week. Enterprise customers will be able to create a secure, private page on the App Store accessible only by their employees. The details of this haven't been released but there is some discussion on Appleinsider (http://www.appleinsider.com/articles/08/03/06/apples_iphone_takes_on_the_enterprise.html). According to them, there will be tools to enforce security policies for enterprise users (e.g., locking down specific features of the iPhone, such as camera use or the installation of additional applications). There will also be tools to enable IT staff to configure iPhone deployments by the thousands and set them up automatically, and tools to wipe sensitive data from ihones that are lost or stolen. In any event, to answer the point raised in the article above, it clear that companies will be able to create and deploy apps to their own employees without making them available to the general public on the main Apple Apps store.
As for the App store and how this applies to businesses, I suspect we'll see the moral equivalent to iTunesU for the Apps Store. In other words there will be "custom" AppStores for each business for a nominal fee.
"...many big companies—maybe 20% of them—use software other than Exchange, such as IBM’s Lotus Domino."
What is your source for this figure? Last time anyone checked Microsoft did not have 80% market share here.
In fact, last time anybody checked, (recent reports by both Gartner and IDC), MS had 40% (and growing). A decade of neglect by IBM allowed MS to grow market share over that time, but now that IBM is paying attention again, the MS curve seems to have peaked, and is now pointed downward.
A blog on the daily doings of Apple and the many companies in its orbit, with insight and analysis by two longtime Apple-watchers BusinessWeek Senior Writer Peter Burrows and BusinessWeek.com Senior Technology Writer Arik Hesseldahl.