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 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
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AUGUST 3, 2004
Will Uncle Sam Like the Taste of Apple? [Page 2 of 2] DEFECTORS FROM MICROSOFT? Apple equipment's underlying software also appeals to many government tech managers looking for alternatives to Windows. Based on open-source Unix code, Mac OS is easier to use than Linux. It also comes with more than 10,000 applications, which is a lot more than what Linux can offer. And it's about to get better: Early next year, Apple will release its so-called Tiger OS, featuring easy file-finding, video conferencing, and better interoperability. Microsoft's (MSFT ) new version of Windows, called Longhorn, is expected to offer many similar features, but it isn't due until 2006. Apple's comparative immunity to viruses wins lots of fans, too. According to antivirus software maker Sophos, the first half of 2004 saw the release of 4,677 new viruses, nearly all of them targeting Windows. That's a 21% increase over the first half of last year -- and a major headache Mac users didn't have to endure. "For us, it's just a non-existent issue," says Ngozi Pole, the administrative and systems manager for the D.C. and Boston offices of Sen. Edward Kennedy (D-Mass.). But techies at non-Mac offices on Capital Hill spend the majority of their time battling viruses, he says. Microsoft's recent decisions also help Apple's cause. Come Jan. 1, 2005, the Redmond giant will discontinue support of Windows NT Server 4.0. And on July 28, the software maker said it would delay its releases of operating systems for the 64-bit, faster functioning computers and servers until the first half of 2005. "These various issues are going to get buyers looking at other possibilities, and some of them will switch," says analyst Gordon Haff of tech consultancy Illuminata in Nashua, N.H. Resellers say they haven't seen much of a reaction to Microsoft's moves so far, but that any impact, if it happens, will become apparent in the fourth quarter.
Another potential problem is government buyers' propensity to standardize on a single platform, says Valerie W. Perlowitz, president and CEO of tech-services provider Reliable Integration Service, which counts government agencies among its clients. More important, though, Apple's success in the government and enterprise spaces depends on how much resources it devotes to these markets, which have historically taken a back seat to its main, consumer business. But that could be changing. "Government has great synergies with higher education and enterprises," says Philip Schiller, Apple's senior vice-president of worldwide product marketing. And, he says, the company wants to continue pushing into all these markets. Apple's government business is still tiny and could take years to grow. Still, rivals Dell (DELL ), Hewlett-Packard (HPQ ), and IBM would be wise to watch out: Apple has long been known as an innovator and a design pioneer. What's more, "Apple is a religion to many users," says Bechara. "You have followers, not users." And chances are the outfit could see more converts in the coming months.
 By Olga Kharif in Portland, Ore.
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