Mac Equipment in the Enterprise
By: Kristin Masters
When Apple entered the PC industry in the 1980’s, the company dominated the field. Indeed, when the company went public in December 1980, it produced more capital at one time than any other company since Ford Motor Co.—in 1956. Yet Mac equipment fell out of favor during the Nineties, and has only recently enjoyed resurgence in the consumer market. As the company commands greater market share among consumers, it also creeps into a previously Microsoft-controlled domain: the business enterprise.
The Quiet Adoption of Mac Equipment
Probably due to Apple’s strong foothold with personal accessories like iPods and iPhones, the company has experienced unprecedented growth similar to that of the 1980’s. Three primary factors have propelled Mac equipment’s explosive growth:
- Windows Vista failed to impress: Especially in comparison to Windows 2000 and XP, Vista had an abysmal adoption rate. Only 6% of Windows users have adopted the product, as compared to 12% for 2000 and 14% for XP at the same point in the product lifecycle. That low adoption rate left Apple room to infiltrate the market even further.
- Apple has momentum among consumers: Mac equipment accounts for 21% of the consumer market, and Apple is the largest supplier of notebooks for American universities. In only 19 months, Apple managed to quadruple its market share, which is spawning a generation of Mac equipment loyalists; both new hires and experienced employees have begun asking for Mac equipment in the workplace. Now, a full 21% of businesses have at least 50 Mac’s on their inventories.
- OS X has enterprise support: Mac’s latest operating system, OS X Snow Leopard integrates features like iCal, Mail, and Address Book and allows easy interface with Microsoft Outlook 2007. That expanded connectivity means that Exchange Server support for Mac is comparable to that of Windows.
Although Mac’s current share of the enterprise market is only 4 to 5%, companies have begun to express much greater willingness to adopt Mac equipment for the workplace. A principal at ITIC recently observed that “corporations are deploying Mac’s and Mac OS X at a rate not seen since the 1980’s.” Meanwhile, an ITIC survey revealed that 68% of respondents would allow end users to implement Mac’s for corporate desktops, which is double last year’s figure.
Hardware Concerns with Mac Equipment
A significant barrier for Mac equipment adoption within the enterprise is the greater cost for hardware. The additional cost for machines makes it more costly to frequently upgrade systems. Yet Mac software often offers limited backward compatibility, so hardware upgrades can be unavoidable. Although Mac equipment will probably always cost more than other PC’s, their price has come down considerably, largely due to Apple’s switch to Intel.
Many businesses justify the extra cost of Mac equipment, arguing that the lack of time wasted on technical support issues pays off in the long run. Some business owners even say that Mac equipment directly improves employee morale. An undeniable benefit of Mac’s is their relative security: significantly fewer hackers and virus writers target Mac operating systems. Alan Mokin, the IT Manager at Chris King Precision Components, told CIO Magazine, “We make up the Mac cost difference with the amount of time we save, the projects we can get done, and the overall happiness of using Mac’s.”
Outside of creative fields, where the latest Mac’s are all but indispensable, some owners skirt the sticker shock and buy refurbished Mac equipment. Purveyors of refurbished computer and telecom equipment will likely witness a renewed interest in Mac and Mac-compatible equipment in the coming years, as consumer devotion to the Mac drives its adoption within the enterprise.
Software Compatibility for Mac Equipment
While the cost of transition presents a considerable obstacle for full adoption, perhaps an even greater concern is that many industry-specific applications are based on the Windows desktop. Without that constraint, many enterprises would be extremely open to adopting Mac equipment
The solution will probably come in the form of open-source software, which is usually designed to run on any operating platform. Open-source applications generally integrate PC and Mac better than proprietary software, and the neighborhood of open-source programmers often races to build required vertical-specific software—once the demand exists. Over time, this supply will protect IT departments from vendor lock-in and heavy, expensive solutions to complex problems.
Mac equipment continues to trump other PC’s in terms of usability; both hardware and software are designed with intuitive, user-friendly capabilities. Yet many industry leaders contend that this added usability does not counterbalance the paucity of industry-specific software for Mac equipmen or the relatively low market share. They observe that the Mac’s growth hasn’t reached the “critical mass” that would truly make Mac equipment a cost-effective choice for most businesses.
Yet the Apple universe gets less limited each year. In a web survey of 750 global C-Level executives and IT executives, nearly 4 out of 5 businesses reported at least one Mac installed on the network. Meanwhile 17% of companies are actively seeking Mac developers, more than triple the figure from the previous year. Although few businesses operate entirely on Mac equipment, many are systematically implementing them over time. This shift could lead to a steady stream of used PC’s hitting the telecom market.
The Outlook for Mac Equipment in the Enterprise
Despite Mac’s ascent in the business world, certain aspects of Apple may actually prevent its full-blown takeover in the business sector. Apple would first have to begin producing cheap, standardized parts, which would necessitate compromising the company’s vision and ideals.
Additionally, the company would probably have to seek partnership with true enterprise credibility. Yet Apple learned the hard way from its partnership with AT & T that outsourcing dilutes or outright fails brand standards. In this regard, Apple’s strategy of delivering a unique blend of hardware and software (so successful in the consumer market) undermines success in the corporate realm.
A final stumbling block for Mac equipment dominance in the enterprise lies in Apple’s marketing strategy. The company thrives on surprise, building suspense about new products for months before their release. Yet IT professionals need to know about new products months in advance so they can make purchase plans and build accurate budgets. That kind of transparency about upcoming product releases directly conflicts with Apple’s current business model.
Ultimately Mac equipment will probably continue to enjoy a significant, but minority, share in the enterprise. While the primary challenges facing Apple arise from surmountable issues like vertical software availability and pricing, the company’s business model does not adequately support the needs of enterprise IT.
