Former Sworn enemies to Work together
Tim Cook and Virginia Rometty – picture courtesy of Networkworld.com
After decades of rivalry, Apple Inc. (NASDAQ: AAPL) and International Business Machines (NYSE: IBM) have decided to work together. A deal was announced on Tuesday that will see IBM create simple business apps for the iOS platform and sell iPhones and iPads to its customers.
The news that the two tech giants have agreed to work together has caught many by surprise as no one would have imagine of such a case in the reigns of the Apple and tech icon Steve Jobs. These two companies have been rivals for over 3 decades. However, the demise of Steve Jobs and subsequent entry of Tim Cook, a former employee of IBM, has brought about policy change ensuing to this agreement.
This agreement was jointly announced by Apple Chief Executive Tim Cook and IBM CEO Virginia Rometty, nevertheless the two executives refused comment on the financial terms. So what is in this agreement, and what is in for both of these tech giants?
Apple’s Gains
The company will benefit from IBM’s computing services experience, which includes areas such as security, device and big-data management, data analytics and more. The partnership will also allow Apple to utilize the over 100,000 IBM consultants/sales workers. They,IBM will provide on-site support and service to Apple.
The iPhone-maker will also be linked to over 2,000 firms that are in business relationship with IBM. This could boost both sales of iPads and iPhones, as Apple has primarily dominated the consumer market as compared to the corporate markets.
IBM’s Gains
Over the past eight quarters, Big Blue has seen decline in its year-over –year revenues. However, it has not fully exploited the world of mobile devices. The tech company will be banking on Apple’s loyal customer base to aid in transition of its business software business to mobile devices. By convincing the business world to use Apple products, (primarily the iPhone and iPad), in their day to day operations, the company will be creating a client base for its own mobile device business software.
The two Tech Companies are Developing New Apps
As announced, the two companies have now joined hands and are making over 100 easy-to-use business apps for various industries. It is expected that the first collection of these will be available as soon as Apple launches its new mobile platform, iOS 8.
According to Big Blue boss Ms. Rometty, who has worked in her company for decades, this partnership marks the dawn of a new era and the end to poor use of smartphones as business tools. She said businesses only use Smartphone for mail and calendar. This deal will open a floodgate of new, serious business apps for the iPhone and iPad.
About Apple and IBM Rivalry
In the early 80s, both companies were producers of personal computers. The two companies were at throats of each other, and the feud can be remembered by the much publicized commercial dubbed “1984” which directly attacks IBM as uncreative firm that boring machines for the business world.
The competition ended almost a decade ago when Chinese giant Lenovo Group acquired IBM’s personal-computer unit. IBM has since positioned itself a software and computer-services provider. Apple on the other hand still produces personal PCs but has mobile devises as its main product lines. So this arrangement has come in later than it should have!
