Is There A Business Case For 3G iPhone and 2.0 Software Upgrade?
Although Apple products are first and foremost a consumer play, the company is bent on appealing to the enterprise, albeit lagging far behind its PC competitors. That's where the 3G and new version of iPhone 2.0 software come into the picture.
The 3G model and iPhone 2.0 software upgrade is meant to appeal to the corporate climate with iPhone SDK and enterprise features, including support for Microsoft Exchange ActiveSync, which delivers push e-mail, calendar and contact syncing, remote wipe and Cisco IPsec VPN for encrypted access to corporate networks, and wireless network services with WPA2 Enterprise and 802.1X authentication.
Apple CEO Steve Jobs has also touted the fact that 35 percent of Fortune 500 companies took part when iPhone 2.0 software went beta in June. Testers included commercial banks, airlines, pharmaceuticals and universities. Impressive information to be sure, but can Apple VARs make money, considering that they're only Apple stores can sell products?
Jason Wu, CEO of TekServe, an Apple VAR based in New York, thinks that there is money to be made in providing consulting services, but has other concerns on his mind.
"The new software upgrade will boost iPhone sales, but I'm more worried that my customers might get the wrong impression that we're not as important as an Apple store for future projects," said Wu. "Certainly, we don't want to push a customer into an Apple store. The high-end customer won't feel that way, but it is a long-term concern."
On the other hand, Michael Oh, president and founder of Tech Superpowers, a Boston-based Apple VAR, says he doesn't care where customers get their iPhones and iPhone 2.0 software from.
"I'm going to approach a CIO looking at iPhones and tell him, 'Here's the services we can provide.''"
Those services include consulting to help large enterprise customers see how the iPhone fits into their organization as well as configuring platforms and compatible services. For instance, Oh said that wireless and VPN infrastructures often need changes to support iPhones, especially if they were initially built with a single platform (Windows) in mind.
Oh also believes that the 3G iPhone ecosystem is so new that it's hard to tell where the sweet spot is for VARs.
Instead, the focal point is about getting a foot in the door.
"CIOs don't usually care for iMacs, for example," Oh said. "But with the iPhone buzz, now you have an opportunity to show them other Apple products that work well in the enterprise," Oh said.
And as VARs well know, the business is all about getting in front of the client.