Apple iPad will fail in the enterprise: Dell

Closed view, high price and complexity of iPad unappealing to CIOs, Dell claims

Despite the iPad's long lead in the enterprise market, Apple's tablet PC performer will not last long according to an increasingly bullish Dell.

Speaking to CIO Australia in Sydney, Dell’s global head of marketing for large enterprises and public organisations, Andy Lark, said while the first iPad had achieved one million sales just 28 days after the device first became available in the US and precipitated the explosion in tablet PCs, it would ultimately fail in the enterprise.

“I couldn’t be happier that Apple has created a market and built up enthusiasm but longer term, open, capable and affordable will win, not closed, high price and proprietary,” Lark said. “[Apple has] done a really nice job, they’ve got a great product, but the challenge they’ve got is that already Android is outpacing them.

“Apple is great if you’ve got a lot of money and live on an island. It’s not so great if you have to exist in a diverse, open, connected enterprise; simple things become quite complex.”

While Apple had entered the businesses as a consumer device, Lark claimed Dell had taken an enterprise approach toward tablet PCs, which would ultimately give the company, which has a major stake in Microsoft Windows and the desktop PC market, an edge.

“We’ve taken a very considered approach to tablets, given that the vast majority of our business isn’t in the consumer space,” he said. “[A company] like Samsung has to aggressively go after their business, but we’ve got a far more diversified footprint than some of these players.”

The cost of Apple products was another deterrent to iPad deployments, with Lark claiming that a the economics on a fully kitted iPad did not add up.

“An iPad with a keyboard, a mouse and a case [means] you’ll be at $1500 or $1600; that’s double of what you’re paying," he claimed. "That’s not feasible.”

Despite the company's history with Microsoft, it had embraced both Windows Phone 7 and Android operating systems offerings as the market was increasingly moving away from Apple's iOS4 offering.

“…Our strategy is multi-OS," Lark said. "We will do Windows 7 coupled with Android Honeycomb, and we’re really excited. We think that giving people that choice is very important.”

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20 Comments

1stkorean

1

Well written article it is fair, balanced and complimentary to all products covered.

Congratulations on a job well done.

Bob

2

iPad with a mouse???? The whole point of a tablet is to not use a mouse. But then again, Dell are still stuck in the past and their Streak was a complete joke

Max

3

Great! Looks like the guy just arrived from 1990s!
What's interesting all of them (Dell, HP, Samsung) didn't get even closer to the first iPad and now as iPad 2 released they all screaming in agony about their superior devices and how cruelly they are going to smash Apple on tablet market.

The reality is simple - ask person next to you - which tablet is (s)he is going to pick?

David

4

How embarrassing for Dell! There's nothing more to say after this.. “An iPad with a keyboard, a mouse and a case [means] you’ll be at $1500 or $1600; that’s double of what you’re paying," he claimed. "

Gary Khol

5

@3 Max you missed the point of the article, here,

“I couldn’t be happier that Apple has created a market and built up enthusiasm but longer term, open, capable and affordable will win, not closed, high price and proprietary".

This has always been Apples nemisis, it strangled its Mac,s to near death and will limit total ipad sales over the long term, it will even dwiddle if something with the same power and less restrictions is brought out, thats just simple basic consumer commonsense.

SO in reply to your question in the context of buying on behalf of a company, "The reality is simple - ask person next to you - which tablet is (s)he is going to pick?"

The reply would be, price,ease of use and adaptabilty and abilty to interface with exsisting IT assets.

As you can see the curse of Apples practises thus leaves Ipad products in the domain of plaything, and not serious business tool.
..

Nick james

6

Today suncorp released iPad, iPhone and byo computing in it's enterprise, looks like people are waiting to try it instead of being told by computer manufacturers that it will fail, this was the first time a major enterprise has said no to a pc refresh. Dell will be hoping it fails.

RattyUK

7

@Gary Khol

You might have a point if the Apple product wasn't actually cheaper than what these named brands are shipping out.

Everyone was expecting the iPad to be around a $1,000 (US dollars) when it cam out at half that price there was no pricing room left for the competitors to release a competing product. All the tablet PCs announced at CES 2010 just vanished for the most part, the companies having given up trying to compete.

A year later they try again and actually manage to ship some units to shops and then Apple releases the iPad2. Yes on paper the iPad2 has worse specs than some of these competing products but once again Apple moved the goalposts by concentrating on the graphics performance rather than the processor performance. This makes the iPad really snappy for the main things you do with a tablet and preserves battery life.

At the moment the Motorola Xoom is not really cutting it, even with the final addition of Flash - although still wrapped in "beta" promises that it will improve. Dell's attempts in this space have been laughable.

So with the Application Library, the Cost of the Unit and mindshare I don't think this is going to be a repeat of the PC issues. Oh and for those pro-Android commentators, if you have a carrier sponsoring your phone then you aren't going to take out another contract just to subsidize the cost of your tablet.

Zeke

8

Smack down:

http://www.macobserver.com/tmo/forums/viewthread/80335/

Frank

9

First of all as an employee of said company, D doesn't allow any products to access their enterprise systems with the only exception of the Win7 phone which they used to replace the blackberry's we all had. So for D to say that something will fail in enterprise they/we should at least do it in practice ourselves. As I walk around the offices I see mostly iPhones, and a smaller but growing vocal group of Android devices and the aforementioned Win7 Dell phone, and other than in demo events I've only seen one person actually use or bring a Streak to work.

Rob

10

Guys, great to see that you all get it and this guy is just Larkin' about. If he thinks the iPad is meant to be a PC then he probably also thinks there are no mainframes anywhere anymore too. One of you said he just got here from the 1990's. Trouble is, he's here but he hasn't opened his eyes yet. Why is the iPad so successful? Because it's a new paradigm, not just another PC. Why is Android competing with it? Because those guys do have their eyes open. Just think; if the iPad had been around in the late 80's do you really think anyone would be using laptops now? Would Dell even exist? Do I want a keyboard and mouse? No, I want to interact with my device as simply as possible, no wires, no accessories. Oh, and do Dell laptops come with a case, external keyboard and mouse or does that add to the cost?

And maybe I'm wrong here, but has anyone seen a mouse that works with an iPad?!

Dell, I suggest next time you put up a spokesman you get someone who knows what he's talking about!

Rob

11

Oh, sorry, forgot to say. Open? IOS is at least based on Unix although it is not open to us all, just like Windows isn't open to anyone, and Android is open which is why there is already a huge amount of malware in Android apps. So is open good in this instance?

And as for success, does he realise that Apple is actually no. 2 in the world when it comes to fiscal value? Only Exxon Mobil is higher, and Microsoft even is way lower. Dread to think where Dell is, but they could save some cash by letting a marketing guy go back to school...

Jim

12

Maybe Suncorp should go a step further and replace their tired old Dell Pc's with the new snappy Apple PC's.

Khalm

13

Personnally i have tried both the iphone and the android based competiotion in the phone market android is simply the better platform so long as your not a brain dead monkey, the ipad is another matter, against the windows and the Android platforms and capabilities the ipad will continue to fair well as it's the simpler product and people generally have the urge t buy the one thats hyped up and is simpler.
Put simply Apple amaged to market the iphone and ipad so well when there was nothing else in the class that it's managing to ride that success for the time being

Rob

14

@Khalm - I really do think you're missing the point here, but you're in good company, Bill Gates never got it either. I don't mean to be rude, but Linux type systems (and Android) are lauded for being open systems and it is easy to argue that they are. Windows got there first and is popular, but what you get as a result is a loyal following by those who are highly technical and can cope with having to install device drivers, set screen resolutions and the like. I was once highly technical, able to write machine code direct and understand how complex operating systems worked at the deepest level. Then I discovered Mac OS X, and subsequently iOS. The point I'm making, is that these systems simply work - you don't have to know how to work them, or be an IT genius, there are millions who can't understand IT or who don't want to or who don't have time to. That is the path Apple have chosen with their systems and devices and it really does have merit, although it leads them open to techie attack. "Open" is almost always used to mean something that can be hacked and changed. Why bother? Most of us buy a car or TV suitable for our needs, we don't worry about how to change it to suit an interest in its underlying technology, we just use it. Just because something can be changed easily does not make it better, it just means that those with such an interest will prefer it. Since the vast majority of the world won't want or know how to do this, logic dictates that a platform that just works is the one that is better since it meets the needs of the majority.

Stewart

15

I do IT Tech support for many small businesses and I can tell you first hand that Mac's just don't measure up in the business market. I can't tell how many times customers are needing to run Parells or Bootcamp just to run applications in Windows that Mac dosen't support fully. By having to do this (run multiple O/S's) causes more problems for them. I'm always getting called out to fix printing issues between OSX and Windows and device driver issues and don't get me started on Mac Mail and Office for Mac. Apple is really the AOL of computers.

Me

16

Yeah @Gary Khol, the iPod released in 2001 (10 years ago) and the iPhone in 2007 (4) were both disasters that we no longer hear about!! When Dell can produce a comparable product then they can talk.

And only an idiot can't see how businesses will embrace tablets (over laptops). When at home I can access my work computer via Citrix. If they can create an iPad app which allows me to access my work (and I have sufficient power), why would a want to use a cumbersome laptop?

Khalm

17

@Rob
I follow that most people are barely trained monkeys when it comes to IT i'm a simple technician myself, the thing is that simpler doesn't always mean easier I deal with people regularly that go yay i have an iphone and then sigh because the dam thing is screwing them around and such (e.g not being able to call on and vid call a conferance at the smae time) Simply put the Apple series are based more around wishful thinking by the consumer then that of actual qaulity of product.

RattyUK

18

@Stewart

I think you do protest too much. But at least they have the choice. A Mac user can run Windows if required. Legally. A PC user doesn't have that option.

Here's a clue. If they are making your money why are you complaining? If you don't like it don't take the money. Apple Stores have tech support for free... You are just a middle man.

John

19

The push factor will drive iPad into the Enterprise market similar to the iPhone.

The comments by Dell CIO, of all people, is just simply a case of sour grapes.

No different from Microsoft remarks that tablet PCs are a fad or passe.

Sad the giants cannot spot a trend.

Meanwhile, gentlemen, Apple is laughing to the bank....

david

20

It is like democracy
Apple has problems but the rest have more problems

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