We have just received the news that Apple and Cisco have
become partners, with the goal of better integrating iPhones with corporate
networks in general, and specifically with Cisco products for visual
conferences over videolink or web services. This is short time after Apple
became partners with IBM to create apps (software) for the workplace. While the
IBM partnership is mostly oriented toward the large corporations that IBM
serves, Apple also has many partnerships in which it either helps develop apps
or helps app-developing firms connect their offerings to give greater
functionality for small businesses.
Clearly, Apple is interested in becoming more of a company
that serves businesses, in addition to its current strength in serving
consumers. The opportunity for Cisco, IBM, and other partner firms is that so
many employees own iPhones, often as a result of their own choice rather than a
company purchasing policy. Integrating the iPhones deeper into what the company
does can be an opportunity for simple tasks like meetings over a distance, and
for more complex processes like scheduling, staffing, and sales. From the
viewpoint of firms that provide these services now, the iPhone looks like a
Trojan horse – something that got into the business because it looked nice and
harmless, but is now ready to become a potent competitor.
So who does the iPhone compete with? The interesting feature
of these competitive moves is that an iPhone (in fact, any smartphone) can be
programmed and networked in so many ways that it is very unclear where the
limits are. Both established Apple partners and new firms can apply their
creativity to the task of seeing what business activities can be improved by
integrating iPhones. Already we know that any video-conference service other
than Cisco should be worried because the link between Apple and Cisco link takes advantage of
the complementary business presence and software/hardware of Cisco and personal
presence and software/hardware of Apple. But that is just a starting point. The
next steps can happen very quickly, because starting new app-based businesses
these days can be done within a few weeks.
Network Advantage in competition among firms comes from
placing the firm in a position where it can benefit from its network of partner
firms. It is not surprising that Apple is working hard to get network advantage,
because their business is based on products that connect to networks and let
their owners get personal network advantages.
Clark, Don and Daisuke Wakabayashi. 2015. Apple, Cisco
Unveil Business Partnership. Wall Street
Journal, Aug. 31 2015.
