5 Key Takeaways From Apple-Cisco Deal

by CXOtoday News Desk    Sep 01, 2015


Apple has partnered with networking major Cisco Systems to help sell more iPhones and iPads to enterprise customers. The announcement comes at a time when iPhone major Apple is striving to enhance its presence in the enterprise market. The deal undoutedly will benefit both the tech titans. Here are some key takeaways.

1. New avenues in enterprise mobility

The deal is likely to open up new avenues in the mobile market. It will also help business users to avail of Cisco products like its video and web conferencing services and chatting software on Apple’s mobile devices.

With Apple’s support, Cisco will deliver experiences specially optimized for iOS across mobile, cloud, and premises-based collaboration tools such as Cisco Spark, Cisco Telepresence and Cisco WebEx in order to deliver seamless team collaboration and reinvent the meeting experience, the companies said in a statement.

With more businesses using mobile solutions for better efficiency and customer experience (as well as to improve their ROI), a recent report published by MarketsandMarkets revealed that enterprise mobility market, triggered by bring your own device (BYOD) will grow from $72.34 Billion in 2013 to $285.0 billion in 2019, at a CAGR of 26.6% during the forecast period.

2. Tech superpowers to create ‘value’

“Ninety-five percent of companies in the Fortune 500 count on Cisco Collaboration and Cisco networks to help their teams be more productive,” said Cisco Executive Chairman John Chambers. 

“Through this engineering and go-to-market partnership, we’re offering our joint customers the ability to seamlessly extend that awesome Cisco environment to their favorite iOS devices. Together, we’re going to help teams achieve higher levels of productivity and effectiveness.”

“Together with Cisco, we believe we can give businesses the tools to maximize the potential of iOS and help employees become even more productive using the devices they already love,” said Apple CEO Tim Cook.

3. Cisco’s new generation partnership

Cisco, best known for routing and switching technology, has branched into other products for business users. The company’s $1.2 billion acquisition of Meraki in 2012, for example, made Cisco a bigger player in managing wireless networks at companies. Its WebEx service is widely used for holding online meetings. At present Cisco has been investing in areas such as data analytics software, security and cloud and even IoT.

The networking giant has also enhanced its focus to more profitable businesses since Chuck Robbins stepped in as the CEO this year. Chambers who relied on acquisitions big time in turning Cisco into the biggest supplier of networking equipment, said the Apple deal “underscores a shift to alliances for the biggest industry players.” “We are going to talk about a new generation of partnerships,” Chambers told Reuters.

4. Apple gets closer to enterprise

Last year, Apple struck a deal with IBM to jointly create apps for business users. Experts believe what’s driving this partnership is undoutedly a slowdown in tablet sales. iPad sales have fallen for six straight quarters; revenue from iPads declined 24% in the nine months ended June 27, compared with the same period a year earlier.

The Apple-Cisco pact comes as businesses seek to use smartphones and tablets to make workers more productive. Apple’s iPhones and iPads are popular inside businesses, largely through purchases by individual employees, rather than corporate technology buyers, says a WSJ report. Few companies manage to effectively integrate mobile devices with their networks of PCs and desk phones.

Experts believe the announcement comes at the right time when Apple is expected to unveil the next wave of iPhones at an event in San Francisco on September 9. The company has also been working on a larger tablet that is a 12.9-inch iPad, which will bring them closer to corporate customers.

5. Enemies turned friends

One thing that should not be forgotten is, Apple and Cisco, though partners now, were at one time legal adversaries. Cisco filed a trademark suit against Apple in 2007 over iPhone, the name for a product Cisco had acquired. The suit was however settled, in an agreement that allowed both companies to use the name. We need to watch out this space!