The iPad; A Case Study Not To Be Ignored

March 3, 2011 — Leave a comment

The Ipad – Here are some sound bites: (Source: Wall Street Journal)

1 year old

90% market share

14.8 million devices sold

9.5 Billion in revenue in one year!

200 Million Apple Accounts world wide

And a new version out this month while the competition is still scrambling to compete with the first  release.

Innovation is key.  At the 2011 RSA conference, one of the most interesting presentations came from the founder of Palo Alto, Nir Zuk.  He talked about innovation, and repeatedly asked his audience who was using what – brands of cell phones, operating systems, etc.  Through this interaction he showed that many of the technology leaders just aren’t innovating any more, and people are moving to new technology – following the innovators.  These companies that lack innovation stand to lose significant market share if they continue.  This is a wake up call…not just to those with an iPad look-a-like, but for Microsoft and anyone else with significant market share.  Companies that are innovating will win over time.  The problem is, many of these new innovations compete with the margins resellers have depended on!

Example:  How many resellers are still selling PCs to make a profit.  Perhaps yours doesn’t, but there are thousands of SMB focused resellers still in this game.  Will they start selling iPads?  Well, maybe, but that is not very strategic.  A $500 device, already set up with an operating system that doesn’t require a daily reboot to recover from the blue-screen isn’t going to make up for the loss.  And with other technologies commoditizing and companies like Google putting free tools online (Have you tried Google Apps?), the market is bound to change – expect resellers to be out of business within a year if they are waiting on the economy to pick up, hoping to be placed back into the business they drove two years ago.

Innovation for Apple means, new cool looking products that appeal to the new mobile generation.  But to the reseller and high-tech sales person, it means finding new ways to help clients innovate, automate, secure, and become efficient.  It means finding new areas to help companies with technology that puts them ahead of their competition and cuts cost out of their current IT program.  And it means helping them secure what they have before they lose everything.

© 2011, David Stelzl

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