Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Apple tightens its tablet grip on enterprises ahead of Windows 8

By | March 13, 2012, 2:47pm PDT

Summary: A new survey from ChangeWave finds tablet adoption increasing among corporate tech buyers, and Apple extending its lead over rivals while Microsoft prepares its tablet-friendly operating system.

While Microsoft continues to complete Windows 8, its first operating system to enthusiastically embrace tablet computing, Apple’s iPad is strengthening its grip on corporate buyers.

A new survey conducted by ChangeWave Research shows that companies are stepping up their tablet purchases, and that a growing number intend to buy iPads, as opposed to the rivals currently on the market. ChangeWave said its survey of 1,604 corporate tech buyers shows the highest level of corporate iPad demand it’s ever found in a survey.

See also: Windows 8 slate or iPad: Which is the better tablet for the enterprise? Virtualizing Windows 8 under OS XWhy Apple doesn’t need to innovate much to stay ahead of the competitionHere’s what’s wrong with Windows 8

The results can’t bode well for Windows 8. PC growth, and by extension Windows growth, has slowed over the years, while the market for tablets, primarily the iPad, has soared. Windows 8 is the touch-friendly operating system, designed to help Microsoft tap that market.

And while the consumer market will be tough to crack, given the lead that Apple has there, the corporate business has been seen as one where Windows 8 tablets could make inroads. That’s in large part because of Microsoft’s long history of selling to enterprises, and the manageability that corporate buyers expect in devices that run Windows.

The new survey, though, suggests that the iPad is increasingly meeting the needs of those potential customers. ChangeWave found that 22 percent of the respondents plan to purchase tablets for employees during the second quarter, and that 84 percent of those companies are planning to buy iPads. That’s a seven-point gain from a survey the firm did in November. Some of that interest is no doubt fueled by anticipation of this Friday’s debut of the new iPad.

What’s more, those buyers are increasingly shying away from tablets made by companies other than Apple. The interest in buying devices from every other tablet manufacturer, from Amazon to Samsung, declined from the November survey. So while buyers are increasingly looking to buy tablets, more often than not, they’re only looking at picking up iPads.

The second most popular tablet-maker among corporate buyers is Samsung. ChangeWave found that 8 percent of respondents that are planning to buy tablets for employees intend to pick up a Samsung device, down from 10 percent in November.


Jay Greene, a CNET senior writer, works from Seattle and covers Microsoft, Google and Yahoo. He’s the author of the book, Design Is How It Works: How the Smartest Companies Turn Products into Icons (Penguin/Portfolio). He started writing about Microsoft and technology in 1998, first as a reporter for The Seattle Times and later as BusinessWeek’s Seattle bureau chief.

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

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Top Rated

I agree... Still we have to keep in mind that of that 78%
James Quinn 1 day ago
there is likely a sizable percentage of that number of businesses that will NEVER see a use for a tablet no matter who makes it and this includes running on W8, Android or iOS.

Pagan jim

Just In

RE: Actually
piousmonk 13 hrs ago
@jbeck82

I'm well aware of that, as I'm aware that some of them make parts for Android tablets, or even make their own tablets, but have yet to pull off that trifecta of cheaper, better and more battery life (than the iPad). So if they can't do it with an OS that Google's pretty much giving away to them, how are they going to accomplish it with W8 tablets when you add the cost of an OEM license to the equation?

I'm not saying that nobody can beat Apple's specs, there are probably Androids out there that beat the iPad 2 and someone will probably come out with one that will beat the new iPad shortly (if not there already). I'm not saying that someone can't do cheaper either, as there are obviously tablets out there that are cheaper than the iPad right now. I'm simply responding to the claim that there will be W8 tablets that beat the iPad in all 3 of the stated categories.
2 Votes
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Corporate Market
THavoc 2 days ago
Phew! Good thing it's 'only a fad' and 'is only a toy'!! wink
3 Votes
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Windows tablets are expensive!
Habiloso Updated - 2 days ago
I was reading an article recently on a different tech site. That article relate to the Top 5 Windows Tablets. I only had a quick scan but what caught me immediately was the price of the devices - between AUD$1,600 to AUD$1,800. That is an absurd price for a tablet (and Windows fanbois reckon Apple devices are expensive!) aand if that level of cost continues with W8 tablets, then it is hard to see how those could succeed. I'm sure some will respond and tell me how there are much cheaper Windows tablets and in so doing they will have missed the point. The article, as stated, was about the "best" Windows tablets, meaning that any other far cheaper tablet was anything but the best!
1 Vote
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You're Talking About x86 Machines
CFWhitman 1 day ago
The tablets you're talking about are the current x86 based crop of Windows tablets, which have been around for years and are clearly a niche market. Most of the point of Windows 8 is that it is supposed to be able to fit to the new tablet market, which means ARM based processors, capacitive screens, thin and light hardware with a long battery life.

I'm not saying that the new crop of Windows 8 tablets will be a resounding success, but you can't really tell a thing about the next crop of Windows tablets by looking at the ones available now. The reception of the Metro interface is a much bigger concern than the Windows tablets currently on the market.
-1 Votes
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If you are talking WOA
danbi 1 day ago
Then, you must know that WOA is not exactly Windows. While it will carry that label, it will have these "strings attached":

- it will run NONE of the existing Windows applications;
- it will be locked down, just like the iPad is;
- you will not be able to buy Windows and install it on any ARM tablet;
- you will only be able to purchase (!) Apps from the Microsoft App Store, just like you have to purchase Apps from the Apple's App Store for the iPad.
- the quality will vary wildly, they will have all different form factors, different interfaces etc.
- likely, almost all of these tablets will cost more than the iPad;
- almost guaranteed none of them will have the new iPad's display (Apple has probably pre-ordered all production of hi-res LCD displays for most of 2012)

Given all this, any sane person will chose the iPad.
-1 Votes
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You're Talking About x86 Machines
ScorpioBlack Updated - 1 day ago
Aren't those the ones that count?

Aren't those the 'real' ones that you do 'real' work on that Windows fanboys like to thump their chests about?

lol...
2 Votes
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I have noticed iPad purchases by businesses as well.
The Danger is Microsoft 2 days ago
I consult for many different industries using ERP software. Food industries, distributors and even battery backup companies are rolling out iPads in droves. iPads, their apps and connectivity (via the Apple port) enable companies to do all of the activities they used laptops for (including remote connection to PC's and peripherals). These companies find the price and mobility of the iPad far superior to laptops - be they Windows or Mac.

Apple is on a long-term roll with their iPad!
3 Votes
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Not even bitten, but still shy
Robert Hahn 2 days ago
Companies are "shying away" from vendors other than Apple because vendors that IT people figured they could trust -- like HP and Dell -- fell on their butts and abandoned their tablet offerings. As if Microsoft didn't have enough challenges, these are the horses they have to ride into battle.

Putting Windows 8 on an HP tablet is not going to make HP a trusted tablet vendor, no matter how many soothing words the HP and Microsoft salesmen try to whisper in IT's ear. Heck, HP came thisssssClose to getting out of the PC business entirely. Meg Whitman says they're staying in, but how long will she last? Dell just hired a guy who looks for all the world like a successor for Michael Dell, who stepped down once and may again. The new guy might as well be Leo Apotheker... he's the kind of guy you hire to run a software company.

Sure, a few IT folks will buy Windows tablets from HP and Dell, but most will hold back to see if the guys who did buy get struck by lightning. Can Windows 8 tablets succeed if Samsung is the only hardware vendor IT can trust?
So before anyway wants to declare victory here that still leaves 78%, a pretty large not buying tablets for employees majority. Microsoft still has a very good opportunity here.
4 Votes
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Top Rated
there is likely a sizable percentage of that number of businesses that will NEVER see a use for a tablet no matter who makes it and this includes running on W8, Android or iOS.

Pagan jim
Whoever has a dominant share of the market share, especially when it comes to new platforms, has a huge advantage. Sure, there may be 78% that have yet to move on tablets and that leaves an opening for MS, Android, etc., but where do you think enterprise software shops are going to focus their development efforts, on a platform that already has significant penetration or those that MAY get penetration? At this point, developing (for enterprise apps) for iOS is a given, where doing so for any other platform becomes more of a strategic move where you're willing to make a commitment to invest in it so you can say you support it in hopes that that platform becomes a player in the enterprise down the road.

Contrary to the belief of some that enterprise use of iPads is pretty limited to e-mail and RDP sessions to Windows machines, the number of enterprise apps for iOS/iPad is growing every day. ERP and CRM companies, as well as those making niche software titles (e.g. digital dication) are developing clients for their offerings. For example, both the accounting/billing system and the document management system used by my company have already released or have announced iOS client apps for their offerings, but have yet to even mention Android, MS or Blackberry.

It's similar to lock-in, but as opposed to iTunes/iCloud, it's 3rd party developers that create the lock-in by developing enterprise apps for iOS/iPad only. It's a huge advantage for Apple as the early leader. Everybody else has an uphill battle.

Also, it's easy to look at Android and say that because of their marketshare on the phone side, they're well positioned to move on the enterprise, but that's not necessarily the case. Many enterprise apps don't translate well to the smart phone form factor, so the tablet market share specifically is going to more of an influence on enterprise app developers than any success Google's had on the smart phone side.
1 Vote
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A quick note in followup:
vulpine@... 1 day ago
Despite many of the anti-Apple arguments, at least one of the world's biggest banks has fully embraced the iPad for both internal and external use while others have clearly recognized that the iPad is a prime tool for customers to access their account information. As such, the iPad is currently the best choice available in a market standpoint with Android (not counting phones) a distant second which may even be subsumed by W8oA if it can override WinMob's old reputation.
2 Votes
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Microsoft's opportunities...
vulpine@... 1 day ago
... are worthless if they aren't supported by their customers. While I do agree that WinME and WinVista were absolute failures, XP and Win7 have more than made up for them. Now, Win8 has the chance to really move ahead since the hardware structure is already in place, at least in the consumer field. On the other hand, it seems like the majority of techies currently testing the public beta of Win8 hate the interface, which could seriously affect its adoption in the market Microsoft really needs to retain: the enterprise. Apple already has its foot in the door there, if IT doesn't embrace Win8 fully then we could see Apple take as much as 50% of that market.
-6 Votes
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The real use of iPads
tonymcs@... 1 day ago Below threshold | Show Anyways
For every reported great use of an iPad in enterprise there are lots of IT departments groaning because their sheep like CEOs and execs want to be able to carry iPads. Doesn't matter that they're insecure, their screens are too small or they need to use essentially a remote desktop or just don't run internal applications, their purchase has to be justified.

If an enterprise really needs tablets and has some rational management, they're waiting for Win 8.
The iPads are walking into the enterprise for a simple reason ... it can do the job for LESS price. Sure, it can't be used for everything that a laptop can do (it is not a replacement), but it can do a hell of a lot of work where $500-$800 is actually cheaper (specially if you factor in the cost of the extra software licenses to have that laptop actually do some work). And the development cost to support an iPad (and even an Android tablet) is the same as developing for the PC ... only that it can also be used on any platform (not just a PC .... if designed right).

Also, the reasons why Android is being avoided like a plague are:
- All Android tablets SUCK. Not a single one is good enough for real world usage. Not even the Asus Transformer.
- Not a single Android OEM is providing any kind of decent or even minimally acceptable support to the products. If you get one update during the lifespan of the device, it is a miracle.
- Heavy fragmentation. Unlike windows PC, where you can move from one vendor to the other without problems, when it comes to Android, moving from one vendor to the other is a complete gamble. Applications that work on one, may or may not work on a device from a different vendor ... even when the version of the OS is the same.
-4 Votes
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Apple Fanboy Rant spotted!
CyberGuerilla 1 day ago
I have plenty of real world usage where the ability to sideload applications is a MUST. Would Apple allow me to do that? No! In my mind, iPads SUCK

Look, beauty is in the eye of the beholder. For you to trumpet all those lines about "lack of support", "Android tablets SUCK", "Heavy fragmentation" ... I HAVE YET TO SEE YOU POST ONE SINGLE SOLID EXAMPLE OF EACH. Until you do so please stay away from being a fanboy.
2 Votes
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From what I've seen so far, the enterprise has no trouble with generating its own iOS apps and installing them without the need to "sideload".
2 Votes
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RE: Apple Fanboy Rant spotted!
piousmonk 1 day ago
@CyberGuerilla

Do a little research. Apple provides tools (geared towards adminstrator) that allow the deployment of apps without using the App Store. As I said, these are geared towards admins, so it's not the same process as an end user sideloading apps from 3rd party stores on an Android, but we are talking enterprise here, and in fact, Apple does in fact provide you the ability to do that.

That being said in combination with your "iPads SUCK" statement, maybe you should take some of your own advice.
"sideloading" .... that is all you have to say?

I'm assuming you have the ability to self educate yourself .....

http://manuals.info.apple.com/en_US/Enterprise_Deployment_Guide.pdf
The mediocrity of MS tools and OSes (while catering to IT) served MS well. They were able to remove choice from the users of their products and force substandard tools like Exchange. Worst email server/client experience on the planet.

The CEOs and top execs finally got the lazy IT people to start doing their job. Nothing more.
0 Votes
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The real use of iPads
ScorpioBlack Updated - 1 day ago
If an enterprise really needs tablets and has some rational management, they're waiting for Win 8.

And what do you think these Metro tablets will be? A watered down version of being;

"insecure, their screens are too small or they need to use essentially a remote desktop or just don't run internal applications, their purchase has to be justified".

Based on your generalizations up above, all your doing is changing the logo on the machine.
0 Votes
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Good Point
sameer_singh17 1 day ago
The enterprise tends to lag consumer technology trends by about 1-2 years. 1-2 years ago, the iPad had 90% market share, so this was predictable. The challenge is what happens to the iPad a few years down the line.

http://www.tech-thoughts.net/2012/03/new-ipad-tablet-market.html
-2 Votes
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Most iPads 'used' in enterprise are for remote access to Windows machines. Its just a supersized iPhone, not a business tool... all these 'studies' are another way of marketing to prop sales...
2 Votes
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The arm-waving gets so confusing
Robert Hahn Updated - 1 day ago
You Munchkins need to get your stories straight. Not two minutes ago, we were told that iPads were used by Executive Sheep because they like to be seen carrying the same device as Paris Hilton. Now you're saying these are little portable thin clients used for RealWork(tm).

Some of us are old enough to remember when IT guys would write what you wrote, except they'd have said "mainframes" where you used the term "Windows machines."
2 Votes
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Nice try Loverock Jr.
http404 1 day ago
Fail.
0 Votes
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lol...
ScorpioBlack 1 day ago
NT
I've read a lot of comments like owllnet's above claiming Win8 will rule. Unfortunately, they are at least half wrong, but not totally so.

By every report of Win8oA, the simple fact that it can NOT run legacy desktop software kills most of that argument; it's little better compared to Windows desktop than iOS compared to OS X which, by the way, is quite powerful in itself.

However, Win8 for x86 can be and will be an excellent touch-capable desktop OS for those larger convertible laptops and desktop computers if the developers will only support it. The problem is, right now over half of the people currently testing the Win8 Public Beta hate the UI and want to retain the point-and-click interface. I've seen Win7 at use on a touch-display PC and love the fact that it's simply much easier to point at and touch the icon, radio button, link or whatever with your fingertip than it is to drag the mouse to find the pointer (an especial problem for people with less-than-perfect eyesight) then drag it to the link/whatever to left/right-click on it.

So yes, Win8 could be "the next best thing since sliced bread", but only if the developers properly support it and the users embrace the change. Unfortunately again, I don't see that happening very quickly outside of the consumer market.
Anything else will be wasting money on unmanagable insecure toys. Get a tablet that has a tpm and supports bitlocker and is managable through AD corporate policies. You will be able to by intel tablets with better hw that outperform ipads at less cost with longer battery life very shortly. No reason to squander budgets on insecure ipads with no enterprise features at this point.
Or haven't you heard that the majority of Win8 testers right now hate the interface? If they hate the touch interface they're going to hate Win8 and tablets will remain a niche product for them. It doesn't help that the touch interface is getting almost no support from developers, the people who really control what's accepted in Windows and what's not.
0 Votes
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Your Utopia can only exist...
piousmonk 1 day ago
"You will be able to by intel tablets with better hw that outperform ipads at less cost with longer battery life very shortly."

Given that's on the shoulders of HP, Dell, Samsung, etc. how is that supposed to happen? The Android OEMs haven't been able to accompish that trifecta, and Android doesn't carry the same licensing costs as Windows. Windows 8 doesn't magically remove the obstacles that have prohibited Android OEMs from accomplishing this. The only way that happens is if someone (e.g. MS, Intel) is willing to subsidize the hardware (not unlike what Intel's doing with ultrabooks), since it's highly unlikely the OEM's are going to be willing to take a loss.
0 Votes
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Actually
jbeck82 1 day ago
Some of the hardware manufacturers you mention above (won't name names) make parts for the iPad. So it's not unreasonable to think that W8 tablet HW could be just as good, if not better, than iPad HW.
0 Votes
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RE: Actually
piousmonk 13 hrs ago
@jbeck82

I'm well aware of that, as I'm aware that some of them make parts for Android tablets, or even make their own tablets, but have yet to pull off that trifecta of cheaper, better and more battery life (than the iPad). So if they can't do it with an OS that Google's pretty much giving away to them, how are they going to accomplish it with W8 tablets when you add the cost of an OEM license to the equation?

I'm not saying that nobody can beat Apple's specs, there are probably Androids out there that beat the iPad 2 and someone will probably come out with one that will beat the new iPad shortly (if not there already). I'm not saying that someone can't do cheaper either, as there are obviously tablets out there that are cheaper than the iPad right now. I'm simply responding to the claim that there will be W8 tablets that beat the iPad in all 3 of the stated categories.
I have Windows 8 on VMWare right now and it clocks in at a hefty 7GB

iOS 5 clocks in at 800MB.

So even if a user got a low-end Windows 8 tablet with a 16GB SSD, it would take up nearly half the storage....

Right now Windows 7 tablets (HP Slate) are going for $700...that's 1.5 times the cost of a low-end iPad....

It will weigh more..and probably have a huge battery to be able to handle the OS power consumption.

It hasn't even come out yet and it's already looking like a fail.
Functionally, W8oA is the nearest thing to iOS that Microsoft's producing and it's simply going to have the same limitations iOS itself has; however, the direct tie-in to Windows itself and hopefully some tight integration with desktop Windows could make it a viable competitor.
0 Votes
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nope
Synthmeister 1 day ago
"...the direct tie-in to Windows itself and hopefully some tight integration with desktop Windows could make it a viable competitor. "

Or not.

They've been saying that for 10 years now. Unfortunately both MS and Intel believed that lie and didn't fix the fundamental mobile flaws in their products and Android/Apple/ARM caught them with their pants down.

When you can show me a Win8 tablet running Office, with full Outlook integration, a 10 hour battery, 2048 x 1536 display, 1.5 lbs and close to $499, then we might have a viable competitor.
0 Votes
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Starting from ground zero...
Synthmeister Updated - 1 day ago
Windows 8 is starting from ground zero in the mobile space. Period.
There is no advantage in the mobile space from their PC monopoly, and never has been or we would all be using WinCE 6.5 phones now.

Now, three years after the iPad and five years after the iPhone, MS finally has a semblance of a mobile strategy, but they are still missing devices, and--much, much more importantly--zero ecosystem of developers, apps, retail distribution, corporate acceptance, branding/marketing, peripherals and OEMs who actually give a hoot. They're too enamored with Android's "free" OS or licking their wounds from trying to roll their own OS (HP/RIM) or too busy hoping against hope that their "sell-at-cost" devices (Amazon/BN) will be gloriously justified by their "sell-at-razor-thin-margins" internet retail operations.

Basically, it boils down to this: Apple is on its third generation tablet, 5th gen phone with its fifth generation OS accompanied by a complete and comprehensive ecosystem and MS has squat. It is almost the complete opposite of 1984 when the Mac came out. Then, MS/IBM had the massive ecosystem and the Mac couldn't even build on the existing Apple ecosystem.

2014 will not be like 1984.
Lies, damned lies and statistics!

What are the raw numbers of iPads we are discussing?

Otherwise it is like those ads that list all the F500 companies that bought their product, without saying whether it was one or 5000 copies.

Buying some for executives does not mean much when they are few in numbers and fairly disonnected from the rest of IT.

Rollouts for field workers are meaningfull if we know the numbers and what % of the whole worforce that represents.

Otherwise it is just fans trying to beat up a false image of enterprise success.
0 Votes
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Enterprise adoption is real
Synthmeister 1 day ago
Boston Scientific, Delta, Quantas, Nippon Airways, Lowe???s, Alaska Airlines, United and Continental Airlines, Siemens, Standard Chartered Bank, Benetton, Urgent Care in St.Louis, MO, city of Vancouver, WA, Crescent Construction Services, Medtronic, GE, SAP, USAF, USGS, Hyatt, Rehab Care, etc. These companies are deploying iPads and iPhones by the thousands and seem to be looking to expand their uses as fast as possible.

And at least six months and another iOS update to go before the first Win8 tablet even hits the road.
automatically become bigger than iPads of the last 3 years.

Then, in years 2 and 3, it will leave the iPads in the dust.

Just a little bit of extrapolating.

wink

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