Why IBM and Apple target “big data” and the mobile space

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Deal is expected to push mobile adoption in the enterprises

Apple (AAPL) and IBM (IBM) announced a global partnership that’s designed to push increased adoption for mobiles in the enterprise space. Most of the mobile applications in enterprises are restricted to mobile CRM, field-force automation application, customer-facing mobile website or applications, and employee portal.

IBM’s MobileFirst initiatives want to integrate its enterprise mobility management, mobile app platform, and mobile analytics capabilities by focusing on iOS.

If IBM posts good earnings in the future, it will benefit the NASDAQ Technology Dividend Index Fund (TDIV), the iShares U.S. Technology ETF (IYW), and the VanEck Vectors Wide Moat Research ETF (MOAT). The exchange-traded funds (or ETFs) have high exposure to the company.

preferred choice

Focus on mobile apps’ entire lifecycle 

Mobile’s entire lifecycle will be covered through this partnership. The partnership includes:

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  • Delivery, support, and repair for Apple hardware
  • Management and security for iOS devices along with devices that are pre-configured for enterprise use within an organization
  • Guidance and frameworks for the development and deployment of mobile apps that are embedded with IBM’s analytics and “big data” application capabilities

Despite wide popularity and usage of iOS and Android devices, they haven’t created significant demand in enterprise. The secure connection of large-scale legacy back-end systems to mobile devices is a critical issue. It needs to be addressed to increase the demand.

As a system integrator, IBM has the expertise and a developer team that can work with clients to develop mobile apps that cater to customers’ needs. As the above chart shows, system integrators are the preferred choice for mobile application and deployment.

Deal is expected to address “big data” and user engagement needs

IBM is known for its enterprise credibility. It provides support to organizations. IBM uses its automation and standardization to improve organizations’ effectiveness.

With this deal, IBM wants to move beyond mass scale into large-scale customization and user engagement. The retail, travel, and healthcare segments are incorporating best practices in monetization ranging from gaming to consumer apps.

By bringing user engagement and analytics into their business to consumer (or B2C) apps, they’re able to measure and understand user interaction with mobile applications. They can maximize the user lifetime value. Then, they can develop strategies for user engagement and responsiveness.

IBM identified “big data” as its key growth area. Apple and IBM developed expertise in analytics and user engagement. The deal is expected to address the tools needed for user engagement and responsiveness. It’s expected to leverage the mobile devices’ capabilities.

Click here to learn more about “big data.”

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