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Why IBM announced a partnership with Apple

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IBM’s patnership with Apple

In July 2014, IBM Corp. (IBM) announced its partnership with Apple Inc. (AAPL). IBM wants to make a space for itself in the enterprise mobility space. The deal is termed as “MobileFirst.” IBM wants to convince its customer base to consider it for Mobile Device Management (or MDM). The combined product offering is expected to deliver four key capabilities:

  1. More than 100 industry-specific enterprise solutions and apps developed exclusively for iPhone and iPad
  2. Unique IBM cloud services that are optimized for iOS—including device management, security, analytics, and mobile integration
  3. New AppleCare services and support tailored to enterprise needs
  4. New packaged offerings from IBM for device activation, supply, and management

If IBM posts good earnings in the future, it will benefit the NASDAQ Technology Dividend Index Fund (TDIV) and the VanEck Vectors Wide Moat Research ETF (MOAT). They have high exposure to the company.

partnership

Apple is the most preferred operating system

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Apple provides a single, consistent mobile environment for IBM’s management and app-development services. Google’s (GOOGL) Android is fragmented on the operator, device, and management levels. In contrast, iOS has a considerable percentage of its users on the latest version of its iOS. Apple’s iOS has a better chance of being the first choice by IT in terms of support for devices and development of mobile apps.

How this deal will benefit IBM

The deal is enhanced by the increase in the acceptance and adoption of the bring your own device (or BYOD) revolution. It led to an increase in the established base of enterprise customers. IBM is expected to benefit from this deal and trend.

Through the deal, Apple’s iPhone and iPad will be preloaded with IBM’s “big data” and analytics apps. This will allow IBM to penetrate the cloud space. According to Apple’s CEO “iPhone and iPad are used by ~98% and ~92% of the Fortune 500 and Global 500 businesses today.”

Click here to learn more about the partnership between IBM and Apple.

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