Cisco, Apple to Enhance User Experience in Enterprise Mobility



Cisco-Apple deal to drive user experience

In the previous parts of the series, we saw that Apple (AAPL) has a lot to gain by collaborating with Cisco (CSCO). The IT environment is changing with the advent of cloud and business collaboration tools. Smart devices and apps are replacing traditional enterprise technology. Apple is known for its enhanced user experience in the consumer market. Through the collaboration, Cisco will enhance user experience, which is critical in enterprise mobility.

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Businesses adopt enterprise mobility

According an Ernst and Young survey, the enterprise mobility adoption rate stood at 25% in 2014. Mobility is moving from IT desk to boardroom to become an integral part of business strategy. The survey results showed that over 63% of respondents are using enterprise mobility for messaging and collaboration, and 47% plan to extend its usage to management reporting and dashboards in the future.

IDC (International Data Corporation) estimates that in 2015 more than 50% of large firms will spend on enhanced enterprise mobility management capabilities in order to make apps and data more secure.

Cisco’s role in enterprise mobility

It is very important for a company like Cisco, which pioneers Internet networking infrastructure and business collaboration tools, to adapt to this changing trend and offer seamless integration with mobile devices. By making its products optimal for iOS devices, Cisco will further enhance the user experience and add value to customers.

According to Synergy Research Group, Cisco led the UCC (unified communications and collaboration) market with a 16% share in 4Q14. Microsoft (MSFT) followed closely with a ~14% share, and IBM (IBM) remained constant with a ~4% market share. UCC is an integration of enterprise and communication services such as e-mail, enterprise content management, enterprise social networks, voice, videoconferencing, telepresence, and cloud communications.

To gain exposure to Apple, you can invest in the Information Tech ETF (VGT). VGT invests 16.88% of its holdings in Apple.


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