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Apple iPad will fail in the enterprise: Dell

Closed view, high price and complexity of iPad unappealing to CIOs, Dell claims

Despite the iPad's long lead in the enterprise market, Apple's tablet PC performer will not last long according to an increasingly bullish Dell.

Speaking to CIO Australia in Sydney, Dell’s global head of marketing for large enterprises and public organisations, Andy Lark, said while the first iPad had achieved one million sales just 28 days after the device first became available in the US and precipitated the explosion in tablet PCs, it would ultimately fail in the enterprise.

“I couldn’t be happier that Apple has created a market and built up enthusiasm but longer term, open, capable and affordable will win, not closed, high price and proprietary,” Lark said. “[Apple has] done a really nice job, they’ve got a great product, but the challenge they’ve got is that already Android is outpacing them.

“Apple is great if you’ve got a lot of money and live on an island. It’s not so great if you have to exist in a diverse, open, connected enterprise; simple things become quite complex.”

While Apple had entered the businesses as a consumer device, Lark claimed Dell had taken an enterprise approach toward tablet PCs, which would ultimately give the company, which has a major stake in Microsoft Windows and the desktop PC market, an edge.

“We’ve taken a very considered approach to tablets, given that the vast majority of our business isn’t in the consumer space,” he said. “[A company] like Samsung has to aggressively go after their business, but we’ve got a far more diversified footprint than some of these players.”

The cost of Apple products was another deterrent to iPad deployments, with Lark claiming that a the economics on a fully kitted iPad did not add up.

“An iPad with a keyboard, a mouse and a case [means] you’ll be at $1500 or $1600; that’s double of what you’re paying," he claimed. "That’s not feasible.”

Despite the company's history with Microsoft, it had embraced both Windows Phone 7 and Android operating systems offerings as the market was increasingly moving away from Apple's iOS4 offering.

“…Our strategy is multi-OS," Lark said. "We will do Windows 7 coupled with Android Honeycomb, and we’re really excited. We think that giving people that choice is very important.”

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66 Comments

Vic

1

Ok, thanks for the rhetoric - now show us the product.

Mark Newton

2

This guy is DELLusional.

He thinks an iPad needs a keyboard and mouse. What dies that say about his subject matter expertise? He also thinks a keyboard and mouse cost around $500.

He thinks the iPad is high priced. Has he coated an Android Xoom or RIMM Playbook lately?

Good luck Dell.

John

3

Did he mention whether Dell plan to knowingly use defective parts in their tablets, as they did for years in the Optiplex business workstations? Is that part of the Dell "considered approach"?

davewrite

4

fantasy from the company that made the Dell Streak which is so bad it's a joke:

Wired:

"foolishly overdesigned in an attempt to stand out, and coming up short all around...
"display looks visibly chunky, but the viewing angle is so poor that moving your head even a few degrees from dead center creates a screen-door effect so bad that it borders on nauseating, It’s not just the worst tablet display I’ve ever seen, it’s the worst display of any kind I’ve seen since the dawn of the LCD screen. .... Streak 7 could only muster five hours of battery life... Mattel Football had a better screen. Dismal battery life. Crashed twice — once going dark for an hour — in the first day of testing."

darthno

5

lol.......... Yeah, you have to buy a mouse for the ipad, otherwise it'll be unusable!

dcptt,4321

6

Mouse?? Huh?? I think you'd need a pointer for that wouldn't you?? umm...

I bought a bluetooth keyboard/case for $69.

Has he even seen an iPad?

Rick Schallack

7

I really think that CIO needs to ferform toxicology screenings on their interviewees. "$1500-1600" sounds like the cost of a "fully kitted" Dell. The iPads were actually quite reasonably priced.

Also, by the virtue of the fact that Fortune 100 companies in the US are utilizing iPad, he wouldn't know what an enterprise was unless it bit him in the...

John-Boy

8

I must have missed something.

I suppose it is possible that enterprise might not embrace tablet computers, but the only thing he got right is iOS is closed. Considering the alternative, I would think that is a plus on the stability side.

Steven Thomas

9

Wow. A thousand dollars for just a keyboard, mouse (?), and case. I wonder wha...oh, I know - he forgot to mention the stylus!

In all seriousness, though, I would be quite worried (if I hadn't been already) if I were a Dell stockholder. The people that you trot out in front of the public as the face of your company are not even cognizant of the form factor or pricing of the competing product.

Perhaps that's what they're charging their enterprise customers for these items.

James

10

More evidence that they need to introduce random drug testing at Dell

Andrew

11

With execs like these, I think it's time to sell off Dell and give the money back to the shareholders.

x

12

Andy Dork.

Brian

13

So he thinks Android is surpassing iPads in tables too? No that is the smartphone market in the US and only because the iPhone was on AT&T. The iPad is not tied to a carrier so that problem does not exist. That is why it's not going to be the same game as with the smartphone market. And, can we could $120 junk android tablets as being a real factor in the market. I suspect it will add to the Android market share, but those tablets will be broken in 6 months just like the cheep MP3 players that come out of china.

darthno

14

Oh.... I get it now. The Dell tablets will require a mouse!

Tommy Boy

15

Y'all might know Andy Lark better by his birth name Muhammad Saeed al-Sahhaf or his previous job as the Information Minister for Saddam Hussein.

Little Neddie

16

He needs to take a tablet for his head ache

Drew

17

Clearly this guy is still of the belief that millions of people have bought the iPad due to better marketing, not because it is actually a good product. So he thinks it's okay to just say whatever he likes and it will be believed.
In this particular case, he seems to be right and I'm quite disappointed at cio.com for allowing an article to be published without any balance or fact-checking whatsoever.
Just as we need to temper the fanbois, we need to apply critical assessment of vested interests such as company execsutives.

Jon

18

Despite the grossly inaccurate numbers stated for a "fully-kitted" iPad the iOS platform offers exactly what corporate IT is looking for in security for a mobile device.
1. Enterprise level security features for network, device and apps.
2. "Sand-boxed" apps so no data can be shared between apps.
3. Developer/user certificate credentials for secure app tracking.
4. Hardware encryption of ALL data and communications.
5. Development tools and MDM for custom corporate use
So, what is it that makes this device/platform not ready for corporate IT?

Lamarr

19

This is the worst excuse of a statement EVER. He needs to be handed a pink slip immediately for his ignorance of the market.

How's that Dell Streak doing?

Rudolf Gottfried

20

1500-1600$ for an iPad+case+keyboard+mouse?
Is Randy-Andy really to stupid for simple arithmetic?
Dell vs. Apple - The tail yelps at the dog. That’s funny and ridiculous.

Milky

21

Wow fail. I don't think you understand what a tablet is and for if you srly need a mouse or a keyboard. I think you mean a laptop? Not a tablet? >>

Dom Barnes

22

"In my day you could get an iPad, mouse, keyboard and a case for $700!"

- Me, Today

Considering how well Dell's laptop with removable linux tablet did, I can't wait to see what they bring out. Probably the "First Honeycomb Tablet" just like Motorola and Samsung have.

And I think he's forgetting you also need a stylus right? So thats like $2000 in reality.

camhunt

23

Those darn 500 dollar keyboard and 400 mice

NP

24

He must be thinking that the Dell Suck err Streak tablet has been been sold to 10s of millions of enterprise users. He must be smoking even more nasty stuff than Balmer!!

iac

25

So, what island is that where the rich go and have both wifi and 3g?

Belle

26

Erm... isn't the Android Galaxy tab actually more expensive then an iPad 64 Gb? Yes! It is!

Jack Percy

27

I can't believe ANYBODY would be that stupid - no matter what company makes a product - go and play with it and see if it's any good. You would have to be such a fool not to be amazed by the iPad - everything else so far has been like a copy watch from asia ??? All JUNK - get real - stop with the crap Dell - make something good or do what you suggested Apple do - sell up and give the shareholders their money back - you remember Apple don't you - the company that is bigger than Dell & Microsoft now ...... come on - give them a pat on the back or come up with something worth buying - hmmmm - The writing is on the wall, just like Palm, Beta, VHS etc - time have changed - stay current or stay retarded !!!! Waste your money however you wish fool ..................

John Susek

28

A ... mouse? This guy is so out of touch

Mark Mathews

29

Almost all our staff have iPads and iPhones now - after years of Blackberries & IBM Laptops we would NEVER go back - we have been conned for years by these terrible products - we were brainwashed into thinking they were the only way to run a business, they were professional, they were the way all big companies operated- you know what - it took a few months for us to realise they are all so 80's !!!!!! We just put up with all the crap because everyone else did and we thought there was no better way - how stupid do we feel now ...... go on - put your toes in the water and see what you think !!

cloud

30

He forgot to mention no Flash for iPad.

Velo

31

LOL... you're a comedian!!

Robert Emost

32

I don't care what loyalty problem you have, iPads are great - of course I would like some other features on it (which I'm sure will come in the future) but nothing is perfect but this is by miles and miles the best tablet so far and they have such a huge lead that the others are running around like chooks trying to figure out what to do. Now and for the next couple of years at LEAST there is only one show in town and it's great - why do some people bag Apple and then buy some crap and try to get it to work and then validate it to us - get real - you just wasted your hard earned money and everyone you talk to knows it as well but can't be bothered to tell you - they smile and nod their heads like you are impressing them - guess what - BIG FAIL !!!!

David Small

33

Based on where his head is at, he needs to have a hole cut in his stomach so he can see out.

Peter Williams

34

No Flash - Oh what a huge problem (NOT) another comment from some low level user who is clinging to straws - wake up and see the future ...... on the other hand, go to bed, if that's your words of wisdom you should go to bed and dream of Dell and Windows computers working one day...... once that dream comes true - the next dream is that they can get a tablet to work - I think money is hard to come by now days - don't keep wasting it - expect something amazing or put your head on the pillow and keep dreaming of FLASH .... another technology that is on the way out ... and when things are on the way out it happens SO fast in the 21st century ..... Apple are doing some amazing things - they deserve praise just as many other companies did when they were at the top of their game - let's face it - with competition ... we are the winners !!! Get into it and enjoy it ..... life is short, have some fun and stop the complaining and clinging to the past .... open your mind and try something else other than what you have used for years and years .... you can't be that bored forever can you ??

Darth Vader

35

iPad 2 ......... hmmmm, the force is strong in this one !!

John Smith

36

I'm in retail - one thing I'd like to point out is that Apple's sales figures are end customer numbers (real numbers) - all the Android phones and other Tablets are sales to the shops like ours - the figures are very misleading as we have tons of units out the back gathering dust as not many people will buy them so it looks like they are keeping up with Apple but that's totally wrong. We thought they would walk out the door like the Apple stuff but we were wrong. We can't order any more as we can't get rid of what we already purchased so soon we will have to dump them as they are not popular - not even the staff can be talked into getting them at staff discount. We work on commission so we have to push the products at dumped prices telling people what a good deal they are getting but everyone in the store knows they can't compete with the iPad and iPhone and we feel like crap telling customers one thing and buying the Apple stuff ourselves ..... we have also had an alarming fault rate and returns on some units - be careful ... if it's cheap its not always a good deal. Yes ...... we all know my name is not John Smith and I'd get the sack for this but we have tons of $ tied up in this stock and the company just wants to dump it to get their money back and I have a conscience !!! Happy shopping ........

Zandhaas

37

Hope the guy read these comments as well. Or does he live in another universum (which would explain such stupid statements). The competition seems to be in complete shock after the quick introduction of the iPad 2: high quality, very complete and relatively low priced.

Michael Hughes

38

Another delusional Dell dude. Peddling crap devices sure isn't much fun anymore. I actually pity the guy.

Michael Pitogo

39

what is that guy smoking? talk about reality distortion field and vaporware. Yes we're all itching for dell streaks in the enterprise... not!

John_in_Austin

40

I worked at Dell for a long time. To use the terms in Round Rock, when some VP/Director level execs start to "breathe their own exhaust" or "drink the Kool-Aid" and make completely misinformed statements like Andy did, it's a sign that they are out of touch with reality (due to big bonuses), customers, and the products they sell. This is a usually personal, not a company, problem. Being a leader is hard work, and it takes some real effort not to get big-headed about things (like their record Q4). If Andy were to get out and talk to customers more often, he surely would have a different message.

Todd

41

Who is Dell?

Stacy

42

"We will do Windows 7 coupled with Android Honeycomb, and we’re really excited. We think that giving people that choice is very important.”

Translation: we'll try anything and hope something works.

swamijim

43

Um, don't Aussies "live on an island"?

FrankMS

44

Oh, no wonder I've never been able to use my iPad correctly! I forgot to buy a keyboard and mouse! How foolish of me.

This guy is so out of touch it's not really even funny. He's "Dell’s global head of marketing...."? whoa, there's big trouble in River City folks!

p

45

DELL should sell off the company and distribute the proceeds to the shareholders. That is the best foot forward.

derp

46

Talk is cheap

JohnS

47

Yes, the Dell guy sounds like an idiot. But the real problem is that the "reporter" Lisa Banks just parrots everything he said as though writing a press release.
Do some actual reporting: Lisa could have readily pointed out that the cost of a keyboard and case for an iPad doesn't make it anywhere near $1600, or questioned the sucess of the "considered approach" to tablets against the reality that Dell tablets aren't selling and aren't effectively competing in the marketplace.
But no, just idiotic drivel.

Ziad Fazel

48

"but longer term, open, capable and affordable will win"

and

“…Our strategy is multi-OS," Lark said. "We will do Windows 7 coupled with Android Honeycomb, and we’re really excited."

---------------

Neither Windows 7 nor Android Honeycomb are open.

http://tinyurl.com/4mwt7m8

"To make our schedule to ship the tablet, we made some design tradeoffs," says Andy Rubin, vice-president for engineering at Google and head of its Android group. "We didn't want to think about what it would take for the same software to run on phones. It would have required a lot of additional resources and extended our schedule beyond what we thought was reasonable. So we took a shortcut."

-----------------

Perhaps that is why Andy Lark at Dell thinks one needs $1000 of keyboard, mouse and case. To make usable the closed design shortcuts made by Dell's operating system choices.

unfungus

49

Oh no, I have to buy a mouse for my iPad ? I didn't really think it needed one, but I guess it does. Maybe I should get a webcam, microphone, speakers, external hard drive, printer, external backup battery, video cables, screen cleaners, usb tea warmer and comfy chair too ?

All I need to buy to go with my Dell Streak is a $5 rubbish bin ...

Roger Roger

50

I would hope that this magazine would take the time to officially point out in a follow-up article just how much crap this Dell flak spewed...and frankly it would have been nice if it had been within the article. In desperation over the prospect of losses in market share with many computer sales taking a back seat to iPads, Dell is scrambling to pass off the big lie as fact. Many experts have already confirmed that iPads are making big inroads in the enterprise already. And as many have commented, even this guy's pronouncements about iPad pricing are complete nonsense.

mhikl

51

Wow. Intelligent comments. I'm impressed! And Dell pontification; as I expected. It is what it is.

Comparing APPL and DELL stock says it all. Time Dell sold itself off and returned its rewards to its stock holders. Sort of what Michael was suggesting round 2000, I believe.

CIO

52

Agreed. Apple IOS is not for the enterprise for all reasons mentioned.

Gavin

53

Look at the subtitle of this "article." It's very telling:

Closed view: isn't that what enterprise wants for security?!
High price: High compared to what? NOBODY has beat Apple on price yet.
Complexity: the iPad is complex now?

Gary

54

On a "Lark," Dell should hire more informed executives and not ones prone to flights of fantasy.

David Winter

55

Oh dear. Many years ago, I had respect for Dell. But this guy is so out of touch that it physically hurts to read his statements (the comments, OTOH, are fun :)

Mouse? Keyboard?

Actually, I _do_ have a (Bluetooth) keyboard for my iPad (EUR 69, BTW), but I rarely use it.

Explaining to Mr. Lark why this is the case, and why the iPad is actually the most reliable and inspiring piece of technology both in my personal and business life _without_ expensive add-ons ... would take more time than a sane person would invest.

You, Sir, and unfortunately, your employer (a formerly respectable company) have missed the train. Good luck selling half-baked tablets with external mice and keyboards for USD1999 to boneheaded enterprise customers.

You have two or three years left, I guess. Enjoy it.

Rob

56

Unfortunately here we have yet another Dell executive that is totally clueless about the products that they compete with. Just as bad as this kind of ignorance is the "we aim to be slightly better than Apple's last year product with our next year product" business plan of most of the other players. Please compete with Apple, but in order to do it you will actually have to invest in coming up with something new. Just look at Dell's R&D expenditure compared to Apple's. I suspect Apple put more engineering effort into the design of the new iPad cover than Dell put into the Streak.

I have Lots of choice!

57

Apple gives people a choice. They can buy an iPad or buy a Dell or a Motorola or an HTC. Judging by the market reaction, I'd say a reasonable percentage of customers are using that choice to buy the iPad. Great that Dell wants to offer two choices. I feel for the CIO however that sends a memo to employees saying " I am giving you choice. You can have a Dell Windows or a Dell Android tablet... and you can even add a mouse and a keyboard to either... have a great day!"

Tim

58

Our company are switching various control computers to iPads. They are a brilliant solution for our requirements.
(Note: This represents a single anecdotal data point. FWIW)

The Tim Channel

59

Yeah, the keyboard and mouse comments were so off base that it overshadows the other delusions Dell has about market demand.

I'll work for Dell as a product adviser at half this guy's pay rate and do a better job for the company.

Enjoy.

John Weiler, IT-AAC.org

60

I was lucky to get the iPad2 on day1, took just a few short hours to add all my email accounts, load dozens of applications, and auto convert a dozen PPTs that I needed for a week long DoD Intel Conference. Being a PC guy for years after starting with the cute Apple2C (for compatibility reasons) I can tell you exceeds the hype. Battery life is 10 hours, network access is incredible, and functionality is out of this world. What I liked most was the intuitive nature and simplicity of the whole package.

With Skype, I could throw away my iphone, which autolinks with my 10,000 person contact list from Outlook on my desk top.

Steve Jobs, you did it again. I am a believer.

Terry

61

Dell is so in denial that it makes you want to laugh. Dell produces the Streak and thinks that because it's a tablet that it will sell. This company is headed towards the rocks because it's a one-trick-pony: selling cheap knock-offs to the uniformed. Well, HP is going to continue to eat their lunch in the enterprise and it won't be long until the likes of Acer or Asus start to eat away at the low end. Dell's been a bottom feeder so long that it thought that was enough. With horribly naive comments like these (this guy's a senior manager???) you can tell the talent pool at Dell is mighty shallow.

Rolf Raess

62

According to my experience with PC owner, as a teacher for MS office users, most of these people have never seen or tryed an Apple product. That's just bla bla.
Maybe M. Dell's PC's have still Floppy discs… lol

Roy W

63

Dell tried to offload their X51 PDA onto the NHS, with terrible results, the browser froze, the PDA locked up... sent back unfit for purpose. One of their execs had the balls to contact us and tell us that our software (used worldwide on many platforms) was faulty. What the iBleep do we know?

there was a great video on youtube at the time - of a guy torching his Dell - with Petrol. Problem solved.

MerissaSeth

64

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software mylanviewer

65

This blog post gives the light in which we can observe the reality.

Bob R

66

It's not surprising that a Dell rep would have an optimistic outlook on the potential for their product offerings and inflate the expected costs of the competition. However, I agree with the long-term advantage of an open software platform, the benefits of an open hardware market, and the attraction of lower costs associated with non-Apple products. Yes, there are a some high-priced non-Apple tablets on the market, but there are many lower-cost versions with equal or better options. Apple has an early (not first) mover advantage, but is unlikely to maintain that long-term lead.

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