Consumerization of the Enterprise Evolves

National Public Radio recently aired an hour-long program devoted to the debate of one simple question: “Whose world are we living in – Apple or Google?” The implications of this question to the channel are significant on many levels. Here’s a hint: consumerization.

The premise of the news show, “On Point”, is that these two titans are at the pinnacle of two technology philosophies and business models. Apple sits atop a closed-development, device-driven and application-powered ecosystem. Google, conversely, is information- and Web-driven, and it goes to market via a complex Web of partners. The show’s guests argued that Apple and Google are battling for the hearts and minds of businesses and consumers alike.

I do not disagree. Many technology vendors are looking to squeeze out more revenue, drive down cost and attain greater command over their customers through closed-market systems. This is, of course, a direct sales model, but Apple does it slightly differently in that everything about the platform – devices, software, marketing and sales – is Apple driven. Google is primarily a direct sales model, but it’s evolving to include more reseller and agent partners to drive adoption of its software and services.

But why did NPR select Apple and Google as representative of these two rival paradigms? Why not Microsoft, which practically invented the channel and indirect sales model? Why not Dell or Hewlett-Packard, which both wrestle with their direct vs. indirect business models? Why not IBM, which has a long history of working through partners on one end of the market and through direct sales on the high end of the market?

Apple and Google share one common characteristic: they‘re both working their way into the enterprise market from their roots in the consumer market. And what gives them both an advantage over their old technology brethren is simplicity. They have, in their respective ways, conditioned the consumer to expect technology to “just work”.

Think about that for just a moment, “just work”. We’ve all heard the comparison of Apple’s Macs and Microsoft Windows-based PCs. Apple’s products are praised for their efficiency, reliability and ease-of-use. Windows is criticized for its vulnerabilities, resource-hogging applications and difficulty in configuration and management. While Apple still represents a fraction of the total personal computing marketplace, it’s been steadily capturing users at Windows expense because users view Macs as better.

It goes beyond just PCs and operating systems. Google Android is the fastest growing mobile operating system on the market. Apple iPhone – and by extension its operating system – shot from zero to market leader in the last four years. Meanwhile, Microsoft Windows Mobile, Blackberry and Symbian – admittedly more complex and user unfriendly – have declined in market share.

We’ve all heard the phrase “consumerization of the enterprise” to describe how consumer electronics and applications are influencing business technology decision making. Traditionally what this has meant is end-users/employees wanting to use their personal iPhones instead of the corporate-issued Blackberry. But consumerization is evolving to mean “user experience” that is shaped increasingly by technology vendors such as Apple and Google. And this has tremendous implications for tech vendors and solution providers.

This issue is coming up in conversations I’m having with technology vendors and carriers. They express the same sentiment: Consumerization and the desire of users for technology that “just works” is prompting enterprise decision makers to question the entire value proposition of the systems they employ and support. They’re questioning why they must pay exorbitant support costs for Windows and Linux systems when they pay next to nothing for the support of systems they have at home. They’re openly wondering why they can get something for free (or next to free) on a consumer level, but are told they must pay multiples more the acquisition costs for implementing, operating and maintaining complex enterprise systems.

The NPR panel asserted that Apple is driving value-add opportunities out of the channel by making their products simpler to deploy, operate and support. At the very least, this Apple-Google consumerization trend will get more businesses on all levels to question why they’re paying for service and support, and why they just can’t get a solution in a box that virtually any can operate.

The evolving nature of consumerization of the enterprise and what it means to technology sales is definitely something every solution provider – vendor and VAR alike – needs to take into consideration when thinking about their future value proposition.