Is IBM-Apple Partnership All About Product Sales?

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July 15 (Bloomberg) -- Apple and IBM will work together to create business software for iPhone and iPad users, setting aside a three-decade-old rivalry to cater to an increasingly mobile workforce. Cory Johnson and Matt Miller discuss the new partnership on "Taking Stock." (Source: Bloomberg)

Better revenues.

Can we turn your attention to ibm and apple.

Talking about revenue.

They have new applications for what?

This is another one where the headline is ibm and apple using the best of their watson technology -- i don't want them to use the worst.


According to sources familiar, by the way.

But the big deal here is not the app.

It's the fact that you will have all of these ibm sales people and service people on their feet on the street knocking on client stores and saying you have to check this out.

It's an ipad, and iphone.

I thought everybody was in the cloud.

It's ultimately about devices and selling high-margin devices.

They are going to penetrate the corporate market in ways they never have before.

They have a partnership that i think it is all about the sales of products, not about developing apps.

All right, so i am wondering, matt miller, if you can connect that.

If you bought the apple automobile produced by ford, you have more of these, the crm application, put it right on the dashboard of the car.

Eventually, i will put on some oculus goggles where i don't have to drive anywhere but i can do business with everybody in the same space, virtual reality.

I don't know.

Maybe, cory?

Going back to google and alan mulally's move there.

Remember, he was very close to steve ballmer and microsoft actually supplies forward and still does with all of their in car out gadgetry cash -- app gadgetry.

Now it's almost like he is going to a competitor.

Competition is a way of life in silicon valley.

A google they are using microsoft operating systems.

Ford has microsoft office and microsoft windows all over the company.

Increasingly, you're going to see these companies overlapping and cooperative and is -- and competition is the name of the game.

You think hulu and pied piper will get together?

I don't think that will be the case.

We'll see.

Any idea how much money they are going to commit to this venture?

It's been conspicuously absent from the press release.

They haven't committed what they're going to spend.

The focus of the press release is apps in development.

But i think the key is to have ibm sales.

There is a thing developing in silicon valley that we talked about a little on street smart.

The ipad really change things.

Executives walk up to their i.t. guys and say i have to find a way to use my phone but you are going to make this ipad work on our corporate systems.

But what didn't happen there was a development of corporate software were you had software really coming from providers developing whatever an individual corporation might have in terms of its own proprietary software, sales manage and saw -- sales management software and so on.

It's bad news for blackberry if the ipad is available.

I think ultimately that is going to be the big benefit of apple breaking into the corporate the part and -- corporate side of things, which goes all the way back to pre-john scully when getting into the corporate market was the biggest failure of apple and the biggest success of ibm we will see if they can do that.

They have taken an upper niche.

It's almost a luck luxury product.

It will be interesting to see if

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