By Sandy Fitzgerald | Mon Jan 23, 2012 12:01 pm |
HTC and IBM are working together to encourage businesses to adopt Android devices and lock down a lucrative piece of the enterprise sector.
HTC, which has not made many inroads into the business market, is now running IBM business apps on its phones and tablets. The IBM apps focus extensively on security, which is a major concern that has kept businesses from adopting Android devices.Android, an open-source program, is often plagued with malware, and several phones and tablets running the platform do not offer adequate security needed for privacy-minded businesses. Research in Motion's BlackBerry, despite shutdowns and some security issues this past year, is considered the gold standard for businesses because of its encryption, secure e-mail systems and private messaging capabilities. Apple, building on the success of its top-selling iPad, is encroaching on RIM's dominance in business since last year. More than 90 percent of people who have iPads use them for work, and businesses are also buying them for their employees. Apple's enterprise market is growing because it emphasizes its own encryption and remote control access for IT administrators, taking advantage of companies' increasing emphasis on allowing employees to use their own mobile phones for work. Apple devices have traditionally been favored among many businesses, particularly in the creative industry, for their security against viruses, and that dominance is translating to its mobile devices as well. By adding IBM's business apps, HTC likely hopes to earn the trust of businesses. IBM has been a solid force in the business world since the earliest years of computing, and will likely give HTC's mobile devices a new level of security that Android doesn't yet offer. HTC's attempt to attract enterprise buyers is expected to help secure a top position for the Taiwanese smartphone maker. HTC's Android devices rank second only to Samsung's, but its profits dropped by one-quarter this past fall when Apple's iPhone 4S and Samsung's Galaxy line cut into sales. In addition, HTC pays Microsoft $5 for every Android device it sells following a licensing agreement, meaning a multi-billion dollar cut to its bottom line. Adding business customers will likely help HTC recoup some of that cost, even though it will still have to give Microsoft its share of the profits. Even adding business customers, though, won't help HTC much if it doesn't develop tablets that can compete with Samsung and Apple. HTC is behind in tablets, offering only the Flyer and the Jetstream. The Flyer is relatively inexpensive, but the Jetstream costs $750, far more than the top-selling iPad 2, which starts at $500. Despite the Jetstream's much-higher price, HTC may attract some to switch to the Android-powered tablet if it can convince businesses its IBM apps give the tablet a sense of security along with function, giving HTC a foothold in the enterprise market. If HTC's devices can't attract buyers away from Apple and Samsung, however, businesses may choose an Android device that is a best-seller instead, leaving HTC once again out in the cold -- and even IBM's apps may not be able to make the enterprise market switch its purchasing preferences.
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