Apple’s new server strategy

Apple Computer Inc. has remained in the news as a manufacturer of innovative consumer and professional desktop and portable computers. It has also expanded in numerous areas such as digital video and digital audio and most recently, it made waves by introducing a successful online music distribution system, Apple Music.com, which enables users to purchase songs online for .99 US cents.

Unknown to many, especially in the Philippines, Apple has been slowly entering the enterprise server and rack mount server and storage space markets, applying its technology to data storage and delivery hardware that is cost-effective, scalable and reliable. Integrating ease of use in the server space as well as employing its latest server OS that, since it is bundled, offers unlimited client licenses, is more cost-effective than other solutions requiring a per-client license fee.

NetWorks had the opportunity to interview Richard Ng, Apple’s product marketing manager for desktops, servers and displays in the Asia-Pacific who was in the country last week to introduce Apple’s Xserve and Xserve RAID server and storage products.

NetWorks: What is the differentiating factor or feature advantage of Apple’s Xserve line of server and storage solutions over the established competition?

Ng: For one thing, the Xserve has no license requirements, no client access licenses are needed and people like that. If you are a SME or a larger enterprise, the growing concern is future growth. As you grow, you want scalability but not at the cost of getting penalized. We don’t like to stop our customers from growing so we have done away with licenses.

Another advantage of the Xserve line is that it offers Unix-like stability. We also offer Xserve and Xserve RAID not just as products but as integrated solutions. We partner with companies to make these solutions available to customers.

NetWorks: What is Apple’s strategy on the current series of Xserve and Xserve RAID servers? How are they being accepted in the Asia-Pacific?

Ng: There has been great interest in Xserve and Xserve RAID in the region. We have a solution that is interoperable and standards-based and which is comparatively cheaper than our competitors. Plus our Xserve and Xserve RAID solutions are backed by Apple’s support. This has been possible because we build the whole box; the hardware and the software are really integrated. This is unique to Apple because no one else does this.

We are also driving standards; we are driving this with innovation and integrating the Apple UI (User Interface). With three clicks, you can set up an audio and video streaming Xserve RAID server that can push content on the Internet. This is unprecedented.

NetWorks: What kinds of customers are being attracted by Xserve solutions?

Ng: Aside from SMEs, there have been some banks, government agencies and libraries. Businesses not traditionally identified as Apple customers but which have seen the benefits of Xserve on cost-efficiency, ease of use and standards.

NetWorks: The Apple World Wide Developer’s Conference will take place on June 23 in San Francisco. The grapevine is talking a lot about Panther (OS X’s next major revision) and possibly, the long-awaited IBM PowerPC 970 processor. Any insights on what the focus will be? Any product announcements?

Ng: I have to pass on product announcements. However, it’s no secret that Apple’s big emphasis now is on enterprise. If you log on to the WWDC website, you will see a big focus on enterprise applications on Mac OS X server. Panther, we will get to see what it can do in a week’s time. I think that Panther will take us to a new level, beyond the current (Mac user) community.

Certainly, Panther is an exciting upgrade to OS X as it will play an important part in Apple’s overall strategy. Panther will have some performance improvements. We also expect developers to port some of their applications to OS X; some might optimize their applications to take advantage of what Panther has to offer.

NetWorks: How successful have the recent iApps been in the region, specifically Keynote, Safari and iLife?

Ng: The iApps such as iLife are the reason people buy our machines and software. iLife is the digital hub application integrating digital audio, video, photos and DVD production from one single application.

You can, for example, download digital video from a camera to iMovie, edit and sequence the transitions and then export it to iDVD, pick a template and then burn a copy of the video. I think the digital lifestyle is picking up in Asia, especially digital cameras that are selling well. iLife has been a key application that has driven customer adoption particularly in the consumer space. What is important is the region is right for this.

NetWorks: The Xserve line has not yet been prominently marketed in the Philippines. Is there any reason for this? It seems like resellers focus on the desktop and portable Macs but there’s hardly any mention of pricing for servers.

Ng: Xserve has been around for some time, while Xserve RAID is fairly new. We are starting to train our local partners and integrators. The Philippines is an important market. The idea is not just to sell servers or storage but to offer solutions.