Tech startups continue to grow at a rapid pace. At the end of 2013, there were nearly 140,000 of them, according to World Startup Report. And while the U.S. has traditionally dominated the startup space, that appears to be changing. The same report found that more than half of those 140,000 startups were based outside America.
Facing this type of competition generally causes “old guard” technology companies to do one of two things: either buy the startups they see as most promising and most aligned with their goals, or partner with each other to out-do new startups.
Last week, a couple of significant new partnerships were announced, both of which are aimed at business customers. What types of opportunities might these new partnerships provide enterprise customers?
Making enterprise upgrades easy
The first significant partnership announced last week is between long-term rivals VMware and Microsoft. The two companies announced they will partner on a new device management strategy called Project A2.
Microsoft and VMware executives explained that Project A2 is part of a trend in which IT departments will start to stream apps from their data centers or the cloud. Acknowledging that upgrading an operating system at an enterprise is challenging, Project A2 aims to give businesses an easier way to roll out new operating systems like Windows 10 as well as the apps employees use on tablets and smartphones.
Joining forces to defend their markets
Also last week, Apple announced it is partnering with Cisco to give business users of iOS devices a “fast lane” on Cisco-powered networks. For business customers, that means a higher level of compatibility and performance between Apple and Cisco products.
For Apple, the partnership may provide the company a way to improve iPad sales (Apple’s third quarter earnings report for 2015 revealed that iPad sales have decreased 18 percent year over year) as well as other Apple devices. Meanwhile, Cisco faces increasing competition from low-cost Chinese suppliers like LTE and Huawei, and is looking to the partnership with Apple to help it maintain its stronghold in the market.
Apple Chief Executive Tim Cook and Cisco Chairman John Chambers said their companies spent 10 months working out details of a collaboration.
“It became clear to me that partnering with Cisco would yield the results that would enable us to transform work,” said Cook.
Last year, Apple struck a partnership with IBM to jointly create apps for the workplace, while IBM employees help sell and support Apple devices with corporate clients.
Innovate or die?
The partnerships announced last week may be the start of a growing trend. It’s clear that older, often slower-moving tech companies like Microsoft and Apple have to do something. With new companies starting up constantly – both in the U.S. and abroad -- and promising to meet business needs faster and often more cheaply, the “old guard” must find a way to move quickly to protect what they’ve built.
The good news is, this likely means great things for businesses, who will only benefit from partnerships that make technology work better for them.
