Maybe it's the ingenious ads that feature the cool, young Mac user questioning the middle-aged, geeky Windows guy. Maybe it’s the ubiquity of the iPod.Maybe it’s the fact that Macs can now run Windows applications.Whatever it is,Apple Computer has made inroads into small to midsize businesses in the past two years.And with the introduction of the new Leopard operating system -- particularly Leopard Server -- it may entice even more SMBs.

Although Apple’s operating system still has a minuscule share of the overall SMB market, its hardware sales to this sector are increasing. According to a recent study by Access Markets International (AMI) Partners, Apple’s penetration in the midsize business market has doubled in the last year in both desktop PCs (from 13 percent to 27 percent) and notebooks (from 9 percent to 18 percent). In small businesses -- those with fewer than 100 employees -- Apple’s desktop PC penetration jumped from 6 percent to 12 percent and laptops from 5 percent to 8 percent.

AMI analyst Yedda Chew expects Leopard to fuel that positive trend.“With Leopard,” she says,“Apple may well attract a new wave of users, especially among Windows PC users who had been taking a wait-and-see attitude.”

Beyond Cool
Solution providers are taking notice.“There’s an interesting renaissance in Macs in the small-business segment right now,” says Jeff Roback, founder and president of Praxis Computing. Roback started out as a Mac dealer in 1992, but switched to selling Microsoft when Apple fell on rough times in 2000 or so.After several years of struggling with strategic direction and product quality -- remember the exploding PowerBooks? -- Apple has re-established itself, Roback notes, and Macs are stable, easy to use and cool again.

Ken Hausrath, senior Apple technical support specialist at Ingram Micro, has also noticed increased interest from SMBs. “More and more of the OS X software and Apple hardware are being integrated by SMB customers and the government as well,” he says. “They are implementing both servers and desktop clients.”

A Growing Apple
Several factors are prompting the rise in popularity. Some point to the overall ease of use of Apple products, and the fact that Apple’s OS is considered more secure (or simply less frequently targeted by hackers). There’s also the “cool” factor fostered by Apple’s success with consumer products like the iPod and iPhone. “Apple in general gets people excited,” says Kevin Prewett, Ingram Micro’s vice president for vendor management in the United States.“I don’t know anyone who doesn’t have an iPod.”

But there are more concrete reasons as well.Apple has made several changes in the last two years that have led SMBs to take another look, solution providers say.

• Apple announced in mid-2005 that it would switch microprocessors from the PowerPC to Intel x86, and its first Intel-based systems followed quickly in January 2006.
• In April 2006 Apple announced Boot Camp, a utility that lets Macs run Windows.
• Third-party software emerged in late 2006 to allow virtualization of Windows on Intel-based Macs. So now Mac users can have both Windows and Mac programs running simultaneously and smoothly, which makes it easier and less costly for a business to embrace Apple.
• Meanwhile, Mac OS X -- originally introduced in 2001 -- has proven to be a versatile and secure operating system that gets better with each new version. Leopard, which came out in October 2007, is the sixth release of the software.

What’s more, Apple’s licensing model for server software appeals to SMBs because it allows unlimited clients. Apple’s Xserve hardware comes with an unlimited client license to the server OS. If users buy the software separately, they can choose from two versions: The unlimited client edition server software is $999. The only limitation (to 10 users) is in the lowest-cost retail version ($499) of Leopard Server -- and that’s only on simultaneous file sharing, says Eric Zelenka, senior product line manager for Mac OS X Server at Apple.

Calling All SMBs
Apple hopes to further capitalize on these trends by including in Leopard Server several features designed specifically for SMBs. Based on interviews with Zelenka and Apple solution providers, here is a rundown of the most “SMB-friendly” features of Leopard Server, as well as the Leopard OS in general:

• Simplified server setup: Apple has redesigned the setup process for Leopard Server. When first booted up, the server software reads the hardware and network environment, and its “server assistant” recommends one of three setup options: standard, workgroup or advanced. For most SMBs, the recommendation is likely to be the standard option, which configures the server to support typical services such as file sharing, e-mail and instant messaging. The second option, workgroup, configures the server to work within a larger organization that already has an IT infrastructure and network in place, says Zelenka. The advanced option does no automatic configuration, allowing an IT expert to customize it.
• Simplified client setup: Client setup is also simpler. On initial boot, Mac clients will automatically check to see if they are connected to a server. If so, users simply enter their password and the server automatically configures all the applications on the Mac. Leopard Server works on both desktops and laptops, says Zelenka, “which automatically populates the VPN information so you immediately have secure access to the network.”
• Easier server management: Apple also added a new application called Server Preferences that simplifies the management of users and groups on the server. This makes it easy to set up and modify key services, including calendaring, instant messaging, virtual private networking, and backup settings for network clients.
• Automatic backup: With Leopard client, Apple introduced a new feature called Time Machine. This utility automatically keeps an up-to-date copy of everything on the Mac, so users can go back in time to find lost files or even to restore software.When used with an external hard drive, Time Machine can be a boon for the small business that considers backups a hassle. “It’s better than doing what they were doing before, which was nothing,” says David Sewell, president of Apple reseller Sewelltech. Although primarily built as a consumer feature, Time Machine can be used with Leopard Server to back up every machine on the network. Rather than hooking an external hard drive to each individual PC, SMBs can add an external drive or RAID array to the server and back up all PCs to the server. “This works really well for mobile users,” says Zelenka. “Whenever they are on the network, it just automatically backs up their machine.”

Enabling Web 2.0 Collaboration
Apple included several new features in Leopard to allow easier collaboration for SMBs and workgroups. Leopard Server comes with a new calendaring system -- iCal -- based on the open standard protocol, CalDAV, from the Internet Engineering Task Force (for more information, see www.IETF.org). Because the system uses open standards and has no per-user license fees, SMBs can more easily share information and coordinate schedules throughout the company.

Leopard Server also includes a feature called Wiki Server. Like Wikipedia, wikis are Web 2.0 sites where users can add and edit content as well as add links to other resources. SMBs can set up wikis for different groups within the company, such as marketing or human resources. With the same interface, SMBs can also create blogs, so groups can post relevant documents such as meeting notes, says Zelenka.

Also included with Leopard server is iChat,Apple’s instantmessaging and videoconferencing application.Having iChat integrated into the server is especially appealing to SMBs, who tend to use third-party services like WebEx for conference calls and to deliver presentations to clients and colleagues, says AMI Partners’Chew. SMBs are always looking for lower-cost communications, she says, noting that nearly 400,000 SMBs are using Skype, and mobile instant messaging is deployed by more than a million U.S.-based SMBs.

Another new feature consists of integrated podcasting tools, notes Sewell. Rather than forcing users to buy third-party products and try to integrate them, Leopard Server includes a suite of tools that allows SMBs to easily create, produce and broadcast podcasts to clients and customers.

The short and long of it is: There’s a lot for SMBs to like in Apple’s new OS. Says Sewell,“They are packing a lot of features in there at a really good price.”

If you’d like to develop an Apple solutions practice, the Apple Strategic Sales Team at Ingram Micro can help.You can reach the team at (800) 456-8000, ext. 76843.