Tablet Time

Tablet mania is hitting the world of business.

In 2010, Apple sold 7.5 million iPads worldwide. While consumers may have been among the first buyers, companies of all sizes are snapping up iPads and the dozens of other touch-screen devices that have been unveiled this year.

Of 800 companies and government agencies responding to a recent study, a quarter said they’re using iPads now and another 73 percent said they’ll buy iPads over the next 12 months. Gartner, the technology researcher, predicts worldwide sales of tablet computers will more than double in 2011, to 54.8 million devices from 19.5 million last year.

If mid-sized companies aren’t already using them, they need to consider what tablets could do for their businesses.

For one, tablets can be 50 percent less expensive to purchase than laptops. Users say they’re easier and cheaper to maintain than Windows-based laptops. Tablets have also won accolades for their simple user interfaces, instant on-off functionality and long battery life.

The touch-screen interfaces and light weight make them useful for employees who need to receive and share on the road, says Michael Hedges, CIO of medical device giant Medtronic, one early iPad adopter. Hedges says the device came to his rescue at a business dinner with a doctor who had questions about a Medtronic product. “Within seconds we could show videos and data on the iPad sitting in the middle of the table. It’s got nice clarity, it’s easy to share and it’s quick,” he says.

Are tablet computers worth the investment? Here’s how three companies in different industries are using the devices, what they spent and how it has affected their operations.

Company: Medtronic, Minneapolis-based medical device maker with 41,000 employees and annual revenue of $15.8 billion

Devices: 4,500 iPads used by executives and sales and marketing employees worldwide.

Background: When Apple launched the iPad in April 2010, Medtronic immediately bought 10 to send to a trade show in Germany for product demonstrations. Within weeks, the company bought more to deploy throughout its business. Employees now use iPads to present data, videos and demos to customers, as well as for scheduling and email, which they can synch wirelessly with the company’s Microsoft Exchange system. Workers also use the devices to send orders to the company’s SAP system and track inventory and other business data, Hedges says.

Results: Tablets may soon replace laptops for salespeople and other employees who deal with customers, Hedges says. If a clinician only has five minutes to talk, a salesperson can use it to quickly display data or do a demo. “These devices have a huge gain on speed,” he says.

Costs: iPads cost $500 to $800 each. Medtronic declined to share its total outlay, though Hedges says it’s less than what the company would have paid for laptops. At the same time the company’s getting smaller, more portable devices with 30 percent longer battery life. Before buying the machines, Hedges worked with the IT department’s senior finance manager to evaluate costs and determine how the company would distribute the tablets. "People can't just go out and buy these," he says. "We have a phased approach and justification process." Medtronic also declined to disclose what it paid for software it uses on the machines.

Company: Active Interest Media (AIM), El Segundo, California, publisher of specialty magazines, videos and books with 300 employees and annual revenue under $150 million.

Devices: 20 iPads used by salespeople and executives.

Background: AIM’s CEO and president became iPad fans when they realized what it could do for the publishing industry, and the finance department didn’t object to buying them, says Nelson Saenz, the company’s IT director. Employees use iPads to manage e-mail and appointments and make presentations. Executives are also evaluating the device as a publishing platform. For software, AIM uses Good for Enterprise from Good Technology, which includes email and calendar programs and synchs with Microsoft Exchange. Security, which is also included, was a particular consideration. "Our CEO left his iPad on a plane, and we were able to remotely wipe all the data on it," Saenz says. AIM uses a separate app called SharePlus so mobile employees can access the company’s internal SharePoint site for project management and collaboration. AIM also maintains three loaner iPads for employees who need temporary PCs.

Results: Using iPads has made AIM’s mobile workers more productive and efficient and helps them stay on the bleeding edge of technology, which the company maintains is important for publishers and their customers. By using iPads as loaners instead of buying laptops, AIM saved at least $400 per device, Saenz says. The company’s considering buying more tablets in 2011.

Costs: AIM spent more than $21,000 on hardware and software, including $12,000 for 20 iPads, $9,000 on Good Technology software licenses for 100 iPad users and another $1,500 a year for ongoing support, plus approximately $15 per device for the SharePlus app.

Company: D7 Consulting, a Newport Beach, California, building exterior, roofing and waterproofing design firm with 22 employees and undisclosed annual revenue.

Devices: 18 iPads that field consultants use to collect and share project data with office staff, clients and partners.

Background: D7 won its iPads in a contest sponsored by online storage provider Box.net. The company’s field consultants use the devices to document work at job sites and compile that data along with photos and video into progress reports that are forwarded to clients. Previously, consultants sent the information to office administrators who created the status reports, a process that could take two or three days. "I wanted to get reports to the client the same day," says Joe Daniels, the company's founder and CEO.

Results: Using iPads and Box.net to communicate with clients can take a week or more off the total time it takes the firm to complete a project. "We are 10 times more productive," says Daniels, who spends the extra time on sales and marketing. He’s also evaluating raising his rates because of the extra value the tablets bring to a project.

Costs: D7 spends $15 a month on Internet access per tablet computer, or $3,240 a year. As part of winning the Box.net contest, the company received a free subscription for a year; otherwise, Box.net charges mid-tier business customers $15 per user per month.

Because of Apple’s substantial head start, most companies using tablets have iPads, even though executives such as Saenz feel the devices fall short of delivering the highest level of security and supporting heavyweight enterprise applications.

But Apple’s grip on the market is bound to change now that more Windows-based and Android-based tablets have appeared. With those new tablets, the demand for enterprise-ready security and applications is growing.

Software makers are already adapting to broader corporate adoption. Enterprise software vendors Salesforce and SAP have rolled out iPad applications, one sign that executives at vendor companies realize they’ve got to have tablet-ready products sooner rather than later. "I think over time it will be much easier to support enterprise applications [on tablets]," Saenz says.

Whatever the vendor, using a tablet sends the message that a company can deliver superior results faster than the competition, says D7’s Daniels. “When I bring the iPad out and they see it in use, it’s a done deal.”