Apple Computer Unveils New Hybrid X Server Operating System
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1 Research Brief Apple Computer Unveils New Hybrid X Server Operating System Abstract: Apple Computer recently unveiled the Apple OS Xserve operating system on its X Serve one-unit rack platforms. Apple's market-appropriate direction in service and support will draw a new base of clients. By Tony Adams Recommendations Small workgroups of users and Apple aficionados should consider the support offerings for Apple OS X on X Serve as an excellent value. Midsize to large Wintel departments must determine if the paradigm shift is too much for making a transition to the X Serve platform. Linux and Unix/Linux users and developers should base their purchase on direct software maintenance pricing of the Apple OSX when determining an infrastructure server to implement, Publication Date: December 6, 2002
2 2 Apple Computer Unveils New Hybrid X Server Operating System Introduction to Mac OS X Server Operating System and X Serve Combo With the advent of OS X Server Operating System and its one-unit rack mounted hardware, called the X Serve, Apple Computer is now a small business/workgroup server supplier. Because the strategy for supporting a technology is best evolved by working back from the market of the expected user base, a brief description is necessary. The servers are mounted on racks. The high density OS X-based X Serve systems announced by Apple early in 2002 will be deployed as Web applications servers running Apache, instant messaging hosts, or messaging gateways, or streaming multimedia servers. The X Server rack-mounted box supports lower level standards such as lightweight directory access protocol and Unix network file system, Samba, telnet, Apple file system, and is rendered compatible with other platforms via Rendezvous, Apple's internetworking technology. The technology resists complete comparison to any other platform on the market, including previous devices from Apple. The technology is also different because it has an open source operating system. Technically, the operating system is project Darwin, the Berkley Software Distribution (BSD) version 4.4 flavor of open source Unix (OSU). Early in the development of Unix, BSD was a driving standard for innovations. The technology is also different because it will seriously position Apple products adjacent to whatever other infrastructure is in the server room of its customers, favorably comparing with both of the other server products and the service Apple represents. Apple's Married OS X Lineage Yields Hybrid Product, Service The new Apple system can cater to either an Apple or an OSU-savvy user andthetwoarelikelytobedifferentcustomers.ifusershaveanapple background and a fast graphics adapter, they can command the device on a new revamped Mac interface, called Aqua. However, if the buyer is a Unix user, the machines may be controlled by remote commands more familiar to traditional Unix users. The support must conform to the needs of these two customer bases. When an X Serve rack server is purchased uplifts include support, which is a combination of 24x7 (30-minute) phone response (includes based support), and a separate software maintenance contract. The term of both of these contracts is three years from the date of purchase. The support plan, called AppleCare Premium, includes four-hour business day support for on-site hardware service to regions within a 100-mile radius of major population centers in North America. Pricing for this level of service is $950 for a three-year term. Support for all standard applications, including Apache and standard sendmail, is bundled into the deal. Professional IT services are shops that can buy Applecare Professional Support and Tools, including access to a senior, higher priority phone 2002 Gartner, Inc. December 6, 2002
3 team for remote support, and personalized Web pages. In addition users receive access to system tools and priority remediation for code defects on the OS and all Apple software for $7,995 per year for limited incidents. With respect to software maintenance, Apple's pricing makes sense. Similar to most OSU projects' licensing treatment by hardware vendors, the OS X license price is not based on the power or capacity of the hardware, and it is not strictly based on the number of client accounts resident. In the case of the OS X, maintenance is carried out in two ways. Intermediate releases are included with the purchase of the OS X code and require no uplift after sale. To obtain major releases (estimated at about once per year), which include major functionality, a flat-fee three-year entitlement is required. Apple places a flat fee on the license of the OS X code and bases its upper limit for connected accounts as a limiting condition of the license agreement The maintenance program is $499 for a 10-account server, or $999 for unlimited user version. Volume licensing is also possible for larger or strategic accounts. By comparison, according to Gartner Dataquest (see "U.S. Hardware Support Price Benchmarks for 2002," ITPS-WW-FR-0120) the average price charged for comparable Wintel functionality in 2002 is $2,578 for 24x7 onsite service per server per year. This amount is exclusive of the maintenance for software and applications, but includes remote diagnostic tools and online self-service tools. The X Serve is optimized for on-site support. However, where senior level access is a priority, it is much more expensive per year than this average Wintel server cost, even though the Apple service metrics and geographic coverage are not comparable. Another somewhat unusual strategy is the X Server AppleCare Premium Service Parts Kit for $1,549 per server, purchased with the system, including key parts that can be swapped out hot in time of need with the exception of the power supply. The kit is purchased at the time of X Server purchase and remains in the customer facility. The kit does not save logistical cost on the vendor's behalf because each truck role to a customer location is fully equipped, but it benefits the customer by reducing the recovery time because of interruption of service from blown circuitry. The kits are designed for faster than four-hour response where customers may either be capably skilled to do the diagnosis and parts repair or could receive telephone direction from Apple to do the work themselves. The hardware unit is engineered and instrumented for performance monitoring. This enables the connection to be made to tools of Apple's design, or integration with existent monitors that pre-existed within the IT environment. With support for native Java, the vendor gets standards compliance and standard configuration, ready to send performance-based alerts when preset operational parameters are surpassed. Given the right permissions and topologies, Apple can connect via telnet into its deployed hardware from service response centers to judge. All apple remote diagnostic capabilities use encrypted protocols Gartner, Inc. December 6, 2002
4 4 Apple Computer Unveils New Hybrid X Server Operating System Gartner Dataquest Perspective The OS X Server/X Serve pairing takes the Apple paradigm into a data center. Recent Gartner Dataquest research shows that Apple is boosting itself into this particular niche specialty server market by more than doubling its units sold from third quarter 2001 to third quarter 2002 (from 2,049 units to 7,484 units). However, with less than an estimated 0.7 percent market share, it is too early to celebrate, even with 265 percent year-over-year growth. The maintenance solution will appeal to users who do not wish to invest extra money in a factory integrated system that may be unfamiliar to them. Support covers all software applications on the assold system, including Apache Web server code, sendmail and the core OS Xsystem.AnyonewouldbehardpressedtofindsendmailandApache support along with the OS as standard fare. Gartner Dataquest believes the price is very attractive for the support of this product, given a base target market of Apple traditional customers. Apple will assign tiered pricing for volumes purchased in large deployments. Unlike the masters of the globally serviced data center, IBM, HP and NCR, Apple's on-site service is not fully global four-hour support, and 30 minutes of service level agreement on phones is not what most IT shops would deem to be the most mission-critical grade on the market. Therefore, the customer base will not consist of accounts with recovery time objectives on applications higher than about 24 hours. Despite this, the "one-vendor construction" of the platform and its support for the bundled applications means troubleshooting any issues that arise ought to be one-stop shopping with a level of support appropriate for small businesses or small organizations. Overall, service and support for this platform is appropriate for businesses that do not place their most important IT based missions on these systems. For deeper OS X introduction, along the lines of a what large hardware and service infrastructure vendor offers, a line of support offerings is needed to match up to what IBM and NCR offer. To ease into the data center, Apple must begin to offer tech support that will send repair trucks rolling after business hours and with phone support response of under three minutes. This is what the premium crowd of customers will seek if the Xserve is to achieve serious review or acceptance for the most importantworkinthatmarket. ThenextstepforAppletoconsiderfromaserviceperspectivemightbeto address its lack of replicable support offerings for a truly businessoriented deployment profile. Apple still has a chance to attract and nurture a very different audience. Key Issue How does product support play a role in product differentiation for both hardware and software product vendors? 2002 Gartner, Inc. December 6, 2002
5 2002 Gartner, Inc. December 6,
6 6 Apple Computer Unveils New Hybrid X Server Operating System This document has been published to the following Marketplace codes: ITSV-WW-DP-0431 For More Information... In North America and Latin America: In Europe, the Middle East and Africa: In Asia/Pacific: In Japan: Worldwide via gartner.com: Entire contents 2002 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice
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