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Apple program lets businesses buy apps in bulk

Joel Mathis | Jan. 26, 2012
When Alaska Airlines started distributing iPads to its pilots last year, the company also gave them $10 iTunes gift cards.

When Alaska Airlines started distributing iPads to its pilots last year, the company also gave them $10 iTunes gift cards.

The company wasn't just being nice. Alaska wanted its pilots to buy specific apps they'd need in the cockpit--but the App Store offered no good way to purchase and distribute such apps in bulk. Without the gift cards, pilots would have had to buy the apps on their own and bill the airline for reimbursement.

"There was no nimble way to do this," says Jim Freeman, a captain with the airline.

So Freeman was relieved last summer when Apple unveiled its Volume Purchase for Business program (also known as VPP): Essentially, it's an App Store specifically for businesses, where they can purchase iOS apps in bulk. It allows developers to custom-tailor software for specific businesses; it also gives Apple another entry into the business market.

"We've been hoping something like this would occur for quite awhile," Alaska's Freeman says.

Not just an App Store

The new program has drawn praise from both business customers and the app developers who want to serve them. Those developers say that, while the App Store was a revelation in the consumer technology business, it was a bad fit for organizations using iPhones and iPads in the workplace.

Chris Kiley, a senior manager for Jeppesen--which makes flight chart apps for airlines--says, "The consumer App Store is the consumer App Store. It doesn't provide us the ability to support our customers the way they need."

VPP changes that. Here is how it works: Businesses create a single Apple ID to manage their purchases. Using that account--which needs to be linked to a corporate credit card or purchasing card--organizations can search for apps and then buy them in bulk.

Once the purchases have been made, Apple issues the company a list of redemption codes for the app. Whoever is managing app distribution for the company can email those codes to employees, allowing them to download the app just by following a link on their Mac, PC, or iOS device. The management interface is updated as users redeem the apps, keeping track of which codes are still available, as well as retaining a full purchase history.

Developers say Apple sets a minimum price of $10 per app, but after that they're free to offer custom prices, features, and services to specific customers.

The benefits

VPP's reach so far is difficult to discern. Apple doesn't break out corporate sales in its financials; the company didn't comment for this story. The companies that Macworld talked to about the program say they've only dipped their toes into the program, though they're enthusiastic about the possibilities.


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