Making the iPhone work for business
By Jon Fortt and Michal Lev-Ram
Will Apple give up some control over the iPhone in order to court corporate customers?
That’s one of the juiciest questions surrounding a gathering on Apple’s (AAPL) campus Thursday, where CEO Steve Jobs has promised to open up the iPhone’s software secrets to the world for the first time. Apple’s invitation to the event also hinted at new business-friendly features for the device, and Silicon Valley is abuzz about what that could mean. Will the BlackBerry-toting masses be able to trade in the company smartphone for an iPhone?
After all, Apple just isn’t overtly business-like. (When was the last you saw Steve Jobs in a suit?) Sure, its products work well in office environments, but the company doesn’t go out of its way to satisfy the needs of corporate buyers. While Hewlett-Packard (HPQ) and Dell (DELL) design some of their computers to look like office equipment, Apple always aims for more of a trendy, consumer look. The implied message: Take Apple gear to the office if you like, but expect to stand out.
So, many onlookers are wondering how far the Apple will go to make the iPhone business-ready — and whether the company will go far enough.
At a bare minimum, several analysts agreed, Apple will have to offer better corporate e-mail connectivity on the iPhone. That will mean working with the likes of Microsoft (MSFT), which through its Exchange platform already has influence over the way businesses handle messaging. If Apple can link the iPhone into Microsoft’s system, workers with iPhones will have just as much control over e-mail and contacts as they would from their desks.
“I believe they’re actually working with Microsoft to make e-mail sync work,” said Rob Enderle, principal at Enderle Group. “By connecting natively to Exchange, Apple would be able to get over the biggest hurdle that’s now keeping companies from buying iPhones.”
Jim Swartz, chief information officer at database company Sybase, said that the e-mail and corporate directories in Exchange are not the only concern for corporate customers. At $399, the iPhone remains expensive. Plus, companies like Sybase want the freedom to put their homegrown software on a smartphone. Nonetheless, he said, “Here we’re seeing a lot of interest and desire for the iPhone.”
Apple will also face pressure to let outside companies make their mark on the phone. That will mean forging partnerships with heavyweights including Oracle (ORCL), SAP (SAP) and IBM (IBM), to make sure their business software runs smoothly on the iPhone.
“The individual companies who create software for the enterprise will have to adopt the [software developer's kit] and begin innovating,” said Tim Bajarin, president of the Creative Strategies consulting firm. “My personal sense from talking to these guys is that they’re going to jump on the iPhone bandwagon.”
Not everyone is convinced.
Michael Disabato, vice president and service director at the Burton Group, said that for big businesses to truly embrace the iPhone, Apple will have to give them the freedom to load tailored software onto it, and to remotely erase data from iPhones that are lost or stolen. That’s a level of control that Research in Motion (RIMM) and Microsoft provide with their software, but that Apple almost never does.
“For Apple to make this an enterprise device, they have to accept that the enterprise will want to manage this thing lock, stock and barrel,” Disabato said. “And they’re not going to do it.”
Or they might. Believe it or not, in the early days of the iPod, when the device worked only with the company’s Mac computers, Apple executives argued about whether to make the device compatible with Windows PCs. The old Apple would have said no — that all products should feed the Mac ecosystem. But the company eventually decided to let the iPod stand alone, and work with either type of computer. Because of that decision, the iPod became a hit, not just an also-ran mp3 player.
Will Steve Jobs be just as pragmatic about the iPhone on Thursday? A lot of companies are eager to find out.
Wow, bob, way to make wild-ass, unsubstantiated claims.
First, the devices are spelled “iPod” and “iPhone”.
Second, the current applications are MUCH better than the competitors, in no small part thanks to the much larger screen and better user interactivity (directly applied gestures make so much more sense). As a great example of some of the deeper UI, the maps feature can determine your approximate location and use that as a starting point for navigation. (The family’s favorite feature on a recent trip when our rental car lacked a GPS unit.)
Third, it is FAR more than an MP3 player; it really is an ultra-mobile PC, supporting calendaring, email, maps, full web browsing, and now with the SDK almost anything else developers can conceive.
Fourth, AT&T charges $20 per month for the unlimited iPhone data plan, a bargain when compared to every other carrier. (Verizon charges $80 per month for just email!!)
Finally, you have obviously never taken the time to actually try an iPhone for you would clearly see that there is more to it than the competition offers.
How about next time you do a little research before screaming your two cents?
I remember years ago when the business PC crowd dissed the graphical user interface with the mouse for computers, vehemently insisting that their DOS command line grey/green skin computers were superior: “You’ll NEVER see a graphical screen for business! It is a TOY!”
This sounds exactly like how some business people are dismissing the iPhone. But in todays Hyper Competitive environment you better make use of every tech advantage, you can’t waste years playing DOS screen, today dinosaurs will be eaten by competitors fast.
The I-Phone is the worlds greatest marketing scam imaginable. It is an I-Pod with a fancy touch screen that can make a telephone call. THATS IT! Its business applications are no better than you have on a “free” or cheap smartphone you get with any service plan. Of course google gets 50% of its mobile searches from I-Phones, because if you dont get AT&T’s $60 a month (VERY SLOW) internet package all you have is an overpriced MP3 player. Typical Apple…..pay a huge premium for a device that looks cool and isnt that much better than the competition
Why would anyone take Brian’s advice, when he doesn’t even know who makes blackberry.
Also Blackberry’s don’t at all resemble 80’s phones.
What are you talking about?
The total blackberry user base after many years and countries is 12 million. Half a year after launch and only selling in 4 countries Apple has sold 4 million iPhones and the target is 10 million in 2008. Google says 50 times more searches come from iPhones than any mobile device.
The iPhone is more of mini computer than a phone, it runs a modified OsX arguably the best Os around. It should more seamlessly hook up to computers and run more apps (once the SDK is out) than blackberry ever will.
As for the posted comment “if they make their PCs work with MS’ softwares… Eventually, their PCs will be same with IBM except logo and design”, Macs will never be like PC’s because they have OsX which practically every reviewer including PC magazine says is way ahead of Vista. But if you really have to you can run Windows on intel Macs.
Do you really think corporates would like the idea of having their employees carry around ipod in the form of an iphone, they would call it distraction. Apple would have to change their product more than just adding email sync.
Apple already has exchange sync in their MAIL program for OS X. Although Exchange is a proprietary mess, and a security nightmare, and not real standards based email, it wouldn’t be the slightest bit difficult for Apple to implement it on the iPhone.
The iPhone makes a blackberry look about like one of those 80’s cell phones. Sell the blackberry stock, you’ve been warned.
Yes, the iPhone is compatible with Windows PC’s. It even syncs contacts with Microsoft Outlook. It is not compatible with a lot of business networks because it doesn’t support the 802.11x authentication method. This would be easy to fix, and would solve a lot of issues for corporations. Then they would feel safer allowing Apple’s blessed iPhone to connect.
As an iPod Touch owner, this excites us too! Maybe they’ll finally give the January Software Upgrade for free, instead of 20.00!
The iPhone does hook up to a PC. I think what they are talking about is the Windows based software working with the iPhone like Exchange. Thursday is supposed to be the day we find out.
I guess that i-Phone is really unique product. In short term view, they can get more market share by allowing iPhone to connect to MS Softwares. However, they invest their image and brand with long-term. They can make people buy their MAC PCs to connect their iPhones. Anyway, great company.
So iPhone can not hook up with Windows PC.
if they make their PCs work with MS’ softwares, Apple can get great market share of PC. Eventually, their PCs will be same with IBM except logo and design.
It would be great to have the Iphone sync with Exchange. I know a lot of people would be making the switch from Blackberry to the Iphone. My only concer would be the keyboard. I think what would sell is if they could integrate a keyboard like the Blackberry and still keep the Iphone look. I guess we’ll just have to wait and see what happens.
this would bring a revolutionize the business eneterprise, and give RIMM a new blow for the long. The target would be raised from 10 million to 100 million in less than 3 years.
I have an Iphone and love it, but I also carry a separate phone for work. It’s impossible to work for a large enterprise without a real Exchange sync. Apple is actively working on this and I’m sure they’re going to have real integration sooner than later….But what are they going to do about allowing 3rd party apps and remote wiping….
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so verizon charges $80 a month for just email? I pay 50 with verizon for email, web browser, unlmt txt/pic, and 1200 min. I must be getting a deal!!! or you might have just made up a number while being defensive.