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Some Enterprise Observers Want a Closer Look at iPhone

Richard Koman, newsfactor.com Fri Mar 7, 5:04 PM ET

Apple showed it's serious about getting the popular iPhone into the enterprise Thursday as it released a beta of the iPhone Software Development Toolkit. At the iPhone Software Roadmap, Apple announced support for Microsoft's ActiveSync technology, support for Microsoft Exchange, Cisco VPN (virtual private network) and centralized, wireless updates of all phones in the enterprise. ADVERTISEMENT

To prove Apple's commitment to the enterprise, CEO Steve Jobs pulled out a number of endorsements from familiar companies, including Disney, Genentech and Nike, as well as its technology partners and game developers.

"Apple has really done their homework, addressing issues of security, manageability and integration," said Randy Brooks, Disney's senior vice president for IT strategy and architecture. "We currently have hundreds of iPhone users and expect the demand to grow significantly with this release."

An Uphill Battle

With support for Exchange ActiveSync, the iPhone "really delivers a true plug-and-play enterprise solution," said Nike CIO Roland Paanakker, adding that his company "looks forward to deploying more iPhones to more business users."

But not so fast. Some analysts and corporate executives want a much closer look under the hood before they let employees bring iPhones into the enterprise. Apple won't win the blessing of the enterprise with press-release quotes, said George McQuillister, client computing architect at Pacific Gas and Electric Co. "I will believe it when I see it," he said.

His position is the same today as it was when the iPhone was first released, McQuill told ComputerWorld. "I was concerned it didn't have the management controls and security we needed." Despite the upcoming iPhone 2.0 software, "it's too early for the adoption stage," McQuill said.

'Jedi Hand Wave'

Phil Schiller, Apple's senior vice president of worldwide product marketing, "seemed to have performed a mighty Jedi hand wave" for "enforced security policies," "device configuration," and "remote wipe," said Andrew Storms, director of security operations at nCircle Network Security, in an e-mail.

Enterprises comfortable with Research in Motion's strategy of deploying an intermediary server between users' BlackBerry devices and the corporate network may be less comfortable with Apple's reliance on ActiveSync.

"Since Apple apparently has chosen to use ActiveSync for Exchange connectivity, they will still have to deal with the enterprises where ActiveSync is not approved. Apple didn't discuss any kind of proprietary messaging or security server, so we are left to assume that they are putting their trust in Microsoft's ActiveSync technology to meet the security demands of the enterprise," Storms said.

The Un-BlackBerry

But is Apple's decision a liability or a benefit? Rob Enderle, principal analyst with the Enderle Group, said not having an intermediate server gives Apple a clear "potential advantage," especially in the majority of firms that don't deploy secure phone solutions.

"In places that have centralized management systems in place and enforced security policies, however, the iPhone has not yet gone far enough, but the SDK should allow for third parties to create what most may find acceptable," Enderle said in an e-mail.

But will enterprise developers embrace the SDK and fill the gap? "While some enterprise developers have voiced support for the iPhone, it'll take some time to sort out exactly how they feel about Apple's licensing policies," said Charles King, principal analyst with Pund-IT, in an e-mail.

Apple Must Repair Image

If the enterprise is to sign on to the iPhone, Apple will have to make up a lot of ground. "Apple's success in the enterprise has been minimal at best for well over a decade," King noted.

"Apple doesn't have the image of taking security seriously, and that creates a core risk that will be difficult for an IT or security organization to get over," Enderle said.

"Given the BlackBerry's continuing market leadership and the increasing popularity of Windows Mobile-based smartphones, enterprise developers have demonstrably popular and proven options besides the iPhone. It seems to me that Apple will face some significant challenges in getting those players to support the company's largely untested enterprise ambitions," King said.