Corporate-Friendly iPhone Could Challenge BlackBerry - Barron's

On Thursday, Apple Computer (AAPL) says it plans to unveil "some exciting new enterprise features" at a Cuptertino, CA event. Tech Trader Eric Savitz says some level of corporate iPhone acceptance could be meaningful to Apple, and may be cause for concern for Research In Motion's (RIMM) BlackBerry.

IT departments have thus far shunned the iPhone due to its lack of corporate-friendly necessities such as data protection, password locking, and remote deactivation and administration, leaving sensitive data accessible to prying eyes. It also is unable to interact with corporate e-mail servers, specifically Microsoft's (MSFT) Exchange and IBM's (IBM) Lotus notes. If Apple moves to address some or all of these issues, it's possible IT houses would cave in to the requests of Apple aficionados who are dying to use their iPhones for day-to-day business.

Another possibility is that Apple will open the iPhone up to corporate software systems used by salesmen in the field, as well as enable full VPN access.

BlackBerry's web-browsing is second rate, so for corporate users who need web access, iPhone acceptance would be a coup, especially if it rolls out a rumored 3G phone which would significantly boost surfing speeds. Lowering it's still-hefty $399 price-tag wouldn't hurt either, Savitz says.

With 278 million Exchange and Notes users, and only 12 million BlackBerry subscribers, the corporate smartphone market is still wide open.

Comments

[TheRealist9]

IMAP-POP3 is not a substitution for an ActiveSync or a Blackberry Redirector. MS and RIM would be stupid to give this away.

If you where an IT Dept and had to tell your Sales Dept they can choose – 1. Blackberry (BB Redirector) where you get your message to you in less than 30 Seconds or 2. IPhone (IMAP or POP3) you can your messages in 5 minutes. It's pretty simple choice if there is money to be made.

This APPL product will be always be there for the consumer level fodder. Most IT Departments see these as toys and no where near the level of central manageability required to even making them viable alternative. There is allot more to it than fancy web browser.

APPL IPhone in a real corporate environment is a APPL pipe dream.

Sorry APPL try again........

[Tom B]

I'd take IMAP over Exchange any day. Open Standard. Better technology.

[Mac'em X]

@TheRealist9: Fortunately for Apple, reliable prognostications so rarely come from those who think "allot" is an adverb.

[kellyii20]

The pipe dream is about to become reality...realist

[blah-blah]

Thomas: Look, the client side is not Exchange. Exchange fully supports IMAP clients. A company could be running Exchange and it could be 100% invisible to you. Outlook is just one possible client.

You keep bashing it but you still don't understand anything about the technology - why?

[blah-blah]

IPhone needs to support Exchange push mail or build their own Enterprise server. POP3/IMAP is not acceptable.

[.crazylegs..]

"With 278 million Exchange and Notes users, and only 12 million BlackBerry subscribers, the corporate smartphone market is still wide open."

This sums it up, the corporate market is still under penetrated by a huge margin. There's plenty of business to go around for BOTH to kill it over the next several years.

The high price point on the iPhone will keep massive migration from Blackberry (features aside). Imagine any large enterprise dumping all their Blackberries and spending $399 to replace every device? Seems implausible.

iPhone will sell well in the small and medium business segment where some of RIM's features are less important and the web browsing capability (Safari IS iPhone's true killer app) trumps the necessity of quick, secure, push email, remote wipe, wireless policy control, PBX integration, etc.

We'll see what happens this week, but just Exchange and Lotus notes compatibility isn't a game changer, it's an incremental step for Apple that should have been accomplished from the get-go. If they have more to offer, then great, but just adding more compatibility and trotting Saleforce.com onstage is not going to unseat RIM in the large enterprise segment.

The larger point still is about the first quote above. Add the consumer opportunity for Blackberry and iPhone and both should fare well in the coming years.

[ezduzit]

blackberry is a one trick pony. right now a very good one. but i wouldn't want to go toe to toe against apple on any product since its rebirth. ipod, imac, macbook, iphone, itunes and apple tv are all very very tough. just ask all the apple killers out there.

[blah-blah]

On second thought Thomas, please ignore my comment. Old habits are hard to break, sorry about that

[Danial Magid]

I have used various models of the Treo, although it was a nice phone with many features, it never forwent rebooting erratically, and failing miserably when asked to perform. I have recently started using the Blackberry (World Edition) and I have never again had a problem, although it does have its flaws too, no dial pad, or at least, I couldn't find it, and keys are too small to use. I have found the IPhone a great tool with the user in mind. The interface is well understood and easy to use. I don't care much for AAPL products, but they merit recognition and I believe once the IPhone targets the corporate world, AAPL will become a serious comptitor to RIMM.

Kudos to both companies for enriching our lives with functional products.

[.crazylegs..]

Danial Magid - do you need the dial pad to dial something like 1 800 FLOWERS? - if you hold down alt key and put in the letters, it will dial the correct number for you. a nice trick they employed.

[DBMANDK]

J LAzerow - Thanks for the helpful hint!

[Tom B]

"Thomas: Look, the client side is not Exchange. Exchange fully supports IMAP clients"

I know; the client is "Outlook". My point was that IMAP is sufficient. The other features of Exchange seem irrelevant to the end user-- unless you have some insight I don't on that?

[blah-blah]

For mobile devices, IMAP does not support calendar and contact syncronization even though it does do push email.

For PC clients, IMAP does not support calendar or contact collaboration at all. It's fine for a individual or small company but terrible for anyone wanting collaboration abilities. There are 3rd party addons that try to provide this.

You might not personally find that a big deal but it's huge in Enterprises. Exchange push email is easy because it's all ready to go but there's no reason they couldn't build a BES server like RIMM does.

You were supposed to ignore my comment ;)

[samij]

"With 278 million Exchange and Notes users, and only 12 million BlackBerry subscribers, the corporate smartphone market is still wide open."

or is it a sign that this market is not that huge after all? maybe the 264m exchange and notes users don't want bb type of solution after all?

[Danial Magid]

J Lazerow - THANK YOU FOR THIS GERAT TIP. I wish the Verizon customer service knew about this! I actually needed that feature for name directories when calling a corporate phone.

Cheers,
Danial

[Adrenalized]

Interesting comments, in having worked with some folks who have hacked the iPhone, by jail breaking changing over to T-Mobile and installing other apps not "approved" by Apple, the device is very powerful. I"m a network/security engineer and you can use the device to VPN into an environment and use a shell to actually administer devices if required. The lack of corporate email is the one main reason I'm not using one. (although no remote disable is troubling) Apple is smart to have hit consumers with a lower level device, showing off it's interface and generating a lot of interest while they continue to work on the 3g model that will probably support MS Exchange, Lotus Notes. Even if you're a Microsoft / PC / Linux person (as I am) you can't help but be impressed with this device. I would pay for my own iPhone if they could support ms exchange through other means besides pop/imap.