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Can iPhone 3G Play in the Enterprise?

The new iPhone features do make a nod to the enterprise:

* 3G High Speed Packet Access (HSPA): The new iPhone does include support for AT&T's High Speed Uplink Packet Access (HSUPA), which the carrier claims will support downstream rates from 700 kbps to 1.7 Mbps and upstream rates from 500 kbps to 1.4 Mbps.

* Wi-Fi 802.11g Support: On the Wi-Fi front, the device supports only the 2.4 GHz 802.11b and g radio links, not 802.11a. That is a major detriment for enterprises, who are looking to exploit the 23 channels available in the 5 GHz band. Also, there is no 802.11n support, but anyone who was looking for that should start thinking straight. The power requirements for 802.11n puts it out of reach for small form factor devices in the near term. We can barely get n-capable access points to run on standard PoE!

* WPA2 Encryption and 802.1x-based Authentication: These two options are mandatory for enterprise Wi-Fi today, but they're only one part of the security story.

* Cisco IPsec VPN Client: The new iPhone will also support a Cisco IPsec client for remote access to enterprise VPNs.

* Microsoft Support: They have ActiveSync support for Microsoft Exchange-based push email, and they can now display Word, Excel, and PowerPoint files.

* GPS Capable: There is also an integrated GPS capability for location applications.

The biggest news is that the price is now $200 and $300 for the 8 G and 16 Gbyte models respectively, far below the $600 price tag of the first iPhones. AT&T will be subsidizing the device, and their data plan will add about $40 per month--they're not subsidizing this out of the goodness of their hearts.

Does iPhone Woo the Enterprise? Despite the enterprise enhancements, it seems the iPhone will remain a niche product for corporate users. The problem is that the iPhone is weak at the most important enterprise application, email. The physical design provides great consumer appeal, and IT departments (if they don't ban it outright) will probably be swamped with requests and then flooded with returns. The bottom line is that enterprise users need email, and email needs buttons. Thumb typing on an iPhone is a hit-and-miss affair, even if you don't have to contend with long fingernails. Glitz is nice and the iPhone is still high on glitz, but enterprise users aren't surfing the Web or watching YouTube videos. Email works best on hard-key QWERTY devices like a Blackberry, and those will continue to dominate the enterprise market.

The security aspects of the iPhone are still unknown. Apple's posture on security has made them a prime target for the hacker community. While incorporating WPA2 and 802.1x for Wi-Fi security is a plus, a developer program means that more of the internal working of the iPhone will become public knowledge. iPhone applications will have to be digitally signed by Apple before they will run on the device, but that is still far short of the multi-layered security found in something like a Blackberry.

There are also a number of issues with regard to mobile device management, the most obvious of which is the fact that you can't change the battery. Consumers can go without their mobile device for a few days, but I have no idea how we would talk an enterprise user into that.

Conclusion Given the attractive pricing, the iPhone should be a major hit with consumers. In the enterprise, I can only see it appealing to those who favor fashion over function--wait, I think they're talking about me! The enterprise functions are "check-offs", but that doesn't make this a tool that does all the things we need in an enterprise. Further, we know the IT departments are going to be dead-set against it from the start.

The developer network will likely give us a voice over Wi-Fi capability and probably a fixed-mobile convergence solution, but those will most likely be geared for consumer services like Google's Grand Central. However, the Apple community has been exceptional at redefining the technology experience, so we in IT should be keeping an eye on the iPhone.