• On ZDNet: The Windows 7 upgrade survival guide
August 14, 2008 7:35 AM PDT

HSBC could order 200,000 iPhones

by Liam Tung
  • Font size
  • Print
  • 17 comments
Share
HSBC traders

HSBC, which bills itself as "the world's local bank," is considering ditching its BlackBerry smartphones in favor of the Apple iPhone. Seen here is HSBC's U.K. trading floor.

(Credit: HSBC)

Global banking giant HSBC is considering ditching the BlackBerry and adopting Apple's iPhone as its standard staff mobile device, a move that could result in an order for some 200,000 iPhones.

"We are actually reviewing iPhones from a HSBC Group perspective...and when I say that, I mean globally," Brenton Hush, HSBC's Australia and New Zealand chief information officer, told ZDNet.com.au this week.

HSBC has some 300,000 staff internationally. A decision to standardize on the iPhone on its corporate networks would likely lead to one of the world's largest iPhone orders.

"A decision on a piece of hardware like that would potentially be deployed, conservatively, to 200,000 people," Hush said. "You know, it's a big decision, especially when you have an existing fleet out there."

"But it's definitely something we are considering from a HSBC Group perspective," he said. "We always explore the potential application of new technologies, and this is no different."

Should HSBC select the iPhone as its official corporate mobile device, the decision would be a major blow to Research In Motion, maker of the BlackBerry, which is HSBC's current standard staff mobile.

Most corporations passed on the iPhone when it was first released, due to limited availability and the device's lack of support for Microsoft's Exchange e-mail platform. However, Apple has rectified both issues, and has additionally built a number of tools into the new iPhone 3G specifically targeted at corporate use.

HSBC's Australian presence is small compared to major Australian banks, but its global operations have a $6 billion annual technology budget and a technology team of 30,000 supporting 300,000 employees.

Hush said he did not own an iPhone, but added, "I have obviously had hands-on experience with them."

iPhone: OK for corporate use?
Heads of technology of other large organizations were cautious about the idea of standardizing the iPhone for corporate network access at the time of its launch.

While one of Australia's big four banks, CommBank, has flagged its iPhone trading application as part of its $523 million growth strategy for the year, chief information officer Michael Harte recently expressed caution about the phone's introduction into its own networks.

Steven Bandrowczak, global CIO of Nortel, which has 30,000 staff, said he doubted whether his staff would choose the iPhone over its current device, the BlackBerry, due to the latter device's superior e-mail functionality.

However, Hush's opinion differed on this matter. ZDNet.com.au asked Hush whether he thought the BlackBerry had any advantage over the iPhone.

"No, I don't. I think (the iPhone) would change some underlying infrastructure considerations from an enterprise perspective. But (Apple) have been pretty smart with the design."

No time frame has been given for a decision on the iPhone move, with Hush adding that for his position located in Australia, the iPhone was a low-ranking priority at this stage.

The CIO, whose office is located at HSBC's Sydney headquarters on George Street, Sydney, is just 500 meters away from Apple's new Sydney store, but he said he had not entered due to persistent queues.

"I'm blown away every time I walk past that Apple store, and there's always people queued up outside to get in," he said. "I haven't been in there. It's always too busy."

Liam Tung of ZDNet Australia reported from Sydney.

Recent posts from Apple
Apple grabs top U.S. retail sales spots in October
Apple updates Mac Pro with 3.33GHz chip option
Time shows off tablet-size version of Sports Illustrated
Psystar said to have deal with Apple
Report: Apple accused of NAND price manipulation
What if: Apple Newton vs. Apple iPhone
Apple App Store collector's items: 10 rarities
iPhone officially lands in South Korea
Add a Comment (Log in or register) (17 Comments)
  • prev
  • 1
  • next
by hetzbh August 14, 2008 7:58 AM PDT
So big HSBC haven't heard about the issue with IPhone 3G and sensitiviy and reception?
Reply to this comment
by Constable Odo August 14, 2008 8:33 AM PDT
Most likely the reception problem will become a non-issue shortly.
http://www.macdailynews.com/index.php/weblog/comments/software_fix_on_the_way_for_iphone_3g_reception_glitches/

On to the next problem...
by AppleSuxLeo August 14, 2008 8:13 AM PDT
And I "could" win the lottery...NOT !
Reply to this comment
by rshah29 August 14, 2008 8:28 AM PDT
Does Apple have any large corporate accounts at the moment?
Reply to this comment
by Penguinisto August 14, 2008 10:11 AM PDT
Given that many of the F500 are doing trials with it nowadays, who cares? To most corps, it's just another phone, and they accommodate it.
by Vegaman_Dan August 14, 2008 8:37 AM PDT
Anyone find it terribly ironic it took Apple to start using Microsoft's Exchange service to make it usable for business?
Reply to this comment
by Perry_Clease August 14, 2008 9:22 AM PDT
No
by Penguinisto August 14, 2008 10:09 AM PDT
Nope. The best way to eliminate an entrenched and crappy protocol suite is to use it to your advantage, until you yourself have enough strength to change it.
by scatlizard August 14, 2008 9:01 AM PDT
I'm so glad the iPhone is being considered by larger companies like HSBC. Soon the iPhone will rule the world and even this CNET writer will be forced to use one.
Reply to this comment
by rdwalton August 14, 2008 9:05 AM PDT
I think if HSBC makes this move, it will be one of their biggest regrests. Don't get me wrong, I have an iPhone and I traded in my Blackberry 8830 (now I have buyers remorse).

Hands down, the Blackberry is a much much better than business device than the iPhone. I will go back to the Blackberry when the Blackberry Bold comes out next month for AT&T and I will give my iPhone to my daughter.
Reply to this comment
by Penguinisto August 14, 2008 10:16 AM PDT
you fail to mention exactly why they would regret such a move.

Personally, I have supported Blackberries (and have used them), and seriously? The keyboard with birth-control-pill-sized keys is kinda crappy. BES is pricey. Push email is pricey. RIM's protocols are proprietary beyond belief. I'd rather have something a bit more open, and something that doesn't require heavy expenses on the back-end just to support at a business. an iPhone w/ WiFi can do the trick easily enough, and 3G is an open standard.
by gabrielioan August 14, 2008 9:14 AM PDT
Anyone who has used a Blackberry, Blackjak, or similar, and an IPhone might be able to point out the main difference between the products...THE KEYBOARD. Most Crackberry addicts I know would never trade their device for a touch screen, as their typing speed would probably go down dramatically for anyone without pencil-thin fingers. Add to that Apple's aversion to anything corporate (locking down the application list, allowing full control of device functions to be centrally managed, hey Mr. Jobs, is anyone listening?) and I doubt the iPhone will make a huge dent in the corporate world. Licensing ActiveSync isn't revolutionary, it was a minimum requirement. The 3G reception rumors can't help the situation, but I am sure at least those issues will be resolved if properly identified. Yes, the road to true greatness is full of bumps, and Apple makes steady progress. Don't sell your Blackberry shares just yet though.
Reply to this comment
by Penguinisto August 14, 2008 10:10 AM PDT
RIM only has a serious marketshare in North America. It is pretty much down at the bottom with Windows Mobile everywhere else.
by ballmerisanape August 14, 2008 10:02 AM PDT
The only people who complain about the iPhone keyboard are those that have never used an iPhone for more than a few minutes. It's actually EASIER to use due to fast character switching..and the fact that the letter/numbers are the same size as traditional smart phone keys.

That.. and the seamless VPN... and true RDC application WinAdmin... I can't imagine a better business solution NOW.. not considering that the app store is only a few weeks old. Imagine what will be available in the next few years....
Reply to this comment
by GenX2.0 August 14, 2008 10:56 AM PDT
First, as someone who falls into the crackberry mold, the iPhone is not a replacement. I am not a mac hater, as my laptop is a macbook pro, mac-mini for the fam, and an iPhone as my personal phone. As with Windows Mobile, there is a lag using the OS compared to the small footprint of the RIM OS. Also, by comparison, i can type about 5-10 times faster on the blackberry. The keyboard is NOT the same and cannot be used without looking at the device. I can unlock my bberry and open my inbox without even looking at it (helps with in the middle of the night issues).

Now HSBC is by no means technologically savvy. I worked with a firm that was partnered with HSBC and they are beyond incompetent. Just because they are big, does not mean they are good. Seriously, what CTO in their right mind would throw away years of BE services, tried and true, for something that just received enterprise support 10 minutes ago?? Forcing your employees to use an iPhone when the blackberry is what they want? What about lost productivity when a battery fails and they need to deal with that replacement debacle? What about when your corp account does not qualify for the iPhone (Like ours)?

Bottom line: Once apple develops a BES "back office" alternative, then I will see that they are serious about the enterprise. Right now they are using a port of a 3rd party application (with no enterprise support btw) to get everything done that the BES does so easily. Apple side-stepping the enterprise will continue to stunt the growth of Apple products ability to replace MSFT.
Reply to this comment
by gggg sssss August 14, 2008 3:20 PM PDT
maybe when the rim software runs on this thing. But, compared to every other device I tried, only the iPhone has the dot and / right on the main keyboard - no shift/alt whatever required.And what is this about no windows media support?
Reply to this comment
by dansilva76 August 14, 2008 9:10 PM PDT
Funny how irrelevant Microsoft Exchange support is in this case since HBSC is an IBM Lotus Domino customer.
Reply to this comment
(17 Comments)
  • prev
  • 1
  • next
advertisement
Click Here

The yogurt makers of tech: Gadgets to avoid

Don't buy these one-trick ponies--unless you like gizmos that gather dust.

Google wants to unclog Net's DNS plumbing

The Net giant, ever eager for a faster Internet, debuts its Google Public DNS service. With it, Google could become even more central to the Net.

About Apple

At the start of the 21st century, there's no tech outfit more influential than Apple. CNET News' Erica Ogg and other reporters will attempt to make sense of the rumors, hype, products, and people that will shape the future of the company. But Apple's not the only game in town, as the established cell phone companies and others strike back against the iPhone. E-mail Erica at erica.ogg@cnet.com.

Add this feed to your online news reader

Apple topics

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right