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February 27, 2008 4:36 PM PST

Apple: It's business, it's business time

by Tom Krazit
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Apple is finally getting ready for the iPhone to mean business.

In its first eight months, the iPhone has been mostly a consumer phenomenon in the U.S. Apple has pitched the device by showing off its iPod capabilities, or how to search the Web for restaurant reservations and car prices, or update your status on Facebook. But next week Apple plans to show off some "exciting new enterprise" features for the iPhone, which will presumably make it easier for those of us who can't push the CIO around to use our iPhones as tools for work.

The groundwork for this movement has been taking place for some time. When Apple CEO Steve Jobs announced plans to bring out a software development kit for the iPhone in October, that paved the way for companies developing enterprise software applications--decidedly not Apple's strength--to move those applications to the OS X operating system that runs the iPhone. Also, earlier this year AT&T began allowing iPhone users to sign up for business accounts, after requiring them to use personal accounts in the early days of its service.

Getting corporate e-mail on your iPhone could become a snap by the end of next week.

(Credit: CNET Networks)

It's not hard to imagine that a wide variety of previously skeptical iPhone customers would take a second look at the product if they realized they could use it for both work and play. The first people who widely adopted smartphones were business executives, who wanted products like Research In Motion's BlackBerry so they could have access to corporate e-mail while traveling. Phones based on Microsoft's Windows Mobile, with its ties to the Exchange e-mail software, the Office suites, and the Windows desktop, were also able to exploit the business community's need for a mobile office.

Apple's first attempt at a smartphone came from a totally different place. The company swung for the fences, and connected, with its focus on consumer-friendly features like the touch-screen user interface and videos. People who had never even considered a smartphone were drawn to the iPhone, and they made the iPhone the third-best selling smartphone in the world during the fourth quarter, only the second full quarter it was available.

So now, after demonstrating that people like its iPhone, Apple has a chance to show how practical a device it can be as well. The release of a few influential enterprise applications could provide a reason for holdouts to take the iPhone plunge, or a reason for current iPhone users to upgrade once the 3G iPhone arrives.

Most notably, the iPhone currently doesn't fully support widely used e-mail software such as Microsoft's Exchange or IBM's Lotus Notes, making it much more difficult to get the IT department to support push e-mail to your iPhone the way they would a BlackBerry or a Treo. The iPhone can work with Exchange servers with some configuration changes, but that's not something that is widely supported inside IT departments that aren't located at One Infinite Loop, Cupertino, Calif.

In an interview with News.com's Ina Fried on Wednesday, Microsoft CEO Steve Ballmer said licensing the Exchange protocol to Apple would be consistent with the company's practices but declined to say if in fact Apple was a licensee. Earlier this year, IBM denied several reports that it was about to announce a deal with Apple for licensing the Lotus Notes software, saying it wasn't ready to release the software. Perhaps one or both of those stances are about to change.

Peter Burrows over at BusinessWeek notes Apple could be firing a shot across RIM's bow next week if it announces full support for corporate e-mail software. RIM's BlackBerry handhelds are the second-leading smartphones in the world, and the leading product in the U.S., largely on the strength of corporate sales. Apple, however, sits just behind RIM in both markets after less than a year, almost completely on the strength of consumer sales.

RIM has been trying to break into the consumer market with products like the BlackBerry Curve, but now it might have to defend its own territory if Apple suddenly starts cuddling up to business customers. RIM has had this market largely to itself for a while, now that Palm has really fallen off the map and is focusing on getting back to basics.

Still, RIM might be able to deflect Apple's inroads into its own business by striking a deal with Apple to license the BlackBerry Connect software for iPhones. It already does this with Nokia, Samsung, and Motorola, among others.

Apple could have other enterprise features in mind for next week. It could have been working with Salesforce.com, for example, on a version of Salesforce To Go--the company's smartphone product--for the iPhone. Maybe the iPhone will soon support reading and creating Microsoft PowerPoint presentations, adding to its read-only support for Word and Excel.

The feature perhaps most coveted by iPhone-using professionals is support for Microsoft ActiveSync, which would allow iPhone users to wirelessly sync their Outlook e-mail, contacts, and calendars with their Windows PCs, rather having to sync Outlook calendar and contacts by physically connecting your iPhone to your computer through iTunes. This would let you create a calendar appointment on the iPhone and have it automatically show up the next time you fire up Outlook on your desktop without having to mess with any cables.

There are ways to do wireless syncing between the iPhone and Outlook with unofficial third-party applications like Funambol, but IT departments don't like to support hacked software, and that version only supports contacts right now, not calendars or e-mail. Likewise, Synchronica's Web application only supports "pull" e-mail, not "push" e-mail that automatically delivers e-mail to your handset when received by your corporate e-mail server.

Until today, the details of the iPhone software development kit were the hot topic in the iPhone world. That will still be a very important development, and next week's event will provide a telling look at how Apple views the importance of third-party application development to the future of the iPhone.

But announcing deals with big third-party application developers--names like Microsoft, RIM, Adobe, Salesforce.com, or countless other possibilities--would signal that Apple is ready to pitch the iPhone as more than just a toy. Some of the earliest criticisms of the iPhone were that it didn't support the needs of the enterprise. Those might quickly go away by the end of next Thursday.

CNET News.com's Ina Fried contributed to this report.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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Add a Comment (Log in or register) (16 Comments)
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Already more than a toy...
by amandachuck February 27, 2008 5:12 PM PST
I saw the power of the iPhone the other day with an animation
friend of mine. He had his samples as well as a new animatic of his
on his iPhone, and could show it to anyone at will. Great self
promotion tool. Sure, other smart phones can do that too, but not
with as big of a screen with all the touch features and instant
control. Include one of the new projection chips in a future iPhone,
and you have a portable sales tool making lugging a laptop around
for presentations less important...
Reply to this comment
i agree
by rnieves1977 February 27, 2008 6:18 PM PST
As I was waiting in line for a ride at universal studios orlando I ran payroll for my employees. Then added some e-mail accounts for one of my clients and restarted the FTP service on a server that was acting up. The rest of the time I spent playing games on my jailbroken phone =P

The web browsing experience is the main thing that made me want one so bad over my BlackJack. It's so fricking straight forward. It makes my life so much easier, especially when I'm on the go.
Um huh? Too much coolaid?
by jabberwolf February 29, 2008 3:28 AM PST
So you saw some guy's animation on a webpage?

That prooves to you, that it was for business and more than a toy?

What are you smoking and can I have some?!
flight of the conchords
by darthstupid February 27, 2008 5:43 PM PST
heh, nice FOTC reference there. ;p
Reply to this comment
FOTC rulz.
by shanewalker February 28, 2008 2:49 PM PST
Indeed...I did a double-take and nodded, "Yeaaaaah," when I
caught the reference.

Now, if they could've fit a slight against Australia and some
reference to mueslix in, it'd be a total coup.
Iphone does not work with peoplesoft/SAP
by inachu February 27, 2008 6:15 PM PST
really bites.
Reply to this comment
yeah
by rnieves1977 February 27, 2008 6:19 PM PST
Also the fact that it doesn't support flash sucks majorly too.
View reply
PeopleSoft/SAP does not work with iPhone
by Thomas, David February 28, 2008 7:40 AM PST
Really sucks.

Look, it would help if people understood the order in which
things work. The device is a platform, with supported
protocols. PeopleSoft applications, and SAP are software.
Software that can changed to use any sort of protocol, within
their legal rights to implement.

Bottom line. To think otherwise is backwards thinking.
Synchronica's Gateway Does Push Email
by Joe Bishop February 28, 2008 10:11 AM PST
Synchronica's Mobile Gateway server does support push email. In
fact, it supports three different mechanisms for push - OMA DS,
IMAP Idle, and IMAP EMN. The iPhone in it's present incarnation,
however, doesn't support any of these.
Reply to this comment
can't search contacts
by jonhuie February 28, 2008 10:40 AM PST
even more fundamental is the iPhone?s lack of ability to search contacts. it's essential to be able to search contacts by company name or other keyword.
Reply to this comment
SAP for iPhone!
by libertyforall1776 February 28, 2008 4:24 PM PST
http://www.iphonefreak.com/2007/12/sap-goes-iphone.html
Reply to this comment
Funambol is an Enterprise solution (not a hack)
by smaffulli February 29, 2008 1:25 AM PST
Hi, Funambol is not software 'hacked' together by sleep-deprived kids.

It's a full enterprise solution adopted by carriers and ISV worldwide. We support thousands of phone models and we are the reference implementation of SyncML standard for syncronization.

Please have a loot at our customers page
http://funambol.com/about/customers.php
and to our partners, just to get a brief look.
Let me know if I can help you further :)
/stef
Reply to this comment
You'd Do Better....
by SenorFrog February 29, 2008 9:01 AM PST
in getting people to look at your website (which I'm not) if you showed a little humility. Those 'sleep-deprived kids' have been kicking butt and taking names and providing great apps/abilities - mostly for free, sacrificing their own time and money. Something to be applauded not made fun of. And if your product is so universally used, why are you posting on a message board like you were pimping viagra? Hack is not a dirty word, which you should know coming to this forum.
BS brought to you by Apple and ATT
by jabberwolf February 29, 2008 3:26 AM PST
You can title it "enterprise" or put "business user" all over the accounts of an iphone but it won't change a thing.

IT IS NOT FOR ENTERPRISE OR BUSINESS UNLESS IT SYNCSE OR PUSHES EMAIL.

A desktop redirection is barely an entprise fix but its better than what Apple has produced. I am guessing that is what ATT is going to produce as well - a desktop rediredtion software.

That is still no where close to MS SYNC or RIM's BES SERVER.

Sorry but this story is well... a non-story.
Reply to this comment
iPhone Over-the-Air Synchronization
by Jo Mosaku February 29, 2008 10:13 AM PST
Nexthaus' SyncJe for iPhone synchronizes your iPhone Calendar, Contacts and Notes with Synkia's SyncML server Over-the-Air now.

You are also able to sync all SyncML compatible mobile phones (300+) including smartphones such as Blackberry, Palm Treo, Windows Mobile.

www.synkia.com
www.nexthaus.com

For a comprehensive list you can go to the following link.:
https://www.synkia.com/WWW_SupportedPhones
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