• silicon.com
• Technology
• Mobile

By Tom Krazit, 14 November 2008 14:31

NEWS ...2.0 software update brought along several business-friendly features that improved the security and manageability of the device, some analyst firms that advise CIOs on how to spend their technology dollars still feel the iPhone's security isn't quite where it should be compared with other options in the market.

Gartner, the 800-pound gorilla of IT consulting, gave the iPhone a thumbs-up in July after the release of the 2.0 software but noted that iPhone security isn't strong enough yet when it comes to custom applications on the device.

Jurcyzk is following the recommendations of J. Gold Associates by having his employees access secure corporate data through the iPhone's Safari browser backed by the firm's own security certificate. That way, no sensitive data actually resides on the device, but users can still open documents and view them with "full fidelity", which is a huge plus for traveling lawyers who need to review documents with clients anywhere and everywhere, he said.

There's also the issue that corporations will have to install iTunes on every iPhone user's computer, which might not be part of the standard application list employed by big conservative corporations that grudgingly allow their employees to check baseball scores on ESPN.com from their PCs. And some IT managers also like to lock down a specific collection of software on the mobile device itself, but have no real way of preventing an employee from going home and adding Asphalt 4: Elite Racing to their iPhone.

But small businesses don't have the same strict security and manageability requirements as larger enterprises, allowing them to move forward with iPhones more quickly than the big guys. Independent observers of that market are seeing more and more demand for iPhones among those types of customers, who fly under the radar individually but could add up to serious revenue for Apple.

And there's a sense inside some corporations that times are changing as mobile phones become computers that aren't just for business, and aren't just for fun. Executives and salespeople - the primary users of mobile computers in the enterprise - are constantly on the go, and an executive waiting for an airplane who pauses an episode of Mad Men to answer an e-mail from a client is a productive, accessible, and satisfied employee.

"Other devices are just hardcore e-mail devices, and even at that they don't render the messages well," Sonnenschein's Jurcyzk said. "I travel a lot and it's nice to have a personal aspect to my life, to look at photos of the family, to listen to music, or watch a movie. It's nice to have that other stuff."

Apple's not the only company adapting to that shift in how we use mobile computers.

"The new BlackBerry Storm that is coming out this month from RIM/Verizon brings a lot of the iPhone design and features to the BlackBerry platform. Assuming the device works as advertised, we'll likely offer that as an option for our folks who want those types of features," Allen Matkins' Gillman said.

Microsoft CEO Steve Ballmer has also said similar things about the need for future versions of Windows Mobile to cater to both personal and business tasks.

Before too long, businesses might decide that certain trade-offs regarding the manageability of their smartphones are worth making, so long as their concerns over security are met. Analysts expect Apple to improve the native security of the iPhone over the next several years, and it's also possible that a major third-party enterprise software vendor such as SAP will step forward with a product that does it for them.

Well over 200 business-related applications are available on the App Store that help make the iPhone easier to use in a corporate setting, If Apple finds a way to improve the security profile of the iPhone to allow organizations to develop custom applications that store sensitive data on the device, it will have another feather in its cap.

Still, J. Gold Associates predicts just 16 per cent of US corporations to have an active interest in the iPhone in three years. The iPhone isn't going to put RIM out of business just yet. But it is challenging the other company in its backyard, just as RIM doubles down with its efforts to make the BlackBerry more consumer-friendly with models like the Storm and the Bold. And it's making everyone more aware of the trade-offs and needs of mobile computer users in the enterprise, which will make everyone's product better in the long run.

And if Apple proves itself as an enterprise-friendly company with the iPhone, those famously stodgy CIOs might be tempted to take a second look at the Mac.