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Companies need to get ready for Apple iPhone onslaught
Tuesday, June 19, 2007 - 09:05 AM EDT

"Apple plans to unveil the iPhone [on June 29]. According to a person close to Apple, the company is expected to fight for this market, currently dominated by players like BlackBerry's RIM, Palm Inc. and, increasingly, Nokia Corp. and Motorola. If Apple comes up with an acceptable strategy for integrating with business software systems, many companies might change their tunes," Nick Wingfield and Jessica E. Vascellaro report for The Wall Street Journal.

"Apple's plan to go after the business market represents a shift for the company, which has never been a strong player in corporate technology. In recent years its focus on the consumer market has accelerated with its products like the iPod and its effort to open a broad network of retail stores," Wingfield and Vascellaro report.

"The initial plans of many companies to snub the iPhone will likely come as a disappointment to many consumers who are eager to substitute the iPhone for the multiple devices they carry around for music, cellphone and both corporate and personal email services. These users may put pressure on business technology departments to support iPhones even if that means incurring additional expense and changing their policies," Wingfield and Vascellaro report. "Incompatible technology has become an increasing problem for businesses as hand-held email and phone devices are evolving into minicomputers that can do such things as download music, take pictures and surf the Web."

MacDailyNews Take: And one device, Apple's iPhone, is far more evolved than anything else on the market today. The IT dinos will be — gasp! — forced to accommodate the employees; a rarity, we know, but watch and see.

Wingfield and Vascellaro report, "The public's broad acceptance of the iPod, more than 100 million of which have been sold, has given Apple a hip currency among many professionals, including business travelers for whom iPods are ubiquitous gadgets on the go. That, in turn, could translate into strong demand for the iPhone among business users."

"Troy Saxton-Getty, vice president of technical operations at St. Bernard Software Inc., a software company based in San Diego, says he currently wants to support only BlackBerrys. The system becomes less reliable when other devices are introduced, he says," Wingfield and Vascellaro report.

MacDailyNews Take: Then, get a better system.

Wingfield and Vascellaro continue, "But Mr. Saxton-Getty says he is worried that 'rogue' employees may figure out ways to route their corporate emails to their iPhone. 'I am getting a lot of push back, and people saying they are just going to go get it on their own,' he says, adding that an employee asks him about the iPhone and whether the company will support it about every hour. Jonathan Anderson, who works for St. Bernard Software, says he plans to ditch his new BlackBerry for an iPhone as soon as he can get his hands on one and set it up on his own."

Full article here.

MacDailyNews Take: The IT guys are in for a rude awakening and the iPhone is only the beginning. They will have to accommodate the iPhone. Too many important employees will demand it and IT won't be able to stem the tide. The fact is that business people will decide which device they want to carry and their businesses will adapt to it. Just as they did with "Microsoft-incompatible" Research In Motion's Blackberry. Apple's iPhone will be a success with business users whether the IT guy wants it or even whether AT&T and Apple tailor marketing to businesses or not.

Note to CEOs: Who runs the company, you or the IT guy? It's your job to make the decisions and it's the IT guy's job to implement your decisions that relate to technology. Just as with Macs, you need to educate yourself instead of relying on someone with their own, possibly hidden, agendas to make extremely important technology decisions for your company. Most of you could be saving a LOT of money right now, but you aren't because you've delegated an important part of your company's decision-making to people who, frankly, in our experience, aren't capable of making good, sound, strategic, long-term decisions. Most IT guys (and we know many) are not open-minded enough to be able to consider new, better, more efficient, more effective options that would benefit your company. In fact, most IT guys we've met will throw up road blocks and repeat myths until they're blue in the face in order to avoid change. Especially change that might make their department less critical or smaller. Bottom line: most of you CEOs have given the IT guy way, way, way too much power. It's time to take it back.

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Jun 19, 07 - 09:14 am Comment from: Jerry Artman

What integration problem?
If full Safari is on there and I have webmail from my company, seems like all I need to do is log into webmail. Since Safari is a full browser, no special formatting or anything else which Apple already solved. All the user needs is a connection to the network- dail in or WIFI, probably both.
We do this with laptops now, how much more difficult can it be?

Jun 19, 07 - 09:18 am Comment from: R

Onslaught. Good word.

Jun 19, 07 - 09:20 am Comment from: en

@ Jerry---

"BINGO!!"

en

Jun 19, 07 - 09:20 am Comment from: Reality Check

If the iPhone doesn't fully synchronize (ie. email, calendar, tasks, etc) with Microsoft Outlook, it can forget it for Corporate use. This should include the ability to at least view (and preferably create) MS Office files and attachments. The Corporate market is all about business functionality - not pretty interfaces or loyalty to SJ, nice as those may be.

Jun 19, 07 - 09:21 am Comment from: pooloo

I'm sure there are a lot of CEO's out there reading second rate websites run by a 16 year olds and overrun by a bunch of 12 year olds like MDN, and even more taking advice from them.

Jun 19, 07 - 09:22 am Comment from: Bizarro Ballmer

I tried to think of Apples long tem plans in the phone business and it's a tricky call. Does anyone think they will make a
Less featured "Nano" type phone? Simple phone that plays music to compliment the high end iPhone due out?
I say it's tricky because of cannibalization challenges towards just music iPods.
I think a phone in that $199-200 range would really be a market
tsunami.

Jun 19, 07 - 09:22 am Comment from: rwinters

Funny that the RIMM stock is rising as fast as the Apple stock. I wish I would have purchased both when the iPhone was announced in January. Some analysts seem to think the one will stay successful and the other will be very successful.

Jun 19, 07 - 09:25 am Comment from: Moo

IT dorks need to STFU and realize they are there to serve the needs of the employees, not the other way around.

Jun 19, 07 - 09:29 am Comment from: Slevin

Doesn't the iPhone support .mac, pop3 and IMAP email access with the built in email program? So shouldn't congfiguring the email account be as easy as putting inthe SMTP and mail server along with a password? Issue resolved. IT sucks, espically when they don't know what they are doing with new technology. Sure they can configure network addresses and whatnot, but they hate to be seconded guessed. I hate IT at my job because they are scared my mac will bring down the whole network of PC's. I laughed at that when I heard it. Oh well.

Jun 19, 07 - 09:31 am Comment from: Reality Check

Employees need to STFU and realize that for a corporation to have a functional and efficient IT system the IT "dorks" needs focus on a few systems and standards and nothing more. The job of a corporate IT department is not to support every employees favorite gadget.

Jun 19, 07 - 09:32 am Comment from: Ken

In Apple's market, the customer and the end user are the same person. In the enterprise market, the customer and the consumer are different people.

Microsoft has a lot of unhappy end users, because their products are not designed for them, they are designed to appeal to enterprise decision makers and buyers. Apple's end-user orientation results in happy end users, but it is very unsettling to corporate buyers who fear that organizational chaos would come from a network of nothing but special cases.

Unless Apple can demonstrate to enterprise buyers that its end-user orientation will meet their needs as well as the needs of the end user, the enterprise market will balk, or even ban the iPhone.

Jun 19, 07 - 09:32 am Comment from: en

And the lazy uninformed IT guy says, "he currently wants to support only BlackBerrys. The system becomes less reliable when other devices are introduced."

This guy has been programmed by Microsoft so badly that he just cannot think. Not out of the box, not in the box, nowhere. He only knows that crap that he is used to is better than anything new that he will have to think about. grin

New phrase: Apple. Start thinking!

en

Jun 19, 07 - 09:32 am Comment from: Mac-o-fan

Companies need to better get ready now that the excitement about the iPhone has reached a frenzy. People can go any extent to buy an iPhone.

Jun 19, 07 - 09:33 am Comment from: CEO

pooloo,

I am a CEO. Obviously, I'm reading MDN. Your post indicates to me that MDN's Take struck a little too close to home for your comfort. The truth hurts, deal with it.

Jun 19, 07 - 09:34 am Comment from: Road Warrior

Apple may not integrate with M$ products.

But Google will

Mulhahahaha!

*hears sounds of chairs being tossed in Redmond*

Jun 19, 07 - 09:34 am Comment from: Petey

All IT guys should be taken out and shot.

I cannot believe in this tech savy world that IT professionals cannot understand that change is good.

Technology is here to improve people's way of life and move society and teh human race forward.

The problem is one of total fear, they fear macs and a better, more efficent, cost-effective and simpler way of doing things because they know they will lose their jobs.

Jun 19, 07 - 09:34 am Comment from: Buster

To Troy Saxton-Getty, veep at St. Bernard Software (man....insert joke caption here), I agree. This is why we banned Blackberrys in the Canadian Government. Our smoke signals work fine thank you very much and we don't want no stinkin' iPhone to destabilize the system further.

Jun 19, 07 - 09:34 am Comment from: One guy from Finland

We are a 100% Mac company and we have saved thousands and thousands of Euros with that. Servers and everything works beautifully. Our IT people does more creative work. They actually develop our systems instead of wasting all of their time keeping systems running. They enjoy what they are doing and everybody are happy.

Jun 19, 07 - 09:39 am Comment from: Petey

I cannot wait for the day when all the old IT dinosaurs retire and make way for the open-minded modern generation of IT professional.

People with no hidden agendas about protecting their jobs and making critical business technology decisions based on that one fact.

PURGE THE DEAD WOOD AND DINOSAURS FROM CORPORATE IT DEPARTMENTS!

Jun 19, 07 - 09:43 am Comment from: Petey

A message for any IT guy out there who has been brain washed into thinking that there is only one way of doing things...

"Always look where you will be, not where you have been".

Jun 19, 07 - 09:44 am Comment from: John

They say you want a revolution...well...

Jun 19, 07 - 09:47 am Comment from: Drunk Cheney

Once CEOs start getting the iPhone, IT departments will accommodate.

Jun 19, 07 - 09:52 am Comment from: Reality Check

Once CEO's start dicking around with Coverflow, their music collection and iTunes videos during work time, the shareholders will also accommodate, I suspect.

Jun 19, 07 - 09:58 am Comment from: Macaday

@ pooloo

Don't kid yourself. You would be surprised who is reading MDN.

The childish rants on MDN are normally reserved for those in the "I love MS, I know nothing but MS Win, and I hate Apple" camp.

I do see the iPhone making major headway in corporates, just as the MacBook Pro's are doing already.

Jun 19, 07 - 10:01 am Comment from: ron

Get ready for the onslaught of email from Apple people.

It's about time for the CEOs of these companies to start doing what is best for the comany, instead of leaving business decisions in the hands of backward thinking, job protecting, anti-Apple, Microshaft hugging, IT maroons.

Jun 19, 07 - 10:01 am Comment from: Macaday

Reality Check: you don't have a very adult view on the world do you?

Since when are shareholders measuring the results of CEO's by measuring the time they spend "dicking around with Cover Flow"?

Please, enough your inane astroturfing.

Jun 19, 07 - 10:02 am Comment from: rsbell

Yeah, but does the iPhone sync with .Mac? As much as I want an iPhone (and I REALLY want an iPhone), I'll be passing until it syncs calendars and contacts via the internet.

Jun 19, 07 - 10:11 am Comment from: qka

And some of us are still waiting for Mac support from our IT drones.

Jun 19, 07 - 10:17 am Comment from: Road Warrior

@ Road Warrior.

I have been using the handle "Road Warrior" for a while at this site, never seen anyone imp or use the same handle until now. It looks like a valid post, so I am wondering if you are attempting to imp the handle or just using it as well. Might cause some confusion.

Just curious.

Love the sound of the chairs falling at Redmond by the way.

Jun 19, 07 - 10:20 am Comment from: crazylegs

You need to seperate small and medium sized businesses from large enterprises who absolutely need security - this space is all RIM's because of their infrastructure to provide fully encrypted instant email all the way.

In the smaller and mid sized business world, it's more about usefulness to the end user, which iPhone should provide in a big way. It is absolutely absurd to think that in a billion a year unit market (and growing), more than one company can succeed.

Oh, and are you guys forgetting in the US, Apple and ATT have a 5 year exclusive agreement? Non-ATT cellular customers represent 75% of the US market. Yes, many will switch for the iPhone, but many will not. I'm all about Apple domination but settle down.

Jun 19, 07 - 10:20 am Comment from: Sam

As one of the IT guys some of you want to shoot I will say, and I am sure I am not alone, that I am excited about the iPhone and it raises the bar over blackberry in _certain_ respects.

BUT, if it doesn't wirelessly sync with the major groupware platforms it just won't fly as a business device. IMAP email isn't enough. Attachment support will be a critical factor.

The v1.0 factor is a problem for a lot of businesses. Where my business is on the line I am not going to take risks on unproven technology.

Whether CEOs or rank and file like it or not, if the iPhone cannot be configured for legal compliance, i.e. encryption, remote lock/wipe, etc. (Esp. in the financial services and legal sectors) the lack of this would make the iPhone a non-starter. I can make my environment very unfriendly to the iPhone by blocking standards based email such as IMAP and POP3 at my network perimeter. I am sure many companies would be forced to make a decision to do this or not as a result of the iPhone onslaught. MacDailyNews's CEO take is so off base. The first concern of good CEOs is to make sure that all liabilities (which a stolen or lost iPhone could be) are controlled so the company doesn't GET SUED or LOSE PROFITS due to a loss of a trade secret. What will Apple do to control the iPhone in their own environment?

Some of you responding to the post talk big, but I am sure that few of you would risk _losing your job_ by introducing an unapproved device that could be construed as data theft. Some businesses disallow and restrict even lowly pen drives.

Oh the camera...work for the Department of Defense or a courthouse? You won't pass security! Care to risk confiscation or worse?

That said, I still like the iPhone and I hope to be able to support it when it has matured into a solid, secure platform for businesses. When Apple comes out with the business iPhone it will probably address all of these needs in the same superior manner it has addressed consumer needs.

One more point, few employees would be willing to spend their own money for this as a business tool. Few companies will let you expense a cell phone. My AT&T;rep says I cannot buy an iPhone on our corporate plan. Big problem and another non-starter.

Sam

Jun 19, 07 - 10:21 am Comment from: LinuxGuy and Mac Prodigal Son

One way the CEOs will learn that they have to support the iPhone, and Macs too, is when they loose top job candidates coming from the universities, where Macs are now and iPhones will soon be the technology of choice for the best and the brightest. The IT obstructionists will be run over by the corporate need to hire top talent.

Jun 19, 07 - 10:21 am Comment from: PC Apologist

MDN: "Who runs the company, you or the IT guy? It's your job to make the decisions and it's the IT guy's job to implement your decisions that relate to technology."

CEOs ought to be making strategic decisions, and competent management ought to be supporting those decisions in ways that make sense for the business and are supportable, extensible, and effective.

A business that relies on fast, reliable communication w/ mobile employees (like a traveling sales force) needs a technology like GoodLink or Blackberry that supports push-style, always-on connectivity. Plenty of high-ups are going to fall for iPhone and ask for it, and plenty of competent, responsible IT directors are going to say "it doesn't make sense for this company at this time."

When iPhone supports a secure push tech from enterprise mail servers (not Yahoo!) then it'll be a legit option for business customers. Until then, it's a novelty consumer-level gadget.

And this ALL assumes that the thing even works as advertised.

Jun 19, 07 - 10:23 am Comment from: Mac Realist

No company is going to have to make room for the iphone because it is a non-product. It is incompatible with everything except the Macintosh, which is never used in business. We have yet another product for the ultra-rich that has no business purpose. A new toy for the CEO to show his buddies on the exclusive golf range that exemplifies how stupid executives can be. If you want a real smart phone then get one of the excellent devices from HP. They are compatible with the products employees need and are safe and secure.

Who knows about the iphone? If safari is any guide as to the security of this brain dead pseudo product then I can't think of an IT guy on the planet that would allow it on the network. When will the fawning media figure out that software and security is important? Who cares about executive toys that normal people will never be able to afford? Maybe it would help Apple to move to Italy so they can be near Ferrari and Lamborghini and feel at home?

Jun 19, 07 - 10:26 am Comment from: PC Apologist

Sam -

Right on. MDN has obviously never taken the blame and seen his/her (or in some ways worse: someone else's) head roll for implementing insecure or unstable solutions that were insisted upon by management levels far removed from the technology itself.

Jun 19, 07 - 10:29 am Comment from: anthony007

Apple has a phone coming out??!! When did this story break?

Jun 19, 07 - 10:34 am Comment from: Majikthize

Macs are making huge headway among developers, who love being able to run Windows, Linux, and OS X on one machine, and college students, who love iPods, iLife and Final Cut. These are the folks who'll be running IT in a few years, and they'll be bringing their Macs with them.

Jun 19, 07 - 10:35 am Comment from: Macaday

Mac Realist: you contribute very little with such pixeyland statements as that above.

Jun 19, 07 - 10:37 am Comment from: Shoeman

@ Sam..

Good post. It's obvious that the little Fanboys who post here have no concept of business. My company blocks ALL webmail and my Blackberry is synced with Lotus Notes through our VERY secure enterprise servers.. The inability to open a WORD or EXCEL document is also a show stopper.

I'm sure my company (a large US energy provider) is going to give up security because a bunch of fanboys employees "demand" an iphone so they can listen to music and watch videos all day... NOT!

That said, I will be getting one for my PERSONAL use. It's a great product for consumers, but it's not even in the same league as a blackberry for corporate users. Hopefully, Apple is working on a multi touch business phone (sans the iPod, camera and with the ability to open attachments and push mail to it from our secure servers).....

Just a touch of reality...

Jun 19, 07 - 10:39 am Comment from: Macaday

PC Apologist: oh, you mean insecure things like Windows? IE? etc. etc. Insisted upon by Management?

Now I understand what you mean!

I think you will find that for those very same reasons of security management are going to want out of these products and into new ones that are considerably better and more secure.

Jun 19, 07 - 10:53 am Comment from: Peterson

Reality Check/PC Apologist needs to STFU and realize that everyone is tired of his/her constant astroturfing and handle hijacking. To have a functional and efficient MDN system this dork needs to focus on a few other web sites and nothing more. The job of a PC apologist needs to be handled by someone a bit more mature.

Jun 19, 07 - 11:13 am Comment from: Reality Check

@Peterson. Many thanks for your feedback - although I can't accept the blame for anything "PC Apologist" writes. Anyway, I've admittedly been bold enough to dare suggest that the iPhone in it's current incarnation has no place in the corporate workplace and that shareholders are unlikely to take kindly to a CEO that plays with an iPhone all day. But other than that, exactly why are you so offended by my comments?

Jun 19, 07 - 11:16 am Comment from: Petey

re: No company is going to have to make room for the iphone because it is a non-product. It is incompatible with everything except the Macintosh, which is never used in business.

----

RUBBISH.

I do business with 100s of companies that purely use only Macs - NOT windows PCs.

And no - they are not design companies, they are lawyers, estate agencies etc.

Now that macs use the same processors as windows pcs the mac is more widespread in general business than what you think.

Businesses are using macs more because of the stability and security of the Mac OS and that macs can easily connect to windows pcs without any problems what so ever.

Jun 19, 07 - 11:33 am Comment from: AP

Yawn!!! When will everyone realize that Apple has no, repeat NO interest in the enterprise market. The iPhone is not designed to be used in business and never will. The iPod, which has no legitimate business use has sold over 100 million units by courting just the consumer. I think we all have to get out of this mindset that in order for a product to be bought, it must satisfy the demands of corporations. Has Blackberry sold 100 million units yet? And if they did congratulations, but I dont think they have.

Jun 19, 07 - 11:36 am Comment from: The Other Steve

Now if only the "Note to CEOs" could appear in a Wall Street Journal opinion piece.

How about it WSJ, MDN won't mind.

Jun 19, 07 - 11:48 am Comment from: effwerd

I am a CEO. Obviously, I'm reading MDN. Your post indicates to me that MDN's Take struck a little too close to home for your comfort. The truth hurts, deal with it.

I believe everybody who says they're a CEO on teh internets cuz it's the smart thing to do.

Jun 19, 07 - 12:01 pm Comment from: Shoeman

"I am a CEO."

Sure you are. I bet you also own 100,000 shares of Apple which you bought for $8 a share like everyone else here on MDN.

The truth does indeed hurt, and your total lack of knowledge regarding business is glaring. It's not important that you can open attachments or that users can sync their phones to corporate servers, what is HUGH is that you can play Super Mario Bros. on your iPhone....

What is the average age here at MDN, 10?????????

See ya later Mr. CEO...

Jun 19, 07 - 12:19 pm Comment from: Hugh

"what is HUGH is that you can play Super Mario Bros. on your iPhone...."

Leave me out of this. Thanks.

Jun 19, 07 - 12:21 pm Comment from: Sam

To: AP

I disagree with your assertion that Apple has no interest in the enterprise market. That's a huge potential source of revenue. We are pursed by Apple aggressively. Mac OS X is proof of that, just look at the technology and level of integration with corporate back ends (including Windows). Comparisons to the iPod are not applicable. Just how that interest applies to the iPhone remains to be seen, but unlike the iPod, the iPhone along with all other smartphones has a _solid_ business case. I consider the Mac and Mac OS X evolution to be a model of how Apple made a transition from consumer & design firms to mainstream business. I expect to see that process accelerated in the case of the iPhone. Time will tell.

Respectfully,
Sam

Jun 19, 07 - 12:23 pm Comment from: No Squirt For You

"When will the fawning media figure out that software and security is important?"

Exactly. That's why Windows in its present form should be banned from the corporate world and MS should be sued in the largest ever class action lawsuit.

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