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Will the iPhone Fly as a Business Tool?

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Gadget geeks will forever remember June 29, 2007, as the date Apple unleashed its much-hyped iPhone, a digital Swiss Army Knife that fused a handful of features — mobile phone, camera, media player and Wi-Fi-enabled Web device — with a graceful touch-based navigation interface. It became a sought-after consumer sensation, and remains as one to this day, but it seems Apple and third parties are trying to find a way the iPhone could also double as a clever business tool. But is there room for the iPhone in a world dominated by powerful smartphones with cutting-edge e-mail delivery, such as the BlackBerry? We spoke with analysts on whether or not it’s possible. Nathan Dyer, senior analyst for enterprise mobility at the Boston, Mass.-based Yankee Group, believes it can happen, and transforming this consumer product into a business tool will likely come from Apple opening up the platform to software developers. “The ‘holy grail’ in the mobility space for businesses is maximizing productivity and effectiveness of its workers, regardless of their location,” says Dyer. “Mobile workers need access to the same applications and corporate data that they have in the office — and it’s these third-party software vendors that will provide the infrastructure hooks to make the iPhone ‘business class’.” In March 2008, for example, Microsoft officially announced it was offering built-in support for Exchange, it’s messaging and collaboration platform, on the iPhone. “This is significant,” believes Chris Hazelton, senior analyst, mobile device technology and trends at IDC, a Framingham, Mass.-based technology research firm. “With Exchange ActiveSync on the iPhone, mobile businesspersons can connect to a company’s Exchange server behind a firewall.” Hazelton says Microsoft is also considering building Excel, Word, and PowerPoint accessibility into the device, which also means those receiving corporate e-mail on the iPhone can view and edit Microsoft Office attachments. Pro: Intuitive design and functionality When asked what might help the iPhone’s chances of catching on as a business device, Dyer says the device is extremely powerful and intuitive to use. “It takes complicated functionality, such as Wi-Fi integration and embedded Web searching, and makes it intuitive to the user.” Dyer adds, “The Safari Web browser on the iPhone has enormous potential to shift how workers access and generate content.” Hazelton says the iPhone’s popularity makes it an attractive alternative to other smartphones: “When I look at the history of the BlackBerry, it was a sign of prestige that you were important enough for the company to give you email anywhere you need it,” says Hazelton, “and now the BlackBerry is a standard for mobile workers.” But maybe it’s time for BlackBerry to move over, because there’s a new status-symbol for business users. “Now the iPhone has that air of elitism and prestige — executives want the iPhone in their world — so IT departments believe they have to account for that,” says Hazelton. The iPhone’s extras, such as a camera and music playback, also make it an appealing phone, says Hazelton. “You’ve got this willingness to carry device with you — you can load it up with music, movies, photos, and podcasts, which can make a long flight for an executive a better one.” He adds that the HTML browser is perfect whether you’re checking inventory or sports scores. Con: Lacks a compelling productivity story for IT Despite its growing popularity, Apple doesn’t have very much brand recognition — especially among IT departments — argues Dyer. “That, and the iPhone lacks a compelling productivity story to justify investment at this point.” One common issue, for some, is the “soft” keyboard, opposed to the BlackBerry or Treo with its button-based QWERTY keyboard (note: some BlackBerrys offer a condensed “SureType” keyboard). “The messaging interface [on the iPhone] is very cumbersome and takes some time getting used to,” says Dyer. But Hazelton says the keyboard isn’t an issue for everyone. “Yes, with the iPhone you actually need to look at the keyboard because there is no tactile feedback, it’s a different type of experience, but I can’t say one type of keyboard takes longer to type an e-mail than the other.” Hazelton says not many iPhone users know you can drag your thumbs across the soft keyboard and lift up when you get the desired letter. “If you can master this, you can text as fast as any BlackBerry.” Finally, security is an issue for all mobile devices, claim Dyer and Hazelton. The iPhone is no exception, especially as it has built-in Wi-Fi connectivity. Hazelton, however, says the next-generation iPhone software should support Cisco Virtual Private Network (VPN) and other security measures to help protect company data.

Is the iPhone Worth It?

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Unless your white iPod earphones have been stuck in your ears over the past six months, no doubt you’ve heard Apple has just launched one of — if not — the most eagerly anticipated device of the year. The iPhone, which combines a widescreen media player, smartphone and host of Internet services ranging from messaging to navigation, is as gorgeous as it is functional. It also features a revolutionary “flick” interface that lets you use your fingertip on the touch-screen to navigate through all your content. It includes a 2-megapixel camera and integrated Wi-Fi for high-speed wireless surfing. That sound you just heard was millions of gadget geeks salivating. Clearly being in possession of an iPhone can help an entrepreneur make an impression on potential customers, partners, or financiers, but is this digital Swiss Army Knife ideal to help run your business? The answer depends on whom you ask. Push versus pull e-mail Smartphones have helped small and mid-sized businesses support mobility for employees, keeping them tethered to e-mail and the Internet in addition to being reachable by phone while traveling on business, meeting with clients, or even running errands.  But the question is whether the iPhone’s features are worth the additional high-end price. “I don’t think the iPhone will be a great device for businesses — it was built entirely as a consumer device,” says Gary Chen, senior analyst for small and medium enterprise IT infrastructure and applications at the Yankee Group, a Boston, Mass.-based technology research and consulting firm. The big application on smartphones for businesses is push e-mail, says Chen. Push e-mail provides an “always on” functionality, transferring e-mail in real-time (push) instead of requiring the device to “pull” it from the mail server. “The iPhone won’t be able to connect to these systems,” Chen says. The iPhone does have Post Office Protocol (POP) and Internet Message Access Protocol (IMAP), which provide nearly instant notification of a new message, but require the device or user to retrieve the new e-mails. “That isn’t the same as push,” says Chen. Bryan Chaffin, editor in chief of the Mac Observer, a San Jose, Calif.-based online news magazine that has been publishing information about Apple products and services since 1998, agrees with Chen — to some extent. “The iPhone doesn’t offer a lot to small businesses because the e-mail application may be a bit slow,” explains Chaffin. “But the e-mail application is also very easy to use, so it’s simple to find and read your e-mail, look up your addresses, and view photos sent to you.” The fact that e-mail appears to be hassle-free could a selling point to small or mid-size businesses for executives or mobile employees. The “real” Internet One of the selling points of the iPhone, however, is that it provides a full-featured Internet experience, much superior to what most Web-enabled phones now offer. “The iPhone makes it easy to surf the Internet and with not a stripped-down version — ‘the real Internet’ as Apple puts it — which no one else has offered yet in this space,” Chaffin says. The non-linear voice mail application, which lets users listen to recorded messages in any order they choose, could also help save time for a business owner. While Chen agrees with Chaffin that the “iPhone certainly has a sleek design going for it,” he says that it doesn’t have clear support for any other mobile enterprise applications. “It is a closed system and they don’t seem to be concerned at the moment about building an enterprise ISV [independent software vendor] ecosystem,” Chen says. The device also lacks a Java Virtual Machine, which “might have allowed existing apps to work and the phone itself is closed to third party apps,” Chen adds. Finally, the price might be an obstacle for cost-conscious small-to-mid-sized businesses. Depending on the amount of internal memory, the iPhone costs $500 or $600, plus a two-year AT&T carrier commitment (with a hefty monthly data plan). That high price is going to dissuade most small and mid-sized businesses who are generally operating on lower margins and are fairly price sensitive, believes Chen. But there is a difference between standardizing on a device for an entire company and providing select entrepreneurs or executives with a stylish and pricey device that may make a statement to clients, partners, and even venture capitalists that a fast-growing firm is “with it” technologically. “Sure, price will definitely be a barrier to entry — especially if buying one for everyone in the company — but it’s not significantly more than a high-end Treo or BlackBerry,” notes Chaffin. For the iPhone, that price needs to be weighed against making a stylish statement.