iPhone heading to the enterprise?
21 December, 2008
By Erin Bell |
In October, 2008, Apple announced that it had sold 6.89 million iPhones in the fourth quarter of 2008, surpassing RIM's BlackBerry sales of 5.2 million. This figure pushed total iPhone sales since the device's 2007 launch to 13 million, and bumped Apple ahead of RIM to become the third largest mobile device manufacturer behind Nokia and Samsung.
The majority of iPhone's sales to date have been in the consumer market. Although analysts acknowledge that the iPhone has enormous potential to corner the business market as well, the consensus seems to be that the device still has a way to go before IT managers would consider large-scale enterprise-wide adoption.
"[The iPhone] isn't as secure, it isn't as good with e-mail, but it's generally better at Web browsing than most business-focused competitors, and it is desired by users as much or more than any of the alternatives by folks who value status higher than functionality," said Rob Enderle, principal analyst, The Enderle Group. "It remains more of a consumer focused product than a business focused product but it is now drifting sharply in the business direction."
Enderle called the iPhone's Web browser "one of the best in the market," which could be a significant advantage since an increasing number of business applications are now Web-based.
Because the iPhone itself is such a highly valued item that commands the same kind of consumer cachet as the iPod did at launch, the device is highly vulnerable to theft. However, the device lacks a remote kill command (which BlackBerry Enterprise Server includes) that would allow IT managers to remotely lock and wipe the device in the event that it's lost or stolen, making the iPhone more of security risk than other more enterprise-minded smartphones.
"The centralized kill command is a huge benefit to organizations which highly value security and information assets, included in which are government entities, financial service firms, legal and others -- primary adopters of RIM," said Christopher Boone, president and CEO of AppCentral.
Added Enderle: "[The iPhone] is viewed more as a toy and hasn't had the focus on making it secure or centrally manageable that both Windows Mobile and RIM devices have had. Apple in general has not been that focused on security and it hurts them in large business and government."
According to Boone, lack of compatibility with Exchange 2003 is also an issue. "While it can work with Exchange 2007, fewer enterprises have made that upgrade," said Boone. "Until then no IT administrator or CIO will approve its use."
Another potential roadblock is that the iPhone was not designed for frequent e-mail use. "Try to create an e-mail on an iPhone's virtual keyboard and you will want to pull your hair out," said Boone. "E-mail is a primary communication element for business and iPhone misses the mark."
Finally, cost is another factor for businesses to consider. "The iPhone is a much more expensive device compared to the BlackBerry," said Boone, "and without an enterprise sales force or ability to offer volume discounts, iPhone will remain a great consumer device which will not cross over to the business market."
Apple's software development kit (SDK) allows third-party software developers to create applications for the iPhone (and iPod touch) and sell them through Apple's App Store at a flexible price. According to Enderle, this represents an opportunity for VARs.
"Often when a product falls short a VAR can make a killing closing the gaps and creating unique solutions using it. Apple has left some big holes but has opened the phone to developers," said Enderle. "A VAR could use this to create a unique offering that could address the shortcomings and corner much of the iPhone market for business if they moved promptly and wisely. |
