iPhone Rings the Right Exchange

That's the question to ask, following today's big news. With the iPhone 2.0's firmware/software, Apple will enable full Exchange capabilities, including push e-mail, on the popular mobile. Apple licensed Microsoft's ActiveSync for the iPhone.

During Apple's iPhone event today, while CEO Steve Jobs made the announcement, Microsoft released a press announcement. That was really smart PR maneuvering. Super-secretive Apple typically doesn't post its press releases until after a Jobs presentation ends. That means for the zillions of reporters and bloggers not in attendance, the only independent information is from Microsoft. At least for early reporting outside the Apple event venue, Microsoft is set up to get some good citations. I don't think Jobs much likes being upstaged.

Seeing as I'm not at the event (but my Apple Watch colleague Dan Turner is there), I'll be quoting Microsoft's press Q&A (and waiting for information from Apple, too). These Microsoft Q&As are one-sided discussions, as they're so PR canned. Still, this one has more useful information than usual.

Terry Myerson, who is corporate vice president for Exchange, explains the ActiveSync/Exchange licensing to Apple: "We started talking with Apple about licensing Exchange ActiveSync before the launch of the iPhone last year."

Ho, ho, so Apple was serious about the iPhone in the enterprise even before launch day. There has been lots of speculation that Apple wasn't serious about the enterprise, but Myerson's statement strongly suggests otherwise. That makes loads of sense; it's the lacking Exchange support that made no sense. The iPhone is a device crying out to be used by enterprises. As sign of its seriousness, Apple has put up an iPhone Enterprise Web site.

"I met with Apple Senior Vice President of Worldwide Product Marketing Phil Schiller almost daily for a period of two weeks ironing out the details of the agreement," Myerson said. "The result is a true collaboration between Microsoft and Apple."

Collaboration maybe, but Apple also took its time making an announcement, and there still is no product available to enterprises. Apple doesn't plan to release the iPhone 2.0 update until June. The delivery date is sure to stir up more speculation about the 3G iPhone. For push e-mail, IT organizations and their supported users are going to want a bigger pipe. That means at least 3G.

In a nearly unprecedented move, Apple has opened an enterprise beta program for companies that want to test out Exchange support. Apple isn't Microsoft and beta invitations like this one are rarities.

The beta, for iPhone 2.0 software, is limited to IT organizations with at least one computer running the latest Mac operating system. Microsoft isn't the only software developer pushing its newest stuff. But I wonder: Will there be a Mac OS X Leopard requirement for setting up or administering iPhones on an enterprise network?

If Apple were going to just license Exchange connectivity, the iPhone might have limited enterprise acceptance. But Myerson said that the iPhone will offer broad Exchange support:

"By licensing Exchange ActiveSync, Apple can build a wireless e-mail client on iPhone that synchronizes e-mail, calendars, tasks and contacts with Exchange Server over the air. Apple also has the option to enable features that allow businesses to manage the iPhone through security policies in Exchange Server 2007, including remotely wiping all data from a lost or stolen iPhone, and requiring security provisions for email such as a password and pin access."

The management and security feature support is huge. Other security features include Cisco IPsec VPN and WPA2 for Wi-Fi.

Ed Hott, Microsoft' director of Strategic Relationships for Exchange, highlighted some other features in a blog post this afternoon, such as, Autodiscover. "All the iPhone user does is enter his/her email address and password. Pretty cool," he wrote. The iPhone also will support HTML mail, "so it's safe to assume your Exchange mail will retain its HTML formatting on the iPhone as well," he added.

Apple also launched, as expected, an iPhone developer program. While there has been demand for an iPhone SDK for consumer products or services, enterprises would want one, too. The timing of both announcements together isn't coincidental, then. Apple is thinking about enterprise iPhone adoption, too.

Apple's iPod success is built on good synchronization. It will be interesting to see if Apple can do better sync than Microsoft or its partners. My guess is yes. Apple may make enterprise wait too long for Exchange support, but the result might just be worth the wait.