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Now that the iPhone is out, users want corporate IT managers to let their iPhones work with corporate email servers. It’s tricky, as I’ve mentioned before on June 29. Several bloggers, including Jason Levine and John Gruber, have posted very good articles on how enterprises might deal with iPhone users.

The iPhone isn’t ready for business users yet

ZDNet’s Russell Shaw has posted an article that lists Gartner’s seven reasons why the iPhone is not ready for the enterprise. Gartner analyst and report co-author Ken Delaney warns companies not to buy iPhones for the following reasons, which I’ve quoted from the ZDNet article. My comments are in italics:

1. Apple’s “rudimentary” experience designing mobile devices specifically for the enterprise - this is a first generation device, after all. Microsoft, RIM, Nokia and other companies have a serious head start on this item.

2. Lack of support from mobile management and mobile security software utilities - there’s no third party software support for the iPhone in this area yet, and there won’t be until Apple opens up the iPhone API. Gizmodo claims there will support late in 2007. Apple might stop unauthorized iPhones from being recharged, according to this patent. But that’s a far cry from monitoring mobile devices in the field.

3. Lack of compatibility with major business e-mail systems - iPhone can handle POP and IMAP4, but Microsoft Exchange servers need this update to support IMAP4.

4. An operating system not licensed to third-party hardware suppliers, resulting in no backup - Apple is the only source for the iPhone hardware. Users are supposed to backup their iPhones with iTunes.

5. No removable battery, creating the potential for increased support costs - while Apple has announced a mail-in program for iPhone battery replacement, the user cannot open an iPhone and disconnect the battery. I used that trick a couple of times a week on my Cingular 8125 when it needed a reboot.

6. Only one carrier operator (AT&T Wireless) - at least in the United States, and that exclusive will last at least 2 years. Apple’s competitors support every major cell phone carrier in the US.

7. The high price point, $499 for 4GB or $599 for 8GB - the iPhone is an expensive device with no quantity discounts. Lost an iPhone, and the hardware replacement cost can be high. Memory can’t be expanded because there is no external memory slot.

I’d add two more reasons to this list:

• The iPhone is clearly an entertainment device. It’s a very nice video iPod with a phone, a data connection, and web apps. But at it’s heart, iPhone is all about driving more users to iTunes.
• The iPhone has some Internet and productivity features built in, but the document viewing features, calendar and contacts list can’t be easily synced to a corporate network yet. Give Apple and its partners some time. Corporate support will come if sales are strong.