Not Everyone Wants an iPhone

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In the meantime, some companies are exploring how to overcome the security concerns. "We're getting lots of requests from our customers to find out what the effects of this device might be," says Neel Mehta, who leads a research team at IBM's (IBM) Internet Security Systems unit. "Since it's largely aimed at consumers, the features you need to secure confidential e-mail just aren't there yet." Wall Street brokerages and law firms, both big markets for BlackBerry devices are especially skittish because they have stringent e-mail confidentiality requirements.

One security advantage that the iPhone has, Mehta says, is that hackers wanting to target the iPhone will have trouble doing so, since Apple hasn't yet released a software developer kit. "All the attacks we've seen on smartphones have come as the result of using software development kits. Without an available kit, it's a lot harder to write malware for the device," he says.

Building a Bridge to Exchange Servers

Andy Hargreaves, an analyst at Portland (Ore.) brokerage Pacific Crest Securities, says many of the concerns about the iPhone and security are overblown and that his employer will let him use the iPhone at the office. "I think the security concerns come mostly from misunderstanding how the phone interacts with Exchange," he says. "It doesn't open up any new holes in connecting to Exchange."

Some companies specializing in wireless e-mail are working on their own approaches to connecting the iPhone to corporate e-mail services. Visto, which bridges corporate and consumer-grade e-mail services with wireless phones of every stripe, said on June 28 that it has a wireless e-mail client for the iPhone. Visto expects to deliver the product sometime late in the third quarter. Another wireless e-mail company, MessageOne, based in Austin, Tex., announced plans for its own service that will give corporate users access to e-mail by way of the iPhone Web browser. MessageOne says the service will work with Exchange and IBM's Lotus Notes.

Some tech enthusiast blogs have speculated that Apple will license Microsoft's ActiveSync technology, which lets devices synchronize e-mail, calendar, and contacts directly with Exchange servers, but Hargreaves considers that scenario unlikely. "They'd only do that if sales weren't meeting expectations," he says. Apple and Microsoft declined to comment on the speculation. More generally, though, a Microsoft spokeswoman added, "The mobile industry is broadly adopting Microsoft Exchange Server for mobile messaging with Motorola, Nokia, Palm, Sony Ericsson, Symbian, and many others licensing Exchange ActiveSync."

Early Executive Adopters

As high as the hurdles may be for corporate users, some of same features that make iPhone attractive to consumers will surely make it a hit among businesspeople. It's clearly going to attract attention for digital media enthusiasts, even many who already use an alternative smartphone.

The iPhone wouldn't be the first device to enter corporations through a back door. Originally released in 1996, the PalmPilot made a splash among busy executives with a tech bent and a busy schedule. PalmPilots began showing up on many corporate desks at the initiative of employees. Corporate IT managers only later began supporting them.

Yet as appealing as the iPhone will be to executives when they're outside the boardroom, don't expect it to replace the BlackBerry or Treo right away.

Hesseldahl is a reporter for BusinessWeek.com.