Mac PC Small Medium Business

The case for and against the iPhone in the enterprise and SMB markets

Once upon a time there were only three choices for smartphones. You had the variable Palm OS, Windows Mobile and the tried and true Blackberry smartphones.

The Blackberry is loved enterprise wide for it’s keyboard, messaging capabilities, direct push synchronization (and not with just Exchange; it works with Novell Groupwise and Lotus Domino Server as well) and it’s durability.

Palm was loved because their phones were cheap and worked (Palm Centro). Palm has since abandoned the severely outdated Palm OS in favor for Linux based Web OS.

And Windows Mobile, which at the time (a few years ago) was much more advanced than anything else on the market. I remember when I got my Dell X51v Windows Mobile 5 smartphone in 2005 to test out Exchange Server 2003 capability with mobile phones. I was blown away with the capability and “coolness” of the device.

The 2007 came around and the iPhone came out. Apple fanboys came out in droves to camp out in front of AT&T and the Apple Store to buy the much anticipated device. This was the first major smartphone to use a multi-touch capacitive touchscreen. The first to have a marketplace so users had one area to buy things from (iTunes music store).

Corporate execs started telling their IT departments to allow them to use the iPhone. I had a couple of my users wanting an iPhone. I convinced them at the time however that running an iPhone was a security risk to the organization due to lack of security policy, no Exchange Server support and no remote wipe capabilities. Now with iPhone OS 3.X on the iPod touch, the new iPad and the iPhone, organizations can now safety implement an iPhone into their organization.

This posting will weigh the pros and cons of running a iPhone OS (Mac OS X) based portable device in an SMB and Enterprise based environment.

Pros:

There is no doubt that the iPhone has the wow factor. Now the iPhone allows some enterprise based capability it can safely be used in an organization that deploys Microsoft Exchange Server 2003, 2007 or 2010.

• Exchange ActiveSYNC capabilities; e-mail, calendar, contacts, tasks. Direct push with notifications to the user.

• Remote Wipe capability; through pin locking and initiated remote wipe from the mobile admin site (Exchange 2003) or the Exchange Admin tool in Powershell or Exchange System Manager (Exchange 2007, 2010).
• Security policy acceptance that meets or exceeds the capability of Windows Mobile 6.X devices. Remote wipe can be done without the consent of the user. Windows mobile requires user consent unless if pin locking is enforced.
  • Pin locking means that user has to enter in a unique 4 digit pin number when the device is turned on or comes out of sleep. This enforces the user to require device security on their phone. If an incorrect pin is entered in a certain amount of times the device is then immediately wiped and Exchange Server is notified that the device has been wiped.
• Full capable web browser with zoom capabilities. Works well with normal and mobile (WAP) web sites. Pinch zoom capabilities (capacitive touch screen) for zooming.
• No known viruses for iPhone OS. App purchases are regulated and enforced by Apple through the iTunes store. Apple checks all apps for security vulnerabilities and potential abuse.
• Lots of applications. Capacitive touchscreen for pinch zoom capability. Many applications can be used for business use. Largest application collection of any mobile platform.

Now the cons:

1: This is a huge one: Soldered battery. Recent Apple products that are portable all now use a soldered battery (all iPods, all iPhones, all iPads) or a very difficult to replace internal battery (Macbook/Macbook  Pro models from 2009 and later). Apple claims that this allows them to make batteries with unusual shapes that allow them to be placed into tighter spaces. Lithium Polymer cells can be shaped into odd shapes allowing this capability. This can theoretically increase battery life between charges.

The problem with soldered batteries is that enterprise and SMB users can no longer carry more than one battery in the field. In addition the user cannot easily replace their internal battery in their iPhone without breaking the device. Apple knows this and that is part of their marketing; the user will get frustrated and will replace the device with a new one. Apple is counting on this in fact to help boost the company’s bottom line. Other companies like Plantronics (Bluetooth headsets) and Creative Labs (portable media players) practice this as well.

I cannot send a user a battery if they are having battery troubles. The only recourse for the user is to go to the Apple store (locally – if there is one) and to request a repair. Apple will charge $100 to replace the internal lithium ion polymer battery in the iPhone; but what they don’t tell you is that this service is not done on site do to the delicate nature of the repair (soldered to the circuit board). The device must be sent in to Apple’s authorized service centers. They will give you a loaner phone, which you then must re-load all your items and re-iniate Exchange services. You must also do a hard reset and let the IT admin that your device needs to be wiped on the previous phone.

A couple weeks later you will get your refurb or your original phone back with the new battery.

Optionally you could send it in to some other repair center or attempt to get out a soldering iron on a delicate $500 device (price without contract).

Adding to the issue is that the organization cannot necessarily keep additional batteries on hand. The organization also cannot usually just go out and buy additional iPhones to have on hand due to depreciation and the high cost of buying a non-contract iPhone.

In addition AT&T and Apple forbid iPhone users from buying insurance from LockLine (AT&T’s provider of insurance). So a failing battery repair has to be purchased at full retail price.

With every other cell phone on the market you can easily remove a door and replace the battery. HTC, Sony Erricson, Sanyo, Samsung all use lithium polymer batteries in their devices that are easily user replaceable. A user can go buy one in the field. Apple’s policy is bad for consumers, horrible for the environment (increases e-waste) and bad for business (increases costs dramatically). It is my opinion that a soldered battery only benefits Apple themselves and their bottom line.

From a business prospective you have to weigh the possibility that if the phone breaks in the field due to a battery issue that you will not be able to help the user right away. A loss of communication could result in a potential loss of hundreds or thousands of lost dollars in productivity and possible revenue.

2: AT&T’s network.

It’s no secret that AT&T’s 3G data network coverage is significantly worse than Verizon Wireless or Sprint in coverage. Verizon and AT&T have been duking it out for the past few months with TV ads that push their perspective. AT&T does have higher theoretical network bandwidth through HSPDA, but their data coverage map is significantly worse than Verizon Wireless. In addition AT&T charges for data roaming, which will be required in certain situations (such as in northern Michigan, parts of Iowa etc) that would not be required for Verizon due to higher 3G coverage.

If Apple allows Verizon to carry the iPhone then this will become a non issue.

3: Apple’s cut of the profits

Apple is the only known cell phone manufacturer that demands a cut of the monthly bill for all users. This is why there is specific iPhone plans for AT&T; and these plans are more expensive than the normal AT&T plans. The unlimited iPhone plan is $149.99 a month. The Unlimited Sprint plan is $99 a month as a comparison. Sprint offers unlimited cell phone calls to any carrier from $69 a month on any of it’s cell phones.

4: Device must be activated in iTunes. Apps can only be deployed using iTunes.

This may or may not be a con, depending on the size of the organization. Apple requires activation of iPhones through iTunes with a wired USB connection to a PC or Mac computer. Mass activations cannot be done, even with the iPhone Enterprise Tool download form Apple.

Apple in addition requires users to use iTunes to install apps on their devices. Administrators cannot push/update/deploy software over the air like you can with Windows Mobile (through Systems Management Server for Windows Mobile) or with Blackberry Enterprise Server with a Blackberry device.

For large organizations this is a major issue; Apple does allow internal development of applications through the iPhone enterprise deployment tool, but users still have to use iTunes to download and install the application or to update the application. Organizations who build or buy specific applications can see how this is a major hurdle; you cannot rely on users to download and install apps themselves. This keeps versioning and systems development lifecycle in constant limbo because the IT team cannot easily manage these devices remotely.

5: No insurance allowed

If a user destroys, loses or just has an iPhone that stops working out of warranty then the organization must pay full retail ($599) for an iPhone, or risk buying a used one on eBay or Craigslist. The user will be eligible for an upgrade if the phone is at least 2 years old however.

The iPhone is the only known cell phone that cannot be insured by a carrier’s insurance plan. Apple DOES offer AppleCare on the iPhone, but this service does not cover theft, loss or accidental damage.

6: Cost per month.

Due to Apple’s demand for a cut of the month AT&T bill the cost of AT&T’s iPhone plans are higher than a non iPhone plan. An unlimited iPhone plan is $129 a month with text messaging and data included.

The iPhone can be “Jailbroken” to run on T-Mobile’s network if the cost per month is an issue. T-mobile’s network coverage is even worse than AT&T’s however.

7: Soldered memory

The iPhone does not use MicroSDHC expansion like 95% of other cell phones on the market. Again this is by design in marketing to “force” a user to live with the limited space on the phone or to upgrade to a larger capacity model if needed.

Android phones, Windows mobile, Blackberries etc have MicroSD expansion, allowing up to 16GB of usable space for music, pictures etc.

8: No non-camera models available.

This is very important for companies that work in non-disclosure, high security and classified situations (US government work, military work etc). RIM makes several non-camera Blackberry models.

9: No physical keyboard available

Studies have shown that physical keyboard input is significantly faster and more efficient for most users on mobile devices. Apple does not currently offer a model with a keyboard.

The iPad will have an optional external keyboard available from it. This keyboard uses the Apple Dock Connector; there is no word yet on whether or not this full sized keyboard will work with the iPhone or iPod touch.

Conclusion:

IT administrators and business decision makers must make the decision to whether or not the potential pitfalls and much higher cost (per month, per broken replacement, per battery replacement) are justifiable with the pros with the device (capacitive touchscreen, accelerometer, advanced remote wipe etc).

Blackberry currently offers full enterprise capability through Blackberry Enterprise Server. For companies who need full control of their smart devices I can only currently recommend Windows Mobile 6.1/6.5 or Blackberry. Only these devices can be totally locked down, controlled, remote wiped (the whole device) and application can be updated and installed remotely over-the-air.