Can the iPhone handle Exchange e-mail?

Computerworld - Overall, the new $600 iPhone appears to be a major advance in the state of the art of 21st century gadgetry. But in one glaring area -- e-mail -- Apple Inc.'s new smart phone appears downright retro.

While the iPhone will competently handle popular consumer e-mail services such as Google Inc.'s Gmail or Yahoo Inc.'s Yahoo Mail, its ability to work with corporate e-mail systems, as of now, is no better than mediocre.

That's because neither Apple Inc. nor AT&T Inc., the exclusive iPhone carrier in the United States, had, as of Thursday, confirmed whether the iPhone will be using third-party synchronization technology.

Synchronization technologies allow users to encrypt their e-mails for secure transmission and update their contacts, calendar and tasks wirelessly rather than the next time when they physically connect with their PC.

The best known include Microsoft Corp.'s ActiveSync, which connects with Microsoft's popular Exchange e-mail server software; Motorola subsidiary Good Technology Inc.'s Mobile Messaging, which allows devices similar over-the-air connectivity with Lotus Notes/Domino and Exchange servers; or even Research in Motion's BlackBerry Connect, the trademark e-mail push technology that made its BlackBerries so popular and which the Canadian company is now licensing to other vendors.

In a Q&A published Friday morning by USA Today, Apple CEO Steve Jobs did promise to alleviate concerns about the iPhone's compatibility with corporate e-mail, though he was unspecific.

"You'll be hearing more about this in the coming weeks," said Jobs. "We have some pilots going with companies with names you'll recognize. This won't be a big issue."

From an IT management perspective, these products allow IT administrators to remotely manage these devices.

That can help an IT manager "when he gets a 2 a.m. call from the CEO complaining his e-mail is down," said Keith McCall, CTO at e-mail service provider Azaleos Corp. Or it can let an IT manager wipe all of the data from a smart phone if it is lost.

"For a corporate IT manager, this is not a 'nice-to-have' but a 'must-have,'" said Ravi Agarwal, CEO of Exchange hosting provider GroupSpark. ActiveSync, which is used by more than 200 smartphones from vendors including Motorola Inc., Nokia Corp., Treo maker Palm Inc., Sony Ericsson, Symbian and others, might be the most likely bet.

ZDNet's Mary Jo Foley, citing anonymous sources, reported earlier this week that Apple is on the verge of licensing the ActiveSync technology from Microsoft.

Through a spokeswoman, Microsoft said Wednesday that it declined to "comment on rumors."

Necessary or just nice?

Since the iPhone is targeted at consumers, does the iPhone really need corporate-level sync capabilities?

Without ActiveSync or an equivalent, iPhone users will still in most cases be able to check their Exchange e-mail using the Safari Web browser and going to their company's Outlook Web Access page.