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Poll: iPhone Exchange Support; Did Microsoft Make a Mistake?

Written by Richard MacManus / March 10, 2008 12:28 PM / 18 Comments

In yesterday's post Why Apple Will Dominate Next Gen Computing, Alex Iskold wrote that Apple's announcement of iPhone support for Microsoft Exchange "makes perfect sense" - as a competitive move against Blackberry and to position the iPhone as the default consumer / enterprise phone. However, how smart was this move by Microsoft?

Specifically, Apple has licensed Microsoft Exchange ActiveSync, which InfoWorld described as "the technology required to synchronize mail, calendar, and other data directly with Microsoft Exchange rather than use third-party gateways or synchronization services." This will be included in the iPhone 2.0 software planned for release this June.

As somebody said yesterday in a meeting that I was in, iPhone with ActiveSync may spell the end for Windows Mobile! Think about it: Exchange is arguably the most important functionality for an enterprise that runs Microsoft software (and many enterprises do). So if the iPhone, one of the fastest growing consumer mobile phones currently and with similar industry-changing potential as the iPod, can sync your data between home and office -- what use would you have for a Microsoft Windows mobile phone? It seems that Microsoft is taking a huge risk here, letting the iPhone usurp the need for Windows Mobile phones in the enterprise.

What do you think? Participate in the poll below, and outline your reasons for your vote in the ReadWriteWeb comments.


Comments

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  1. Microsoft had no choice but to license ActiveSync to Apple.

    As a patented, licensed software product, Microsoft has to license their IP to all comers on an equal basis. To do otherwise would run afoul of US law as well as risk garnering the interest of regulators as an anti-competitive, monopolistic action.

    That is the two-edged sword of patenting software, as it is with all patents. You must license it, on the same terms to all similarly-situated licensors.

    Posted by: Reason Author Profile Page | March 10, 2008 1:52 PM



  2. WIth the government scrutiny right now, particularly with the EU, Microsoft didn't really have much choice.

    Given their market share and the government looking for a reason to bust them behaving like a monopolist again, since they licensed the API's once for exchange sync--many times in face--they couldn't really say no.

    This is one of many, many reasons why Microsoft is screwed. Of of many.

    Posted by: Bob Whaler | March 10, 2008 2:01 PM



  3. no mistake because most people like to feel keys when typing.

    Posted by: Darren Stuart | March 10, 2008 2:15 PM



  4. Maybe they realized that Apple was going to provide enterprise groupware support for someone's groupware product, so it might as well be theirs.

    Posted by: David | March 10, 2008 2:20 PM



  5. How many organizations that use Exchange servers are going to want to spring for iPhones, though? I'm thinking less of the money issue (the iPhone isn't incredibly more expensive than a standard smartphone) and more the bias of corporate IT departments.

    And more importantly, how many are going to want to give business to AT&T (or at least go to the hassle of leaving their current provider)?

    Posted by: Wm Morris | March 10, 2008 2:20 PM



  6. The number one Exchange phone is the Blackberry with no Microsoft OS installed, so using Exchange on the iPhone is not a threat to Microsoft. They are competing very nicely with RIM now. Also, to run Exchange you need Microsoft Server software. Microsoft can continue to increase it's dominance in the email business. If Microsoft decides Windows Mobile can compete sufficiently with RIM and iPhone (I currently don't think it can, Mobile is to slow and the interface is to cluncky) then they will modify their protocols and/or apis to allow the Windows Mobile devices to perform better then iPhone or RIM. Right now Exchange is the dominant player in the enterprise email business (where has Lotus Notes gone by the way?) and with this move Microsoft has further cemented that lead. Microsoft now has a significant, profitable piece of the iPhone action. Once Apple is committed they can't go back. Microsoft, however, can live without Apple. Who do you think will control that relationship?

    -Doug K.

    Posted by: Doug K. | March 10, 2008 2:33 PM



  7. Won't Microsoft still make money on the deal? Don't you have to have CAL for the iPhone user to access the Exchange server?

    I'm not a Microsoft licensing expert, but if this is the case, Microsoft will make money on every iPhone that connects to an Exchange server.

    Posted by: NIck | March 10, 2008 2:48 PM



  8. With wannabe tech people pretending the iPhone is the messiah of all mobile devices. Especially the older people that wanna look soooo cool with a ipone, who tend to be upper level management. This makes perfect sense. They will sell more enterprise licenses saying "ohhhh look how well exchange works with my cool iphone... lets get more windows licenses for our company." I've had a nokia navigator that does everything the iphone does and more. Please refer to maddox article concerning the iPhone.

    Posted by: hate apple | March 10, 2008 3:04 PM



  9. Great points so far in the comments. But nobody has really answered the question: does this cannibalize Windows Mobile? And for now let's consider that AT&T isn't the only provider, because I agree that is an issue that would prevent many IT depts using iPhone.

     Posted by: Richard MacManus Author Profile Page | March 10, 2008 3:06 PM



  10. Now that would be one serious irony.
    If MobileOSX were to somehow become the dominant mobile operating, on the backs of infrastructure built by Microsoft, it would be like revenged finally achieved by Apple.
    Considering that Microsoft dominance was eventually achieved by progressing ideas that seeped out of Apple back in the 80's.
    It'll be interesting to see what happens in the coming months\years.

    Posted by: Darryl | March 10, 2008 5:19 PM



  11. Do not forget that MS is an investor in Apple.

    Posted by: Fabian Schonholz | March 10, 2008 5:29 PM



  12. Fabian Schonholz (#11) said -- "Do not forget that MS is an investor in Apple."

    Microsoft sold that off a long time ago. They don't own those shares any longer. By the way, they made a good profit, too. So, it wasn't a bad investment for them. Too bad they didn't keep it longer and make even more money.


    Posted by: Eliakim | March 10, 2008 6:26 PM



  13. Richard ManManus said (in the article) -- "It seems that Microsoft is taking a huge risk here, letting the iPhone usurp the need for Windows Mobile phones in the enterprise."

    What is this "language" you use -- "letting the iPhone ..."

    Just that language alone let's everyone know you don't know what you're talking about. They don't have a choice and therefore they don't "let" anyone. Put your money up and you've got it!! LOL...

    Try writing about something you know about.

    Posted by: Eliakim | March 10, 2008 6:29 PM



  14. That's a stupid poll, too. Anyone who answers it is just as stupid as the person who made the poll in the first place. Every question is idiotic.

    Dumb Move? [no move on Microsoft's part, at all...]
    Smart Move? [again, no "move" at all on Microsoft's part...]
    Don't Know? [probably the smartest question, albeit still stupid {if you don't know...}]

    LOL...

    Posted by: Eliakim | March 10, 2008 6:33 PM



  15. Have you ever used a Windows Mobile phone? Have you ever seen how they're used in real enterprise workplaces? You wouldn't be proposing something as ridiculous as Exchange support putting the iPhone on equal footing with Windows Mobile. I really don't understand where these last few Apple posts on RRW have come from.

    Here's a scenario for you. A production server went down unexpectedly one afternoon. We're all off-site attending a meeting, but this server needs to get back up now, as the company's losing significantly from the downtime, and the cleanup will be worse the longer it's offline. Does a developer need to leave the meeting and go back to the office? No, he opens up a Remote Desktop on his Windows Mobile phone to the server, and controls it as if he were sitting at its screen. He opens up Windows' Event Viewer, finds the error that caused the crash, loads up SQL Server Management Studio, fixes it up, and gets the server back online. All from his phone.

    Will iPhone replace Windows Mobile in the enterprise? Not a chance.

    Posted by: Dan Grossman | March 10, 2008 10:51 PM



  16. Gee, Dan. I could do exactly what you did in your scenario on my MacBook Pro running Microsoft's Remote Desktop Connection (within OS X) and a wireless card. And do you think someone won't bring something similar to the iPhone?

    If you need a WinCE phone because Windows servers are going down all the time then you have bigger problems than discussing iPhones.

    You sound like Ballmer..."No chance! No chance!" Guess he can eat a healthy portion of crow now that the iPhone has passed WinCE phone sales this past quarter.

    And what percentage of people using a WinCE phone use it to keep tabs on their servers?

    All I read last June was how the Windoze geeks cried and ranted about how the iPhone didn't have this or that, didn't have true Exchange support. And now that it will, you still want to berate it.

    Go ahead. Apple is laughing all the way to the bank.

    Posted by: Chuck | March 11, 2008 6:02 AM



  17. OK, I'll bite. "does this cannibalize Windows Mobile"

    Maybe a tiny bit. But even if it was a lot, it still wouldn't matter. Exchange is the money maker. And Windows Mobile needs more than preferenced Exchange syncing to be successful (as iPhone and Blackberry demonstrate beyond a reasonable doubt).

    Posted by: pwb | March 11, 2008 1:52 PM



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