Users of older generation iPhones and iPod touch might be in for a bad surprise if they try to access Exchange 2007 servers although who bears the responsibility of the snafu depends on to whom you asked.
Apple spokesperson Natalie Harrison told Cnet that the "iPhone OS 3.1 is working properly with Exchange Server 2007", adding that the company has "added device encryption information to the data that can be managed by IT administrators using Exchange Server 2007. The policy of whether to support iPhone 3G, in addition to iPhone 3GS, which always has on-device encryption, on Exchange Server 2007 is set by the administrator and can be changed at any time."
The issue now according to Infoworld is that previous Apple OSes "lied" about whether non-3GS iPhones and iPod Touch had on-device encryption. And as Inforworld also added, this is not the first time that Apple has bended the truth; Apple claimed that previous generations of iPhone OS would adher to strict VPN policies which forbid VPN passwords from being saved. This proved out to be a lie as users could save these passwords which turned out to be a a huge security risk.
Now that Apple has effectively implemented hardware encryption in the 3GS, it is basically telling other iPhone users to do one of the following: Buy the 3GS, turn off on-device data encryption or downgrade to iPhone OS 3.0 if you can find one.
The irony here is that existing business customers who have trusted Apple for so long will find themselves properly scr**ed, forcing them to go back to their Blackberries or adopting another third party solutions. Will Apple get the trust of businesses again?