With the unveiling this week of the iPhone 3G and Version 2.0 of its software, Apple and AT&T have finally begun to make the device a viable enterprise client.

But the iPhone's sex appeal may not make up for its shortcoming against the BlackBerry smartphones from enterprise powerhouse Research in Motion, and the increasingly capable enterprise devices running Microsoft's WinMobile platform. Both RIM and Microsoft offer centralized device troubleshooting, administration and management through server-based software.

The new phone, with its 2.0 software, incorporates some key software interfaces for enterprise users and IT departments:

Cisco's IPSec VPN client, creating an encrypted connection to corporate networks Wi-Fi Protected Access 2 (WPA2) Enterprise security specification, with 802.1x authentication Microsoft ActiveSync, creating a two-way, auto-discovery link with Microsoft Exchange-based e-mail systems, with support for automatic push e-mail, and for wiping data from iPhones Full support for Microsoft Office documents

How well all these actually work will be critical. Many of them are Apple's first cut at features and functions that have been staples in the BlackBerry environment for a long time, according to Network World blogger Mitchell Ashley, who says iPhone at present is a pale reflection of what BlackBerry offers business users.

To support the new iPhone, AT&T Wireless recently unveiled a major upgrade to its growing High Speed Packet Access (HSPA) 3G network. The network upgrade is crucial for enterprise users, because it creates an interactive experience closer to what these users expect when accessing enterprise applications on a wireless or even wired corporate LAN.

The AT&T upgrade adds support for HSUPA (high-speed uplink packet access), to support faster upload connections for cellular clients. AT&T says 3G subscribers will see upload speeds of 500Kbps to 1.2Mbps, compared with 500-800Kbps for rivals Verizon Wireless and Sprint Nextel. The iPhone's exclusive carrier says users will also see download speeds of 700Kbps to 1.7Mbps, compared to its previous speed range of 500Kbps-1.4Mbps. The carrier's network now covers the top 275 U.S. markets, with another 75 by year-end.

With iPhone 3G, AT&T and Apple are scrapping their original revenue sharing deal -- Apple got a cut of the carrier's monthly service revenue. AT&T says it will offer the iPhone at "attractive prices to broaden the market potential" -- subsidies that bring the two new iPhone models down to roughly US$200 and $300, depending on memory capacity, with two-year service contracts.

In addition to voice plans, AT&T now will offer business users a choice of three data plans, with unlimited data service. These include Visual Voicemail, unlimited data with both e-mail and Web browsing, and baskets of SMS text messages. The plans are priced at $45, $55 and $65 per month, based on the SMS messages.

The carrier says it will launch a new enterprise marketing campaign for iPhone when the new models, and the 2.0 software, become available on July 11. As part of that, the carrier is training thousands of customer support and sales employees serving the enterprise and small business markets.

With the 2.0 software, Apple has added what may be a critical utility for enterprise users: iPhone Configuration Utility, available as either a Web application or a native Mac OS X application. With the utility, administrators can create and distribute "configuration profiles," which are XML-based files that install in the iPhone and instruct it on enterprise connection and communication policies.

The program lets you adjust settings for such things as Microsoft Exchange, including a simple password option for users to connect via ActiveSync; Wi-Fi connectivity; VPN server settings, accounts, proxies, etc; IMAP or POP mail; restrictions on installing third-party applications; and certificate distribution.

Once created, the profiles can be exported for download via a secure Web site using the iPhone's Safari browser, or e-mailed to users, who simply tap on the attached file to launch the install and accept the settings.

While clearly important, the configuration utility, as its name suggests, is a far cry from the sophisticated device and connection management features