HSBC could order 200,000 iPhones

By Liam Tung, ZDNet.com.au
13 August 2008 02:01 PM
Tags: bank, blackberry, cba, cio, hsbc, iphone, nortel

update Global banking giant HSBC is considering ditching the BlackBerry and adopting Apple's iPhone as its standard staff mobile device, a move that could result in an order for some 200,000 iPhones.

"We are actually reviewing iPhones from a HSBC Group perspective ... and when I say that, I mean globally," HSBC's Australia and New Zealand chief information officer Brenton Hush told ZDNet.com.au yesterday.

Brenton-hush-CIO-HSBC

HSBC A/NZ CIO Brenton Hush

HSBC has some 300,000 staff internationally. A decision to standardise on the iPhone on its corporate networks would likely lead to one of the world's largest iPhone orders.

"A decision on a piece of hardware like that would potentially be deployed, conservatively, to 200,000 people," said Hush. "You know, it's a big decision, especially when you have an existing fleet out there."

"But it's definitely something we are considering from a HSBC Group perspective," he said. "We always explore the potential application of new technologies and this is no different."

Should HSBC select the iPhone as its official corporate mobile device, the decision would be a major blow to Research in Motion, maker of the BlackBerry, which is HSBC's current standard staff mobile.

Most corporations passed on the iPhone when it was first released, due to limited availability and the device's lack of support for Microsoft's Exchange email platform. However, Apple has rectified both issues, and has additionally built a number of tools into the new iPhone 3G specifically targeted at corporate use.

Hush was recently elevated from an internal position to the rank of chief information officer of the local arm of HSBC.

HSBC's Australian presence is small compared to major Australian banks, but its global operations have a US$6 billion annual technology budget and a technology team of 30,000 supporting 300,000 employees.

Hush said he did not own an iPhone, however added, "I have obviously had hands on experience with them."

Heads of technology of other large organisations were cautious about the idea of standardising the iPhone for corporate network access at the time of its launch.

While one of Australia's big four banks, CommBank, today flagged its iPhone trading application as part of its $523 million growth strategy for the year, chief information officer Michael Harte recently expressed caution about the phone's introduction into its own networks.

Steven Bandrowczak, global CIO of Nortel, which has 30,000 staff, said he doubted whether his staff would choose the iPhone over its current device, the BlackBerry due to the latter device's superior email functionality.

However, Hush's opinion differed on this matter. ZDNet.com.au asked Hush whether he thought the BlackBerry had any advantage over the iPhone.

"No, I don't. I think [the iPhone] would change some underlying infrastructure considerations from an enterprise perspective. But [Apple] have been pretty smart with the design."

No time frame has been given for a decision on the iPhone move, with Hush adding that for his position located in Australia, the iPhone was a low-ranking priority at this stage.

The CIO, whose office is located at HSBC's Sydney headquarters on George Street, Sydney is just 500 metres away from Apple's new Sydney store, but he said he had not entered due to persistent queues.

"I'm blown away every time I walk past that Apple store, and there's always people queued up outside to get in," he said. "I haven't been in there. It's always too busy."

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Talkback 31 comments

    HSBC iPhone Anonymous -- 14/08/08

    He won't be CIO for long if they make the switch.

    Right... Anonymous -- 14/08/08 (in reply to #320109733)

    they will promote him to CEO.

    ...when Anonymous -- 14/08/08 (in reply to #320109740)

    the bank is in so much trouble that no one wants the job anymore.

    Wait for the ZunePhone people! steveballmer -- 14/08/08 (in reply to #320109733)

    There I said it!

    http://fakesteveballmer.blogspot.com

    Giving CIOs a bad name Anonymous -- 14/08/08

    This guy admits he
    a.) doesn't own an iPhone
    b.) hasn't even been in an Apple store

    Yet he has "hands on experience". Try using an iPhone for longer than 30 seconds. You don't switch over 300,000 employees on a new platform without deploying it to a small group first, then getting feedback from that group.

    How he was promoted, is beyond me.

    LOL Anonymous -- 14/08/08

    At what point did he say he was going to deploy to 300k people without running a pilot program? Geez I bet he never thought of that. Come on.

    Yeah you guys are smarter than the CIO of the worlds largest company. Uh-huh.

    Quick, send your best wintards Anonymous -- 14/08/08

    There should be alarm bells going off at ZDNet headquarters. Send some of your best wintards, George Oui, etc... (some of the posters above?) and try to talk the bank out of this move. Hurry, if the employees actually get a decent smart phone, they surely won't want their lame blackberries back!

    What will become of windoze mobile! Oh, the humanity!

    Typical Anonymous -- 14/08/08 (in reply to #320109738)

    Wow. That's new. A Mactard that make fun of Wintards. Don't you realize that you Mactard and the Wintards are the same, except that the former has an inferiority complex while the latter a superiority complex?

    BB Discount robert vassar -- 14/08/08

    Maybe he is just trying to prod RIM to give his company a better deal on BB's?

    CIO Gets the "I am Rich" Application Anonymous -- 14/08/08

    This guy must have been one of the "I am Rich" application consumers!

    No reasonably knowledgeable CIO, in his right mind, would consider deploying the Iphone as a functional and secure alternative to the BlackBerry.

    The options to secure and manage an Iphone over Active Synch pales in comparison to the ability to do so with a BlackBerry device, in the right environment. Not to mention that the Apple Iphone firmware was hacked BEFORE the phone was even released.

    Anyone who has used both Active Synch enabled devices and BlackBerry devices can agree that no Active synch phone on this planet compares to the ease-of-use when it comes to email on the BlackBerry.

    Um... Anonymous -- 14/08/08 (in reply to #320109742)

    I've used both the BlackBerry and the iPhone for push email, and the iPhone is far superior in every way. The DingleBerry is lame compared to an iPhone, and I much prefer looking at my email and the web as it looks on my computer rather than the version I'm stuck with on the 'Berry. I long for the day that corporations start moving in this direction. In the meantime I'm stuck with a dumb phone.

    One Way... Anonymous -- 14/08/08 (in reply to #320109744)

    Please name just ONE way that ActiveSync is better than a BES Connected BlackBerry?

    You have no clue Anonymous -- 18/08/08 (in reply to #320109744)

    Ha ha ha, you are a tool. I have had both phones and the iphone is the new age sidekick. It is cool for teens not the business world or those who like superior products. It is a great when you want to look on the internet, that is about it.

    Not "hacked" the way you imply... gopi -- 14/08/08 (in reply to #320109742)

    The iPhone firmware "hack" requires physical device access. It's as much a hack as installing a new OS on your computer. It does not present any sort of remote security threat.

    Can you perhaps be a bit more specific about which management features you feel the iPhone is lacking?

    Also, just FYI, it's "ActiveSync", one word, no 'h'. And, the i in iPhone is not capitalized.

    I'm also wondering why you seem to be conflating ease of use with OTA protocols. The iPhone can use ActiveSync as well as IMAP and POP. It provides the same UI for all three. Talking about the iPhone and Windows Mobile as if they provide the same ease of use because they use the same protocols is rather ridiculous.

    Yes, HACKED. IphoneLuvr -- 14/08/08 (in reply to #320109745)

    the Iphone (or iPhone as it were) was compromised via a firmware hack. In the hands of an end-user the device poses a huge security risk. You CANNOT re-install an OS on a BlackBerry AND remove the IT policy. The device remains secure.

    ... conflating ... Anonymous -- 16/08/08 (in reply to #320109745)

    I'm wondering why you seem to be confusing "conflating" with "equating"

    The iPhone is better than any Blackberry... Anonymous -- 14/08/08

    -The OS is richer and easier to develop for with much better development tools.

    -The UI is much easier for users to work with.

    -iPhone communication is very secure. All communications are encrypted.

    iPhone has an inviting UI and development tools for enterprises to write custom apps. Most enterprises do not write custom software for the Blackberry because it is not worth it. Weak UI and Development tools ruin the experience.

    It's just a matter of time before most large corps who wish to write custom mobile apps to switch to the iPhone.

    What? FredTheButcher -- 14/08/08 (in reply to #320109743)

    There are no "Deployment tools" for iPhone.

    I think there is. A Grain of Salt -- 14/08/08 (in reply to #320109749)

    Is this what you were looking for?

    An excerpt from http://www.apple.com/iphone/enterprise/index.html

    Enterprise applications.
    With support for custom-designed enterprise applications, iPhone becomes a must-have mobile device for businesses. Using the iPhone SDK, an enterprise can easily create applications customized to its business needs and even take advantage of key iPhone technologies such as Multi-Touch, the accelerometer, fast wireless connectivity, and GPS. To deploy their in-house applications, companies can securely sync the applications via iTunes to authorized iPhones. Once installed, enterprise applications live side by side with all the other applications that come with every iPhone.

    Wake me up when the iPhone can make phone calls. Anonymous -- 14/08/08

    Everybody is "evaluating" new tech, especially those CIOs and such.

    He'll find out what the pathetic iPhone is capable of, or rather, not capable of once he tests it more thoroughly. LOL.

    Soon enough he'll see it as a nightmare if he finds those 200000 banking pros struggling to make calls and sending data on that low security grade toy.

    Not ready to replace BB yet Andrew -- 14/08/08

    I have an iPhone, I had a BB, and WinMo device. The iPhone is a better phone then any BB and does a great job browsing the web and with multimedia BUT it does NOT compare when it comes to email, calendar and contacts.

    I love my iPhone, and i like it better then any BB or WinMo device I have ever owned, but the implementation of email, contacts and calendar is poor at best.

    1. Can't dial a number from Calendar, so if you get a con call invite, you have to write the number down to dial it

    2. Email is missing to many features to count, but much easier to read then any BB.

    3. Contacts - no support for categories, can't display by company name, can't copy from Global address book to local

    4. batter life - BB has everyone beat hands down.

    Again, I love the iPhone and it will get better, but I have never heard of any major corp being a first adopter like this... This is a recipe for disaster.

    Mac to Win so Why not WinMob to Iphone? Anonymous -- 14/08/08 (in reply to #320109766)

    Mac to Win so Why not WinMob to Iphone?

    He does have a say Anonymous -- 14/08/08

    The CIO of the Australian brach will not much of a say as to the direction the busines will take.

    The iPhone will be trailed in europe or the States and a decision passed down to him as to wether he is to roll them out or not.

    he does not need to play with it, will not be his decison to makre.

    Thats odd... Anonymous -- 14/08/08

    HSBC global runs Domino currently there's no iPhone support for Domino only Exchange....

    Unless he plans to migrate the entire company to Exchange at the same time this could prove difficult!!

    Don't put it past him Anonymous -- 15/08/08 (in reply to #320109781)

    If he is willing to yank 200K BlackBerrys, he may also be willing to rip and replace Domino for Exchange. Any CIO that would consider RNR their messaging platform to accommodate a sole mobile device platform should be fired.

    smart way to recduce mails Claus -- 14/08/08

    Has he ever written an email on an iphone?
    But on the other hand its a smart way to reduce the mail flood ;-)

    Nokia E71 would be a better choice Anonymous -- 15/08/08

    I briefly used a mate's Nokia E71 and have to say I'm very impressed - it's like a Blackberry, but much better (slicker, more features).

    Surely that would be a better choice in terms of a decent keyboard for sending mails, support for loads of different 'push' email solutions, support for Office apps, a great screen, etc...?

    Lame Teek -- 15/08/08

    How is this guy the CIO? Perhaps he just likes the publicity. This attraction to shiny new objects is getting old. I have both a 2nd gen iPhone and a BlackBerry and frankly you can only check the weather and your stocks on the iPhone so many times a day. Not to mention the battery is dead on my iPhone 3G when I get around to using it. Big mistake.

    HSBC - Best joke I've heard all day... Anonymous -- 15/08/08

    Things things poeple will say just to get their name in the media.

    iPhone stil not mature enough BChau -- 15/08/08

    There are so many reports of poor 3G coverage and drop-calls, etc... So even the most basic function of a phone is still not there in iPhone yet. And the enterprise features are still a shame, as admitted by Steve Jobs himself.

    blackberry back on the menu Anonymous -- 20/08/08

    HSBC just shot this story down in flames. BB is staying.

    http://www.cbc.ca/technology/story/2008/08/19/rim-hsbc.html

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