The Apple Support forums are a'buzz with reports of several users upgrading to iPhone OS 3.1 and discovering a new "feature" which was not available previously. As mentioned in our comments, after upgrading to 3.1, some original iPhone and iPhone 3G owners with Exchange accounts are having trouble accessing their email. Apparently the server-side encryption policy option for mobile devices (only available as of Exchange 2007 SP1) is now being appropriately enforced.

This is not affecting owners of the iPhone 3GS, due to the newer device's support for Exchange encryption. Prior to iPhone OS 3.1 the encryption policy was ignored for all models. Now that 3.1 is available, users are seeing this policy being correctly enforced and older iPhones without encryption support are left without access to Exchange services.

I have yet to find any reports of issues with the iPod touch, but I suspect that it will also be affected by this software change. We're awaiting confirmation from Apple on whether this will impact the newly announced iPod touch models as well.

While many are reacting to this issue as though it's a bug, and are reporting it as such, the reality is that the Exchange encryption requirement is a feature and the fact that it was not being correctly enforced was actually a security hole. IT administrators with Exchange 2007 SP1 servers and iPhone clients are probably going to be fielding an above-average level of incoming questions, but at least they can rest easy knowing that Exchange encryption is now working correctly. Cold comfort for their users, though.

If you are running into this issue, the straightforward (though pricey) solution is to upgrade to the iPhone 3GS; or consider bribing your IT guy with Red Bull so he will disable the encryption requirement for mobile devices. But we want to hear from you; are you using an Exchange account? Can you still access it following the upgrade to 3.1? Which device are you using, iPhone or iPod touch; 3G or 3GS? Is this a little thing that means a lot to you from a security perspective or have you been left high and dry without access to critical email?

Update: MacRumors points out that Apple has now covered this situation in a new KB article.

[Via Broadband Reports]

Exchange support in the iPhone has been rumored almost as long as the iPhone itself was rumored to exist. Much as the iPhone turned out to be real, so has ActiveSync on the iPhone. Microsoft released an interview with Terry Myerson, corporate vice president for Exchange, which includes a very interesting tidbit. Mr. Myserson says that Apple and Microsoft were in talks about licensing ActiveSync before the iPhone was announced. Furthermore, he was in daily contact with Apple VP Phil Schiller (when Schiller wasn't making up Apple rumors, of course) for two weeks while they set the details of the agreement between the two tech giants.

This isn't a revelation, since it stands to reason that a company in the business of selling a smart phone and another company in the business of selling technology for smart phones would work together but it is interesting nonetheless.

Do you work at a large company that runs Exchange or a Cisco VPN? Have a secure WiFi network running 802.1x? Do you wish that your iPhone would play nice? Well, with today's announcements the iPhone will soon be a good enterprise citizen, but what if you can't wait until June? You can apply for the iPhone Enterprise Beta and help Apple iron out the kinks in the new software, and be the first kid on your block with ActiveSync on your iPhone.

No word on how Apple will choose who gets to be in the beta, but I am imagining it will be selective.

Today Apple announced that they have licensed ActiveSync from Microsoft to enable full Exchange integration with the iPhone. The first thing you think of with ActiveSync is Push Email (that's when email is sent to your iPhone as soon as it is received, as opposed to on a schedule like every 15 minutes). ActiveSync includes that as well as:

• Wireless calendar syncing
• Wireless contact syncing
• Remote wipe of the device if it is lost

This goes way beyond simple email, folks. This only works when you're connected to an Exchange backend though, so don't be afraid that someone can randomly wipe all the data from your iPhone.

ActiveSync will be included in the iPhone 2.0 software, available sometime in late June.