Everyone in my office wants the iPhone, but the IT department claims it cant' do it until Apple provides a software fix, giving "whole device" encyption. Is his a legit excuse? And if so, how long until Apple addresses it, and can it happen in a regular software release, or do we need the next revision? Here is the note from the IT Dept: "As many of you know, the launch of Apple's new iPhone 3G is just days away. With the release of this new iPhone, Apple will now support secure corporate e-mail. Although this capability will protect the transmission of e-mail messages, it does not appear that the 3G will support encryption for all data on the phone itself -- a feature known as whole device encryption. As a result, if an iPhone configured for our e-mail system were to be lost, all data on the device (including client and firm confidential information) would be vulnerable, thus subjecting the firm to potential breach disclosure obligations under laws in multiple jurisdictions. We hope that whole device encryption will become available for iPhones in the future but are not aware of any planned release date. While we see great potential for the iPhone 3G and will continue to actively work to find a security solution for it, for now we will not be able to support the iPhone at the firm."