By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Google Inc.'s (GOOG) Android software looks as if it's nearly ready to join the white collar ranks.
The mobile operating system has quickly proliferated into a number of new handsets over the past few months. The phones are largely targeted at consumers, but Google wants them ready for the business environment, a potentially lucrative market. And because consumers have started to bring personal phones to the office, devices that can straddle both worlds--such as the iPhone and Blackberrys--are seeing the most success.
Google and its handset partners have taken several steps toward that goal, including a software update with more business-friendly features, with plans for more to come. Also helping are high-profile devices such as Motorola Inc.'s (MOT) Droid, which made its debut Wednesday.
Still, Android isn't as suited to enterprises as Research In Motion Ltd.'s (RIMM) blackberry, industry analysts say; however, interest is mounting.
"More companies are asking about the use of Android," said Gartner analyst Ken Dulaney, noting increased interest in non-corporate devices. "There's an increasing demand for individualism. It doesn't get more individual than a phone."
Google doesn't design products and services specifically for consumers or businesses, Chief Executive Eric Schmidt told information technology managers and chief information officers at a Gartner technology conference last week. Instead, it releases a product with the hope that it addresses all segments. While he was laying out the business case for applications such as Gmail and Google Docs, the same logic can be applied to Android.
In a recent study conducted by consulting firm Deloitte, Android was the overwhelming top choice for de facto operating system standard in five years. That's partly because its open structure makes it easier for developers to create programs.
"Inherently, Android is tailor-made for enterprise business of its open platform," said Jason MacKenzie, vice president of HTC Corp.'s (2498.TW) North America operations.
While the first iteration of an Android device, HTC's G1, wasn't a business phone, recent handsets have sprinkled in more corporate flavors. Google says the latest software makes it easier for the device to connect to a corporate e-mail and calendar system, and that it will continue to add more features for IT managers to deploy enterprise devices. HTC says companies such as Oracle Corp. (ORCL) and Salesforce.com Inc. (CRM) have inquired about creating programs.
"They need to see Android in our road map," said Willie Jow, vice president of mobility products for Sybase Inc. (SY), which creates software that lets different phones talk to the IT infrastructure and works with corporations, carriers and handset makers.
Still, critics believe that Google's roots remain with the consumer, making it tough for enterprises to truly embrace Android. Deloitte consultant Philip Asmundson said he doesn't see a large number of business programs coming for a few years, and that the enterprise focus would likely lag.
The device manufacturers themselves are cautiously approaching Android. While Motorola Co-Chief Executive Sanjay Jha said he expects more business-focused Android phones next year, other players have treaded more lightly in the area.
HTC's MacKenzie, for example, said security is still lacking for most Android phones, although it's an area that the company is looking to bulk up.
While Android phones may never stack up to Blackberrys in the corporate world, they may not have to. Apple Inc.'s (AAPL) iPhone paved the way for non-business phones to filter into companies. Rather than the standard Blackberry or Windows Mobile phone, IT managers have had to open up their systems employees carrying to newer, flashier phones.
"Corporate CIOs are getting less-standoffish" about supporting other devices, Jha told Dow Jones Newswires. "We think of it as the consumerization of enterprise."
Jha said the Droid is his current work phone.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com
(Jerry DiColo contributed to this story.)