The New York Times discusses the release of iNotes for the iPhone, and interviews Kevin Cavanaugh on the topic:

I.B.M. explained away its late arrival to the iPhone game, saying it wanted to focus on these types of security concerns before going after business customers.  "The other products aren't actually encrypting the data on the devices," said Kevin Cavanaugh, vice president of Lotus software at I.B.M. "I think we were concerned about the security aspect, and this turned out to be the best approach."

The iPhone software from I.B.M. has been undergoing tests at about 20 businesses.

Even while paying attention to the flashy iPhone, I.B.M. maintains its closest relationship with Research in Motion, the maker of the BlackBerry. I.B.M.'s full suite of Lotus products can run with the BlackBerry devices. Apple would need to free more information about the inner workings of the iPhone and its base software to see comparable support from I.B.M., Mr. Cavanaugh said.
Also covered on CNET, "IBM releasing iNotes for iPhone".  Also in the Register, "Lotus flowers with Apple app".

Link: New York Times: I.B.M. Puts iPhone in the Lotus Position > (Thanks for the early find, Henry)

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