In response to several support incidents we have received, I wanted to inform our clients of an issue they may experience with Exchange functionality on iPhone since updating to OS 3.1 software. In order to comply with several security policies, Apple changed the way iPhone and iPod touch devices connect to Exchange in OS 3.1. With the upgrade applied, many users have found that Exchange support has been lost (AppleInsider). The reason for the downgrade in functionality is the need for hardware encryption required to connect to Exchange servers. In fact if you aren't on an iPhone 3GS (or newest IPod Touch) and applied the OS 3.1 update, you are likely nodding your head as you read this.