Encrypt the hard drive on the iphone?

I am lobbying my organization to support the iphone for mobile users. Justifiably, there is concern about security. Most questions are answered by all of the FAQ available...there is one question I still need an answer to. "Can the hard drive on the iphone be encrypted? This is how we protect our laptops.
Thanks in advance.

I think the concern is that someone can crack open an iphone, pull out the flash storage, hook it up to a reader of sorts, and just read all the data...
I think the answer is, don't store confidential data on the phone.
You can use the iphone to VPN into your corporate network and access the confidential data via a web app... Then you would need to clear out the cache when done...
I would think that email would be the biggest concern... that is why remote wipe exists.. don't lose your phone.. if you can't find it, know how to get it wiped ASAP.
or... don't access your sensitive email on your phone...
Peter

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