Former congressman Curt Weldon is helping broker deals between Russian and Ukranian weapons suppliers and the Iraqi and Libyan governments as part of his new job with a private American defense consulting firm, Wired.com has learned.

Weldon, who is currently being investigated by the FBI over alleged corruption during his time in office, visited Libya in March to discuss a possible military deal, according to a letter describing the trip from Weldon to Defense Solutions CEO Timothy Ringgold. In May, Weldon, together with Ringgold and another company representative, traveled to Moscow to discuss working with Russia's weapons-export agency on arms sales to the Middle East.

Both trips were part of the company's effort to tap into the growing -- and often legally murky -- market for selling weapons from former Eastern Bloc countries to the Middle East and Afghanistan.

The Russians want to sell weapons to Iraq directly, but "must go slow on Iraq because of political reasons" and want to work with an "intermediary" like Defense Solutions, CEO Ringgold subsequently wrote to colleagues. "They have not spoken with any American company that can offer the quid pro quo that we can or that has the connections in Russia that we have," he boasted.

A few years ago, an American company proposing to sell weapons to Libya might have triggered a congressional hearing. So, too, would have a proposal to conduct arms deals with Russia, which the United States has accused of selling high-tech weapons to Syria and Iran.

However, U.S. government efforts to rapidly equip countries like Afghanistan and Iraq -- which have largely Soviet-origin weapons -- have created legal ambiguities and loopholes in export controls that didn't exist in years past and given rise to a new class of arms trade middlemen. So, even though both Libya and the Russian arms export agency are on official U.S. blacklists, government officials and analysts involved in weapons sales say the rules have become unclear as the push to equip allies in the global war on terror has blazed new but uncertain legal ground.

Eagerly stepping into that virgin territory is Defense Solutions, a Pennsylvania-based company that is carving out a small but lucrative niche in a new international arms bazaar. The firm boasts as its advisors a number of influential Washington insiders, such as retired General Barry McCaffrey, the former White House drug czar.

Helping the firm make key connections is Curt Weldon, a former Republican congressman from Pennsylvania at the center of an FBI investigation into alleged conflicts of interest during his time in office. Weldon, now a key executive at Defense Solutions, is working with the company to set up these weapons deals.

It's an unusual, if not an entirely unexpected chapter for Weldon, whose time in office included frequent trips to Russia. As an influential member of the House Armed Services Committee, Weldon pushed for multibillion-dollar defense programs, like ballistic missile defense, and earned a reputation as a foreign policy gadfly, boasting of his contacts with officials in nations labeled by the administration as "rogue states" such as Libya and North Korea. Weldon's wild claims about a 9/11 cover-up and his sensationalist book warning of an Iranian terror plot, sometimes earned him official scorn and public ridicule, but it was accusations that he steered contracts to Eastern European businesses linked to his daughter's lobbying firm that drew the government's attention.

Weldon was voted out of office in 2006 just weeks after the FBI raided his daughter's home, and that of one of her associates.

Weldon did not respond to e-mails and phone requests to be interviewed or comment for this article. But in a 2006 interview, before the FBI probe was public, Weldon spoke enthusiastically about setting up a "front company" to work with the Russian arms agency, Rosoboronexport. Weldon hoped this company could sell weapons to the Middle East, and other regions, particularly to countries where the U.S. has strained relations. He claimed the director of Rosoboronexport approached him to work with "an American company that would act as a front for weapons these nations want to buy."

Weldon called the proposal an "unbelievable offer."

The administration, he acknowledged at the time, did not welcome the idea of an American company selling Russian weapons to potentially unfriendly countries. But two years later, Weldon, now a private citizen and chief strategic officer for Defense Solutions, appears to be working on precisely that sort of deal. And whether illegal or not, Defense Solutions' business represents a new phenomenon in the international arms trade business.

In years past arms brokers -- firms or individuals who serve as middlemen to facilitate weapons sales between countries -- were largely the stuff of spy thrillers. Unlike traditional American defense companies, like Lockheed Martin or Boeing, which typically sell weapons directly to NATO countries or other governments regarded as friendly to the United States, brokers are often small outfits run by people with sometimes questionable experience and reputations they will sell to anyone. One of the most infamous arms brokers, a Russian named Viktor Bout, is charged by the United States, United Nations, Interpol and others of funneling arms to terrorists and rebels around the world. He was recently arrested in Thailand. The United States is requesting his extradition on charges of supplying arms to a terrorist organization.

But ironically, Iraq has fueled a new market for these professional middlemen; the United States is funneling billions of dollars into modernizing Iraq's army so that the country's government can fend for itself after coalition troops withdraw. And Iraq's largely Soviet-equipped military is a natural market for Eastern European countries brimming with old or out-of-date equipment they would like to unload. The middlemen, in these cases, serve a key role by allowing the U.S. government to do business with an American company, which in turn buys equipment from Eastern Bloc countries in deals worth hundreds of millions of dollars, much of it financed with U.S. taxpayer dollars.

One of Defense Solutions' sales -- a deal to sell Hungarian-owed T-72 tanks to Iraq in 2005 -- was typical of these new foreign military sales. But on the more questionable side is the company's plans to work with Rosoboronexport, which is barred from doing business with the U.S. government, and Libya, which is still on the State Department's arms embargo list.

The Eastern European-Middle East arms-brokering business, while in some cases sanctioned by the U.S. government, has run into problems, including outright corruption and quality. Defense contractor Dale Stoffel, the president of Wye Oak Technology, and another American were gunned down in Iraq in December 2004 after Stoffel alleged that the Iraqi Ministry of Defense was involved in a kickback scheme. Like Defense Solutions, the company Stoffel worked for was refurbishing the Iraq's army Eastern Bloc equipment.

Another problem is quality. Weapons from the former Soviet Bloc, which the U.S. military euphemistically calls "nonstandard equipment," have been flagged as substandard, acknowledges Brigadier General Charles Luckey, who is in charge of security assistance at Multi-National Security Transition Command-Iraq. In an interview from Iraq, Brigadier General Luckey said: "One of the frustrating things about buying nonstandard [weapons], is that I'm the guy who has to deal with the fact that some broker I've never heard of allowed weapons to get to Iraq before they were inspected."

In one high-profile case, Iraqi officials alleged that a corrupt firm sold them $400 million in shoddy helicopters from Poland. More recently, a company led by a 21-year-old and a former masseur was offered a U.S. government contract worth nearly $300 million to sell ammunition to Afghanistan. The ammunition turned out to be outdated and of dubious origin and several people connected with the company have been indicted. A congressional investigation concluded that the company, which was on a State Department watch list, was able to take advantage of regulatory loopholes by using middlemen.

For those concerned about illicit arms trade, this new wave of weapons deals is rife with the potential for corruption and abuse, but for companies eager to pursue markets once regarded as dubious, it represents a lucrative business opportunity. The problem in these cases, according to those familiar with arms sales, is that it's no longer clear what's legal and what's not.

Rachel Stohl, an expert on international arms trade and a senior analyst at Center for Defense Information, says that in many ways, the rush to equip Iraq has led the United States to throw caution to the wind. She points to a report by the Government Accountability Office last year that found that some 190,000 weapons sold to Iraq have gone missing. "I think the reality is we won't know, until way after the fact, about all of these irregularities with the Iraq weapons provision program," she said. "We were providing them all these assault rifles that have gone missing. Why? They were not following the standard procedures that were in place."

But Iraq and Afghanistan aren't the only markets available to arms brokers like Defense Solutions. The gradual normalization of relations with Libya opens another door into a quasi-legal area of sales.

Like Iraq, Libya has a substantial arsenal of Soviet-origin military weapons, offering a potential market for brokers working with Russia and other former Soviet states. But even when there's not an outright ban, sales to the Middle East are often fraught with controversy, particularly to countries like Libya, which was under international sanction for more than a decade. Even as sanctions against it have been lifted, European companies proposing to sell arms to Libya have faced steep criticism, particularly since the country is still ruled by dictator Muammar Gaddafi, who took power in a military coup in 1969.

While the United States lifted Libya's "state sponsor of terrorism" designation in 2006, other restrictions, such as on the sale of arms, remain in place. A State Department spokesperson confirmed that exports of "lethal munitions" to Libya, such as tanks or related equipment, are still banned, although sales of nonlethal equipment are now allowed on a case-by-case basis.

In late March, Weldon traveled to Libya for a weeklong trip at the invitation of the Gaddafi Foundation, a group run by the son of Libya's leader, and the chairman of Libya's foreign affairs committee, according to the report he sent to Defense Solutions (.pdf), a copy of which was obtained by Wired.com. The trip reports states: "Agreement reached for Weldon to quickly return to Libya for meetings with son [of Libyan leader Gaddafi] Morti regarding defense and security cooperation."

A document dated April 16, just two weeks after Weldon's trip, outlines Defense Solutions' proposal to Libya to refurbish the country's fleet of armored vehicles, including its T-72 tanks, BMP-1 infantry fighting vehicles, and BTR-60 armored personnel carriers. A copy of the sales proposal, also provided to Wired.com, is on Defense Solutions' letterhead, appears to bear the signature of company CEO Timothy Ringgold, and is addressed to Libya's defense procurement council. "Defense Solutions is committed to delivering a full end-to-end solution to its clients," the proposal states. "Besides refurbishing these vehicles, we are capable of providing a full logistics support package, including a two year supply of spare parts, maintenance and repair services, and operator, maintenance, and repair training."

In an interview with Wired.com, Ringgold admitted that he's interested in doing business in Libya and confirms receiving Weldon's trip report from Libya, but denies drafting or signing an arms-sale proposal. "I've never made such a document to Libya," Ringgold insisted, after being read the proposal, and told that his signature is on it.

In addition to the Libyan arms-deal document, Wired.com has also reviewed copies of e-mails from Ringgold discussing the Libyan deal.

While Ringgold denies proposing an arms sale to Libya, he is open about speaking with Rosoboronexport, which has been on a U.S. government sanctions list since 2006, after the Russian state agency allegedly violated the Iran and Syria Nonproliferation Act. An April e-mail provided to Wired.com describes Ringgold, Weldon and Stephan Minikes, a senior advisor to Defense Solutions and a former ambassador, meeting with Rosoboronexport. The conversations included a number of potential deals, including supplying Mi-17 helicopters to Afghanistan and spare parts for Iraq's infantry fighting vehicles. Ringgold wrote to colleagues following the visit, describing the meetings as a "spectacular success," saying the Russian agency "has the ability to undercut all cost proposals from brokers."

Ringgold confirmed those discussions and said that his company has sought to do business with Rosoboronexport. Asked whether Ringgold considers his dealings with Russia to be legal, he argued that U.S. companies could work with Rosoboronexport on a "case-by-case" basis. "The particular purpose of the meeting we had -- and I want to be crystal clear -- was in response to a U.S. government requirement," he said.

A number of officials at the State Department and in the Pentagon, when contacted for this article, could not say whether working with Rosoboronexport is legal or not. A Pentagon spokeswoman said she was familiar with the issue, but deferred the question to the State Department. When asked about Rosoboronexport's status on the blacklist, John Herzberg, a State Department spokesman replied: "What's on there is on there."

Asked whether, given the ban, there was any way a company could legally work with Rosoboronexport, as Ringgold suggested, Herzberg provided an equivocal answer. "At the stage of the process we're at, I'm unable to give you an answer," he said. "You can try elsewhere in government, and maybe they'll be braver than me."

In an interview from Iraq, General Luckey conceded it was a murky area, but said, "My understanding is they are currently on our no-go list."

The confusion over debarred parties has even led the U.S. government into its own legal tangles, according to Jim McAleese, a Washington attorney who specializes in government contracting and foreign military sales. Because the Russian government violated U.S. nonproliferation laws, even NASA had to go to Congress to ensure it could work with Russia on Soyuz flights to the international space station. "What I'm warning you about is, don't be surprised by the confusion," McAleese said. "There are a whole bunch of different statutes that were adopted piecemeal and were never intended to be reconciled."

But it's the very ambiguity of the law that troubles those who monitor export control. "It's highly unusual to do anything with the Russians, particularly Rosoboronexport," said Scott Jones, director of Export Control Programs at the Center for International Trade and Security at the University of Georgia.

Legal or not, reputable American companies simply don't want to work with banned entities, Jones said, for fear of risking their reputations and business. "Even if it's not an outright prohibition, most companies don't want to put themselves in a liability situation that has really bad PR … and they stay away from it," Jones said. "But if that's your business, pimping out arms from the U.S. or Russia, that's the way it works, and you push as much as possible."

Finding any U.S. defense company working with the Russian government at this point would be "remarkable," Jones added.

In the meantime, the future for Weldon is unclear. The FBI investigation continues and Weldon's former chief of staff recently pleaded guilty to a conspiracy charge and is cooperating with the government, notes Melanie Sloan, the executive director of Citizens for Responsibility and Ethics in Washington, which filed a complaint against Weldon in 2004. Sloan speculated that Weldon may be charged with "honest service fraud" for misusing his office for personal gain. "It's an easier standard than bribery," she said. "I wouldn't be surprised [if he's charged] with bribery, but I think it will be honest services fraud."

Ringgold insists that he and Weldon are on the right side of the law. "Everything we do is in strict compliance with international and U.S. law and we operate only in the best interests of the U.S. government," he said. "I didn't serve 30 years in the United States Army to throw that away on a whim."

Asked if Weldon is still working for the company, Ringgold replied: "Absolutely, proudly so."

News reports this week that the U.S. Department of Justice is formally reviewing a proposed advertising deal between Google and Yahoo came as no surprise to some tech trade groups and advocacy groups based in Washington, D.C.

A Washington Post story Wednesday saying the DOJ had launched a formal investigation of the ad deal wasn't much of a shocker to Google and Yahoo, either, as the two companies had voluntarily delayed the implementation of the deal for more than three months in recognition that the DOJ would look at the antitrust implications.

A DOJ spokeswoman said Wednesday that the agency has acknowledged since mid-June that it was looking into the deal. A public confirmation that the DOJ is examining the deal amounts to a "formal investigation," she said.

Google said it is cooperating with the DOJ.

"We are continuing to have cooperative discussions with the Department of Justice about this arrangement, and voluntarily delayed implementation for three and a half months in order to give them time to understand the agreement," said Adam Kovacevich, a Google spokesman. "That process is continuing exactly as expected. We are confident that the arrangement is beneficial to competition, but we are not going to discuss the details of the process."

Google and Yahoo announced June 12 a deal to run some of Google's advertisements alongside Yahoo search results. The announcement came just hours after a proposed acquisition of Yahoo by Microsoft fell through, although Microsoft has continued to express interest in such a deal.

Google and Yahoo had run a test of the advertising program in April.

Still, with recent news of the DOJ investigation, representatives of two tech trade groups said they expected the agency would look into the deal.

"Even though serious antitrust problems are unlikely, it was appropriate for the parties to offer up a delay while regulators review the deal," said Ed Black, CEO of the Computer and Communications Industry Association, a trade group that has raised concerns about anticompetitive behavior in the tech industry. "This is a good provision to help everyone understand the facts surrounding the deal and make sure there is no harmful impact on competition or consumers."

A formal review was "inevitable," added Jonathan Zuck, president of the Association for Competitive Technology, a trade group often aligned with Google competitor Microsoft. The deal is between the number one and number two companies in the "crucial" online ad market, Zuck added.

"It's a very complex deal in a very complex market," Zuck said. "The deal raises a lot of questions that the DOJ must answer before letting it go."

Google has worked hard to structure a deal that would meet regulatory approval, he said. "The big question is whether Google could ever do enough to satisfy competition concerns over the consolidation of number one and number two players in the market."

The Center for Digital Democracy (CDD), an advocacy group focused on consumer privacy, called on the DOJ to reject the Google-Yahoo deal.

"Google has reached way beyond the proverbial tipping point when it comes to its dominance of the interactive ad business," said Jeffrey Chester, the group's executive director. "Yahoo's agreement to the deal is a desperate move acknowledging they can no longer compete with Google. The DOJ -- even a Bush Administration business-friendly one -- shouldn't permit Google to operate a key part of Yahoo's business."

Earlier this month, CDD asked the U.S. Federal Trade Commission to investigate how the deal could affect consumer privacy. "Privacy is at risk, as Google gains access to even more consumer data," Chester said.

A Trojan horse program that has been around for about six years is now being used to steal system-administrator passwords, including those at banking and brokerage houses, according to security researchers. And it could be that six years from now we'll still be talking about Microsoft's aim to buy Yahoo's search business, which could involve obtaining the entire company and breaking it apart. Meanwhile, early adopters will undoubtedly be out in force on July 11 to be among the first to buy the new iPhone 3G.

1. Report says Microsoft readying new try for Yahoo: Bill Gates said on his way out of his full-time gig at Microsoft that he thought a deal for his company to buy Yahoo was unlikely, but a couple of days later the Wall Street Journal reported that Microsoft is looking for partners -- Time Warner and News Corp. were named -- to help it obtain Yahoo's search business. So, to quote baseball legend Yogi Berra, "It ain't over 'til it's over." And this one clearly ain't over yet.

2. Trojan lurks, waiting to steal admin passwords: The Coreflood Trojan horse program lurks until a system administrator logs on to an infected computer and then steals the password, using a Microsoft administration tool to spread malware on the network. The malware is being used to swipe banking- and brokerage-account usernames and passwords. So far, criminals have infected hundreds of thousands of computers with Coreflood, including more than 14,000 in one global hotel chain.

3. iPhone 3G set for 8 a.m. debut on July 11 and AT&T dishes on iPhone rate plans: AT&T announced prices for iPhone 3G service, which are, of course, more costly than plans for earlier iPhones. The carrier also announced that the new iPhones will be on sale at 8 in the morning, local time, on July 11. That's earlier than Apple retail stores open, though someone who answered the phone at the flagship San Francisco Apple Store wouldn't say if the opening will be moved up two hours and suggested that a reporter ring back later. (There has to be some element of the launch that maintains an air of secrecy, eh?)

4. Microsoft eases hardware terms for XP on low-cost PCs: Although June 30 marked the end of Microsoft offering most licenses for its Windows XP operating system, the company is still pushing the OS for use in low-cost PCs and it has eased hardware restrictions. Low-cost PCs with touchscreens, larger screen sizes and bigger hard drives now are eligible to use XP.

5. Oracle reveals BEA roadmap: Since Oracle closed its $8.5 billion merger with BEA, questions have abounded as to how the two companies' technologies will mesh -- or if they will even mesh at all. This week, Oracle finally laid out its plans of what to do with BEA's technology, saying it plans to make BEA's application server Oracle's strategic Java container and pledging continued support for BEA customers.

6. Long-awaited JBoss AS 5.0 moves closer to release date: The release candidate of the long-awaited JBoss Application Server 5.0 will be out soon, according a blog posting from the chief technology officer of Red Hat's JBoss division. Product development started three years ago and stretched out as the company decided to make more changes to the next version.

7. DOJ continues probe of Yahoo-Google partnership: The U.S. Department of Justice continues to investigate the proposed advertising partnership between Yahoo and Google, a DOJ spokeswoman said this week. The Washington Post reported Wednesday that the DOJ had just initiated a formal antitrust investigation around the proposed deal, but the spokeswoman said that the probe under way was begun June 16. Regulatory scrutiny was widely expected.

8. Adobe, Google, Yahoo enabling Flash searches: Yahoo and Google are working with Adobe to facilitate Flash pages being returned as search results. The move could mean that millions of rich Internet applications that had previously been all but invisible to search engines will now become serachable.

9. Mozilla's Firefox 3 sets geeky world record: The 8,002,530 downloads of Firefox 3 in the first 24 hours after the browser's release made it into the Guinness Book of World Records for the most downloads in that time period. Mozilla set out to achieve the first-ever such record. "Our community members came together and not only spread the word, but also took the initiative to help mobilize millions of people to demonstrate their belief that Firefox gives people the best possible online experience," said Mozilla Vice President of Marketing Paul Kim. Or maybe they just wanted to be part of setting the record ...

10. Gartner: Seven cloud-computing security risks: Cloud-computing customers need to ask hard questions about security and should think about getting a third-party security assessment before choosing a vendor, analyst firm Gartner recommends. A Gartner report, "Assessing the Security Risks of Cloud Computing," lays out the areas of security concern.

Microsoft will release four security patches for its Windows, Exchange, and SQL products next Tuesday, all rated "important."

The Exchange and SQL flaws are "Elevation of Privilege" bugs, meaning that an attacker could theoretically exploit them to get administrative access to a PC. One of the Windows flaws is labeled a "spoofing" bug, meaning that it could help hackers trick the user into doing things like visiting malicious Web sites.

The fourth update fixes a Windows flaw that could allow an attacker to run unauthorized code on a victim's PC, Microsoft said. Normally, this type of flaw is rated "critical" by Microsoft, but in this case the bug was probably given a less-severe rating because it doesn't work without the user first taking some extra actions or adding special software or drivers, said Eric Schultze, chief technology officer at Shavlik Technologies.

This remote code execution flaw affects Windows Vista and Windows Server 2008.

The SQL vulnerability affects Microsoft's SQL Server software and the internal SQL software that ships with some versions of Windows. It does not affect Vista or XP users, but it does exist on the Windows 2000, Windows Server 2003 and Windows Server 2008 products.

Microsoft published a note on the upcoming security patches on its Web site on Thursday. Unless it is forced to rush out an emergency fix, the company releases its security patches on the second Tuesday of each month.

Microsoft also said Thursday that it is planning to upgrade the Windows Update software it uses to deliver bug-fixes to PC desktops.

The upgrade will speed up the software download process, said Windows Update Product Manager Michelle Haven in a blog posting. "Weve invested heavily in reducing the amount of time it takes the Windows Update agent to scan to see if new updates are available," he wrote. "In this case, weve seen some instances of the scan times on some machines decreasing almost 20 percent."

Microsoft plans to make further changes to the Windows Update software and back-end infrastructure over the next few months, Haven said.

A federal judge has agreed to put off a trial involving Visto's patent-infringement claims against Research in Motion, but limited RIM's ability to cause further delays.

The trial over mobile e-mail provider Visto's lawsuit against RIM had been set to begin next week. Visto sued RIM in 2006 in the U.S. District Court for the Eastern District of Texas, claiming its popular BlackBerry system infringed four Visto patents and asking for a shutdown of RIM's service as well as damages. But on Wednesday, Magistrate Judge Charles Everingham granted a stay of the trial, requested by RIM, because several of the patent claims involved are being re-examined by the U.S. Patent and Trademark Office.

RIM had requested the re-examinations, in which the patent office is studying the validity of certain parts of Visto's patents. But as a condition of the stay, the company can't ask for any more re-examinations, either directly or indirectly, the judge wrote. RIM also won't be allowed to challenge the validity of any of the patents during the trial by bringing up evidence that has already been considered in the re-examinations.

Earlier this week, the patent office validated 21 out of 22 claims in one of those patents, number 7,039,679, which involves technology for synchronizing e-mail between a mobile device and a LAN server.

Mobile e-mail, based on complex sets of technologies and rapidly growing in popularity, has been fertile ground for patent disputes. RIM came to the brink of a service shutdown in 2006 before settling a suit brought by NTP for $612.5 million. Visto has also aggressively defended its intellectual property, suing competitors including Good Technology, Seven, and Microsoft.

Apple's focus over the last year or so has been largely on the iPhone, leaving Mac developers who work in the enterprise market to pretty much fend for themselves. And that seems to be just fine for companies in a newly launched Mac enterprise group and even other Mac developers.

Earlier this week Atempo, Centrify, Group Logic, LANrev, and Parallels joined forces to form the Enterprise Desktop Alliance (EDA), a group of software developers dedicated to helping adopt the Mac--especially in larger companies with existing Windows-managed IT environments. Other Mac developers who cater to business customers think it's a good idea as well, and that it will help keep Apple focused on the end-user.

[ Special report: IT's guide to the Mac ] 

"I don't think Apple should be specifically target the enterprise," said Alykhan Jetha, president and CEO of Marketcircle (makers of billing and productivity management software). "It's not that I don't want those customers, because I do, but the enterprise market has fundamentally different requirements than you and I."

For example, those in the enterprise market may not be as willing to switch to a new operating system as quickly as individual consumers for fear of incompatibilities. Retraining employees on a new operating system can also be costly for large companies.

"This would slow us all down," said Jetha. "You won't see the type of innovation Apple shows from Microsoft because they have to cater to enterprise. If Apple caters to the enterprise like Microsoft, progress is going to slow."

That point is not lost on Tim Deal, senior analyst at market research form Pike & Fischer. "Apple has not tried to be everything to everyone and that has certainly been a key factor in its strong position of innovation," said Deal.

While Deal doesn't feel Apple does enough to promote its strengths in the enterprise market, he does think that Apple's focus on certain areas of the market over the years has been a winning strategy.

"Focusing on and having good reputation for those niche markets has really worked for them [Apple]," said Deal. "Those markets typically don't look anywhere else for their products."

Dennis Bilowus, president of FastTrack Scheduler-maker AEC Software, thinks that Apple should do more to promote itself in the enterprise, but recognizes that the company has been doing a much better job in the past year.

Bilowus points out that one of Apple's strongest niche markets, higher education, is also one of its biggest enterprise customers.

Of course, Apple's iPhone 3G, being released on July 11, will include many enterprise-targeted features as well. This will be another catalyst in getting Macs into the large companies as executives purchase iPhone and expect their IT departments to support them.

Overall, Mac developers seem pleased with Apple's position on the enterprise market. While a little more promotion might be nice, focusing on growing the business seems to be in everyone's best interest.

"When it comes to Apple, they have a long history of customers evangelizing for it," said Deal. "That puts the company in a unique position in the market. People will vehemently argue for the benefits of its products. That represents the unique nature of Apple."