Look out, IT department! According to the Associated Press, IBM is getting ready to announce Lotus Notes email compatibility for both the iPhone and iPod Touch. In its report, the AP claims that IBM will announce the new product, which will require Domino email server, at the annual Lotusphere conference in Orlando next week. Allegedly, the program would be free for anyone with an existing Lotus Notes license or $39 for new users. Could this be the first, official third-party application developed using the iPhone SDK? We’ll have to wait and see, though if this rumor is true, the iPhone could be on verge of breaking into the enterprise space in a big way. Also on tap for this year’s Lotusphere, according to the AP: Mac versions of Lotus Notes and the free Lotus Symphony productivity application suite.

For more on the rumor:
– see this AP report