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Will Mobile Operators Face a Capacity Crunch Soon?By Richard KinderVP of Technology and New Business for Europe Red Bend Software Mobile data has finally arrived. After years of hype, the volume of data on mobile networks is reported to have surpassed that of voice traffic. Whilst the majority of this traffic is driven by people with mobile broadband subscriptions, undoubtedly the new breed of data-intensive mobile devices contributes significantly to this rapid growth. This bandwidth consumption is stressing the edge of the network and backhaul, resulting in a potential field day for providers of optical and microwave infrastructure. I could successfully argue that the capacity crunch is already upon us. A frequently cited answer to congestion problems is to off-load mobile data from the mobile core network. Various techniques may be deployed to achieve this, such as WiFi or Femtocell offload. For the best results, both approaches rely on mobile devices being aware of their network context and acting accordingly. Unfortunately, the majority of handset software platforms have yet to acquire the necessary smarts to make best use of these whilst staying within the strict energy budgets imposed by today’s battery technologies. We should not forget that bandwidth usage is only one metric by which to measure mobile network capacity. As has been highlighted in numerous articles, blogs and elsewhere during and since Mobile World Congress 2010, today’s mobile devices also impose a greater signalling burden on the mobile network. Whilst I am yet to receive a clear explanation of exactly what signalling traffic is generated, one can hypothesise that the desire to preserve battery life results in these devices frequently establishing and tearing down PDP contexts, which in turn creates signalling traffic within the operator’s infrastructure. So what can the industry do about this? 4G standards such as LTE and WiMAX eventually will allow for future growth in mobile data usage – the key word being future! Prior to the halcyon days and unlimited bandwidth of 4G, network operators are committing significant amounts of money to enhancing their existing 3G infrastructure. As developers of device software, we too have a role to play, for example:
We cannot rely solely on network operators’ investments in infrastructure to address the capacity crunch. We have a responsibility to use what they provide as efficiently as possible. Services and platforms that can help operators manage their capacity concerns just may be more appealing to them. To misquote Scott McNealy (he of “the-network-is-the-computer fame”), one day datatone will be as important as dialtone. That day is here. Labels: 3G, bandwidth, LTE, mobile, mobile broadband, mobile data, mobile networks, mobile operators, mobile software management, mobile world congress, Red Bend Software, software, standards, WiFi, WiMAX
Are we on the eve of distraction?By Yair NoamSystem Architect, Red Bend Software  Anyway, after a good night sleep, I realized what was bothering me, in addition to not seeing a real device. The thing with a Windows Phone 7 is that it is always trying to get your attention. The phone will introduce a lot of information on the screen, information that it "thinks" is important for you. You can certainly call me old fashioned :-) Well, you can even guestimate my age by the theme song that I picked - Eve of destruction - 1965 by P. F. Sloan. Anyway, in my mind, I would like to be able to use my mobile device in a semi-automatic way. Meaning, I know what buttons I need to press when I want to do some operation and I know what to expect them to do when pushing these buttons. My device should do what I tell it to and not try to distract me from that by flashing icons and displaying amazing animations. We had that on the PC not too long ago and it did drive the more techie guys crazy... good old clip and the cute little doggy... And now we wait... Labels: microsoft, mobile world congress, MWC, P.F. Sloan, windows phone 7
2009 Reflections and 2010 OutlookBy Yoram SalingerCEO, Red Bend Software The 2009 global economic climate was terrible. Handset shipments saw a decline and manufacturers and operators struggled to maintain market share. How did Red Bend fare amid the rollercoaster? Simply put, despite market challenges, 2009 was an extremely good year for us. Our customer momentum, market expansion and financials were stronger than ever. We renewed and expanded key contracts and added many new customers, including Borqs, Fujitsu and Sagem Communications. Perhaps the most noteworthy accomplishment, however, was in our expansion of relationships with some of the most respected global operators. China Mobile chose Red Bend to provide FOTA and device management for mobile phones that use the Android-based OPhone OS (Open Mobile Phone Operating System). And NTT DOCOMO signed a multi-year agreement for our full Mobile Software Management (MSM) product suite for use across DOCOMO’s platforms. Looking ahead in 2010, industry experts are predicting a “recovery” of sorts this year. While there is no crystal ball, I believe it will be another strong year for Red Bend. The number of customer engagements already underway continues to exceed those of past years, and every Red Bend territory is forecasting growth as we expand into new products and new markets. From a broad market perspective, we expect to see merger and acquisition activity heat up. While some companies closed their doors in 2009, those who were doing well were hard to value amid market instability. Now, with a sense of recovery, many companies are hurrying to make smart acquisitions before a full recovery equals increased valuations. Our company vision goes far beyond mobile phones. We believe we have an important role to play in managing software in the growing number of wirelessly connected devices from netbooks to e-readers to automobiles to utility meters, and to device types not yet launched. We will be listening and responding carefully to changing market requirements. Our success depends in part on our ability to anticipate and respond to macro-level trends in the mobile ecosystem. We were the first to truly understand the significant role that software would play in generating value for the mobile industry and for delivering a compelling user experience for mobile consumers. The players that know how to harness and manage those software assets will win, and this is what Red Bend is enabling for its customers. At the end of the day, when people ask me which factors I feel contribute most to our success, I confidently point to the un-matched dedication of our people. It is because of them that we can earn the trust of our customers through both our innovative products and our top-notch support. 2010 will be no different in that respect. To our customers, partners, press, analysts and peers – We thank you for joining us along the way and we look forward to working with you to make 2010 a great year for the mobile industry. Labels: Red Bend Software
The ROI of MSM: Enhancing the Consumer Experience and Mobile RevenuesBy Guy AginDirector of Strategy and Business Development, Red Bend Software The mobile industry is increasingly recognizing Mobile Software Management (MSM) as vital for enabling the next generation of mobile services. One reason is because the business case is so compelling. MSM encompasses a set of technologies, standards and business processes which enable service providers to perform management actions on the software assets of mobile devices. By enabling the software on a broad range of devices to be dynamically manipulated over the air, MSM equips service providers with the ability to launch new services independently of device release schedules and replacement cycles. The ability to instantly push a new service to the installed base increases the ROI significantly and achieves a critical mass of penetration more rapidly. In our latest white paper, we calculated the ROI a service provider could expect with MSM, assuming a subscriber base of 20 million and planning to launch a service that would add $2 per month for users of the new service. It is assumed that without MSM capability, the installed base for the new service grows from 1 percent to 15 percent over 3 years, while having an MSM solution in place means the installed base starts at 10 percent and grows to 30 percent. This difference alone increases the incremental revenue from the service by 180 percent over three years. Mobile Software Management doesn’t just have the potential to increase revenues for the service provider though – imagine what it can do for the consumer! Over-the-air software updates give consumers a continuous stream of new features and performance improvements. This is especially important as phones get smarter and more complex. Mobile phones now have cameras, Wi-Fi, video, TV and music, and consumers are accustomed to getting these services on-demand. This updating enhances the value of the phone throughout the phone’s lifetime, and delivers a more compelling user experience that keeps consumers satisfied and builds brand loyalty. The white paper presents different revenue and business models that enable the mobile value chain to monetize MSM. To learn more, download the White Paper>>
Should SCOTA Supersede FOTA?By Ilana BogomolnySr. Product Manager, Red Bend Software FOTA – Updating of Firmware Over the Air – is a successful mobile technology that is routinely used in millions of mobile phones and devices to introduce new features and provide performance improvements. In comparison, SCOTA – managing Software Components Over the Air – is a relative newcomer. SCOTA, however, has already become a common feature in operators’ requirements and device specifications, with early adopters among some of the leading device manufacturers. Red Bend customers who are implementing, or planning to implement, SCOTA on their mobile devices expect to use it as the only software management process for the entire device software stack. Therefore, the question arises whether devices that support SCOTA should still use FOTA to update firmware, or whether SCOTA can and should absorb FOTA functionality, making SCOTA the sole software-managing mechanism. With FOTA, the entire firmware is updated, from the OS kernel and middleware to the top of the built-in application stack. FOTA uses the OMA DM (Open Mobile Alliance Device Management) enabler called FUMO – Firmware Update Management Object. SCOTA enables more granular and flexible management of discrete software components. With SCOTA, one or more piece of software can be changed without requiring an update to the rest of the device. SCOTA’s popularity will increase with the proliferation of app stores as there is now a need to update software components so that consumers can have access to the latest applications, without needing to replace devices. SCOTA uses the OMA DM enabler called SCOMO – Software Component Management Object. The main advantage for a single, unified mechanism on the device for managing software components, as well as for the device firmware, is that it enables dependencies to be defined between software components and the firmware version they require. When such a dependency exists and a new or updated software component requires a firmware update, it becomes possible to implement a single, holistic update operation handling both the software and firmware components by the same mechanisms. The result is a seamless update and a properly working device no matter how the consumer wants to personalize it. Merging FOTA into SCOTA also makes it simple to transition the management of some software components that are embedded in the firmware image and updated via FUMO to be handled as individual entities managed via SCOMO. Operator-branded applications packs are a good example. Of course, for devices where only FOTA is required and where component management of any kind is not planned, there is no advantage in replacing FOTA with SCOTA. For OEMs and operators that have already implemented FOTA (FUMO) and are introducing SCOTA (SCOMO) on their device, it only takes a few steps to make sure that firmware updates are managed through SCOMO. Looking toward the future, the OMA DM SCOMO standard is almost ready to handle firmware updates. There are a few enhancements that need to be made to the SCOMO standard if it is to fully supersede FUMO as the FOTA enabler. The good news is that planning has started for the next version of the SCOMO standard, so certain features will be promoted to enable the FOTA-SCOTA merger. To read more, download the Position Paper>> Labels: FOTA, FUMO, OMA DM, Red Bend Software, SCOMO, SCOTA
When GAAP and MSM Intersect: Business Catches up to Demand for Software UpdatingBy Lori SylviaEVP Marketing, Red Bend Software We envision a world where software updates occur every second of the day, improving the mobile user experience while generating additional value for mobile providers. The technology is here today to enable this vision, with OMA DM servers adopted widely by tier-1 and tier-2 operators globally and with about half of handsets already supporting over-the-air software updating. Now, the business environment is catching up to market demand for software updates, as reflected by some recent changes to GAAP (Generally Accepted Accounting Principles). In the old days when hardware ruled, consumer electronics manufacturers would sell a device and recognize the sale of that device in that month. Then, software got more sophisticated and more essential to the functionality of a product. If OEMs delivered software updates to the device after it was sold, it meant OEMs had to spread the revenue recognition throughout the device’s lifetime. Years ago, we heard more than one OEM cite the accounting implications if they were to deliver FOTA updates. FOTA technology was used primarily as an insurance policy to prevent a product recall. But soon the leading OEMs and operators realized the strategic value of delivering continuous software updates. Today, FOTA is much more than fixing defects. It’s used to deliver new features as well as to improve a device’s performance. New advancements in the technology enable updating individual software components over the air (SCOTA) on-demand to support consumers personalizing their device with new applications and services. Software updating has become an important way to keep consumers satisfied with their mobile service and loyal to the experience they get from their handset maker. Changes to the GAAP rules now allow manufacturers that are delivering software updates to recognize more revenue sooner, even if they are offering those updates free of charge (otherwise bundled in the original price), and even if the contents of the software updates are unspecified at the time the original device is sold. One of the most vocal advocates of this change has been Apple. The company provides free software updates to iPhone users. Because some of the value of the iPhone is delivered after the product’s initial sale and because the software updates are not sold separately, the former GAAP rules forced Apple to bundle the value of the iPhone with the software updates and spread the revenue over the 24 month AT&T subscription term. Now, Apple and other manufacturers will be able to separate the value of the device from any future software updates. The product’s sales can be recognized in that quarter, while only the value of the device’s future software updates will be deferred. Software updating is becoming increasingly commonplace in mobile phones and is spreading quickly to other wirelessly connected devices. New business models will emerge that capitalize on this powerful capability to meet the increasing demands of mobile consumers. Mobile devices are no longer static products whose functionality is set when the device ships. Mobile Software Management is the key enabler that allows mobile providers to deliver more value to their consumers throughout the entire mobile user experience. Labels: accounting, Apple, ATT, FOTA, GAAP, iPhone, Red Bend Software, SCOTA
Red Bend Enables China Mobile to Manage Android DevicesBy Seger (Gang) ShenSales Director for China, Red Bend Software 3G has arrived in China, and with it has come a wave of innovative handsets. To drive usage of its new 3G service, China Mobile has developed an exciting new Android-based software platform called the OPhone OS (Open Mobile Phone Operating System). The OPhone OS has been developed by Borqs for China Mobile and is quickly expanding to Japan and other regions. OPhone smartphones are designed to compete with Apple’s iPhone, which is being offered by China Unicom. Through an agreement with China Mobile Research Institute, Red Bend is enabling China Mobile to manage its Android-based devices by providing FOTA and DM software for the OPhone OS. Devices running OPhone, such as the HTC Dopod A6188, have already launched in the Chinese market. 3G devices are feature rich, and therefore more complex. When developing the OPhone OS, China Mobile and Borqs decided to build in management support to ensure that the platform could be easily and efficiently updated over the air with the latest features and software improvements. “At Borqs, we understand that mobile phones and the software on these phones need to be updated at any time, from anywhere, and we needed a solution that could do this,” said Bob Li, senior vice president of business development at Borqs. “While the hardware of a phone can last for a long time, this is not the case with the software. Software comes with many functions and applications that require updates.” According to Li, “Red Bend has a good history, and the company has many global customers and a great deal of support experience. I believe Borqs will maintain our partnership with Red Bend into the future, and I’m sure we will have many opportunities to work with them.” Labels: 3G, Borqs, China Mobile, CMCC, CMRI, HTC, OPhone, Red Bend Software
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