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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
Device Management Is Essential for Managing a Range of Wirelessly Connected DevicesBy Yoram BerholtzSenior Product Manager, Red Bend Software The demand for constant connectivity is at an all-time high. Consumers want mobile phones that work wherever they are and whenever they need them–at home, in the office, on the road and across geographies. These demands create a big challenge for mobile operators, which want to manage all the devices in their network in a unified way, regardless of the type of device or software platform. As a result, operators globally are harnessing the Open Mobile Alliance Device Management (OMA DM) standard to meet the demands of this increasingly diverse environment and ensure a consistent and satisfying mobile user experience. Ovum recently reported that 36% of global handset shipments support OMA DM. Device management has become especially crucial to open platforms like Android, Brew Mobile Platform, Symbian and LiMo, as these platforms are feature-rich and geared to support rapidly evolving applications. Typical capabilities of DM include subscriber provisioning, connectivity configuration, firmware updating, diagnostics and monitoring, and software installation—all of which can be performed over the air (OTA). These capabilities result in lower support and maintenance costs for OEMs and operators while providing increased consumer satisfaction with their mobile device and service. With DM, operators and handset manufacturers can activate new subscribers on the network, configure parameters including preferred roaming lists, retrieve data such as billing and inventory as well as conduct “lock and wipe”—remotely shutting down the mobile phone and deleting its memory in case it’s lost or stolen. It’s not just mobile phones that require DM. Recent WiMAX deployments in the United States (Clearwire) and Japan (UQ Communications) adopted OMA DM as the main provisioning and management standard. These service providers are actively equipping their mobile devices, such as WiMAX modems and chipsets, with DM client software. By embracing the OMA DM standards, companies can ensure out-of-the-box interoperability in all the major WiMAX networks. As important as OMA DM is to the current phase of WiMAX deployment, it will be even more important as these networks evolve by being able to deliver more advanced applications and services to WiMAX consumers in the future. The prospects for WiMAX are merely up to the imaginations of the operators and their ability to offer attractive services, regardless of the device. The bandwidth capabilities anticipated in WiMAX will likely bring unprecedented access to video, movies and more, driving additional revenue streams to operators, manufacturers and ISVs as new services and applications become available. Machine-to-machine (M2M) is another wireless segment that has adopted OMA DM for two reasons: 1) the nomadic nature of some M2M segments (e.g., automotive and telematics) force the module to engage with several networks and even roam to other countries; thus, the module must be able to work in a multi-server environment, and (2) the cost of adopting standards-based DM is much less expensive than a proprietary environment because the integration with devices and the certification with networks can be quicker. With the inherent functionality that exists in OMA DM, such as provisioning, managing security and the ability to work globally, operators can benefit from lower cost of ownership by using their already deployed OMA DM infrastructure and utilizing it for M2M. Red Bend Software’s vDirect Mobile™ is the leading independent DM client. vDirect Mobile has been adopted by more than 30 manufacturers of wirelessly connected devices in the mobile, WiMAX and M2M markets, and is interoperable with any DM server supporting OMA DM standards. It also uniquely supports the WiMAX Management Object (MO) for managing mobile WiMAX devices according to specifications from the WiMAX Forum. During the next five years, mobile devices will become more advanced and have many integrated features and connectivity standards. Device management is essential for enabling manufacturers and operators to manage such a diverse installed base in a unified way. Labels: device management, FOTA, M2M, machine to machine, OMA DM, Ovum, Red Bend Software, WiMAX
Rise of the Machines in EuropeFOTA Software Is a Must-Have Feature for Managing Remotely Connected M2M DevicesBy Calogero (Lillo) Licata Director of Technology and New Business for Europe, Red Bend Software The machine-to-machine (M2M) market is a fast-growing area in the wireless sector. M2M applications can be found in a range of industries and used in a number of ways, including automotive telematics and transportation, environmental and energy control, physical surveillance and security, retail vending and even remote patient monitoring. In Europe, a number of drivers promise M2M market expansion. In April 2009, the U.K. passed new legislation to encourage energy efficiency. The legislation requires all profile-class type meters to upgrade to new “smart meters” by 2014. Smart metering, which affects hundreds of thousands of electricity and gas meters, will automate the reading of consumed energy and provide more frequent and accurate data to help save energy and meet the European Union directive to cut greenhouse gases. On the automotive front, analyst firm Berg Insight recently forecast that 3.5 million passenger cars in Europe will have on-board telematics by year’s end. Stolen vehicle tracking is the main application, followed by motor insurance telematics, connected navigation, automatic emergency call and driver assistance. In France, even M2M use for toll collection is expanding. With M2M embedded systems growing in complexity, there is an inherent need to life-cycle manage the module modem and application software in these devices in order to enable new features and applications. Both OEMs and solution providers greatly benefit from the ability to update and maintain M2M devices by remotely performing software improvements over the air. After all, some of these devices are intended to have a 20-plus year lifespan. The M2M market in Europe recognizes the importance of firmware over-the-air (FOTA) updating for managing software and applications remotely. By keeping these devices up-to-date with the latest features and improvements, M2M manufacturers and service providers can ensure quality, avoid product recalls, reduce support costs and improve customer satisfaction. With FOTA support integrated into the M2M device, only hardware-related failures, which happen less often, need to be repaired manually in the field. According to ABI Research’s Senior Analyst Sam Lucero, FOTA is becoming more important in the M2M market: “For M2M, the benefits are operational efficiency and cost reduction. With M2M modules growing in complexity, FOTA enables manufacturers to perform software improvements over the air, without needing to send a technician on-site.” Four of the top five M2M module manufacturers, including Motorola’s Wireless Modules division and SIMCom Wireless Solutions Ltd., have adopted FOTA for use in their modules. Telit Wireless Solutions SpA., an international provider of cellular M2M technology, licensed Red Bend’s FOTA client software for use in its M2M product portfolio and now offers a FOTA service to its customers. In September, France-based Sagem Communications also selected Red Bend’s vRapid Mobile® FOTA solution in order to offer its customers software improvements and new functionality for Sagem’s M2M modules and devices. By the end of 2010, Red Bend estimates that approximately 40% of new M2M modules will be FOTA capable. Besides having the extensive experience, Red Bend has the products and solutions to allow OTA delivery and updating of embedded devices/systems comprising compressed firmware image structures, applications, read-only file systems and distributed CPU architectures, which are becoming pervasive in M2M. Red Bend is actively supporting M2M market expansion in Europe. Soon, M2M will help us all use energy more wisely, keep our cars running more efficiently and enable us to purchase goods and services on the go. Long live the machines! Labels: automotive, DM, EMEA, energy, Europe, FOTA, M2M, machine to machine, telematics
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