Hi. My name is Lori Sylvia and I run global Marketing for Red Bend Software. Today I’m here to speak to device manufacturers, whether you make smartphones, tablets, digital picture frames or another type of electronics device used by consumers or enterprises. If you are a hardware manufacturer, chances are, you are facing a common challenge…
How do you stand out from all the other hardware manufacturers in your product category? Over the last 5 years, the barriers to becoming an OEM have diminished. The availability of open source platforms like Android and Linux, complete systems on chips, combined with cheap manufacturing resources in Taiwan, China and India have changed the game. As a result, hundreds of new manufacturers have entered the market with competitively priced, feature-rich products that challenge big brand manufacturers. Regardless of the product category, today’s buyers seem to find the same feature set: a sleek touch-screen powered by a high-level operating system connected to a robust application market. In the world of wirelessly connected devices, OEMs seem to have little room for differentiation and face constant downward pricing pressure. So what can you do?
We believe that hardware manufacturers can leverage the cloud in order to use their products as platforms from which to deliver value-added services. I recently spoke with a tablet manufacturer who when I asked what was different about his tablet he described all the interface options they provide. Taking stock Android might be the fast path to market entry, but it’s not a strategy for long-term success in a commoditized market. Today, I’ll share some examples of cloud-based mobile software management services that OEMs can offer in order to compete with a differentiated user experience that can build lifelong customer relationships and that can generate ongoing revenue streams beyond the initial product sale.
Let me take two slides to explain what I mean by cloud-based mobile software management services. In case you have not heard of Red Bend Software before, we know a bit about OEMs becoming service providers. Red Bend has enabled more than 80 manufacturers to create a direct relationship with their users through mobile software management services. Billions of devices around the world have our management software inside. Maybe some you are using one of those devices right now. Our software is integrated by manufacturers into their devices before those devices ship into the market. And then using our software, OEMs can manage their devices remotely over any type of connection, from 2G to LTE, WiFi, satellite, even power line communication networks. Mobile Software Management is the ability to install, remove and update any type of software inside a device, not just applications, but deep within a device’s firmware. Since OEMs hold the key to controlling the device’s firmware, they are in a unique position to use those devices as platforms for their own set of services.
For the last 10 years, we licensed our management software to our OEM customers, and they had to set up their own network and server infrastructures in order to deliver services to their devices. But this year we launched our own cloud service, and now manufacturers can access Red Bend’s SaaS in order to quickly and easily provide services to their devices. This is especially important for all the new OEMs entering the market who may not have the engineering resources or expertise. One last interesting point is that our SaaS service can also function as a Platform as a Service. What I mean by that is manufacturers that sell into the enterprise market can use our cloud platform to offer their own set of device management services to their customers.
So let’s look at some examples of cloud-based Mobile Software Management services that hardware makers can leverage in order to transition into a service provider. The services I will discuss are firmware updating, application management, device analytics, policy management and dual personas. These services, which all use over-the-air management technologies, can be used both as differentiating features that can strengthen an OEM’s offering but also in some cases as revenue-generating services to yourcustomers.
The first service is firmware over the air updating, also known as FOTA. OEMs use FOTA to update the device’s operating system to the newest version containing new features and performance improvements. For most OEMs this is their first foray into services. It expands their service commitment beyond basic product support during the warranty period, and brings many benefits. It reinforces the OEM brand as a service provider, builds long-term customer loyalty, increases user satisfaction, reduces customer care and warranty costs, and enables the OEM to avoid a damaging product recall.Today, nearly every type of connected device—smart TVs, game consoles, smartphones, tablets, WiFi connected cameras, smart watches, M2M modules, even cars and agricultural machines—get software updates over the air. FOTAhas become an expected feature and OEMs are at a disadvantage if they don’t provide regular firmware updates.Probably most of you are carrying an iPhone, but if you want a true luxury smartphone experience you may be fortunate enough to own a Vertu phone. Vertu is a great example of an OEM that has been a service provider from the start. For Vertu, the phone is just a platform from which to offer its world-famous concierge services. When Vertu launched its first Android smartphone, it turned to Red Bend to use our cloud infrastructure in order to provide fast and easy firmware updates to Vertu’s demanding customers.The biggest benefit of all for Vertu and other OEMs may be that the same service infrastructure used for FOTA updating can be a springboard for additional integrated services that can create a differentiated user experience and offer real revenue-generating potential.
An example of a revenue-generating service is application management. As consumers using smartphones and tablets, we are used to having access to an application store with more app choices than we ever dreamed of. But what if the device you manufacture is not a consumer device but rather one sold to enterprises or government agencies? And your customers want to ensure that the devices they provide to employees are secure while they’re connected to the open Internet.There are dozens of third-party companies now offering application management services. These companies allow IT managers to control what applications are installed on those devices. And they charge typically between $2-5 per device per month for this service. OEMs don’t need to lose this revenue to over-the-top third-party providers. Instead, you can offer an integrated application management service directly to your customers, and your app management service will have better performance and stronger security than the OTP providers.Panasonic is a Red Bend customer doing just that. They offer a ruggedized Toughpad Android tablet, and they enable enterprises to install and manage enterprise applications in a secure area of the firmware inside the tablet. This means that users can’t delete the applications, and the applications can even withstand someone pushing the factory reset button.
The next service example is device analytics. Machine-to-machine connected devices are often deployed in remote locations and the cost to roll a service truck to troubleshoot a problem can be prohibitively expensive. So it’s important to have a real-time view into the device’s health and performance, and analytics can provide just that. There are various services that will give you a view of the network’s health, but if you want a true view of the device’s health you need to have an analytics agent inside the device, and this is a value-add that the manufacturer can provide to its customers.Another Red Bend customer is a leader in M2M wireless modules, and they sell their wireless communication chipsets to companies that make smart meters, vending machines and Telematics devices. The wireless module business is highly commoditized with global competitors and lots of price sensitivity. But with Red Bend’s software inside their wireless modules, our customer can offer their customers a service on top of their wireless chip as a way to remotely monitor the entire device health. This gives the M2M wireless module maker flexibility to stay competitive on the base price of the chip and upsell their customers on services later. With many M2M devices staying in the field for 5, 10 even 20 years, this business model has become a strategic path to growth and a solution to avoiding commoditization.
The next service is policy management. Similar to application management, there are dozens and dozens of enterprise mobile device management companies selling over-the-top policy management services. We’re familiar with this type of service in the context of BYOD, but let me give you a consumer example. OEMs that make for example digital picture frames could offer a lock and wipe service either as an add-on or bundled into the purchase price of the frame, so that in the event the frame is lost or stolen, the consumer doesn’t have to worry that her personal photos will be seen by a stranger.
Finally, the last service I would like to describe is dual personas. Rather than trying to sell one device per user, what if you could sell a second virtual device to your installed base? This is possible using virtualization technology. We’re here at the Cloud Computing West conference, so I don’t need to tell this audience about virtualization. The technology has been used in servers and desktops for decades. But virtualization technology is increasingly being used in mobile and embedded devices for various uses, including to create dual personas. By building your device with a Type-1 hypervisor integrated inside, you can later sell and deploy over the air a second virtual device – including a separate operating system, apps and all -- that will run in parallel, side-by-side, with the original OS in the device. A type-1 hypervisor is integrated directly into the hardware and resides underneath the operating systems, so it provides the fastest performance and strongest security for the OSes running on top. Dual personas is a service already becoming available in smartphones and tablets. Earlier this year we partnered with Samsung to offer a dual-persona version of the popular Samsung Galaxy S3 for enterprise BYOD programs. In 2014, you’ll start to see dual persona mobile devices become commercially available, and not just for BYOD (meaning your work phone and your personal phone) but also for your personal phone and your private phone.
In summary, cloud-based mobile software management services can enable device manufacturers toquickly and easily establish high-value, one-to-one customer relationships, build differentiated products and create ongoing revenue streams.By integrating over-the-air management capabilities into their devices, OEMs have the ability to capture revenue that today is being captured by third-party, over-the-top providers. As a result, forward-thinking device manufacturers that adopt MSM can transform their businesses from hardware manufacturer into service provider, and in the process, quite possibly change the dynamics of their industries.
Red Bend Software: Cloud Computing West 2013
Lori Sylvia, EVP Marketing
29 October 2013
Differentiating with Cloud-Based
Red Bend Software The Leader in
Mobile Software Management
1.75 billion devices
Offer App &
SaaS to your
Manage device Firmware
OTA , providing a
continuously better UX
as a Service
Cloud-Based Mobile Services
for Device OEMs
Firmware Over the Air (FOTA)
• New music app
• Longer zoom
• Better performance
• Mobile Software Management (MSM) services:
– High-value, one-to-one customer relationships
– Differentiated products
– Ongoing revenue streams
• Transform your business and change the
dynamics of your industry
Red Bend Software