Red Bend Software

About Red Bend Software

Red Bend Software, established in Israel in 1999 by Sharon Peleg and Gadi Gonen, carved a significant niche in the software management market before its acquisition. The firm initially focused on mobile software management and completed its first venture funding round in 2000. A pivotal shift occurred in 2001 when the company adjusted its business focus and appointed Yoram Salinger as CEO, a role he held until the company's sale. Salinger, who previously co-founded and managed Epitera, a company focused on Linux-based ecosystems, guided Red Bend's growth and eventual exit.

The company specialized in providing software for the remote management of connected devices, with a strong emphasis on Firmware Over-the-Air (FOTA) updates. Its technology allowed mobile phone manufacturers, cellular operators, and semiconductor vendors to remotely manage and update software and firmware on devices like smartphones and tablets. This capability was crucial for reducing support costs, increasing revenue, and accelerating time-to-market for its clients, which included major industry players like LG Electronics, Motorola, Sharp, Sony Mobile, and ZTE. By 2015, Red Bend's software was installed on over two billion devices globally.

Red Bend's business model was centered on licensing its Mobile Software Management (MSM) solutions. Its product suite included vRapid Mobile for FOTA and software component updates (SCOTA), and vDirect Mobile, an OMA DM-based device management client. In 2010, the company expanded its capabilities by acquiring VirtualLogix, a developer of mobile virtualization software, which allowed Red Bend to enter the mobile virtualization market. Recognizing the growing connectivity in vehicles, the company strategically expanded into the automotive market, offering solutions to update and manage in-car software systems.

In January 2015, HARMAN International Industries announced its acquisition of Red Bend Software for approximately $170 million, with potential for an additional $30 million based on performance milestones. The acquisition, completed in March 2015, was a strategic move by HARMAN to bolster its portfolio for the connected car and Internet of Things (IoT) markets. Red Bend was integrated as an independent unit within HARMAN, with its existing management team leading the charge to accelerate growth in the automotive sector while continuing to serve its mobile and carrier markets.