BMC - turnaround or more of the same?

A little over a year ago, BMC was not looking good.  It had a portfolio of good, but tired technology and was failing to move with the times.  Internal problems at various levels in the company were leading to high levels of employee churn.  Things did not look good.

Led by CEO Bob Beauchamp, BMC was taken off the stock market and into private ownership. Investors were chosen based on their long term vision: what Beauchamp did not want was an approach of drive revenues and then cash in rapidly.

This has freed up BMC to take a new marketing approach.  New hires have been brought in.  The portfolio is being rationalised.  The focus is now on the user experience, with an understanding that mobility, hybrid private/public cloud systems and the business user are all important links in the new sales process. Substantially more money has been freed up to be invested in sales & marketing and research & development than was the case in its last year as a public company.

BMC’s first new offering aimed to show an understanding of these issues was MyIT – an end-user self-service system that provides consumer-style front end systems with enterprise-grade back end capabilities.  MyIT has proved popular – and has galvanised BMC to take a similar approach across the rest of its product portfolio.

Help desk (or service desk as BMC prefers to call it) has been a mainstay of BMC over the years.  Its enterprise Remedy offering is the tool of choice in the Global 2000, but it was looking increasingly old-style in its over dependence on screens of text; was far too process-bound; and help desk agents and end users alike were beginning to question its overall efficacy in the light of new SaaS-based competition such as ServiceNow.  At its recent BMC Engage event in Orlando, BMC launched Remedy with Smart IT, a far more modern approach to service desk operation. Enabling better reach at the front end through mobile devices and better integration at the back end through to hybrid cloud services, Remedy with Smart IT offers a far more intuitive and usable experience than was previously available from BMC, available both as an on-premise and cloud-based offering.

BMC believes that it already has a strong counter-offer to ServiceNow in the mid-maturity market with its Remedyforce product (a service desk offering that runs on Salesforce’s Salesforce1 cloud platform). The cloud-based version of Remedy with Smart IT, combined with MyIT will provide a much more complete offering with a better experience for users, service desk staff and IT alike across the total service desk market.

Workload automation is another major area for BMC.  Its Control-M suite of products has enabled automation of batch and other workloads from the mainframe through to distributed systems.  However, this has been a set of highly technical products requiring IT staff with technical and scripting skills.  Now, the aim is to enable greater usage by end users themselves, enabling business value to be more easily created.

All this is a journey for BMC – identifying and dealing with the needs of end users and how automation can help is something that is changing with the underlying platform.  For example, a hybrid platform requires more intelligence to identify where a workload should reside at any time (for example on private or public cloud), and the promise of cloud in breaking down monolithic applications to create the composite application built dynamically from required functions needs contextual knowledge of how the various functions can work together. 

This needs deep integration with BMC’s products in its performance and availability group.  Being able to identify where problems are and dig down rapidly to root cause and remediate issues requires systems that can work with the service desk systems and with workload automation to ensure that business continuity is well managed.  Here BMC’s TrueSight Operations Management provides probable cause analysis based on advanced pattern matching and analytics, enabling far more proactive approaches to be taken to running an IT environment.

TrueSight also offers further value in that it is moving from being an IT tool to a business one.  Through tying in the analytics capabilities of TrueSight into business processes and issues, dashboards can be created that show the direct business impact in cash terms for any existing or future problems, enabling the business to prioritise which issues should be focused on.

BMC has to work to deal with managing IT platforms both vertically at the stack level and horizontally at the hybrid cloud level.  It has taken a little time for BMC to move effectively from being a physical IT management systems vendor to a hybrid physical/virtual one; now, via its Cloud and Data Centre Automation team in BMC is positioning itself to provide systems to both end user and service provider organisations that are independent of any tie-in to hardware vendors, differentiating itself from the likes of IBM, HP and Dell (Dell is a long-term BMC partner anyway, although its acquisition of Quest and other management vendors has provided Dell with enough capability to go its own way should it so choose). At the same time, BMC still works closely with its data centre automation customers; it has recently published what it calls the Automation Passport, a best practices methodology for using automation to transform the business value of IT.

BMC still has a strong mainframe capability, which differentiates it from many of the new SaaS-based players.  Sure, not all organisations do have a mainframe, but the capability to manage the mainframe as a peer system within the overall IT platform means that those with one only have BMC, CA and IBM to look to for such an embracing management system.  IBM’s strength is in its high-touch capacity of putting together a system once it is on the customer’s site.  BMC and CA have both been moving towards simpler messaging and portfolios, along with providing on-premise and cloud based systems to give customers greater flexibility in how they deal with their IT platforms.

Overall, BMC seems to be turning itself around.  The lack of financially-driven quarterly targets has freed up Beauchamp and his team to take a far more strategic view of where the company needs to go.  Product sales volumes are up, and customer satisfaction is solid. However, BMC has to continue with a suitable speed along this new journey – and also has to ensure that it gets its message out there far more forcibly than it is doing at the moment.

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