BMC: Go Digital or Go Extinct

LAS VEGAS: My primary objective for attending management software vendor BMC Software’s third annual customer/partner event, BMC Engage 2016 Global User Conference — other than its Sin City venue — was to try and understand how a 36-year-old ISV that got its start in the mainframe business (and which still accounts for 25% of its revenue, although packaged as a separate business) can reposition itself as a leader in digital transformation (DX). Even with more than 10,000 customers, including 82% of the Fortune 500, and around $2 billion in annual revenues (estimated, since it’s been private since 2013) that’s a seemingly outrageous claim to make, the old proverbial tail wagging the dog. If a quarter of BMC’s revenues are still based on Big Iron, the other 75% represents a broader set of tools for the rest of the market, including another 25% of its revenues coming from ITSM, or ITSSM as Gartner calls it, and who just crowned BMC (21.3% market share), along with ServiceNow (34.4%), as the two leaders in this segment, valued at $2.2 billion in 2015, in its Magic Quadrant for IT Service Support Management Tools. An interesting sidenote to this is that a few months ago ServiceNow announced that it had entered into a covenant not to sue for patent infringement with BMC for a term and took aggregate charges of $270 million for litigation settlement expenses related to its litigation associated with BMC and Hewlett Packard Enterprise. ServiceNow had been accused by BMC of infringing on eleven of the patents in its portfolio, and BMC has also filed similar additional suits against ServiceNow in the U.S. and Germany. Fast forward, and BMC Engage had the (mis)fortune of taking place while a number of mega-deals were transforming the IT industry’s biggest players: Dell completed its EMC acquisition in the industry’s biggest merger; HPE spun off another piece to become a $28B entity, a mere shadow of its glory days of a few years ago when bigger was best, revenues over $100B annually, not bust (although it still owns sizeable shares of both its services and software spin/mergers); and Intel finally accepted that trying to successfully run  a security business was anything but complementary to its chip core. BMC’s message has been that businesses must digitize to survive, and it can help them do so. While that might sound strange, given its history and current size, the company has been thriving, in a more modest way than its much bigger newsmakers. The message that the world is changing and business must change with it is hardly new or profound, but the underlying reality is that the...

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BMC: Doing the Right Things

“Management is doing things right; leadership is doing the right things.”  Peter Drucker LAS VEGAS: IT is moving from the back office to the boardroom, from making businesses more efficient to making them more effective, and to paraphrase Peter Drucker, all aspects of information technology, including the current darlings — cloud, mobility, analytics, IoT and social — will have to enable businesses to do the right things, at the right places and at the right times, or the businesses will fail. That’s part of the challenge confronting Houston-based BMC Software, a management software vendor that started in the mainframe business back in 1980, broadened its portfolio to IT operations management (ITOM) solutions for on-premise and cloud environments, and went private in 2013. This week the company, with more than 10,000 customers, including 82% of the Fortune 500, is hosting 2,300 attendees at BMC Engage 2016 Global User Conference. The theme — and the company’s focus of late, at least from a marketing perspective, is digitization and what it calls Digital Enterprise Management (DEM), unveiled at last year’s event. “With Digital Enterprise Management, BMC is providing a clear path to successfully manage this digital transformation,” said BMC CEO Bob Beauchamp, last September. “From the mainframe to mobile to the cloud, our solutions allow companies to improve the speed and lower the cost of digital service development, deployment, operation and maintenance.” Digital transformation is not just a technology trend, it is at the center of business strategies across all industry segments and markets, stated IDC. PwC calls the digital enterprise ‘Industry 4.0’, and according to its recent survey of over 2,000 senior executives from nine major industrial sectors and 26 countries, the implications are incredible. Respondents expect to increase annual revenues by an average of 2.9% and reduce costs by an average of 3.6% p.a. These results pale in comparison with the “first movers” who combine high investment levels with advanced digitisation: “they’re already gaining a nearly insurmountable advantage over competitors’. Representing just 4% of the respondents (71 companies), first movers ‘are far more likely to be forecasting both revenue gains of more than 30% and cost reduction of more than 30% at the same time.’ The numbers for the ITOM or IT operations and service management (ITOSM) market vary, but it is a significant and growing market populated by such vendors as Microsoft, BMC Software, Oracle, IBM, HPE, CA Technology and Dell. Last year it was worth $17.44 billion, with a compound annual growth rate of 6.5% between 2016 and 2024 ($30.96 billion), growing nearly twice as fast as the overall IT market worth nearly $2.4 trillion in 2016, and...

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Rescuing IT From A Sea Of Alarms
Jun22

Rescuing IT From A Sea Of Alarms

IT operations management (ITOM) and assorted kin (i.e. IT Operations Automation and IT Operations Analytics) are hot, and getting hotter. According to IDC, the IT operations analytics software market grew more than 41% in 2014 and will be worth $2.5 billion by 2019 as ITOA becomes ‘a more standard part of the IT operations and DevOps toolkit.’ The future is even brighter, according to marketsandmarkets, which predicts that ITOA will average an annual growth rate of 35.2% from 2015 to 2020, soaring from last year’s $2.17 billion to $9.79 billion. ‘The explosive growth of IT operational data, significant shift of organizations’ core businesses towards cloud, and a substantial change from traditional to next generation technologies have provided immense opportunities to the ITOA solutions vendors, who are in turn helping the organizations yield better analytical results and performance.’ It breaks the market down into solutions vendors such as Oracle, IBM, HP, Splunk, SAP SE, Evolven, Microsoft, VMware, ExtraHop, and Microsoft, as well as a few small and medium-sized companies such as Nexthink, AccelOps, Bay Dynamics, AppDynamics, and Sumo Logic that offer comparatively narrower, yet locally-effective solutions and distribution networks in the ITOA ecosystem. Each layer of technology in the data centre is becoming progressively more complex to control and manage, noted consultant Anthony King. ‘The average server environment now has thousands of configuration parameters (e.g. Windows OS contains – 1,500+, IBM WebSphere Application Server – 16,000+, and Oracle WebLogic –  60,000+).’ Then there are the hundreds and thousands of production changes — i.e. eBay experiences 35,000 changes annually — brought about by continuous integration and continuous build practices. The problem is too much data, and not enough answers, said Akhil Sahai, VP, Product Management, Perspica. Current IT operations tools trigger a “sea of alarms” but they can’t distinguish the critical, service impacting events from false positives that do not require the immediate attention of an operator, he told IT Trends & Analysis. An ITOA vendor, Perspica was founded in 2014 to provide operational intelligence across the entire application stack, and deliver self healing. How do we help our customers get visibility into their application infrastructure, move past alarms to answers, and prevent downtime through early warnings, said Sahai. “Our customers are also suffering with alarm overload.” Dealing with false alarms takes up all their time, but we reduce alarms by 99%, said Sahai. In an increasingly application-driven economy, system outages and downtime are costly. Pespecia says that works out to $5,600 a minute, and with an average outage clocking in at 90 minutes, the total is $505,000 in lost revenue, damage to mission-critical data, and legal and regulatory repercussions, with...

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…Oracle Snags Ravello Systems

The hybrid cloud gods of acquisition have admitted two new players into their gilded digital halls — Ravello Systems and CliQr. Larry Ellison and his cohorts at Oracle threw half a billion at Ravello, and Chuck Robbins and company at Cisco lavished $256 million for snatching up CliQr. Personally, I think these were two very shrewd moves by two of the industry’s dominant players. To read the complete article, CLICK...

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Cloud Computing Drives a New Era in IT Business

Cloud computing represents a shift in enterprise IT. It affects how IT resources and applications are created, purchased, and deployed. Colloquially known as The Cloud, this paradigm of computing has also shifted the business model of the IT industry. It has empowered end-users to seek out their own IT resources, especially applications, fundamentally changing the balance of power when purchasing computing resources. There are three areas of the IT landscape that are affected by the move to the Cloud. They are: Applications, which have seen barriers to creating, deploying, and buying applications disappear for both lines of business and IT purchasers as well as developers. Infrastructure, reducing the need for on-premises data centers while promising infinite scalability Channel partners who are experiencing major changes to how they provide value to customers now that installation and distribution has become more self-service and purchases are made via subscriptions and not on-premises licenses. For more information*, email: info@neuralytix.com *Caveat Emptor: the report retails for...

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