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Summary

Five years ago BMC made the decision to become a private company and used this period out of the glare of Wall Street to re-evaluate and reinvent itself for the cloud era. BMC had been considering an IPO, but instead it was acquired earlier this year by KKR.

While BMC remains an independent software company, its long-term nemesis CA Technologies that remained a public quoted company, has also just been acquired, by Broadcom, whose stated intention is to develop CA Technologies as a software division of the conglomerate. Ovum considers these once two direct competitors have chosen different paths. While BMC’s strategy is now showing dividends from going private, CA Technologies faces a different future.

BMC is delivering on its objectives to become the modern platform for the cloud

Ovum research (ICT Enterprise Insights 2017/18 – Global: IoT, Cloud, and AI) found that on average, organizations are running approximately 28% of their workloads in the cloud. The strategy driving BMC has changed very little over the past seven years. At its core is the belief that organizations should be able to manage, monitor, and automate across disparate systems, which now also include hybrid and multicloud environments.

BMC has long been a proponent of DevOps and has developed many integrated solutions between its service management and automation technologies. However, one of the current focus areas for BMC is how to inject some control and governance into the DevOps process. BMC has created a difference for itself in a crowded market by focusing on the practical aspects of managing the IT delivery and support process. While its main competitor in the service management space is pursuing line-of-business buyers, BMC remains predominantly focused on IT buyers. Because lines of business are expected to be the largest budget holders in terms of IT purchases within the next couple of years, this approach might appear counter-intuitive, but BMC believes that a better strategy is providing IT with the solutions to expand IT’s role within organizations, and increase IT’s influence. This approach makes sense because often line-of-business buyers are not yet experienced in purchasing IT solutions, and these purchases can fail once integration with existing data and systems is required. Ovum considers the role of IT is not to purchase these solutions, but instead to be a trusted advisor to the line of business, and to ensure that solutions can be integrated in the existing architecture and deliver maximum benefit.

Appendix

Further reading

The Challenges and Benefits of Management in an as-a-Service World, INT003-000061 (March 2018)

Author

Roy Illsley, Principal Analyst, Infrastructure Solutions

roy.illsley@ovum.com

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