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Summary

Cherwell Software has announced the acquisition of Advanced Marketplace (AMP), an ITSM implementation service provider that specializes in supporting organizations embracing service management practices and technology. The acquisition will help Cherwell strengthen its mApp ecosystem, broadening the value proposition of the popular service management platform beyond just the IT department.

Enterprise service management must focus on business outcomes not technology

Enterprise service management (ESM) is a topic of great focus and much conversation. ESM involves the application of IT service management technologies and practices beyond the IT department and into other business functions. Interest around ESM has grown as organizations increasingly recognize how ESM capabilities can support them in executing against digital business initiatives. Being successful against any ESM project requires strong leadership and effective strategic planning.

Most employees within an organization do not care about the technologies or solutions adopted in getting work done, but are instead concerned about the outcomes these solutions help deliver. It is these outcomes that IT should strive to understand and manage in delivering business value from ESM. To do this successfully, IT must be less technology-centric and more customer-centric. IT departments that fail to recognize this risk not only failing in any enterprise service management initiative, but also losing touch with the business. This could in turn limit the ability of IT teams to recognize and respond to new business demands.

Cherwell is further investing in its enterprise service management capabilities

Cherwell’s acquisition of AMP strengthens the services offered by Cherwell and its ESM value proposition. AMP has been working with Cherwell for some time and the company has experience in creating enterprise line-of-business applications that integrate seamlessly with the Cherwell Service Management platform. The enterprise service management solutions offered by AMP will be made available via the Cherwell mAppTM exchange, a community-driven online marketplace where Cherwell customers and partners share and obtain pre-built applications and integrations developed on top of the Cherwell platform. For Cherwell to differentiate its solutions, strengthening the ecosystem that supports the core Cherwell platform, particularly through introducing capabilities and services that have appeal beyond solely the IT department, will be important. This acquisition is a sign that the vendor is executing against this strategy.

Cherwell says approximately half of the AMP team will become a new “mApp Factory” based primarily out of AMP’s former office in Tampa, Florida. The other half will join Cherwell’s professional services organization in North America, which will further expand the vendor’s capacity to implement Cherwell products based on customer demand. The creation of the dedicated mApp Factory is significant for Cherwell. This team will be looking to design new business solutions that will strengthen the mApp ecosystem and enable Cherwell to develop an ecosystem of capabilities that supports the wider business and not just IT objectives. Digitization presents a huge opportunity for service management vendors such as Cherwell, because the workflow engines and automation capabilities offered have real potential to advance and optimize a broader set of business processes. This acquisition will strengthen Cherwell’s capabilities in supporting organizations looking to successful execute against digital business initiatives.

Appendix

Author

Adam Holtby, Analyst, Enterprise Mobility and Productivity

adam.holtby@ovum.com

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