The Next Generation of IT Management. Jason Andrew Vice President, Marketing & Communications

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1 The Next Generation of IT Management Jason Andrew Vice President, Marketing & Communications

2 BMC Has Outperformed the Market Growing Stock Price Over 130 Percent in 5 Years BMC +134% IBM +76% HP +50% NASDAQ +20% Dow Jones +7% S&P 500 (-1)% CA (-17)% Copyright 11/18/10 BMC Software, Inc 2

3 Challenging Economy = Risk OR Opportunity The Fortune 500 in 1955 in 2010 in 2060? Source: Copyright 11/18/10 BMC Software, Inc 3

4 Technology Innovation is the Engine for Efficiency and Growth A Historical Example Economic growth is driven by new technologies and its applications, always and in all places. Historically, half of productivity growth comes from new technology. At the end of the day, if you want real growth, you have to have new technologies and you have to have the will to use them. -- Mike Mandel (former BusinessWeek Chief Economist) Copyright 11/18/10 BMC Software, Inc 4

5 BMC Analyst and Market Leadership Analyst Firm Market BMC Leadership Status IT Service Desk and Help Desk 1,2* IT Asset Management 1, 3 DBMS Management 1 IT Event Correlation and Analysis 4* IT Project and Portfolio Management 5* Job Scheduling and Run Book Automation 1,6* Network Configuration & Change Mgmt Market Share Leader 11 st st ; ; Positioned in in Leaders Quadrant 2009 Market Share Leader 11 st st ; ; Positive Rating in MarketScope 2009 Market Share Leader 11 st st Positioned in in Leaders Quadrant Positioned in Visionaries Quadrant 2009 Positioned Market in Share Leaders Leader Quadrant 3 rd ; Positioned in Leaders Quadrant Positive Rating in MarketScope IT Asset Management Life-Cycle Management 8 Named a Leader in in IT IT Asset Management, Forrester Forrester Wave Wave Q2 Q2 '09 '09 Service Desk Management Tools 9 Named a Leader for Enterprise Service Desk Desk Tools, Tools, Forrester Wave Wave Q2 '08 Q2 '08 Data Center Automation 10 Named a Leader in in Data Center Automation, Forrester Wave Wave Q2 Q2 '08 '08 Business Service Management 11 Named a Leader in Business Service Management, Forrester Wave Wave Q1 '07 Q1 '07 Application Dependency Mapping Tools 12 Named a Leader in Application Mapping For For the the CMDB, CMDB, Forrester Forrester Wave Wave Q1 '06 Q1 '06 System Gartner, Management BMC Software 13 IT Operations Management: 2009 Market Vision, Share Strategy, Leader Strengths 2 nd and Challenges, Sept 2010 Problem Management Market Share Leader 1 st st 2009 Mainframe Market Share Market Leader Share 2 nd ; Leader 2009 Mainframe 1 st Market Share Leader 1 st Performance Management Market Share Leader 2 nd Top Server 10 Provisioning insurance, / Workload chemical, Automation 17 food, media, 2009 Market technology Share Leader 2hardware, nd healthcare 1. Gartner, Inc., Market Share: IT Operations Management Software, Worldwide, 2009", R. Millman, April Gartner, Inc., "Magic Quadrant for the IT Service Desk", D. Coyle, K. Brittain, October Gartner, Inc., MarketScope for the IT Asset Management Repository, P. Adams, W. Snyder, April Gartner, Inc., Magic Quadrant for IT Event Correlation and Analysis, D. Williams, D. Curtis, July Gartner, Inc., Magic Quadrant for IT Project and Portfolio Management, D. Stang, M. Hanford, June Gartner, Inc., Magic Quadrant for Job Scheduling, M. Govekar, April Gartner, Inc., MarketScope for Network Configuration and Change Management, D. Curtis, D. Williams, March Forrester Research, Inc., The Forrester Wave : IT Asset Life-Cycle Management, Q2 2009, E. Hubbert, P. O Neill, April Forrester Research, Inc., The Forrester Wave : Service Desk Management Tools, Q2 2008, C. Gliedman, April Forrester Research, Inc., The Forrester Wave : Data Center Automation, Q2 2008, E. Hubbert, April Forrester Research, Inc., The Forrester Wave : Business Service Management, Q1 2007, P. O Neill and E. Hubbert, March Forrester Research, Inc., The Forrester Wave : Application Mapping For The CMDB, Q1 2006, J. Garbani and T. Mendel, February IDC, Worldwide System Management Software 2009 Vendor Shares, T. Grieser, June IDC, Worldwide Problem Management Software 2009 Vendor Shares, F. Broussard, June IDC, Worldwide Database Development and Management Tools 2009 Vendor Shares, C. Olofson, June IDC, 2010 Performance and Availability Management Software 2009 Vendor Shares, T. Grieser, June IDC, Worldwide Workload Scheduling and Automation Software 2009 Vendor Shares, M. Johnston Turner, June 2010 Thank You! BMC has a consistent, strong BSM vision that simultaneously addresses the need for IT alignment and efficiency BMC has leveraged its early lead in the CMDB market and its large Remedy installed base to show the most production customer examples of successful execution on its integration strategy... 15,000 Database customers Development in & 132 Management countries Tools 15 Top 20 commercial banks, utilities, and telecommunications companies equipment & services, aerospace and defense companies * The Magic Quadrant is copyrighted by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Copyright 11/18/10 BMC Software, Inc 5

6 Great Companies Run Their Business On BMC Software Finance/ Banking Insurance Healthcare/ Retail Manufacturing Telco/Utilities Outsourcers/ Services/Tech Public Sector 6 Copyright 11/18/10 BMC Software, Inc 6

7 Great Companies Run Their Business On BMC Remedy Finance/ Banking Insurance Healthcare/ Retail Manufacturing Telco/Utilities Outsourcers/ Services/Tech Public Sector 7 Copyright 11/18/10 BMC Software, Inc 7

8 Accenture Next Generation Data Center Architecture BMC Dashboards for BSM BMC Analytics for BSM Business Service Mgmt BMC Remedy IT Service Management Metering & Billing BMC Service Request Mgmt Service Catalog BMC Atrium Orchestrator Orchestration & Provisioning PLATFORM NETWORK BMC ProactiveNet Performance Mgmt BMC Event and Impact Mgmt BMC Capacity Mgmt Predictive Operations BMC BladeLogic STORAGE BMC Service Level Management BMC Remedy Asset Management BMC Remedy Service Desk Configuration Management / CMDB BMC Atrium CMDB Workload Requests and Provisioning Shared Technical Infrastructure Operations Management Copyright 11/18/10 BMC Software, Inc 8

9 Expectations of IT Have Never Been Higher Optimize IT Costs Get the most out of every person, asset, or project, and make better resource allocation and sourcing decisions Demonstrate Transparency Track cost and activities and share that with stakeholders Increase Business Value Ensure IT investments and operational decisions are aligned with business priorities Manage Risk Define and control risk in a dynamic, rapidly changing organization and IT environment? Assure Quality of Service Meet performance goals across physical, virtual, and cloudbased resources Copyright 11/18/10 BMC Software, Inc 9

10 Next Generation Requirements Being Defined Now Economic Technology Business! From fixed to flexible costs & pricing! Multi-sourcing choice of delivery models! Mix of SaaS and On- Premise! Virtualization & Cloud transform data center management! Mobility and new delivery Internal platforms IT must become a broker! Converged of hybrid technology internal stacks (compute, network, storage, and more ) and external services! Compliance remains a major challenge! Business processes span internal and external apps! Rate of business-driven IT changes accelerates I need to deliver a FedEx-like experience next day, 2 day, ground; where service performance and cost are controllable variables Today we deploy a server in 40 days; tomorrow we need to deploy services from a menu in minutes 40% of what we provide the business will run outside of our four walls Copyright 11/18/10 BMC Software, Inc 10

11 Virtualization and Cloud Are Driving IT Management Into CIOs Top 10 Priority Lists Virtualization! 1 Cloud computing! 2 Web 2.0! 3 Networking, voice and data communications! 4 Business Intelligence! 5 Mobile technologies! 6 Data/document management and storage! 7 Service-oriented applications and architecture! 8 Security technologies! 9 IT management! 10 Source: Gartner Group, January 2010 Based on a survey of 1,586 CIOs representing more than $126 billion in corporate and public-sector IT spending across 41 countries and 27 industries Copyright 11/18/10 BMC Software, Inc 11

12 What is Cloud? An End User s view Service Management Enterprise Private Clouds On-Demand Resources Service Provider Clouds Enterprise Applications Request a service or resource from the Cloud End User Instantly receive the service or resource from the Cloud Copyright 11/18/10 BMC Software, Inc 12

13 What is Cloud? A Provider s View Receive payment for a service or resource End User Deliver service to the End User Service Management Enterprise Private Clouds On-Demand Resources Service Provider Clouds Enterprise Applications! Customizable service catalog! Customer self-service portal! Automated full stack provisioning Common Requirements:! Flexible metering and billing! Capacity optimization! Heterogeneous infrastructure support Copyright 11/18/10 BMC Software, Inc 13

14 Stack and Platforms Attempting to Drive Homogeneity Stack Vendors Platform Disruptors CloudBurst Matrix Exalogic Elastic Cloud UCS Service Providers / Telcos / Outsourcers Amazon Web Services vcloud AppEngine Hyper-V Azure Force.com Copyright 11/18/10 BMC Software, Inc 14

15 However, Enterprises Will Continue to Demand Heterogeneity standardizing on a single platform would be very unusual in large enterprises, which we believe will continue to be largely heterogeneous and will want to preserve their ability to replace their infrastructure, should they decide to do so. Navigating the IT Operations Management Vendor Landscape, Gartner, 19 October 2010 Copyright 11/18/10 BMC Software, Inc 15

16 Core Principles for the Next Generation of IT Management IT Organizations will adopt BOTH on-premise and SaaS models for management software Services and end user experience become the fundamental units of management and measurement Dynamic management of applications and supporting virtual infrastructure is required Enables service brokering for how IT services are provided and consumed A central management platform becomes the key control point Copyright 11/18/10 BMC Software, Inc 16

17 Dynamic BSM Will Simplify and Automate Hybrid IT Customers, Suppliers, Partners, and Employees Physical Virtual Private Clouds IaaS PaaS SaaS Internal External Copyright 11/18/10 BMC Software, Inc 17

18 BMC s Unique Dynamic BSM Differentiation Unlike Stack and Platform Providers Scalability, Flexibility, Heterogeneity Single Federated, Service-Aware CMDB/CMS Full-Stack Layered Provisioning Unlike Other Management Providers Market Leading, Process-integrated Service Support Suite End-to-End Automation Advanced IT Business Management Proactive, Predictive, and Preventative Operations Copyright 11/18/10 BMC Software, Inc 18

19 The future is not External vs. Internal but rather External AND Internal = Hybrid Services "#$#%&'! ()*++#$,#'! -. /#+01'#2345#!678&)9! :. ;$'&*$&18$!678&)9! <. B. C+*'D5!5*E*54&?!678&)9! F. (*ECG!*384H*$5#!6#G&#2$*+9! I. K. J2#*&#2!58LE+4*$5#!58$&28+!64$&#2$*+9! M. P. Q#2'48$!*$H!2#+#*'#!58$&28+!64$&#2$*+9! -. :. <. B. Q#$H82!=+85W14$A!X!L4,2*D8$!6#G&#2$*+9! F. (*ECG!58'&'!64$&#2$*+9! I. Y4,)#2!TECG!64$&#2$*+9! K. E285#''#'!*$H!&88+'S!'W4++'!64$&#2$*+9! M. ^E,2*H#!#_82&!64$&#2$*+9! Copyright 11/18/10 BMC Software, Inc 19

20 Why We Will Win: Sources of BMC Differentiation Focus on BSM platform Horizontal value proposition Disciplined execution! Continually update BSM vision but maintain coherence of overall story! Avoid dependence on any single platform or stack! Address Initiatives key to BSM! De facto standard for Cloud Management Copyright 11/18/10 BMC Software, Inc 20

21 Copyright 11/18/10 BMC Software, Inc 21

22 Example: Service-driven Provisioning Before Dynamic BSM I need a service, who do I call? INCIDENT Hours Days SERVICE LEVEL DATA SERVICE REQUEST ASSET RELEASE CONFIGURATION GOVERNANCE AND COMPLIANCE EVENT AND IMPACT ENTERPRISE SCHEDULING DASHBOARDS CAPACITY PERFORMANCE & AVAILABILITY CHANGE Copyright 11/18/10 BMC Software, Inc 22

23 Service-driven Provisioning With Dynamic BSM Rapid provisioning of services " From months or weeks to hours or minutes " Simplified and standardized interface for common requests " Automated configuration " Repeatable, auditable process Service Request Management Change & Release Management CMDB / CMS Application Automation Server Automation Network Automation Time to deploy new services improved by more than 50% Copyright 11/18/10 BMC Software, Inc 23

24 Example: Probable Cause and Remediation Before Dynamic BSM Can I have you an fix it? issue INCIDENT Find Days Fix Hours Days SERVICE LEVEL DATA SERVICE REQUEST ASSET RELEASE CONFIGURATION GOVERNANCE AND COMPLIANCE EVENT AND IMPACT ENTERPRISE SCHEDULING DASHBOARDS CAPACITY PERFORMANCE & AVAILABILITY CHANGE Copyright 11/18/10 BMC Software, Inc 24

25 Probable Cause and Remediation with Dynamic BSM Increased availability and quality " Proactive identification and isolation of events " Automated incident creation and notification " Automated remediation Incident Management Change & Release Management Server Automation CMDB / CMS Business service events decreased 40% Server fault events decreased 35% Event & Impact Management Time for server build reduced by 96% Performance & Availability Management Copyright 11/18/10 BMC Software, Inc 25

26 Address Your Most Critical Initiatives BSM INITIATIVES Application Operations Cloud Computing Data Center Automation IT Cost Transparency IT Decision Support Automation IT Governance, Risk, and Compliance IT Service Management Mainframe Cost Optimization Proactive Operations Copyright 11/18/10 BMC Software, Inc 26

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