BMC: Leads with an Integrated On-Premise and SaaS Strategy

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1 BMC: Leads with an Integrated On-Premise and SaaS Strategy A little revolution, now and then is a good thing so began a recent briefing we had with BMC staff. Not the first quote that comes to mind as the kickoff for a discussion about Software-as-a-Service (SaaS) and on-demand solutions by a successful Business Service Management (BSM) innovator and software solutions provider. However, when the object is to spread the word about their success with SaaS and OnDemand computing service delivery, it is, as it turns out, quite appropriate. BMC is positioning itself as an innovator in the BMC Software, Inc CityWest Blvd. Houston, Texas Telephone: delivery and implementation of complete service management solutions. They introduced new services and implementation approaches to speed and enhance the value received from their BMC Remedy IT Service Management Suite. And they continue to do so, evidenced by their newly announced IT Service Management Mobile Application capabilities, which provide mobile applications for service desk, change, asset, service catalog, and request management with support for on-premise and SaaS-based deployments. When Software-as-a-Service was just emerging as a delivery model, BMC was among the first to examine and evaluate its potential impact on and challenge to the existing solution portfolio. Their response was to offer a SaaS alternative that complemented existing on-premise solutions. As organizations increasingly embrace SaaS and on-demand computing services, BMC s early decision became the foundation and expertise that led directly to today s successful strategy. BMC solutions are based on the belief that IT exists to deliver business value through the innovative application of technology. To that end, BMC provides a range of delivery options, embeds ITIL best practices in the solutions and offers prescriptive support for customer decision-making. The result is new delivery and service models that include on-premise, SaaS and hybrid (combining SaaS and on-premise) delivery options. Let s see how this will help customers achieve their business goals. Why the interest in SaaS and OnDemand Delivery? IT s relationship with and use in enterprises is undergoing radical change as IT and its consumers struggle with shifting priorities and new challenges. Escalating competition, rapid growth, cost constraints, risk reduction and user-driven pressures for constant reinvention and innovation drive the demand for increasingly dynamic, adaptive services. In response, traditionally siloed, structured operations must deal with the challenges of transforming themselves into more nimble, responsive operations. Many in IT are looking to technologies (Cloud, virtualized infrastructure) and adaptive service delivery models (SaaS, on-demand) to address these new challenges more efficiently and effectively than possible with traditional more static, stand-alone solutions. They want the flexibility to choose the solution and services that meet their needs whether on-demand, on-premise or a through a hybrid model.

2 BMC: Leads with an Integrated On-Premise and SaaS Strategy Page 2 BMC s Customer-centric Strategy As a leading proponent of Business Service Management, BMC is dedicated to the innovative application of IT to resolve business challenges. They are one of a few vendors able and willing to offer a full-function on-premise, traditional licensed (Remedy) solution as well as separate, complementary SaaS and on-demand solutions. BMC is committed to doing it right. Twenty years of Information Technology Infrastructure Library (ITIL) best practices and leadership, along with early accreditation attest to their expertise in solution implementation best practices. They embed that expertise in products and practices (e.g., prescriptive activation services) that solve client problems. As a result, clients can make better decisions and avoid implementation problems, while increasing and easing the customers adoption of ITIL best practices. BMC provides a range of products designed to match a client s operational maturity, assuring the right products (from basic to expert) are used to meet the organization s needs. Let s take a quick look at products. Product Overview BMC Remedy On-Premise leads the market for feature-rich, enterprise ITSM solutions. BMC Remedy OnDemand provides the same features, customization and integration capabilities with subscription-based pricing. These appeal to organizations with an IT Service philosophy. For organizations that are pursuing a more traditional Help Desk / IT Service Desk solution, BMC s Remedyforce Service Desk, delivered in partnership with Salesforce.com, provides ITSM service management functionality (including incident, knowledge, problem, change management, etc. 1 ) to SMB and Salesforce.com customers. Figure 1 illustrates the coverage and match of BMC s ITSM SaaS offerings. Figure 1: Alternative Solutions that match the needs of IT Organizations 1 The full list of capabilities adds: management of chatter and mobility, as well as a configuration management data base (CMDB), reporting and analytics tools.

3 BMC: Leads with an Integrated On-Premise and SaaS Strategy Page 3 Ptak/Noel Perspective The commercialization of Cloud-based IT services along with new market and economic driven challenges is changing the way such services are being conceived, created, delivered and consumed. The change is reflected in the growing interest in alternative delivery models and solutions. Rising requests for demand-based service availability and usage-based pricing and delivery models result from efforts to improve operational efficiency through service consolidation and cost optimization. The benefits realized from the success of SaaS-based CRM and Payroll/ Financial services underlie the confidence of IT and business staff as they move to apply the SaaS model to other services. IT and business staffs want integrated solutions with clear paths to additional capabilities and increased capacities as needs change and grow. Novice or immature buyers can leverage the experience of such vendors as BMC by taking advantage of prescriptive consults as part of the decision-making process. We are not announcing the demise of the traditional data center, nor are we saying there will be a stampede to outsourced and on-line services. Too much investment and too many benefits remain to be realized for that to happen. For many, on-premise solutions and data center services continue to be the right answer. The ongoing problems of security, stability and availability of networked infrastructure remain. Executives remain cautious about increasing spending. Prudence dictates that SaaS and on-demand solutions be evaluated as business cases with due attention paid to their ability to expand capability and capacity to meet longterm needs. Ultimately, SaaS and on-demand services will coexist with on-premise solutions, as hybrid computing and services environments. We do believe the trend to consolidation and integration of IT and business services will provide a rich market opportunity for SaaS and on-demand delivery solutions into the future. The increasingly powerful tools that allow accurate and informative cost-benefit analysis will help buyers to decide the proper delivery and pricing models that will meet their needs. The Final Word As new technologies appear, the trend is for faster, easier access, integration and application. Both providers and consumers of IT products and services demand more flexibility and choice in how they access, use and pay for technology. Flexible and option-rich hybrid models for services, capacity and features are becoming the new norm, which directly impacts the design and delivery of new products, solutions and services. It isn t about IT and making available a new technology, delivery model or slick interfaces. It is about adopting and implementing operational models that enable IT and customers to quickly leverage experience and learning for business benefit. It means speeding the adoption and implementation of best practices that allow them to dynamically integrate and apply acquired expertise to more effectively and efficiently achieve organizational goals. BMC s early experience with SaaS and the company s decision to embed ITIL best practices in the development and evolution of their solution and service portfolio provides them a solid

4 BMC: Leads with an Integrated On-Premise and SaaS Strategy Page 4 footing. Combine this with the expertise acquired through working on ITIL implementations with customers, and it is clear why BMC s results-oriented strategy has established a track record of success with their clients. BMC has structured its decision-support services, its customer focused services and the support and offerings for channel and distribution partners to demonstrably link to verifiable, measureable business outcomes. BMC has a record of steady growth and acceptance in a growing customer base. Such performance is attributable in no small measure to BMC s ability to execute on their excellent strategy.

5 Publication Date: July 11, 2011 This document is subject to copyright. No part of this publication may be reproduced by any method whatsoever without the prior written consent of Ptak Noel & Associates LLC. To obtain reprint rights contact All trademarks are the property of their respective owners. While every care has been taken during the preparation of this document to ensure accurate information, the publishers cannot accept responsibility for any errors or omissions. Hyperlinks included in this paper were available at publication time. About Ptak, Noel & Associates LLC We help IT organizations become solution initiators in using IT management technology to resolve business problems. We do that by translating vendor strategy & deliverables into a business context that is communicable and actionable by the IT manager, and by helping our clients understand how other IT organizations are effectively implementing solutions with their business counterparts. Our customers recognize the meaningful breadth and objectively of our research in IT management technology and process. About the Author Richard Ptak ([email protected]) Rich has over 30 years experience in systems product management working closely with Fortune 50 companies in developing product direction and strategies at a global level. Previously Ptak held positions as senior vice president at Hurwitz Group and D.H. Brown Associates. Earlier in his career he held engineering and marketing management positions with Western Electric s Electronic Switch Manufacturing Division and Digital Equipment Corporation. He is frequently quoted in major business and trade press. Ptak holds a master s in business administration from the University of Chicago and a master of science in engineering from Kansas State University. [