BSM Definition, Drivers and Inhibitors

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1 Events, D. Curtis, M. Govekar Research Note 11 August 2003 BMC Positions Itself for Business Service Management BMC Software's announcement of its business service management strategy is solidified by its acquisition of IT Masters. BMC's event console customers should expect immediate benefits. Core Topic Enterprise Management: Infrastructure Management Key Issue Which product and service vendors will become leaders in IT infrastructure management? Strategic Planning Assumption Only 10 percent of large enterprises have matured their IT operational processes to the point that they are ready for BSM; this will grow to 30 percent by year-end 2006 (0.8 probability). On 25 March 2003, BMC Software announced its acquisition of privately held IT Masters, a developer of enterprise management software, for $42 million. The acquisition adds 75 IT Masters employees to BMC. Two weeks later, on 7 April 2003, BMC announced a new strategic direction focused on business service management (BSM), intending to enable customers to link their IT resources to the goals and priorities of their overall business. BMC has long harbored ambitions to play in the much-hyped BSM market, where management software is used to correlate status and performance of IT components to business services, assessing the impact on critical business processes. In the past, BMC has been delivering part of this functionality through partnerships with vendors such as ASA Knowledge, Interlink, IT Masters and others. The acquisition of IT Masters solidifies BMC's commitment to enter this market, but there are many more steps on BMC's road map before it can offer a comprehensive solution. However, the immediate benefit to BMC is in the enterprise console offering. BSM Definition, Drivers and Inhibitors As IS organizations increasingly seek to run IT as a business and define and deliver end-to-end IT services that meet business requirements, they require tools that aid them in mapping the underlying IT infrastructure and application components to endto-end IT services to understand the availability and performance of the IT service. BSM tools provide this functionality. Relating infrastructure problems to affected business services helps prioritize support efforts. When many things are broken, decisions regarding what to fix first can be made intelligently, and IS support resources can be allocated according to where the business needs them most. Gartner Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.

2 Defining the links between IT infrastructure components and business services is a manual, time-intensive process. Maintaining the links in a dynamic and rapidly changing environment is an inhibitor to the success of BSM tools. Enterprises must have a mature, service-oriented IS organization, well-defined change management processes and good event management in place to be successful at BSM (see "Business Service Management: Lessons Learned"). Only 10 percent of large enterprises have matured their IT operational processes to the point that they are ready for BSM; this will grow to 30 percent by year-end 2006 (0.8 probability). Enterprises that mature their processes and implement BSM will find significant value in operational efficiency and credibility with the business units. BMC Buys a Piece of BSM BMC gets to use IT Masters' technology to build a BSM solution, hoping to gain time-to-market advantages by "buying" rather than "building" this new service management functionality in-house. Independent software vendors such as IT Masters, Managed Objects and Proxima Technology, as well as BMC competitors, such as Hewlett-Packard (HP) and IBM Tivoli, have already delivered BSM products to market (HP OpenView Service Navigator and IBM Tivoli Business Systems Manager, respectively), while BMC has been quiet in this area. IT Masters' MasterCell provides service management technology that enables users to map and visualize the relationships and dependencies between IT components and the higher-level business services they support. It has developed a strong technology for collecting and correlating events, as well as modeling the business service to associate events with business impact. BMC, thus, acquires some capabilities toward BSM, but key pieces of real-time configuration management and impact analysis are missing. BMC has "fleshed out" its portfolio of products and road map in the BSM area; however, its challenges in a highly competitive market remain. BSM strategy necessitates access to the highest level within the IS organization, which BMC competitors Computer Associates International (CA) and IBM Tivoli already have. BMC's history indicates that it has been difficult and time-consuming to integrate acquired technologies and rationalize its product portfolio to position its products correctly, which can pose marketing and sales challenges. Although BMC cannot ignore the functionality of its individual products or rid itself of point product comparisons, mistakes in positioning could result in BMC only competing with point-product vendors for event console, service desk, performance management and so on, as opposed to achieving the higher ground of selling 11 August

3 integrated suites. BMC will have to prove that it can rapidly take advantage of this newly acquired technology in ways it has not done in the past. Immediate Benefit to BMC Customers In addition to being used as a foundation for BMC's new BSM strategy, IT Masters' technology will breathe new life into BMC's event console product, Patrol Enterprise Manager (PEM), which was the former Command/Post product from BMC's acquisition of Boole & Babbage. Many BMC Patrol customers have not adopted PEM and simply use the more rudimentary Patrol Console to monitor and view events. BMC will immediately integrate technology from MasterCell into PEM to improve event correlation, threshold analysis and alert escalation. During the long term, BMC will re-architect PEM to improve event handling by replacing its REXX-based scripting engine with MasterCell's rule engine. Gartner believes that, although future versions of PEM will maintain unique PEM functions, such as mainframe connectivity, MasterCell code will increasingly overtake PEM code in the product. Enterprises with a long-term commitment to BMC and PEM should demand early access to MasterCell as part of their PEM maintenance contract so they can familiarize themselves with the new base MasterCell technology and begin to plan their migration. Although PEM gets a much-needed makeover, PEM customers will face costs in training on a new console view and migration to a new and compelling rule engine. Enterprises that own PEM and have not deployed it should ask for IT Masters MasterCell and begin their deployment with that instead. This may even result in cost savings because the deployment of Patrol Console as midlevel manager(s) may not be necessary with MasterCell because the MasterCell agent technology is able to do better local event suppression, filtering and low-level automation. IT Masters gets a safe exit from an intensively competitive event console market, dominated by big enterprise management suite vendors. IT Masters customers will benefit because the acquisition by BMC ensures future support and development of the MasterCell product. Exploiting the Remedy Connection To automate service management workflow processes, particularly problem management, it is necessary to integrate event console with service desk products. BMC has the opportunity to capitalize on the integration IT Masters has developed between MasterCell and the Remedy service desk 11 August

4 solution, which BMC acquired in November 2002, to create an integrated process for service management workflow. BMC will have to come up with a methodology to make the process repeatable and easy to implement. BMC also has the opportunity take advantage of the change management functionality in Remedy to keep the business service models current. As BMC develops its new BSM tool based on its IT Masters acquisition, by linking with the Remedy change management functionality, any change that is submitted to Remedy could be used to automatically update the business service model. This could help overcome one of the key inhibitors preventing the mainstream adoption of BSM. Expect Changes in Partner Support Enterprises using MasterCell with IT Masters' previous partners CA, IBM Tivoli and Peregrine Systems should prepare for a decline in support for integration with tools from these vendors. Although BMC is committed to integrating data from multivendor management solutions, these competing vendors will likely prove far less cooperative for BMC than they were for noncompeting IT Masters. BMC has also partnered with third-party vendors such as Interlink (Powerpack) and ASA Knowledge (SLM Express) to fill gaps in its BSM offering. With the IT Masters acquisition, enterprises that have these third-party products will find deterioration in support for the integration between BMC Patrol and the third-party product. We expect BMC will offer enterprises a replacement of their third-party products with MasterCell for better support and integration. This will have a dramatic negative impact on the ability of these third-party vendors to sell into the BMC market, and it will also damage BMC's reputation for any future third-party partnerships. However, this lesson reaffirms the tactical and opportunistic nature of most enterprise management industry partnerships. Acronym Key BSM CA HP PEM business service management Computer Associates International Hewlett-Packard Patrol Enterprise Manager Bottom Line: Enterprises should consider this acquisition as a tactical move to improve BMC's event console product and strategically as a stepping stone toward BMC's business service management vision. IT Masters' customers will benefit because the acquisition by BMC ensures future support and development of the MasterCell product. BMC customers should be prepared for additional training costs associated with upgrading Patrol Enterprise Manager to the new MasterCell rule engine. Enterprises looking to implement BSM should add BMC to their shortlists, although this is such an early-stage market that multiple competitive alternatives from third-party, independent software vendors such as Managed Objects and Proxima should 11 August

5 also be evaluated, even by current BMC customers. Enterprises need to be aware of the challenges and the low implementation success rate in the BSM area. 11 August

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