BMC’s Beauchamp Bullish on BSM

BMC Software, now a Wall Street darling with a stock price that’s doubled in the past two years, has transformed itself from a company struggling to remain profitable to one that is outpacing competitors—despite a relatively flat mainframe management software market.

As it dismissed workers and suffered through acquisition rumors, the company worked to flesh out its business service management strategy through internal developments and acquisitions.

On Feb. 8 the company posted a better-than-expected 9 percent revenue gain and bested its earnings per share estimates at 41 cents a share for its fiscal third quarter of 2007. eWEEK Senior Editor Paula Musich spoke with BMC President and CEO Bob Beauchamp about the turnaround.

BSM is not the easiest concept to grasp, and it generally means different things to different people. Why is it that BMC seems to be getting such good traction now in its BSM strategy?

I think it’s a couple of things. One is that we hit the sweet spot of managing IT processes consistently. I was on the phone yesterday with the CIO of Lowe’s, and he talked about the need to manage configuration, change and assets in an integrated and consistent fashion to automate IT operations. We have the bases covered with great prods, methodologies for implementation, a strong Atrium [Configuration Management Database]. We can deliver the architecture to finally manage IT like its part of the business. IT did this for CRM, supply chain, financials and HR. Now they’re doing it for themselves in building an integrated system to manage IT instead of [using] a bunch of point products.

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