Archive | January, 2014

Impact on privatizing BMC

19 Jan

One of the most awaited Bollywood movies in 2013, ‘Krrish3’, got released and disappeared almost in no time. Its different fact that it claimed to have crossed INR 100 Cr business. Did you note that ‘Krrish3’ continued to do business regardless, as it sold many masks, costumes and toys and yes, there were buyers for that ! Did it really matter to the viewers since it didn’t really meet their expectations?  It is debatable. 

Well, privatization of BMC too happened last year. I am sure that if the readers follow BMC and especially if they are BMC customers or external consultants/system integrators, lot of them seemed to have waited to understand/evaluate its impact post privatization. I intend to share my thoughts about it in short in this blog.

Well, first of all, since Remedy, the platform on which BMC builds most of its solutions, has already been implemented in almost 90% of Fortune 100 and Fortune 500 companies, it is unlikely to be impacted. BMC seems to have been able to turn Remedy business as profitable within 6 months of its purchase from Peregrine. BSM (Business Service Management) is an offering from BMC, which comprises many of its critical products, claiming to help to reduce the cost by 33%. Bladelogic, which was acquired in 2008 for almost $1 Billion, definitely does not seem to be a candidate to be scrapped. Similarly, ProactiveNet, which forms its Service Assurance business is unlikely to be gotten rid of. The cloud offerings from BMC appear to have now been strategized after failing to capture enough customers in that space.

ServiceNow seems to have given a tough time to BMC while competing for its cloud ITSM market. On the similar lines a few other products like Cherwell, OTRS also have emerged successful in converting few BMC customers.

Many of the system integrators/independent consultants outside BMC had speculated that BMC may decommission some of its products. It was also widely anticipated that it may let go some of its teams after privatization. So far, no significant changes seem to have been done. Not sure, Elliott Mgmt, which owns 9.6 of the common BMC stock, may influence some decision. However, since the owners happen to be different now, I think that they may tend to consolidate similar features amongst products and retain a lean team. Also, they may tend to move a significant chunk from US and Canada to countries offering better cost advantage. Gartner has forecasted close to $60 Billion business for IT in 2014; hence, it is likely that BMC may strategize a tad more in ITSM and BSM offerings.

I do not foresee any impact of that on external consultants or system integrators as such. It may have been possibly so, if BMC would have been bought over by IBM or Oracle, as the corridor talks echoed with those as contenders. Let’s wait for a while and watch how new management strategizes to retain BMC in magic quadrant, influence on consolidating the products or merging it with other product/platform.

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Rebooting in 2014 for 2020

7 Jan

News:

“eStomi leverages $104M from the surplus funds to set up 3 schools in South Africa, 8 in India and 12 in Philippines.”

“eStomi acquires 3 companies in Australia and 2 in Sweden.”

“Virgin Galactic, NASA and eStomi partner to set up their R&D center at ISS (International Space Station).”

“$35 Billion order has been bagged by eStomi to set up entire business service and solutions management for forthcoming Olympics.”

“‘Follow eStomi’ is what Gartner and Forrester seem to have been suggesting their clients in order to be successful, after conferring World’s Best Business Leader on it for 5th time consecutively.”

“eStomi CTO was invited as a special guest for a dinner hosted by Nasdaq, NYSE and BSE in honor of Indian PM.”

Yes, I know the ‘futuristic’ news above seem far fetched and may form a subject of laughing stock. However, I also truly believe that ‘Low aim is a crime’. We would, for sure, severely amplify our preparation and hard work commencing 2014. It also pays to be slightly eccentric and to have madness in imagining and planning such scenarios. When people watched Startrek, or Wright brothers attempting their first flight, weren’t they laughed at? Check this out (http://www.pcquest.com/pcquest/analysis/203391/mobile-proliferation-shall-drive-cloud-services). Startrek and Minority Report concepts may be closer than you think. There have been few aspects which I seem to have realized off-late. As Ford suggested once, we do not want take off our eyes from our goals and get distracted due to obstacles. We understand that to achieve these types of high end goals, lot of preparation needs to go into the organization. And it is certainly not possible without a coordinated world class team. I hope that above aspirational news are not reflected as greed, in any way for that matter. For us, it would merely act as a motivational catalyst to ensure that eStomi works very, very hard to earn that kind of respect and reputation.

For instance, when Anna Hazare had started revolution against corruption, it took a while to gather the momentum. Little did anybody realize Arvind Kejriwal would emerge and start a political party and most importantly, defeating Sheila Dixit who has had been winning for years after years with a huge majority. When Apple had received funding from Microsoft, had anybody expected Apple to grow way bigger than Microsoft? It was in debt. Indeed, I do not want to explain the strategy in this blog; however, we intend to do few things with a stark difference going forward –

  • Take chances & risks: In past, we have played safe by relying only on references and presuming that assignments would get lined up. While trying to perfect the practice, we seem to have avoided doing things that we should have. Note that I am not referring to only chances/opportunities. I also mean that we will not hesitate risking a few things (which we have, in past), if we need to. Never mind, we’ll be doing that starting 2014.
  • Stratgize differently: Since we always had orders lined up one after the other, strategizing had taken a back seat. May be we had become slightly complacent. We now have the strategy to get ourselves on a fast track in place.
  • Laying next level foundation: Our current core focus remains on ITSM and BSM. We also intend to get into few other areas shortly. In past, those thoughts have remained only in discussions. We intend to lay a strong foundation and work towards it to avoid the mistakes that we did when we started the org in the beginning.

Well, as they say, well begun is half done. I have been writing the blogs for past 40 months now pouring in my thoughts and experience as I try to grow the organization. In the process, I have published a few blogs which I wasn’t completely convinced from quality perspective. I hope to improvise on that and target to make every blog more meaningful. See you in my next blog. Until then, wish you all a meaningful and a very Happy New Year ! Take care.