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ITSM is not only getting more human with every passing day, it’s also getting more and more existential.

 

After years of wallowing in features and functions, the fundamental underlying philosophy that drives an ITSM company’s products is once again both crucially important and differentiating.

 

Do you prefer the legacy, tops-down, constricted approach to ITSM as exemplified by Service-Now, or do the words “life, liberty and the pursuit of happiness” stir your heart and mind and make you wish that your IT was like MyIT?

 

The facts are that the ITSM choice you make is not just about product features and functions. More and more, your choice will determine the future of your business, your IT organization, and your employees.

 

Given this, it seems important than ever for everyone to get the facts.

 

Here are "20 Questions" for your ITSM vendor that Chris Dancy put together.  They seem right and fair for any customer to ask any ITSM vendor – be they Service-Now, CA, HP, IBM or BMC.

 

  1. Does your ITSM vendor try to solve bigger issues for you, or do they just work on the small ones?
  2. Does your vendor just “speak IT,” or do they really grasp how ITSM actually accelerates business productivity and employee satisfaction?
  3. Is their perspective fundamentally inside-out, or outside-in?
  4. What leadership can your ITSM vendor demonstrate in the area of tools?  What are your ITSM vendor’s major technical contributions?
  5. What are your ITSM vendor’s priorities?  Just cashing your checks, or are they making you and your company a success?
  6. Re #5, has your ITSM vendor made “customer success” a defined role?
  7. Is your ITSM vendor’s culture and business model sustainable?  Why?
  8. There’s a lot more to talk about than SaaS.  What leadership has your ITSM vendor displayed in addressing the bigger questions?
  9. Can a platform that only updates annually stay on top of your needs?
  10. How does your ITSM vendor support you from a development standpoint?
  11. How many different ways can you do business with your ITSM vendor?
  12. Is your ITSM vendor already a global citizen, or are they just learning about what the rest of the world needs?
  13. Does your ITSM vendor offer you multi-channel product support, or do they force you in their proprietary channel?
  14. Is your ITSM solution as smart as the device you run it on?
  15. Has your ITSM vendor charted a strong, viable, thoughtful course to support the consumerization of ITSM?
  16. Does your ITSM vendor have any products that substantiate their thinking around consumerization?
  17. Is your ITSM vendor delivering cutting-edge products designed to reduce traditional ITSM demand inside your company, or do they just want to sell you more licenses as your company grows?
  18. Is your ITSM vendor a “one-trick pony” product-wise, or can it help you solve bigger IT issues?
  19. What sort of availability or uptime does your ITSM vendor deliver?
  20. Do most of your ITSM vendor’s customers stick around, or are they always testing the waters with other vendors?

 

If you’d like to get into these questions in more depth, be on the lookout for a Google Hangout in the next couple of weeks.  We’ll get Jen “Inner” Brenner to host Chris Dancy, Jason Frye, myself, perhaps an analyst, and one or two more folks – maybe even a normal corporate employee to talk about what it’s like from their end, why these questions are so important, and why they want change to come to ITSM.

 

VCD.

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Spring graphic.jpg

Spring has sprung, as they say. The days start getting longer, and if you’re anything like me it’s typically a time spent tackling a lengthy to-do list chock full of things that didn’t get done during the winter – like cleaning the garage and dispersing all that stuff that somehow glommed onto your life in the past 12 months.

 

Speaking of “all that stuff”…spring is a time for getting rid of excess. Personally, I find the whole idea, the whole process, to be very liberating. Beyond eliminating clutter, it also serves as a reminder of what’s truly important, helps us prioritize and illustrates why living with less is a recurring theme despite the commercialism of society.

 

The same can be said of IT. Taking the same concept and applying it to software and hardware assets, most organizations have such a wealth of infrastructure it can be difficult to recall each component’s purpose. What’s more is that at any given time many companies don’t have a comprehensive view of what assets they already have, making the task of consolidating nearly impossible.

 

The good news is that Spring cleaning IT assets doesn’t need to be as labor intensive as clearing out your garage, though figuring out where to start is often just as exasperating. Do you know what and where all of your company’s assets are currently? It may not be as straightforward as you think when you consider the broad range of computers, hard drives, smartphones, servers, printers and devices connected to your network at any given time.

 

Luckily there are solutions available to help. For example, at BMC our automated asset management software helps customers discover, inventory, and organize IT assets, a critical first step to kick start the process of restoring order. It can then be used to automate deployment and migrations, service desk integrations, policy compliance, and software license management.

 

There’s no time like the present to begin working through your spring cleaning list, personal or professional. While we can’t offer much assistance on your personal list, if you need help getting started within your organization you can read more about our approach to organizing IT assets here. While you’re at it, feel free to let us know in the comments if you can identify the oldest computer used in your company.

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First Dell, now BMC: Which legacy IT company will go private next? — Tech News and Analysis

 

First Dell, now BMC: Which legacy IT company will go private next?

by Barb Darrow

MAY. 6, 2013 - 6:51 AM PDT

SUMMARY:

Who is willing to bet that Dell and BMC taking themselves private is the end of a trend? Right, me neither.

 

With BMC being taken private by a pair of private equity firms in a deal worth $6.9 billion or $46.25 per share in cash, one has to wonder what legacy IT vendor will be next to take this route.

Dell blazed the trail in February when it announced plans to take itself off the public market. That move, valued at $24.5 billion, was orchestrated by founder and CEO Michael Dell and Silver Lake Partners. Critics said the price undervalued the company which remains a power in PCs and servers, and is navigating a shift into cloud computing. In the mobile space, Alltel was ahead of the trend, taking itself private in 2007, and was  scooped up by Verizon two years later for $5.9 billion.

Citing unnamed sources, Reuters first reported Sunday that a BMC take-out by an investment group comprising Bain Capital and Golden Gate Partners was under discussion. BMC is not a household name for consumers but in business it’s a pretty big deal for enterprise IT and database admins.

BMC brands include Remedy service management software; BladeLogic automated configuration management; and Track-IT  help desk and asset management. These are the kinds of non-glam tools that keep a data center running.  Dell bought Quest Software, probably BMC’s most direct competitor, indeal that was completed in September 2012.

Who’s next?

Industry watchers said whatever happens with this proposed BMC deal, be prepared for more action. “There’s a seismic shift afoot with enterprise software vendors as they  move from traditional pricing and distribution models to OpEx, SaaS and cloud models. This means a financial disruption for many of them, not just BMC Software,” said Dana Gardner, principal analyst with Inter-Arbor Solutions and GigaOM PRO analyst.

To be sure, Dell and BMC are not alone: HP, IBM, Oracle and Microsoft are face withering heat from shareholders who expect the old profitability models to hold up even as the world of computing changes dramatically.  As an example, IBM last month stunned the market by missing on profit and revenue expectations for its first quarter. As Forbes reported:

“Revenues from cloud computing and analytics initiative continued to see growth in Q1. However, its core software business had a lackluster performance in the quarter and revenues were $5.6 billion, flat year-over-year (y-o-y) and up 1% in constant currency.”

Cloud upsets the apple cart

Cloud is the disrupting force here. As more companies evaluate the economics of putting workloads on massive webscale infrastructure —  outside their walls — they will buy far fewer servers and routers themselves. And as more corporate applications are delivered via software-as-a-service models there are fewer huge upfront software licensing deals. Instead payments are spread out across a year or three. There is also pressure on the massive enterprise service and maintenance fees favored by companies like Oracle.

“There’s a bet to be made,” Gardner said. “Does Wall Street understand such transitions, or does it throw the baby out with the bath water?”

It’s unlikely that giants like Oracle, IBM, Microsoft would go private, but never say never to a flock of smaller companies like BMC that may be sick of dealing with Wall Street pressures. For those smaller enterprise software (and hardware) companies, it may make sense to revert to private control and then re-emerge on the public markets when the coast is clear, or at least less rocky.

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BMC To Go Private

Charles Babcock

 

Excerpt:  BMC will continue operating as before, with no big changes planned for its 6,500 employees or management, he said. But the acquisition will provide BMC with the capital to pursue larger profits in its most successful product lines. In particular, BMC thinks it has a hit with its MyIT for managing mobile devices. In the last quarter, it signed large MyIT deals with Exxon Mobile and Credit Suisse for "tens of thousands of end users," as MyIT became generally available. MyIT first launched at the end of October.

 

"You can expect to see us continue to invest heavily in self-service IT" on the MyIT pattern, Beauchamp said.

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http://blogs.forrester.com/jean_pierre_garbani/13-05-07-bmc_software_goes_private

 

BMC SOFTWARE GOES PRIVATE

Yesterday, BMC Software announced that has signed a definitive agreement to be acquired by a private investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments Pte Ltd (“GIC”) and Insight Venture Partners (collectively, the “Investor Group”).

Under the terms of the agreement, affiliates of the Investor Group will acquire all outstanding BMC common stock for $46.25 per share in cash, or approximately $6.9 billion.

This is one of the largest M&A operations in a long time. Significantly, it has been prepared for quite some time, which culminated in a restructuring a month ago, by which the five product groups operating under BMC Software became one. Instead of having several categories reporting their gains (or losses) we have now one happy family where the gain of one member balances the loss of another. We have also a unique opportunity to have these former product lines working together for a better integration of BMC Software solutions with a corollary prospect of having more R&D investments in previously “weak” categories. Being free of the short term mandatory “good results to satisfy the street” will also participate in building a better BMC Software.

Although fourth quarter results were below the Street expectation by a hair (-$.06 per share and -.04% in Revenue), BMC Software bookings grew 14% from a year ago, with an encouraging result for ESM which was up 9% from a year ago.

Over the past ten years, BMC Software has made its mark on the IT Management Software (ITMS) market, and is today only second to CA Technologies. From what we can see, the privatization of BMC Software provides an opportunity to invest into the future of ITMS and to become a serious contender for first place in the years to come.

For BMC customers, this sounds like very good news. There is, of course, a flip side: we can expect that streamlining the operation will lead to weeding some dead wood products, which of course may be a problem for some of us. This is one area where the future BMC will have to tread carefully.

The future of BMC can take many paths, including persisting the company in its complete state (sans the aforementioned "dead wood" products), selling it wholesale to another technology company (unlikely, but possible), or breaking up the company and selling the parts. This latter scenario is plausible and is the prevailing speculation in the marketplace, however it is just that - speculation. The likeliest future path for BMC is to make no material changes to the business. The Investor Group will do some trimming, but they will not disrupt the company's growth trajectory. That would be foolish - and these investors are not fools.

In short, Forrester sees little risk to BMC customers over the next year. After that it is again purely speculation. Watch the new management's actions to determine future directions. Ignore the rhetoric from BMC's competitors about BMC's future because the only people who know the future of BMC will be the new owners - and even they don't yet quite know.

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BMC Software Signs Definitive Agreement

to be Acquired for $46.25 per Share in Cash

 

Transaction with private investor group valued at $6.9 Billion

 

BOSTON, NEW YORK CITY, SAN FRANCISCO, SINGAPORE and HOUSTON – May 6, 2013 – BMC Software (NASDAQ: BMC) (“the Company”) has signed a definitive agreement to be acquired by a private investor group led by Bain Capital and Golden Gate Capital together with GIC Special Investments Pte Ltd (“GIC”) and Insight Venture Partners (collectively, the “Investor Group”).

 

Under the terms of the agreement, affiliates of the Investor Group will acquire all outstanding BMC common stock for $46.25 per share in cash, or approximately $6.9 billion, representing an attractive premium to the Company's unaffected stock price.  The agreement was approved by unanimous vote of those directors present.

 

“After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, as well as a premium to our unaffected share price,” said Bob Beauchamp, chairman and chief executive officer at BMC.  “BMC believes the opportunity to become a private company will provide additional flexibility and position us to invest more strategically to drive powerful innovation and deliver cutting edge customer solutions. We look forward to working closely with all parties to complete this transaction and enter into our next chapter of growth and industry leadership.”

 

Elliott Management, which owns 9.6 percent of the BMC common stock, has agreed to vote its shares in favor of the transaction. Jesse Cohn, portfolio manager, said: “Elliott applauds the BMC Software board and executive leadership for delivering this value-maximizing outcome for stockholders, which both contains a go-shop provision and reflects what we believe is a substantial premium to BMC’s unaffected stock price. Credit also goes to Bain Capital, Golden Gate Capital, GIC and Insight Venture Partners for recognizing this exciting investment opportunity. This deal represents a tremendous outcome for BMC's employees, customers and stockholders.”


“BMC
is the only enterprise software vendor that can go from mainframe to mobile, with solutions that help IT drive real business innovation and optimize operations management and employee productivity,” said Ian Loring, managing director at Bain Capital. “We and the rest of the Investor Group look forward to working with the management team and employees of BMC to execute additional growth strategies designed to expand the Company’s capabilities and enhance its relationships with customers and partners around the world.”

 

“BMC is an innovative leader in IT operations management and has strong leadership positions in growing segments such as cloud management, service management and workload automation,” said Prescott Ashe, managing director of Golden Gate Capital. “We are excited to work with the management team and employees to accelerate BMC's growth and strengthen its position as the best-in-class provider of IT management software for heterogeneous environments.”

 

There is no financing condition associated with the proposed acquisition. Credit Suisse, RBC Capital Markets and Barclays have agreed to provide debt financing in connection with the transaction. 

 

The transaction, which is expected to close later this year, is subject to approval from BMC shareholders, regulatory approvals and other customary closing conditions.

 

Under the terms of the agreement, for a period of 30 calendar days, BMC may solicit alternative proposals from third parties.  BMC does not anticipate that it will disclose any developments with regard to this process unless and until the BMC board of directors makes a decision with respect to a potential superior proposal.  There are no guarantees that this process will result in a superior proposal.

 

Morgan Stanley & Co. LLC and BofA Merrill Lynch are serving as financial advisors, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to BMC. Qatalyst Partners, Credit Suisse, RBC Capital Markets and Barclays are serving as financial advisors to the Investor Group. Kirkland & Ellis LLP is serving as legal counsel and PwC LLP is serving as accounting advisor to the Investor Group.  Sidley Austin LLP is serving as legal advisor to GIC. Willkie Farr & Gallager LLP is the legal advisor for Insight Venture Partners.

 

BMC will release results for Q4FY13 on or before May 7, 2013.   Due to the pending transaction, BMC will not host an investor call.

 

Business Runs on IT. IT Runs on BMC Software.

More than 20,000 IT organizations – from the Global 100 to the smallest businesses – in over 120 countries rely on BMC Software (NASDAQ: BMC) to manage their business services and applications across distributed, mainframe, virtual and cloud environments. With the industry’s broadest choice of leading IT management solutions, including the award-winning Cloud Management and MyIT offerings, BMC helps customers cut costs, reduce risk and achieve business objectives. For the four fiscal quarters ended March 31, 2013, BMC revenue was $2.2 billion. www.bmc.com

 

About Bain Capital, LLC

Bain Capital, LLC is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, credit products and absolute return with approximately $70 billion in assets under management.  Bain Capital has a team of over 300 professionals dedicated to investing and to supporting its portfolio companies.  Since its inception in 1984, Bain Capital has made private equity, growth, and venture capital investments in over 450 companies around the world, including such leading technology and software companies as SunGard Data Systems, NXP, LinkedIn, SolarWinds, SurveyMonkey, SevOne, DynaTrace Software, WorldPay, Skillsoft, MYOB, Applied Systems, Archer Technologies and Cerved Group SpA. The firm has offices in Boston, New York, Chicago, Palo Alto, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai. www.baincapital.com

 

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with more than $12 billion of capital under management.  Golden Gate Capital partners with world-class management teams to invest in change-intensive, growth businesses where there is a demonstrable opportunity to significantly enhance a company’s value.  The principals of Golden Gate Capital have a long and successful history of investing with management partners across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments.  Golden Gate Capital is one of the most active investors in the software and IT sectors. Other notable software investments sponsored by Golden Gate Capital include Infor, Lawson, Attachmate, Novell, Ex Libris, Micro Focus and Aspect. www.goldengatecap.com

 

About GIC 

The Government of Singapore Investment Corporation Private Limited (GIC) is a sovereign wealth fund established in 1981 to manage Singapore’s foreign reserves.  GIC’s mission is to preserve and enhance the international purchasing power of the reserves, with the aim to achieve good long-term returns above global inflation over the investment time horizon of 20 years.  With a network of nine offices in key financial capitals around the world, GIC invests internationally in equities, fixed income, money-market instruments, real estate and special investments. GIC Special Investments Pte Ltd, the private equity arm of GIC, is one of the world's largest private equity investors and manages a multi-billion dollar portfolio of fund investments and direct investments in companies. www.gic.com.sg/

 

About Insight Venture Partners

Insight Venture Partners is a leading venture capital and private equity firm investing in eCommerce, Internet, on-premise and SaaS-based software and data-services companies.  Founded in 1995, Insight has raised more than $6 billion and made more than 190 investments.  Our mission is to find, fund and work successfully with visionary executives who are driving change in their industries. www.insightpartners.com

 

###

 

BMC, BMC Software, and the BMC Software logo are the exclusive properties of BMC Software Inc., are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries.  All other BMC trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries.  All other trademarks or registered trademarks are the property of their respective owners.  © 2012 BMC Software

 

 

Additional Information and Where to Find It

In connection with the proposed transaction, the Company will file with the Securities and Exchange Commission (the “SEC”) and furnish to the Company’s stockholders a proxy statement.  Before making any voting decision, the Company’s stockholders are urged to read the proxy statement in its entirety when it becomes available and any other documents to be filed with the SEC in connection with the proposed merger or incorporated by reference in the proxy statement because they will contain important information about the proposed transaction and the parties to the proposed transaction.  Investors and security holders may obtain a free copy of documents filed by BMC Software, Inc. with the SEC at the SEC’s website at http://www.sec.gov.  In addition, investors and security holders may obtain a free copy of BMC Software, Inc.’s filings with the SEC from BMC Software, Inc.’s website at http://investors.bmc.com/sec.cfm or by directing a request to: BMC Software, Inc., 2101 CityWest Blvd., Houston, Texas 77042-2827, Attn: Investor Relations, (713) 918-1805.

 

The Company and certain of its directors, executive officers, and certain other members of management and employees of the Company may be deemed to be participants in the solicitation of proxies from stockholders of the Company in favor of the proposed merger. Information about directors and executive officers of the Company is set forth in the proxy statement for the Company’s 2012 annual meeting of stockholders, as filed with the SEC on Schedule 14A on June 5, 2012 (as amended by the proxy statement supplement filed on July 3, 2012). Additional information regarding the interests of these individuals and other persons who may be deemed to be participants in the solicitation will be included in the proxy statement the Company will file with the SEC.

 

Forward-Looking Statements

Statements about the expected timing, completion and effects of the proposed transaction and all other statements in this report and the exhibits furnished or filed herewith, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. The Company may not be able to complete the proposed transaction on the terms described above or other acceptable terms or at all because of a number of factors, including (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, (2) the failure to obtain stockholder approval or the failure to satisfy the closing conditions, (3) the failure to obtain the necessary financing arrangements set forth in the debt and equity commitment letters delivered pursuant to the merger agreement, (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction and (5) the effect of the announcement of the merger on the ability of the Company to retain and hire key personnel and maintain relationships with its customers, suppliers, operating results and business generally. 

Actual results may differ materially from those indicated by such forward-looking statements.  In addition, the forward-looking statements represent the Company’s views as of the date on which such statements were made.  The Company anticipates that subsequent events and developments may cause its views to change.  However, although the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.  These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date hereof.  Additional factors that may affect the business or financial results of the Company are described in the risk factors included in the Company’s filings with the SEC, including the Company’s 2012 Annual Report on Form 10-K and later filed quarterly reports on Form 10-Q and Current Reports on Form 8-K, which factors are incorporated herein by reference. The Company expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.