7 Replies Latest reply on Feb 8, 2019 4:25 PM by Crystal Jones

    Does BMC "punish" clients for going through a partner for product support?

    Crystal Jones
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      When we went live with our upgrade from Footprints v11 to Footprints v12 last year, we worked with a consulting partner (Flycast Partners) to help us with configuration/customization. While reading through posts here on the forum as a part of research on one of our configuration needs, I was personally THRILLED to find out that we could opt for working with a BMC consulting and support partner for not just configuration, but support as well. We've not been happy with the BMC support for over 3 years now - when the support model changed. So I inquired with our consulting partner and they confirmed that yes we could indeed go through them for support, and just like that I began to make plans to make this transition once our current support agreement expired.

       

      Here's where the FUN begins..

       

      <rant>

      In order to transfer our support to the partner, BMC required us to explain in writing to them why we wanted to make the support change. I responded with a VERY DETAILED account of our support issues (going back to 2015). In response they "okayed" the move to L1 support being managed by their consulting partner.

       

      Turns out BMC charges a large sum they call a "transfer fee" if you want to move your support to one of their consulting and support partners. They charge this fee, and do not explain it (other than to say it's their "policy") AND they charge this fee even if you are RENEWING your support with the consulting and support partner.

       

      Let me repeat this part.

       

      We are not ending our current support agreement early. Not at all. We are simply choosing NOT to renew support with BMC and instead choosing to renew/start a NEW support agreement with one of their consulting and support partners (a partner that BMC recommended BTW) when our current support agreement ends.

       

      For this action BMC charges a FEE to change support providers. Let me be clear.. it's a VERY LARGE FEE to make this change. I have asked what this fee is for and the answer I've been given thus far is VAGUE and unclear. The last answer I received was STILL unclear what the purpose of this fee was for and BMC only stated that this fee was to be paid by the provider and not the client. (which our FABULOUS new L1 support provider - Flycast Partners -  is going to pay/absorb)

       

      My question is this: WHY is there a fee at all?? IMHO this fee is PUNITIVE. It seems designed to punish the client and the provider. It feels very much like BMC wants to discourage providers from providing support and they want to encourage clients from seeking alternate options for support.

      </rant>

       

      Anyone else using a consulting and support partner for support?? Did BMC assess this VERY LARGE "transfer fee"?

       

      Message was edited by: Crystal Jones (context and grammar corrections)

        • 1. Re: Does BMC "punish" clients for going through a partner for product support?
          ron sorrell

          Hi Crystal

          As a BMC L1 partner since 2007, we are well aware of the transfer fee anytime a client switches from BMC to a partner or partner to partner.  But you maybe surprised to learn that we support this.   The purpose of this fee is to stop partners from poaching current clients from BMC or other existing partners by providing a small discount.  BMC wants partners to find new business, not just play whack a mole with support renewals.

          Here is the kicker, we pay the transfer fee ourselves and never pass that cost to the client yet we still make a small positive income on that initial deal.  If we do process an L1 transfer, it's because we expect to have a long term relationship with that client and will pay off in the long run.  If we do a good job, that client will continue to be our client for many years.  Likely over time, we get more consulting and possible more product purchases.  Here is the kicker, if the other partner hasn't explained this to you - if you are L1 with a partner, you will be forced to purchase any additional Footprints software from that partner - a guarantee software sale.  So that L1 transfer isn't so bad after all 

           

          Ron Sorrell

          President

          RJR Innovations

          3 of 3 people found this helpful
          • 2. Re: Does BMC "punish" clients for going through a partner for product support?
            Crystal Jones

            Re: "if you are L1 with a partner, you will be forced to purchase any additional Footprints software from that partner"

            Yes we do understand that this is how it works. We have no issue with this.

             

            Re: "The purpose of this fee is to stop partners from poaching current clients from BMC or other existing partners by providing a small discount.  BMC wants partners to find new business, not just play whack a mole with support renewals."

             

            I do understand what you are saying, but there's one issue:

            We weren't "poached" by the partner!

             

            To the contrary, WE approached the partner when we became aware that we had another support option. We've not been happy with BMC support for over 3 years and we didn't KNOW we had another option until I happened to stumble upon a post here (from another support partner) in the community forums. So from our POV the transfer fee seems PUNITIVE regardless as to whether the partner pays it or not.

            • 3. Re: Does BMC "punish" clients for going through a partner for product support?
              Nicolas Roome

              Speaking from my point of view, part of it is perhaps also to discourage a practice I've seen from time to time whereby a customer goes to RFP each year for their support renewal and goes with the cheaper option. This is a pretty bad practice (IMO) and any partner who would then bid on that RFP knows they'll take a transfer hit, and take that into their response consideration.

              1 of 1 people found this helpful
              • 4. Re: Does BMC "punish" clients for going through a partner for product support?
                ron sorrell

                I assumed they didn't poach, you were happy with the service they gave and want them to continue providing support because you are comfortable with the services they provided.  That is the reason why we sometimes get new L1s from BMC supported clients as well.  I just mentioned why BMC has a fee so transfers will only happen because it is worthwhile to the client and the partner, not just a cash grab.

                 

                Ron

                • 5. Re: Does BMC "punish" clients for going through a partner for product support?
                  Vern Meyer

                  So it sounds like the quick answer to your question is:

                  Yes they do. Some L1s will eat that cost in hopes they'll stay with them since they provide such a better service.

                   

                  Bummer. Though, thanks for posting this, we might be needing to take the same path soon.

                  1 of 1 people found this helpful
                  • 6. Re: Does BMC "punish" clients for going through a partner for product support?
                    Crystal Jones

                    Nicolas Roome wrote:

                     

                    Speaking from my point of view, part of it is perhaps also to discourage a practice I've seen from time to time whereby a customer goes to RFP each year for their support renewal and goes with the cheaper option. This is a pretty bad practice (IMO) and any partner who would then bid on that RFP knows they'll take a transfer hit, and take that into their response consideration.

                    Right.. Except that's ABSOLUTELY NOT what happened here either!!!!! (and BMC KNOWS this) Yet this very PUNITIVE transfer fee was assessed.

                     

                    Vern Meyer wrote:

                     

                    So it sounds like the quick answer to your question is:

                    Yes they do. Some L1s will eat that cost in hopes they'll stay with them since they provide such a better service.

                     

                    Bummer. Though, thanks for posting this, we might be needing to take the same path soon.

                    Indeed, so get ready..

                     

                    The worst part is that BMC did this despite the fact that we are a LONG TIME supporter of BMCs products. (we started out with Track-It in 1999 and then moved to Footprints in 2014). There was no consideration for this in their decision to charge this "transfer-fee".

                     

                    In order to transfer our support to the partner, BMC required us to explain in writing to them why we wanted to make the support change. I responded with a VERY DETAILED account of our support issues (going back to 2015). In response they "okayed" the move to L1 support being managed by their consulting partner,  and STILL assessed this "transfer fee".

                     

                    Does that sound PUNITIVE and excessive to you?

                     

                    Well it sure does to us too. Are we still moving forward with transferring our support to the consulting partner?? YOU BETCHA and one reason (among many) is the fact that, as a loyal supporter of BMC products, we not only didn't receive good support, we are being punished for not wanting to continue to receive less than stellar support from BMC.

                     

                    This feels a lot like the bad boyfriend being mad at your for breaking up with him because he was a bad boyfriend.

                    • 7. Re: Does BMC "punish" clients for going through a partner for product support?
                      Crystal Jones

                      ron sorrell wrote:

                       

                      I assumed they didn't poach, you were happy with the service they gave and want them to continue providing support because you are comfortable with the services they provided.  That is the reason why we sometimes get new L1s from BMC supported clients as well.  I just mentioned why BMC has a fee so transfers will only happen because it is worthwhile to the client and the partner, not just a cash grab.

                       

                      Ron

                      I get that.. But BMC KNOWS why we are making this change and it's not a "poaching" situation. The practice of charging this fee needs to take this into account and it doesn't. Therefore they are punishing GOOD customers and partners for the behavior of the BAD customers and partners even when they know they otherwise.

                       

                      That IMHO is a POOR business practice on BMCs part.