3 responses to “BMC Reaches for the Cloud With a New Service Desk Express Offering”

  1. Walter Adamson

    Good commentary. I especially noted your “For legacy software vendors, SaaS is not an easy nut to crack for business, organizational, technology and cultural reasons.”

    I hover between being surprised about his and unsurprised. Surprised they still find it so hard, but unsurprised because it’s a typical structural change which has killed larger organisations in the past for all the well known reasons.

    I’m no expert on Remedy – would you mind explaining this comment more – “For many reasons, BMC can’t rebuild Remedy in the cloud and they would be crazy to position Service Desk Express on Force.com against Remedy.”

    Thanks, Walter Adamson @g2m
    http://xeesm.com/walter

  2. rglauser

    Walter,

    A few years ago BMC acquired the majority of market share in IT service desk applications when they purchased Remedy from Peregrine Systems. It is a two-decade old technology that has been loved and hated by thousands of IT organizations around the world.

    Until recently, there were only a couple of other equally old ITSM technology alternatives from HP and CA. Service-now.com entered the market about five years ago with a new, modern SaaS alternative and has been taking market share from the big 4 IT software vendors ever since.

    First there was Salesforce.com vs. Siebel and then there was NetSuite vs. SAP. Service-now.com vs. the big 4 IT software vendors is the latest chapter in the story of modern SaaS changing a software vertical for the better.

    The principals are different but the principles are all the same. BMC can’t rebuild Remedy in the cloud for the following reasons:
    – Declining maintenance and service revenues attached to the on-premise model are still a cash cow. BMC is afraid to touch the revenue that makes up the vast majority of the BMC Enterprise Service Management revenues even though new license revenue is dropping significantly. BMC answers to shareholders and investors who keep a close eye on the cow and anything that threatens the cow.
    – The BMC culture is one of acquire and maintain. Rapid, agile and iterative innovation is a foreign concept to most legacy software vendors.
    – The BMC sales and marketing organization was built to support an on-premise perpetually licensed application. It takes time and space to turn a super tanker. Their channel organization and partners are generally no different.
    – The Remedy technology is almost two decades old. Do I need to say more? Modern SaaS is just as much about the licensing and delivery model as it is about the modernity of the application.

    I hope this answered your question. Best regards,

    Rhett
    Service-now.com
    @rglauser

  3. Matt

    Rhett is right, Walter. There is no way that BMC can take Remedy for the cloud without rebuilding it. That is going to be an engineering feat! Not sure if they want to take that route right now. I do believe that it is high time these companies reinvent themselves for the coming age!