The Lighter Side Of The Cloud: Intelligence
The Lighter Side Of The Cloud – No More Worries
The Lighter Side Of The Cloud – The Escape

BMC Software Shifts Gears And Bets On The Cloud

SAN FRANCISCO (Dow Jones)-BMC Software Inc. (BMC) made its name doing the unglamorous work of streamlining corporate data centers. Now it is riding one of the technology industry’s biggest waves: cloud computing.

Over the past 18 months, BMC has begun helping clients build and manage more than 150 cloud-based data centers. The company’s customers include Concur Technologies Inc. (CNQR) and Rackspace Hosting Inc. (RAX).

BMC also has introduced new cloud products. In May, it rolled out BMC Cloud Lifecycle Management, software for building and operating cloud-based data centers. The Houston-based company also plans to introduce more cloud-related IT products.

“The cloud has been remarkable for us,” BMC Chief Executive Bob Beauchamp told Dow Jones Newswires in an interview. “In the last nine months or so it has really taken off.”

While BMC’s revenue from cloud computing is still small–roughly 3.5% of revenue since the company entered the field–it holds the potential for significant growth. Global cloud-services revenue is expected to grow 16.6 % to $68.3 billion this year and more than double to $148.8 billion by 2014, according to market watcher Gartner Inc.

“Success in cloud computing will mean the difference between existing or not existing within a few years,” said Glenn O’Donnell, a Forrester Research Inc. analyst. “The new battleground is around the cloud.”

While its cloud products have yet to affect BMC’s financial performance dramatically, the company’s shares have outperformed the broad software sector, which has swooned. Since the beginning of the year, BMC has dropped about 13%, much less than competitor CA Technologies Inc. (CA), which is down roughly 20%. The broad S&P Software Index has fallen 18%.

Over the past five years, BMC shares have risen about 90%, while CA shares have dropped about 34%. On Friday, BMC shares closed at $34.76, down 0.7%.

Behind BMC’s performance is steadily growing profits. Over the last three quarters, BMC has seen profit rise an average of 36.6%. By comparison CA’s profits grew 29% over the same period.

A CA spokeswoman said Islandia, N.Y.-based CA had a broader product portfolio than BMC and is “moving fast to accelerate our growth.”

BMC’s growth should continue when it reports first-quarter fiscal 2011 earnings next month. The company will get a special boost at that time: A $15 million deal that was expected to close in the fourth quarter wasn’t completed until a few minutes after the quarter’s close and will now accrue to the first quarter.

Of course, BMC faces plenty of competition. Rival CA has more than double BMC’s revenue. BMC also competes with International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ), although they’re more diversified. Oracle Corp. (ORCL) and Microsoft Corp. (MSFT) also have launched competitive products.

BMC’s jump into cloud computing isn’t the first time the company has switched gears. BMC was founded 30 years ago as a maker of software for mainframe computers. As the market shifted away from mainframes, BMC moved into server automation and management in the mid-1990s.

Currently, about two-thirds of BMC’s revenue comes from server-based tools–such as BladeLogic Server Automation Suite and Atrium Orchestrator–that let IT departments and data centers work more quickly and efficiently.

Philip Potloff, the chief information officer at auto information company Edmunds Inc., has been a BMC customer since 2008. He says BMC’s software dramatically reduces the amount of time his team spends on projects.

For example, it used to take Edmonds’s staff about four hours to deploy one server. With BMC products, he says, they can deploy 100 servers in less than an hour

“It’s all about the capacity to move faster,” he said.

-By Jeanette Borzo, Dow Jones Newswires; 415-765-8230

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

Backup

Recent

Surprising Facts and Stats About Your Online Security

Surprising Facts and Stats About Your Online Security

Surprising Facts and Stats – Online Security It’s easy to get lulled into a false sense of security when browsing the web. As more and more devices join the internet of things, the risk of becoming a victim of a criminal cyber gang is increasing – we have more unsecured access points and offer would-be…

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting

World Backup Day: Understand The Data You Are Protecting Did you know that 113 phones are lost or stolen every minute? What about the fact that 1 in 10 computers are infected with a virus every month? Thanks to World Backup Day, an independent initiative that was started in 2011, awareness is being raised about…

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market – Cloud Computing Adoption

The E-Learning Market  We’ve talked a fair bit about e-Learning and MOOCs (Massive Open Online Courses) technologies here on CloudTweaks over the past number of years. The industry is expected to continue to grow at a brisk pace as more and more firms and educational institutions start to adopt cloud based services.  Docebo has an excellent…

Popular

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

5 Ways CIOs Can Tackle Cloud Fears

5 Ways CIOs Can Tackle Cloud Fears

5 Ways CIOs Can Tackle Cloud Fears  CIOs are tired of hearing about cloud computing concerns. They’ve spent years reading about how cloud resources are subject to risks, and wonder – what can they do to help people trust the cloud?  The truth is that despite being a hot issue for years, the topic of…

Five Cloud Questions Every CIO Needs To Know How To Answer

Five Cloud Questions Every CIO Needs To Know How To Answer

The Hot Seat Five cloud questions every CIO needs to know how to answer The cloud is a powerful thing, but here in the CloudTweaks community, we already know that. The challenge we have is validating the value it brings to today’s enterprise. Below, let’s review five questions we need to be ready to address…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

15 Emerging Technologies To Watch Before 2020 The cloud, big data, the internet of things, and wearable technology have all featured heavily in Forrester’s latest list of fifteen technologies to watch before 2020. It is becoming a reality for businesses that they need to adapt and change to an increasingly technologically-minded customer base. Traditional marketing…

Sponsored Posts

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising