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Beauchamp announced stellar performance of the Houston-based company's business software management (BSM) business -- a market BMC helped to create. BSM, which delivers automation to network and IT management, now accounts for more than 40 percent of the company's licensing revenue, of which one-third comes through the channel.
Analysts endorse the BMC concept of BSM, saying a successful implementation could shave as much as 25 percent of IT operations costs through the automation of resource and task management. Since pushing BSM into the channel, solution providers are reportedly enjoying equal success, seeing their collective BMC revenues climb 40 percent this year.
BMC has done a fine job of revitalizing its channel program. Under the leadership of Lori Cook, one of VARBusiness' 50 Most Powerful Women of the Channel, the company re-engaged with the channel, providing partners with greater training, access and support than even some of its own direct teams.
"We think that's all good news for our partners. They have clarity; they have the market share leaders in the space; and they have a management team that understands the critical nature of the indirect strategy," Beauchamp boasts. "At BMC, you find a company that's friendly, open and in a hot market. We think our partners have the ability to benefit from this."
While BSM's success as an IT and marketing strategy is yielding tremendous success for BMC, Beauchamp sees an opportunity to shoot past his competition: channel instability.
In the past month, the channel has seen tremendous leadership changes among the major vendors.
Beauchamp believes BMC can lure more partners away from its key competitors as they go through their leadership transitions. The least likely pool to draw from, he says, is IBM, which didn't miss a beat with Marwaha's appointment and is least likely to have dramatic changes in policy and strategy.
While no one is at the helm of HP's program, it has challenges that could lead to defections. Solution providers continue to grimace over the struggles with the attached-sales strategy, and the acquisition of Mercury Interactive reportedly will lead to a discontinuation of the vaunted OpenView brand. However, HP's star is on the ascent, with one of the strongest brands in the industry.
CA, on the other hand, has the most vulnerable pool of partners. Solution providers unsuccessfully rallied around George Kafkarkou to succeed Quinn. The dark cloud of ex-CEO Sanjay Kumar, who was recently sentenced to 12 years in prison for accounting fraud, continues to hang over the Long Island company. And its dismal Annual Report Card scores in partner support make doing business with the company difficult. BMC reports that it's getting inquires from CA partners who are tired of the negative headlines, poor support and lack of direction.
Turnover -- especially among the brass -- is a fact of business. When a new executive takes over, you can bet a strategic change will follow. Change, or the threat of change, is what breeds instability, doubt and apprehension among partners. What may seem like a minor change to a multinational vendor can cause devastating consequences for small and midsize solution providers. In turn, partners may see their own stability with another vendor -- which is what BMC is thinking.
BMC is under no illusions that competitors' stumbles will cause solution providers to race into its arms. However, what's happening among these vendors should serve as a lesson to vendors going through leadership changes: treat your partners well and keep them informed. Otherwise, you may be looking at more than just an executive exit.
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>> Lipsin named channel chief.
>> CA Partners Rally Around Kafkarkou.
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