BMC Woos Rivals

A resurging BMC Software channel program is looking to capitalize on the turnover at key competitors to recruit more partners and grow indirect revenue.

CEO Bob Beauchamp says that the recent channel executive turnover at CA, IBM and Hewlett-Packard--BMC's primary competitors--spells opportunity for the Houston-based company's channel program.

"While we've really invested in our channel program and poured in resources, we've seen some of our competitors stumble," Beauchamp says.

BMC recently reported surging quarterly revenue, buoyed by sales of its business software management (BSM) and distributed systems management (DSM) lines. BSM grew 30 percent and DSM grew 27 percent; growth in mainframe products, while still the largest part of BMC's business, was flat.

For nearly two years, BMC has revitalized its channel program under the leadership of Lori Cook, who has instituted new programs to train and enable solution providers. Beauchamp credits channel partners for helping to drive sales. BMC resellers saw their revenue increase 40 percent in the last quarter, accounting for one-third of overall revenue.

"We've embraced [the channel] as a cultural shift in the business; it's not just a side revenue, but how we do business," Beauchamp says.

BMC hopes its strong channel story will help recruit new partners from competitors' ranks, especially as chief rivals are going through leadership transitions. The instability of channel-executive turnover at CA, HP and IBM may be enough to woo some solution providers into the BMC fold. n