‘HP-EDS combine will create more opportunities than challenges for BMC’

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: large manufacturing organisations.

How does the merger between HP and EDS impact BMC?

Whenever you have a deal of this size, it certainly changes the business landscape. However, BMC continues to be the top choice of customers and partners looking for business service management (BSM) solutions. In many ways, the EDS deal appears to be a competitive move by HP, primarily to become more competitive with IBM but also with Accenture, Cap Gemini, CSC, HCL, Infosys, Tata, Wipro, and other major players in terms of global services and outsourcing. BMC’s focus is solely on software and more specifically BSM and service automation, and every day we hear from customers that appreciate this focus.

Does this new partnership create any challenges for BMC?

I see the HP-EDS acquisition presenting inevitable questions concerning HP’s commitment to their software business. For HP, software continues to be a very small percentage of its total business, and as such, it is frequently seen as an afterthought or convenient add-on to secure larger dollar services or hardware deals. They say they are committed to the space, but in buying EDS, HP just bet the farm on services. With their focus on a new $14-billion cash cow, will their software business get lost in the larger HP shuffle once again? I think it’s likely that it will. As a result, I believe that the HP-EDS combination will create more opportunities than challenge for BMC.

Firstly, EDS has partnered with BMC in the past, sometimes replacing already-installed HP software. EDS has publicly stated that it will remain technology neutral under HP, and if they stay true to that course, BMC will continue to have opportunities to gain business through EDS.

Secondly, EDS has always been a customer of BMC’s mainframe management solutions—a vital area that HP’s existing software stack neglects. When it comes to mainframe management tools, HP is not an option.

Thirdly, the real advantage for BMC is that, many systems integrators now view HP as a direct competitor. I have spoken with senior executives from the large firms and they clearly see it this way. And clearly, the EDS acquisition puts HP in more heated competition with these India-based system integrators.

Will BMC continue its relationship with EDS?