BMC Aims to Get Leaner and Focus on Cloud Management Tools

BMC is a legend in the software industry. Although the software giant has cloud offerings, the sales are slow. BMC’s CEO Bob Beauchamp wants to fix that. BMC rose to fame with its interface designed to help administer mainframe systems. In fact, it is reported that sales of mainframes related tools made up to 40% of the company’s current revenue streams. The cloud is just a fraction of BMC’s revenues. According to a report, BMC has only had $10M in revenues from its cloud offerings in 2011.

This may paint a bleak picture for BMC but the opposite it true. CEO Bob Beauchamp has been at the helm of BMC since 2002 and each year, he has overseen steady revenue growth. BMC has recently underwent a transformation for a public company to a private company. Both Bain and Golden Gate Capital participated in the buy out. Beauchamp is excited about the transformation because allows him to focus more on the business at hand. He has said in interviews that he believes the transformation from public to private will help accelerate BMC’s move to delivering software as a service using the cloud.
Beauchamp was recently quoted as saying, “I do not miss being [the CEO of] a public company: spending probably one-third of my time on the road talking to shareholders, reacting to earnings-per-share reports…
We can invest money in a quarter even if the revenue is not as good as expected. If you’re a public company, you can’t do that, you have to wait.”
BMC benefits from this transformation because the software giant can now compete with smaller companies who have an upper hand on certain niche markets. BMC has plans to sell Software as a Service that will assist administrators in managing their public, private and hybrid clouds. For more information, visit BMC’s website.