BMC Not Immune

By Paula Musich  |  Posted 2008-02-07 Print this article Print

Still, Beauchamp cautioned that BMC is not immune, with some constriction expected in the financial services sector as well as the consumer space.  And BMC did experience some weakness in Europe, although Beauchamp attributed that to "just a few countries" and to "poor execution" on BMC's part. 

Despite increasing competition in the BSM space, with other Big 4 enterprise management competitors such as IBM, CA and Hewlett-Packard also touting CMDB (configuration management database) technology as a foundation for IT Infrastructure Library initiatives, Beauchamp remained optimistic about BMC's continued success in that market.

"When you adopt a strategy and are a leader and your competitors say the same message, it helps validate the strategy even further. All our competitors are saying they will write a CMDB too. We have no fear of a highly competitive CMDB.  We expect more competitive pressure, but the reality is our market share is already so large that we have a very strong strategic advantage," he said.

Measuring that market share has been a challenge, however.  No market researchers have published market share numbers that span the whole BSM market.  In segments of it, such as the service desk market, BMC is the "undisputed market share leader by a wide margin," Beauchamp said.  The same is true for the CMDB market segment, he added. The BSM market is growing "in the high teens," he said.

For its fourth fiscal quarter of 2008, BMC said it expects its earnings per share to range between 48 to 52 cents a share on a non-GAAP basis and revenue to range from $450 million to $465 million.


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