BMC's CEO talks up products, profits

13.11.2006

Are you spending one-third of your R&D on mainframe tools? We don't disclose those percentages, but the R&D for mainframe tools is a lower percentage because those products are more stable and we spend most of the R&D money on new technologies.

Speaking of new technologies, what is BMC's strategy for capitalizing on the exploding market in mobile devices and services? The CIO used to have the challenge to manage hundreds of devices, and now it might be hundreds of thousands. The question is whether you want to manage each type of device in a separate silo or come back to a central location. We are already doing that, tracking mobile devices and desktops with the Remedy [IT service management] suite of products.

Specifically, are you working on a tool that would count cell phone minutes to help control those costs? We have worked with specific customers asking us to do just that, actually. And we've worked with some mobile phone providers.

The market is giving attention to on-demand applications and software as a service, so how are BMC's own efforts in this area going and do you have expansion plans? We're definitely in the space. We have a whole set of business partners to build business based on on-demand management, and we provide on-demand offerings directly from a work group here.

On a personal note, you've been at BMC since 1988, which is unusual in today's business and IT climate. It seems to have paid off for you, right? I think the statistics bear me out that CEOs that are homegrown outperform those that are brought in from the outside. I think the reason for that is that I just don't have to spend a lot of time being educated on things that I know already. It means I can work on value drivers. And I don't have to sit in meetings where you spend the first half of it educating me. I already know the business. I've run marketing, R&D and mergers and acquisitions. I've spent much of my career in sales. I know this company inside and out. So we can spend time as a management team focused on growing and changing and focused on customers.