Interesting read on BMC Software…implication for broader space?

This is worth a read.

http://www.sec.gov/Archives/edgar/data/835729/000119312512254542/d360749dex1.htm

The question that I have is “where do the traditional Big-4 IT Management vendors go from here?”

In the past, the big vendors have been able to acquire their way out of the “lack of innovation from within” problem. But today, the values of the new wave of companies surely put them out of reach.

Both Splunk and SolarWinds are sitting with market caps above $3bn…..and when Service-Now IPOs later this year it’s going to surpass both of them (my speculation of course).

The issue is that investors have realized that the IT infrastructure is fundamentally changing and with it, the entire discipline of IT Mgmt will change. Products that were designed in pre-Cloud, pre-Big Data, pre-Mobile days simply won’t work for today and tomorrow’s IT infrastructure and applications and the heavy business models of the past are being dismantled.

So investors are looking at companies like Service-Now, Splunk and SolarWinds and seeing the future and are rewarding them as such. Boundary is evidence of a further revolution that is coming.

What to do? Not my place to say but, certainly not the time for the faint of heart. Bold moves needed.

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