Tuesday AM February 10th, 2009

A Houston company that helps firms maximize current technology infrastructure reports a revenue increase of six per cent compared to a year ago. Ed Mayberry reports.

image of digital world

Companies are trying to squeeze every drop of value from their technology spending.  Houston-based BMC Software sells to banks, communications companies, manufacturers, hospitals and governments, assembling global command centers for their IT organizations, as CEO Bob Beauchamp explains.

“What we give them the ability to do is — with a few people in one room — essentially watch all of those far-flung IT operations and see how they’re running — see if they’re running as they’re supposed to, are they meeting their requirements, are they having problems, performance issues?  And then if something does happen, to be able to automatically take action and fix that.”

Beauchamp says the current tough economy is actually an opportunity for finding long-term solutions to IT problems.

“Furloughing employees is a terrible thing to do, and it’s something that, if you have to do, all right, you make have to do it.  But that’s not a long-term answer to a structural cost problem.  The long-term answer is to look at all your key processes.  Look at the way an order is entered.  Look at the way customers are dealt with.  Look at the way bills are collected and the way things are manufactured.  And you look at all you key processes, and you say ‘how can we dramatically reduce those processes, say from 20 steps down to three steps.  And BMC’s core strategy is around that process automation.”

Beauchamp looks forward to revenue growth at BMC Software, although he says it’s hard to determine the economy’s direction.

“I think that it’s fair to say that it’s unknowable right now.  No one knows what’s going to happen with the economy.  Right now, I think ‘best case scenario’ 2010 is going to be a tough year for the world.  I think you’re going to see unemployment continue to rise.  Then it’s going to be a matter of whether or not some of the initiatives of both governments and business take to get themselves healthier will take hold, and no one knows the answer to that yet.”

Ed Mayberry, KUHF Houston Public Radio News.

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