BSM’s Value Proposition

By Dick Stark

RightStar’s mission is to be our client’s expert advisor in the Business Service Management (BSM) space.  Additionally, it’s to return value back to our clients in terms of the investment they make in BSM products and services.  How do we do this and what is the best way to make this happen?

When I hosted a webinar with Northwestern University a few weeks back, their IT Director informed me that the ROI that he received after purchasing BMC End-User Experience Management (EUEM) was the highest of any product they have ever purchased. I asked for specific numbers, but he didn’t have any.  He just knew based upon his years of experience, that EUEM was a real winner.  Northwestern is like many other organizations that may analyze ROI’s as part of the procurement process, but then do not follow up after the purchase is made to determine the real ROI

Because IT budgets are so tight, it is often only those projects with a well-documented ROI and hard dollar savings that get approved. Here is my list of potential budget saving BSM projects:

  • Virtualization Management. We recently rolled out BMC’s BladeLogic Server Automation (BBSA) at the Commonwealth of Pennsylvania. The reason for this investmet was to automate server compliancy reporting and management that currently requires several full time systems analysts.
  • Asset Management. At our Lockheed/844th project we have improved asset management effectiveness from 60 to 85%. By comparing the IT assets required with what is actually on-hand, the Air Force was able to identify surplus software and hardware and realized significant cost savings.
  • SaaS based service desk.  In addition to the saving from any process improvement, SaaS based service desks, like Remedyforce offer an immediate savings as illustrated below:
Old   Way Year   1 Cost New   Way Year   1 Cost
Buy 1 Server   w/ Software $10,000 Software as a Service $0
Admin /Operating   Personnel (50%) $40,000 Admin/Operating Personnel (25%) $20,000
BMC SDE 10   Users $30,000 BMC Remedyforce 10 Users $10,500
SQL License $2,000    
SDE   Implementation $20,000 Remedyforce Implementation $8,000
Total Cost $102,000 Total Cost $38,500

The comparison is between the first year cost of a new SDE or FootPrints on-Premise system versus Remedyforce.  Of course, the on-premise cost will go down in subsequent years, but the initial savings is significant. Even the cost of upgrading SDE to Remedyforce is approximately equivalent to the annual maintenance charges:

Existing   SDE Account Year   1 Cost New   Way Year   1 Cost
Admin /Operating   Personnel (40%) $32,000 Admin/Operating Personnel (25%) $20,000
BMC SDE Annual   Maintenance $5,250 BMC Remedyforce 10 Users $10,500
Server   Depreciation, Maintenance $2,000 Remedyforce Implementation $8,000
Total Cost $39,250 Total Cost $38,500

The savings are even more significant when considering the reduction in annual admin support and upgrade costs.

Nearly every BMC product offers a significant ROI, but four in particular offer very rapid returns: EUEM, Virtualization Management, Asset Management, and Remedyforce. Of the four, the hard dollar savings from a new or upgraded Remedyforce installation are substantial.

Advertisements

About dick1stark

I am the President, CEO, and founder of RightStar Systems, a leading IT consultancy and BMC Software Solution Provider and Atlassian Expert Partner. My passion is customer success—whether it’s reducing the cost of service management, improving overall efficiency, or increasing end-user or employee satisfaction. Since founding RightStar in 2003, RightStar has made the INC 5000 list four times. In 2011, RightStar was awarded the prestigious National Capital Business Ethics Award (NCBEA) by the Society of Financial Service Professionals based upon RightStar’s foundation of honesty, ethics, and integrity. And in 2014, RightStar was selected by Forrester Research as one of 13 North American companies profiled in its ITSM Consultancy Wave Report. Finally, in 2016, BMC selected RightStar as its 2015 Supplier of the Year for its consulting partnership and excellence in service delivery. Dick is a graduate of Stanford University and a Project Management Professional (PMP).
This entry was posted in BMC, Business Management, RemedyForce and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s