The Demise of Legacy Software Companies

By Dick Stark

Thanks to the boom in SaaS computing, Venture Capitalist Jim Goetz of Sequoia recently discussed the coming demise of legacy software companies.  “The business model, thanks to Salesforce’s Marc Benioff, is now a weapon for all of you,” he said, referring to cloud software and subscription billing. “In enterprise, there are fewer competitors and they are large, slow and flatfooted,” Goetz said.  Not coincidently, recent Sequoia IPO hits include SaaS Vendors: Palo Alto Networks, Jive, Splunk, and ServiceNow.

By taking every opportunity to compare BMC to Siebel, ServiceNow continues to “make hay” at BMC’s expense.  Ten years ago Siebel was the CRM market leader.  Salesforce emerged with a strong cloud competitive offering, Oracle acquired Siebel, Salesforce became the market leader, and Siebel disappeared. Could history repeat itself?  ServiceNow thinks so, but there are significant differences between BMC and ServiceNow that should prevent that:

(1)        Remedyforce.  BMC this week reported that Remedyforce is the fastest growing SaaS service desk offering ever with more than 350 customers. With the coming Winter release (Nov/Dec timeframe), Remedyforce is positioned to overtake ServiceNow in terms of base functionality.  Combine that with the thousands of applications that are available on the Salesforce App Exchange, and Remedyforce offers not just a service management application, but a platform offering organizations the ability to connect sales, customer service and product development across’s mobile and social business applications.  Every argument that ServiceNow makes against BMC (and Remedy) just doesn’t apply as Remedyforce is newer, more functional, flexible, open, and easier to install and maintain than ServiceNow.  Indeed, BMC recently reinforced the importance of Remedyforce within BMC by creating a separate Remedyforce division and agreeing to continue pouring millions into R&D development efforts.

(2)        Remedy Version 8. For organizations, where a SaaS solution is not the right fit, then Remedy Version 8 offers significant improvements from the prior version, the most significant being the overlays that allow for future upgrades to be completed in just days instead of months. Even initial implementation times should be an advantage for Remedy 8, as there are programs like Abydos work flow designer (now included) and standard ITIL based templates that bring a customer live within a very short window and without heavy customization.

Another advantage that can’t be overlooked is the passion for Remedy that continues to exist in the marketplace.  The WWRUG in an independent Remedy user group not sponsored by BMC that just celebrated its 21st anniversary.  While this sounds like a big number, it’s clear that the knowledge sharing and enthusiasm for Remedy will continue for years to come.

In summary, BMC offers the most complete and scalable ITSM solution, in an on-premise or SaaS based solution, for small organizations to large enterprises. BMC will continue to be the market-share leader for the near future, and with Remedyforce offers a non-legacy solution for those looking to get away from on-premise legacy software and move into the cloud.

About dick1stark

I am the President and founder of RightStar, Inc, an XTIVIA company. RightStar is a leading ITSM and DevOps consultancy and BMC Software Elite Solution Provider and Atlassian Gold 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. In 2019, BMC selected RightStar as its DSM North American Partner of the Year for its sales and partnership excellence. Finally, in November 2020, RightStar was acquired by XTIVIA, an innovative IT Solutions Provider. Dick is a graduate of Stanford University and a Project Management Professional (PMP).
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