Home IT Info News Today Why BMC+Compuware is a Textbook Acquisition Case

Why BMC+Compuware is a Textbook Acquisition Case

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Houston-based BMC Software, a $2 billion maker of distributed, cloud and mainframe software program, introduced this week that it might purchase Detroit-based Compuware, a $600 million-plus maker of mainframe software program, at a price ticket of $2 billion. With this acquisition, BMC will considerably enhance its mainframe software program income; add new mainframe growth/operations merchandise (DevOps); and purchase skilled, motivated, artistic mainframe advertising and marketing and growth sources.

A Closer Look at Compuware

Five years in the past, Compuware was fading out of existence. The firm’s merchandise have been stodgy; its management was questionable; its revenues declining. And then Chris O’Malley intervened; when O’Malley turned the CEO, he modified the best way the corporate did enterprise in three vital methods:

  1. The firm expanded its product portfolio by structuring cooperative growth agreements with different distributors (together with rivals);
  2. it dedicated to delivering new and useful software program performance each quarter (remarkable within the mainframe software program business); and
  3. O’Malley tremendously improved morale–articulating a company imaginative and prescient, mission, and core values that everybody within the firm may purchase into–creating a brand new sense of satisfaction in being a Compuware worker.

That enthusiasm reached the corporate’s clients, who voted with their pocketbooks, steadily rising Compuware revenues in extra of $600 million. Compuware’s development has come from natural (inner) growth with analysis and product engineers bringing new, progressive options and concepts to market, mixed with a number of strategic acquisitions.

In January 2016, Compuware bought ISPW (an agile mainframe supply code administration/construct/deploy automation resolution that works seamlessly with Jenkins, XebiaLabs and REST APIs inside a DevOps toolchain.) The ISPW acquisition was adopted by the acquisitions of Itgrations, Standardware, MVS Solutions, XATester and INNOVATION Data Processing in January 2020. (For an entire view of Compuware’s merchandise and methods, see this Clabby Analytics August 2018 report in PDF format).

A Closer Look at BMC Software

BMC gives software program options for multi-cloud administration, cognitive service administration, digital enterprise automation, methods administration utilizing synthetic intelligence/machine studying/predictive analytics, cybersecurity and mainframe modernization.

A glance again at BMC’s historical past reveals an organization that, like Compuware, has additionally grown by means of natural growth and software program acquisition. In 1994, BMC acquired Patrol Software, then over successive years the corporate bought a gaggle of corporations: Datetools, Boole & Babbage, BGS Systems, New Dimension Software, Optisystems, Remedy, IT Masters, Marimba, Identify Software, Service Management Partners, ProactiveNet, RealOps, Emprisa Networks, BladeLogic, MQ Software, Tideway Systems, Phurnace Software, GridApp, Coradiant, StreamStep, Numara Software–and now, Compuware. BMC acquires corporations that carry new performance to its collection of product choices–after which makes use of its growth sources to combine these choices with different merchandise in its portfolio.

In the mainframe world, BMC at the moment…



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