04/19/23

FY2008 Year in Review

Lori CookVice President, World Wide Channels and Alliances

FY08: Channel License Revenue by GEO

2

0.000M50.000M

100.000M150.000M200.000M250.000M300.000M350.000M400.000M450.000M500.000M

North America

Geo

EMEA Geo

Asia Pacific

Geo

Latin America

Geo

Emerging Mkts

INDIRECT

DIRECT

0%10%20%30%40%50%60%70%80%90%

100%

North America

Geo

EMEA Geo Asia Pacific Geo

Latin America

Geo

Emerging Mkts

INDIRECT

DIRECT

Geo DIRECT INDIRECT Grand TotalNorth America Geo 358.424M 118.491M 476.915MEMEA Geo 188.160M 78.665M 266.825MAsia Pacific Geo 47.556M 28.357M 75.912MLatin America Geo 9.568M 33.390M 42.958MEmerging Mkts 0.801M 27.848M 28.649MGrand Total 604.508M 286.751M 891.260M

Geo DIRECT INDIRECT Grand TotalNorth America Geo 75% 25% 100%EMEA Geo 71% 29% 100%Asia Pacific Geo 63% 37% 100%Latin America Geo 22% 78% 100%Emerging Mkts 3% 97% 100%Grand Total 68% 32% 100%

License Revenue Total % Direct vs. Indirect

• Indirect YOY % Growth – 6.8%• Top YOY Growth - Emerging Markets • Highest Revenue – North America – $118.5 M • Net New customers WW - 71 a total of $3.015M in license revenue

FY08 Highlights & Accomplishments

› Terminated over 100 Opportunistic Partners

› Implemented Values Based Tiering for Partners – Revenue, Technical, Sales, References

› Delivered Jumpstart to 113 Partners Individual in Asia Pacific– 2 Day Sales Training

› Established an Partner Executive Advisory Council

› Drove the coordination of the Advanced ITSM Education– ITSM v7 Learning Path (Advanced Certifications)

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Key Themes for FY09 for the Partner Ecosystem

Partners will have a new customer and market focus– Ownership (in the Named and Mass Market space)– Partnership with BMC Direct Sales Team (in the BR/BI space)

Partners in FY09 will truly be an extension of BMC– Quota, forecast, account planning just like BMC, accountable within the Channel and within the

GeographiesPartners Expectations: Self Sufficiency and to Demonstrate True Value add

– Deal registration, select specific partners for go to market activities for acquisitions and selected new Product releases

– Moving to discount based on value delivered during the sales cycleRemove/Replace/Grow our Partners

– Assess coverage and capabilities, determine gaps, remove non-performing Partners/Partners that cannot scale

Recruit and Ramp High Value Partners– Previous HP Partners moving to BMC– Dell – using them as a sell thru channel

Holistic View of our Partner Ecosystem– System Integrators, Outsourcers. Solution Providers. And Consulting Partners

• Leveraging their relationships with our customers based on their specific business models and expertise

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Our Partner Program is Recognized

VARBusiness - Power 50 Women of the Channel

CRN Channel Chiefs › Channel Chiefs lists hold global titles, this group, on average, controls more partners or more potential revenue

than the rest.

The VARBusiness Top 100 Channel Executives› VARBusiness' editors hand-picked them because they set and execute agendas, enabling their partners'

businesses to flourish– Top 100 Channel Executives shape the channel with their vision and act as role models for others.

BMC Partner Network Program

VarBusiness –Partner Program Awards› Four Time Five-Star award for our BMC was recently named as one of North

America’s top IT vendors in terms of the breadth and depth of its channel partners program by CMP Media’s VARBusiness magazine.

– Recognized for the robust features of the BMC programs for IT integrators, resellers and consultants

› First time recipient of the VARBusiness Silver 5-Star › Recognized for Sales Support, Partner Profitability, and Communication

FY08 The Year of Accountability……..

› BMC Software considers Partners as an extension of BMC’s Sales and Services organization

› BMC Field Employees are Required to Meet– License Revenue Quota– Training and Certification Requirements– Successful Sales and Services Engagements

› BMC Expects a Greater Commitment from our Partners– More than Just Revenue Contributions– Introducing a Value-based partner program rewards Partners for performing activities

that are important to BMC.• License Revenue Quota• Business Plan• Enablement (Training and Certification)• Customer Satisfaction• Marketing Activities• Successful Implementations

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Top Partner ITSM Certifications

Top Partner Organization Certified› Column 42 Certifications› Planwell 16 Certifications› Materna 18 Certifications› Maryville 12 Certifications› Turing SMI 16 Certifications› LogicaCMG 19 Certifications

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Total Partner Ecosystem› 652 ITSM Focused Resources› 211 ITSM Certifications› 174 ITSM Certified Consultants

"BMC's ITSM Certifications have enabled me to differentiate my business from our competitors. Customers love to see vendor verified skills, it gives them confidence that we will deliver a high quality solution on time and on budget. We've seen our win rate improve and have been able to maintain our profit margins despite the services market becoming

increasingly competitive" Fusion

Mutual Accountability is NeededSales Foundation Training

› BMC has trained 290 Partners in Sales Foundation

– 170 Partners from EMEA

– 53 Partners from North America

– 51 Partners from Latin America

– 16 Partners from Asia Pacific

› Committed Partners – High Attendance from:

– Syscom

– Materna

– PBTI

– Column Technology

– Devoteam

– CompFort Meridian

– AL Indigo

– TuringSMI

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# of Projects (Global) by Status

# of Projects (Global) by Application Type

546649 2

167

41

80

103

84

242

60

103

165

131

369

2116

0

100

200

300

400

500

600

700

800

900

01/31/07 06/30/07 01/10/08

G lobal

S L M

S R M

S ervic e Des k

C R M

C MDB

C hang e &C onfig uration Mg mt.

As s et Mg mt. &Dis c overy

# of Customers (Global) by CMDB Version

34

114

25 35 34

211

30 31

343

48

60

50

100

150

200

250

300

350

1/31/2007 6/30/2007 1/10/2008

G lobal

Vers ion 1.x

Vers ion 2.x

NA

O ther(B lank)

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Key of Key Benefits of Program BMC Flight Deck Program Overview

› Global Solution Site (GSS)– Centralized, web-based access to pre-

configured solution demonstrations– Available to Elite/Premier Partners and BMC

employees– 2000 worldwide demonstrations conducted

quarterly– Volume increasing 11% quarterly

› Online Customer Evaluations (OCEs)– Customer-driven access to the full range of pre-

architected BMC products and solutions– Worldwide access via the Global Solution Site– Average cost: 8% of a typical onsite POC– Request turnaround time: 24 hours or less– 66% growth in requests during first 2

quarters

› Flight Deck Solution Delivery (FDSD)– Flight Deck assistance with onsite

demonstration installations and Centers of Excellence at key Partner sites

– Customized installations and assistance with Partner solution integrations

› Flight Deck Kits (DVDs)– Traditional demonstration media, designed for

laptop delivery– Available to all BMC Partners for

demonstrations and POCs

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The Flight Deck Mission: Assist Partners and Software Consultants in conducting more effective demonstrations and POCs through a variety of media

ITSM Express Enablement Activities

› Partner Forums – FY08 = 84 Attendees– How to Demo and Sell (SDE, KME, CME

& APM)• North America (July - Dallas)

– 26 Attendees• EMEA (November - Amsterdam)

– 58 Attendees

› Service Desk Express Certifications– 233 Certified SDE Partner

Consultants (version 8 and version 9)• 15 newly certified consultants in

FY08

Web Based/ Instructor Led Training – French, English, Spanish, Italian & German Local Languages Used for the Training

• BMC Performance Manager Express – 70+ Consultants Trained • Configuration Manager Express - 60+ consultants being trained currently• Alignability Process Model – 30+ Partners Trained in EMEA and North America in FY08

Our Process Moving Forward

Assessment• Partner Coverage Map by GEO • Identify the Gaps by location• Recruiting New Partners to fill Gaps

•Focused HP Partner Recruitment • Business Plans Enablement

• New incentives for Net New License• Go to Market Partners (Service Automation)• Jump Start – Newly Recruited Partners• Continued ITSM Certification • Support Certification – KPI• Deal Registration

Accountability• Partner Health Check – Partner Profile

• Dashboard View• Quarterly Business Reviews

• Forecasting / Quota attainment• Partner Terminations

Sample

04/19/23

Partner Contest

Contest Summary:

Program Goal Contest#

Partners Elligible

New Logos Encourage new logo growth Top partners with highest number of new opportunity driven incentives (ESM)

10

Overall Revenue Reward top performers of FY08 revenue achievement

Top partners with highest FY08 license revenue number

10

Certifications Top Partners with highest number of ITSM certifications

Top Partners with highest number of ITSM certifications by 3/31/08

References Top Partners with highest number of references

Top Partners with highest number of registered customer references

Overall requirements: License revenue must meet 1 Million USDAll Partner Tiers: (Elite, Premier)

04/19/23

Customer Insights

Customer Insights

› Forty Eight submissions – [Over Achieved Goal]› Respect confidential nature of the information› Major acceleration of our reference programme› Kudos to ALL partners who submitted Insights

› Next Steps– Information will be researched– Trends and Learning Points extracted– Customer Insight Paper will be published and shared

Customer Insights - THANK YOU!

Customer Insights - THANK YOU!