 Hi, this is Saumim Bhartia and welcome to 2020 3 Predictions series and today we have with us once again Margaret Lee SVP and GM of Digital Services and Operations Management at BMD Software Margaret, it's great to see you again. Absolutely Swapil. Good to see you again. Thank you for the invitation. Yeah, it's my pleasure Before I ask you to pick your crystal ball and shader predictions quickly remind our viewers What is BMC all about today? BMC is an infrastructure software company that's been around for 40 years that serves a large percentage more than 85% of Fortune 100 large companies. We are deep in the technology infrastructure for large banks, government agencies and enterprises. Our offering spans from SaaS based service management to monitoring systems with automation to mainframe Yeah, a lot of large companies depend on BMC software. Excellent. Thanks for telling that now It's time for you to pick your crystal ball and tell us what predictions you have for our audience Yeah, this is that time of the year look back to 2022. It's been an interesting year and always look ahead Take a pause to see what's coming So sitting where where I said be able to see the Trends of infrastructure software Particularly the in areas of BMC have a significant role right for customers. I really see three different things stands out There's a lot going on technology. No doubt right one. I'll say from a pure technical Technology perspective I do anticipate an acceleration of adoption of containers and that's driven by a variety things one is Just as people go into the cloud public cloud hyperscalers that kind of deployment I see a lot of customers talk about refactoring existing applications or building new applications The architecture of choice is microservices deployment container deployment and of course as the big unknown what's going to happen to VM wears Investment strategy pricing all of that. So I think 2023 a big acceleration that technology second one I would say is the AI becomes more practical Yeah, it has been very hard very busy for a number of years now, but that started early in 2022 we from a BMC customers and other other sort of Companies in a comparable situation in the industry we see customers pushing AI to Very practical use cases right in the sense of everybody has a lot of data The system is very complex and people just don't have enough hands in terms of a team and people to handle or that complexity of data but AI things going to go from Just math and algorithms and data to concretely how much time do you save me? How much you're able to de-risk me? How much automation can you you know get more work done by the same group of people? into very practical use cases, I think that would actually help AI because Anything that's practical and can deliver concrete proven business benefits have a tendency to get adoption even further More narrowly in a space that BMC in particular my business unit plays in which is a service management operations management We do see an acceleration of Convergence of those two domains in terms of In a typical company IT department their service that service management workflow cases Kind of teams and technology get closer and closer with the operation side And that's largely driven by the increasing adoption of enterprise DevOps So everybody want to release faster. Therefore, you have to monitor change monitor risk Something happens. We want to take action is into the service desk. So we do see the acceleration what we call service ops In the in my neck of the woods in that in the technology infrastructure software We do see service ops is that getting a lot of attention a lot of traction Already in 2022 and we're accelerating So containers Practical AI and service ops. I would say I expect acceleration 2023 Thanks for sharing those predictions. If I ask you what is going to be the focus for the company in 2023? BMC has been around for like I said quite some time and it has several reincarnations and we are going through a major transformation as a company really Investing in and benefiting from SAS adoption. So in the last couple years BMC SAS business really has expanded We have helix-based offerings and service management operations management in 2022 launched the SAS based control and for for automation. So the the adoption and practice and Costumer usage of a SAS portfolio, right? Will help us grow in terms of overall BMC's business as well as make BMC itself Operates somewhat differently and she can imagine that as a deliverer of a SAS offering, you know internally We have to sort of do transformations which gears which is different from on-premise. So that's where we are a big area of focus for the company for 2023 Now let's talk a bit about what kind of challenges that you see are going to be there for the industry and how BMC is going to Make it easier for companies to navigate through these challenges. Yeah, it's 2022 has been an interesting year to say the least All right between the Ukraine between inflation and and wrap, you know not wrapping up out say You know continue living with COVID and all of that and I'll say some of the uncertainty definitely Are carrying into 2023, you know, just macro world What's going on the world perspective and that does translate into? companies thinking Around technology, right? I would say there are several things several things one is When people are uncertain about how their top line business and whatever vertical that might be in banking retail Manufacturing and etc. If they're a little bit uncertain about top line Then the way that decision are made about technology or any investment, you know It's gonna it's gonna change is in the definitely the margins sometime even at the core So what we are seeing customer is they because for example associate with the COVID this almost Become the new normal of have distributed teams the new normal have teams Locally coming in two to three days a week, right? So people are thinking what does that mean for my investment in? Communication technology, what does that mean my investment in any technology allowed my team to collaborate better? Well for remote employees to conduct more self-service, right? And what does that mean for your underlying infrastructure of all of my development environments my inner system availability? performance so Interestingly for BMC all of this uncertainty In the market for customers top line and their IT decision-making They're leaning towards proven and trustworthy customers. I would say when we survey your customers What you think about BMC, you know trust reliable proven those kind of characteristics characteristics come in quite often and I think that that will Sort of benefit us in the 2023 so what we see customers, okay Proportionally, let's make sure our current infrastructure. I mean it's solid right in investing in an expand and scale Versus for example in 2020 2021 a lot more investment is going to experiment and you know projects that would not bear food for 2436 months or more. I think that in 2023 a lot of the CIOs investing they say, okay, what can the investment do for me this year? What can the investment do for me in a time of uncertainty yet even growth? What can the investment do for me in the employee population that's distributed and you know, send my remote For for for the foreseeable future. So those are the things that we see. I'm not sure they're mean the challenges for sure, but this is just different environment for people have gone through the 2000 2008 It's a third or fourth time and going through that kind of environment. Margaret Thank you so much for taking time out today and of course share these predictions the focus of the company and the challenges That are ahead of us in 2023 and I would love to have you back on the show. Thank you. Sure. Thank you again for this opportunity