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OTL, BMC relationship spawns big fish

OTL, BMC relationship spawns big fish

OTL Software’s nine-year relationship with US software company BMC has produced the local firm’s biggest overseas deal.

The US Postal Service has bought 4000 licences of OTL’s plug-in software, which BMC sells with its own backup and monitoring products.

The deal — and a similar arrangement with UK power company Centrica — was signed in September but OTL Software only went public on it this month.

In October 1999, BMC bought Open Technology, a BMC reseller for four-and-a-half years, which spawned OTL Software and OTL Telephony. BMC owns 19% of both companies. OTL chief executive John Williams says the US Postal business is his company’s “largest single transaction” and represents OTL’s close association with BMC.

“We have 300 customers in 20 countries, mainly, but not all, though the BMC channel. We are focused on the product range under the BMC umbrella. We have no qualms about the possible risk of having to sell through one company.” Williams describes OTL as a “multimillion dollar exporter” but did not disclose the size of the US or UK deals nor his company’s turnover.

OTL has 14 staff and 10 other regular resellers.

Meanwhile, BMC has not enjoyed the same success in New Zealand. The local subsidiary has recorded net after tax deficits of $358,000 and $244,000 in the last two years to March 31. These results follow the parent company’s $US44.4 million loss for the third quarter ended December 31, and announcements made last year to lay off around 900 staff and sell its storage software to EMC.

BMC Australia and New Zealand managing director Paul Williams told Australia Reseller News last month that the company intended to shift its attention from mainframe customers to those with smaller systems, and boost business through channel partners from 10% to between 50% and 70%.

Williams and New Zealand director Mike Davies were unavailable to comment on whether this new approach is linked to the company’s financial performance.


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