Beauchamp: No, it won't. It's certainly a faster-growing market than traditional red-light, green-light systems management, which has also migrated into something different now. It's really much more predictive and real-time optimization, seeing it and being able to reconfigure. Now when our traditional systems management product sees an issue, it can call over to its friend in the automation components to reconfigure the system in order to address what it sees coming -- say, a capacity-related issue it sees on the horizon.
So we're finally seeing real, live autonomics -- systems that can heal themselves based on policy? The industry has been talking about those for 20 years.
Beauchamp: Yeah, we've been talking about this forever. The code actually works now. It's starting to really happen. I think traditional red and green light is not going away, but it's mutated into something that's more modern. But even with that migration, it's not as fast a growth as automation is right now.
Are customers finding new ways to put these tools to work? Are they discovering ways to bring in revenue or at least achieve better ROI?
Behnia: As I said before, one of the leading metrics around how agile the organization is [is] how quickly it can respond to new capacity requests or requests for new services. On average we're seeing anywhere between 40 days in best-case scenarios, well-run organizations, to as high as 110 days in some of the largest billion-dollar-IT-budget companies. We can reduce that down to literally a day. I was with a CIO that said how this is almost like FedEx. They want to have next-day delivery, or second day, or fourth day, depending on what the service is. So what that shrinkage in time means is that that's more time for developers to write new software, and marketing programs can get run faster. Not only does it impact the bottom line in terms of efficiency, but it directly affects the top line as well.
Are they telling you about ways they're making money?
Beauchamp: Sure. We have a lot of customers in the insurance industry. A year or two ago, they all kind of simultaneously panicked about their infrastructure, and they came to the realization they had to -- I'll use the old term -- Webify their offerings. What they were really talking about was revamping their distribution models. We've got to get the customers to go online, stop talking to people, stop picking up the phone -- just do this all on the Web as much as possible. So they went into this rush to bring all their front-office applications online and to make them really simple. One customer told us that right before they standardized on our software, they had an entire state that was down for two days and didn't know it until the reports came in and they saw they had zero revenue come in from the state.
Now they want to go the next step. They want to be able to deploy new applications very rapidly, push out new systems and new revenue-generating applications. The revenue drivers that they're forecasting have to do with new content going out. Content's got to be technology based, and we've got to do it in a cloud environment, we've got to go quickly. If they don't get it out quickly, or if they're price-inefficient, they're not going to be competitive. They all want the self-service model.