Crap Factoid Alert 370 percent ROI from ITSM

Chokey the Chimp warns of a moderate Crap Factoid in the wild, with our old friends at BMC claiming a 370 percent ROI over 30 months on implementation of BMC's ITSM v7. One would struggle to swallow that kind of number from any business case, but given BMC's recent high-level bullshitting, Chokey definitely calls "CRAP!".

The happy client basking in this result is Telvent. According to the press release:

Telvent estimates that BMC ITSM will deliver a total $5.5 million (370 percent) return on investment as well as improved service quality to its customers worldwide over the 30 month project lifecycle.

We have no source of data other than the press release. A search of BMC's site for "Telvent" returns nothing else.

Reading the release, we learn that Telvent are rolling out BMC's tool across seven datacantres in 30 months (CRAP!). And it is costing $5.5M/370% = $1.5M in total (CRAP!) I'm betting the software alone is costing that.

This ROI is calculated as follows: 193 percent attributed to improved IT management and 177 percent coming from new customer revenues and expanded orders from existing customers.

$2.65M in "new customer revenues and expanded orders" over 2.5 years actually sounds like a very modest claim for a company based in 17 countries. In fact it sounds very much to me like the old business case trick of "if we can just increase by 1%..."

As usual the tool is getting the credit for the results of extensive process and culture changes going on, and it is pretty obvious it is getting billed with none of the costs for those changes.

we changed from an unstructured, siloed IT model to one that provisions predictive, organised, and efficient services... consolidated change management processes across Telvent’s seven data centers in Europe and North America... reduced the time needed to plan, schedule and deploy changes from three weeks to one week. With better risk management processes in place, Telvent also reduced system outages by 25 percent... ability to deliver high quality managed services was instrumental in enabling Telvent to conform to Information Technology Infrastructure Library (ITIL) best practices and achieving the international recognition of ISO 20000 certification

Did that with a tool? CRAP!

There really isn't enough to go on here, but nevertheless this one stinks. Which is getting to be a familiar odour in BMC statistics.

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