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Things that make me go Huh #006?

By John | August 28, 2007

Managed Objects: Individual Press Releases

This is a tough business!

Here is a company that has been around for 10 years. Its web site boasts a customer list not limited to BNP Paribas, CSC, DISA, Fidelity Investments, JPMorganChase, Progress Energy, Reuters, and TIAA-CREF. I could name about 20 more, but I have agreements with my customers not to use their names.

I’ll admit that I don’t know nut’in about high finance and stuff but …

Why would a company like Managed Objects after 10 years brag about getting a 7.5 million funding? Okay, established companies don’t call it funding they call it line of credit, but this is the kind of money the OSS startups get in their first round.

Hmmmmmmmm?

Topics: 451, OSS, bmc, caos, general, ibm, managedobjects, opensource, tivoli | 2 Comments »

2 Responses to “Things that make me go Huh #006?”

  1. berkay Says:
    August 28th, 2007 at 9:11 am

    It sure is! ManagedObjects has the traditional sales model, meaning they have high cost of sale. They need to have a sales guy, and an engineer to “sell” the products, perform evaluations, etc.
    This model requires a lot of money to scale. To increase global reach means more sales resources hence more money. But not if you’re IBM or HP who already has resources everywhere in the world as well as connections to the customers.
    This has been one of the drivers of consolidation in the industry. Medium sized companies like ManagedObjects have to expand aggressively or concede some of the markets to the big guys.
    Well, don’t know anything specifically about ManagedObjects, so I may be completely off. It’s just one explanation why a mature presumably profitable company may tap into credit.

  2. jwillis Says:
    August 28th, 2007 at 10:57 am

    Thanks for the comment :)

    After further research I have found that Managed Objects is a lot smaller company than I thought they were. I always considered them sort of like the “Middle Four”. If you look at a company like Quest Software they have a market cap of 1.5 billion. It just seemed odd to me that a company, Managed Objects, with such good branding in the ESM space was getting funding for 7.5 million. I mean why brag about it. If anything, they risked exposing how small they really are to dopes like me who just assumed they were a lot bigger. After researching I found, to my surprise, they are only at about 20 million in revenue with 125 employees.

    I will still stand by my Hmmmmm however. It is an awfully tough business and MO has an Edmund Hillary like climb to the summit. I think getting a credit line for 7.5 million seems more like a gasp of thin air.

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