HP OpenView Under Attack (Again)

Small, nimble software companies — some of them promoting open source, many of them leveraging closed source — continue to attack big, legacy network and systems management platforms.

The latest assault involves ManageEngine taking aim at the big four systems administration tools: Hewlett-Packard Co. OpenView, IBM Tivoli, CA Unicenter and BMC. ManageEngine’s strategy is summarized in a simple marketing message, stating:

“90% of the features of the Big 4 at 10% of the price.”

ManageEngine isn’t alone. In recent months Nimsoft, GroundWork Open Source, Hyperic and Zenoss (among others) have gained momentum as managed services tools or systems management tools that disrupt the Big Four administration platforms.

ManageEngine claims:

“With more than 30,000 Customers Worldwide, including 3 out of every 5 Fortune 500 companies, we are the fastest growing alternative to traditional network management frameworks.” Eager ManageEngine adopters include JPMorganChase, MetLife and MoneyTree, the company adds.

Still, competing with the Big 4 system administration tools is a double-edged sword. On the one hand, using low prices to disrupt OpenView and the other established tools can be an effective strategy. (The feud between GroundWork and HP proves my point.)

But on the other hand, upstart software providers don’t want to be viewed as low-cost, low-capability knockoffs of OpenView. In a timeless blog entry from 2007, Hyperic noteddisruption is very much present in the industry of systems management” but insisted that the company didn’t want to be known as a cheap alternative to OpenView.

Yes, cheap can be easier on the wallet. But in the worlds of MSP and systems management software, cheap better not mean reduced capabilities. Moreover, low-cost options don’t spell the end for big, entrenched systems management software. A case in point: HP’s annual software sales grew 19.7% to $3.029 billion in fiscal 2008 compared to fiscal 2007, according to a 10-K filing with the SEC.

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4 Comments on “HP OpenView Under Attack (Again)”

  1. Amy Abascal Says:

    You can read that GroundWork cost study comparing them to HP OpenView here.

  2. Joe Panettieri Says:

    Amy: I heard the study gave HP some fits. The IT industry has a history of hidden prices and confusing costs. Assuming your price sheet comparing OpenView to GroundWork is accurate, it’s a welcome step in the right direction.

  3. Amy Abascal Says:

    Hi Joe,

    Yeah, HP sent a cease and desist about posting their prices even though we got the price list without signing an NDA. It was pretty hysterical. I think the comparison is fairly accurate. David Dennis, went to great lengths to do the research and calculations.

    Thanks for the kudos!

    Amy

  4. Joe Panettieri Says:

    Amy: When it comes to vendor competition I try not to choose sides. But when it comes to open, honest communications about product pricing, I always side with the customer. It’s difficult to criticize open, documented prices… unless you have something to hide.

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