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Mercury Launches IT Service Strategy

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Web www.software-risk.co.uk

Mountain View, CA – May 1, 2006 – Today, Mercury Interactive Corporation (OTC: MERQ), the global leader in business technology optimization (BTO) software, announced its BTO strategy for IT service management (ITSM). The Mercury BTO strategy for ITSM details how customers utilize Mercury BTO Enterprise™ to mitigate IT business risk, increase IT business alignment, improve overall IT effectiveness, and enhance the quality of business outcomes from IT. The Mercury ITSM strategy will be showcased to thousands of IT operations executives and decision makers in the “Mercury BTO Innovations 2006” seminar series.

Mercury’s BTO strategy for ITSM is founded in helping companies move away from ineffective “bottoms-up” ITSM approaches to a fully integrated, strategic approach to running IT from a business perspective. Specifically, Mercury’s strategy helps customers address some of the most fundamental challenges of establishing a business-centric ITSM foundation. These challenges include:

Lack of ability in converting manual, time-consuming, binder-based ITSM guidelines into actionable, automated processes that span across applications and operations;

Inability to scale away from the reactive “firefighter” IT environment caused by an over-reliance on legacy service desks built for processing tickets, that do not provide the process workflow capabilities required for ITIL-compliant problem and change management;

Failure to understand the business impact of IT changes due to the inadequate capabilities of asset-based CMDB technologies that simply list and provide inventory of configuration items and IT assets with no business context; and

Inability to manage business-critical applications and IT services from an end-user perspective due to inherent lack of functionality in legacy infrastructure management tools.

“Bottoms-up approaches to ITSM often fail because they are based on measuring the success of IT results within IT, versus driving consistent, measurable and positive business results from IT,” said Rick Sturm, president of Enterprise Management Associates. “The first step to establish a true business-centric ITSM foundation is IT partnering with business and application stakeholders and prioritizing the areas of IT that will deliver the most high value and immediate business results. Often companies will start by focusing on establishing and automating key processes in problem, change and service level management.”

Mercury BTO Strategy for ITSM

Mercury’s BTO strategy for ITSM details how customers can use Mercury BTO Enterprise to establish an integrated, end-to-end approach spanning applications and IT operations teams to implement ITSM and automate ITIL processes from a business perspective. Mercury’s approach also provides customers with the ability to leverage currently installed legacy service desk, systems monitoring and asset management systems through tight integrations with Mercury BTO Enterprise. This helps customers get value from their legacy systems, while building a business-centric ITSM foundation with Mercury BTO Enterprise. Mercury BTO Enterprise helps customers overcome the challenges of ITSM by:

Converting and automating siloed IT operations processes to highly actionable, repeatable and enforceable procedures for change, configuration management, release management, problem management and resolution and performance management across applications and operations;

Enabling real-time business impact analysis for service level management, problem resolution and change management by dynamically discovering and mapping the dependencies between applications, services and their supporting infrastructure;

Establishing a proactive approach for change and problem management by automatically aggregating IT demand and change requests from disparate service desk systems, application teams, and business stakeholders into a single system of record that enables IT decision makers to assess risk, prioritize, and take action based on business impact; and

Proactively identifying and resolving application and infrastructure problems before they impact the business by managing service levels from a business and end-user perspective.

“Mercury’s BTO strategy for ITSM is purpose-built to address the biggest challenges customers are having with implementing a true business-centric ITSM foundation, said Yuval Scarlat, senior vice president of products at Mercury. “Enterprises have been stuck trying to establish a business approach with legacy tools and binders full of paper processes and procedures. This has created an unacceptable level of IT business risk, lost time, and sunk costs. Customers are now turning to Mercury BTO Enterprise to establish a new and different approach to producing high value business outcomes from ITSM.”

Mercury Core Technology for ITSM

Mercury provides powerful core ITSM technology and capabilities through Mercury IT Governance Center™ and Mercury Application Mapping™. Mercury IT Governance Center enables companies to manage and automate process workflow across applications and operations and provides robust demand management capabilities. Mercury Application Mapping provides fully automated service dependency mapping capabilities that identify the dynamic relationships between applications, services and their supporting infrastructure. This technology provides automated, up-to-date information that is core to enabling effective problem resolution and change management decisions based on business impact. Mercury Application Mapping provides a business-centric CMDB that underpins Mercury’s ITSM offering and delivers federated data integration with traditional CMDBs in service desks and asset management systems.

Automate ITIL Processes with Mercury BTO Enterprise

ITIL is becoming a widely accepted approach to providing an integrated framework for industry best practices and processes for ITSM. Mercury’s BTO strategy for ITSM focuses on automating the critical ITIL processes that deliver the most immediate business value and enable IT to leverage synergies between application and IT operation stakeholders. Some of the most critical ITIL processes highlighted in Mercury’s ITSM strategy include:

Change, Configuration and Release Management: Mercury Application Change Lifecycle™ helps reduce the business risk of changes by automating the end-to-end process for application changes from request through testing and release. This solution helps customers ensure quality and regulatory compliance, pro-actively assess the risk on business services of all planned operational and application changes, and automatically detect the impact of scheduled and unscheduled production changes to business services in real time;

Availability and Problem Management: Mercury Application Performance Lifecycle™ allows IT to automate problem resolution and performance optimization across applications and operations and prioritize decisions and actions based on business impact. Mercury helps customers proactively identify, triage, and diagnose problems, measure the end user experience of production applications based on both simulated and real-user behavior and proactively address availability and performance bottlenecks in both pre-production and in production; and

Service Level Management: Mercury Business Availability Center™ helps companies manage both IT and business service level agreements (SLAs) from an end-user perspective and link IT-based operational metrics and services to business SLAs to proactively prevent application and operational problems from impacting the business.

“Gartner believes that IT organizations' desire to improve IT management process maturity is due to increasing business and revenue dependence on the quality and predictability of IT services,” said Debra Curtis, research vice president at Gartner Inc. “To make progress, IT organizations have been investing in industry standard process initiatives such as ITIL.”

Breakthrough in Change Management

Mercury Change Control Management™, (see press release titled: Mercury Launches Industry’s First Change Control Management Offering, May 1, 2006) is a breakthrough new product that helps customers automate the change management process and mitigate the risk of application and infrastructure changes from negatively impacting business outcomes. Mercury Change Control Management is a strategic part of the Mercury Application Change Lifecycle solution and is built on Mercury’s Configuration Management Database (CMDB) and leverages capabilities through integrations between Mercury Application Mapping and Mercury IT Governance Center™.

Mercury is showcasing its BTO strategy for ITSM and demonstrating Mercury Change Control Management in its global seminar series titled “BTO Innovations 2006.” Go to http://www.mercuryevents.net/BTO2006 or call 1-866-446-7719 to register for a seminar in the U.S. or receive more information on this global seminar series.

About Mercury

Mercury Interactive Corporation (OTC: MERQ), the global leader in business technology optimization (BTO) software, is committed to helping customers optimize the business value of information technology. Founded in 1989, Mercury conducts business worldwide and is one of the largest enterprise software companies today. Mercury provides software and services for IT Governance, Application Delivery, and Application Management. Customers worldwide rely on Mercury offerings to govern the priorities, processes and people of IT and test and manage the quality and performance of business-critical applications. Mercury BTO offerings are complemented by technologies and services from global business partners. For more information, please visit www.mercury.com.

Forward Looking Statements

This press release contains “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties concerning Mercury’s future product and service offerings. Mercury’s actual product and service plans and results may differ materially from the forward-looking statements made by, or on behalf of, Mercury. The potential risks and uncertainties include, among other things: 1) the timing of the availability of Mercury products, services, product enhancements and service enhancements; 2) the failure of Mercury products, services, product enhancements and service enhancements to meet customers’ expectations, needs or perform as described; 3) the dependence of Mercury’s financial growth on the continued success and acceptance of its existing and new software products and services, and the success of its BTO strategy; 4) the ability to increase sales through our direct and indirect channels, as well as international sales; 5) intense competition for Mercury’s products and services; and 6) the additional risks and important factors described in Mercury’s SEC reports, including the Annual Report to Stockholders on Form 10-K for fiscal year ended December 31, 2004, and the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2005, which are available at the SEC’s website at www.sec.gov. All of the information in this press release is made as of the date of this press release, and Mercury undertakes no duty to update any forward-looking statements.

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Mercury, Mercury BTO Enterprise, Mercury IT Governance Center, Mercury Application Mapping, Mercury Business Availability Center, Mercury Application Performance Lifecycle, Mercury Application Change Lifecycle, Mercury Change Control Management, Mercury IT Governance Center and the Mercury logo are trademarks of Mercury Interactive Corporation and may be registered in certain jurisdictions.

All other company, brand and product names may be trademarks or registered trademarks of their respective holders.

Editorial Contacts

Ana Andreescu

Mercury

(650) 603-4351

aandreescu@mercury.com

Elizabeth Crosta

Ogilvy Public Relations

(415) 677-2800

Elizabeth.Crosta@ogilvypr.com

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