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Peregrine Systems, Inc. -  Asset Management SoftwareCategory Directory

(858) 481-5000

3611 VALLEY CENTRE DRIVE

SAN DIEGO, CA 92130
www.peregrine.com

 

Sales

$230 million

 

Business Description 

 We are a global provider of enterprise software. Our core business is providing information technology asset and service management software solutions that are designed to enable organizations in the private and public sectors to increase productivity, reduce costs and accelerate a return on investment by managing portfolios of information technology assets and streamlining service management operations.

Our flagship products, AssetCenter® and ServiceCenter®, support two main business processes: asset management and service management. Typically, the assets managed with our products consist of information technology assets, such as computer and computer-networking hardware and software items, and other assets used to provide infrastructure to a business. The services managed with our products usually consist of the service delivery and support processes necessary to troubleshoot, support and maintain those same information technology and infrastructure assets.

AssetCenter®, our asset management software solution, enables customers to manage the physical, financial and contractual aspects of information technology and other infrastructure assets from their acquisition to their eventual disposal.

ServiceCenter®, our service management software solution, is designed to enable service desks to deliver services and support more efficiently, accurately and proactively to maintain information technology and other types of infrastructure assets. These products can be used in tandem to provide a broad-based solution for information technology asset and service management needs.

We currently offer four product lines to complement and enhance our information technology asset and service management products:
• Automation;
• Business Intelligence/Reporting;
• Employee Self Service; and
• Integration.


Our Automation technology automatically finds, identifies and tracks information technology and other infrastructure assets. Our Business Intelligence/Reporting technology provides business intelligence and reporting solutions to meet the needs of different users and organizations, including real-time viewing of strategic performance metrics. Our Employee Self Service suite of products, referred to as our Get-It™ applications, allow organizations to extend information technology asset and service management capabilities directly to all employees through a single, web-based interface. Our Integration technology enables customers to connect our products to a variety of third-party applications.

Our customers include Fortune Global 2000 companies, medium-sized companies, numerous federal, state and local government agencies worldwide and outsourcers such as EDS and Unisys. We focus on serving entire organizations, including governmental agencies and educational institutions, with complex infrastructures, but our customers also include departments of these organizations as well as mid-size organizations with varied information technology asset and service management requirements.

 

Products

As an enterprise software provider, our products address critical needs in today's economy as the information technology departments of organizations seek ways to simplify and consolidate information technology infrastructure, reduce costs and align information technology priorities to business objectives. Our flagship products in information technology asset and service management are AssetCenter and ServiceCenter. We offer four additional product lines that complement these flagship products: Automation, Business Intelligence/Reporting, Employee Self Service and Integration. Descriptions of our two flagship products as well as the four complementary product lines follow.

AssetCenter. Asset management software products enable organizations to manage information technology and other types of assets that comprise the complex infrastructure supporting a customer's operations. These assets include desktop, laptop and personal computers, servers, routers and other computer-networking devices, data storage devices, off-the-shelf and custom software housed on servers, cell phones, PDAs and other devices that make it possible to operate a modern company or government agency. AssetCenter allows organizations to inventory these assets and manage the other physical, financial and contractual aspects of these assets through the full lifecycle, beginning with procurement and ending when they are retired through disposal or divestiture. Our software automates processes and workflows, replacing tedious manual processes and less sophisticated computer-based processes for tracking assets. Using this product, organizations have access to information showing where assets are located, who is using them, and which employees are entitled to their use under corporate policy. This product also assists customers in managing the financial aspects of each asset, including contractual terms of purchase or lease and related warranties. AssetCenter also provides the capability to manage software license compliance and entitlement, control expenses through charge-back programs to business units and reduce costs with streamlined procurement processes. Customers can choose among AssetCenter's modules to meet specific business needs and provide a foundation for enduring management of their infrastructure. These modules consist of "Cable and Circuit," "Contract Management," "Financial Management," "Portfolio Management" and "Procurement Management."

ServiceCenter. Service management applications enable an organization to automate and optimize the service desk function, improving the availability and productivity of infrastructure assets and reducing costs by allowing this service to be provided more efficiently. ServiceCenter provides tools and workflows designed to strategically manage and extend the value of information technology infrastructure assets based on fully-integrated best-practice processes, in accordance with the Infrastructure Technology Service Management framework set forth by the Information Technology Infrastructure Library (ITIL). ITIL is a set of documents created by the U.K. government that represents the standard for best practice in providing information technology service. ServiceCenter is built upon an application delivery platform that can be extended without complex programming and is used as an information hub for an information technology organization. Many customers standardize their systems using ServiceCenter, to consolidate and replace multiple or isolated ticketing systems located across disparate departments and geographies. Using ServiceCenter with our Employee Self Service product, employees can easily submit any type of request or notify the service desk of any issues related to computers, software applications or any other information technology asset. These requests are automatically routed, prioritized and tracked until completion of the task requested. ServiceCenter's modules consist of "Asset Contracts," "Change Management," "Incident Management," "Inventory and Configuration Management," "IR Expert," "Request Management," "Root Cause Analysis," "Scheduled Maintenance," "Service Management," "Service Level Management" and "Work Management."

Automation. Our Automation products find, identify and track information technology assets with modules for "Desktop Inventory" and "Network Discovery." Desktop Inventory delivers a comprehensive view of an organization's desktop environment by automatically scanning personal computer system configurations and tracking information about the software installed on the computers. Network Discovery provides visibility into network operations, including real time access into configuration and the performance of hardware assets within the networked infrastructure. AssetCenter and ServiceCenter augment Desktop Inventory and Network Discovery to ensure that information technology asset management and service delivery processes are built around accurate and reliable operations data.

Business Intelligence/Reporting. Our Business Intelligence/Reporting product, BI Portal, is a tool for advanced analysis and mining of data maintained in ServiceCenter. Our product provides a predefined set of metrics and meta data from ServiceCenter, giving customers a consolidated list of their business variables and enabling users to analyze standardized business data from a number of perspectives. Users are able to generate reports and graphs to identify and communicate trends that are not readily identifiable through more traditional reporting methods. Our product also allows users to define their own queries or metrics and publish the results for other users to view.

Employee Self Service. Our Employee Self Service product line is composed of web based applications that provide self-service capabilities designed to make organizations more efficient. With these Get-It applications, employees are able to obtain information, resources and services through any web browser. Get-Services™ extends ServiceCenter, giving employees a single point of entry for initiating and tracking service requests. An employee who needs support for a malfunctioning laptop, for example, can simply access Get-Services to request service. A second application, Get-Resources™, enables employees to request information technology resources, such as a printer, from their web-browser. The application streamlines the request process by providing information on assets and services approved for use by the business and automating the management approval process. Get-Answers™, a knowledge management application for service desk technicians and employees, provides a centralized company knowledge base accessible by specified users. It provides a simple user interface, an intuitive and powerful search engine and a methodology ensuring that new information can be added easily and existing information can be updated.

Integration. We provide powerful business process integration and data transformation capabilities in the form of adapters and protocols to support integration of third-party software products with AssetCenter and ServiceCenter. Our flexible and open applications allow integration of disparate data and applications, including third-party products such as accounting applications, commonly referred to as enterprise resource planning, or ERP, applications, network systems management applications and inventory applications. This integration capability also allows companies with multiple information technology service organizations to maximize the value of the disparate software tools being used across the organization to better understand the performance of the overall infrastructure.

We recognize that the value of our software products depends on their ability to address specified business needs. As a result, we plan to offer pre-defined business solutions to solve our customers' highest-priority challenges. In designing our business solutions, we will package one or more of the software products described above with professional, educational, customer support and maintenance services based on our best practices experience. We currently intend to offer pre-defined business solutions for "Service Control" and "Asset Expense Control" and we intend to offer other solutions in the future.

Industry Background

We operate mainly in the network and systems management sector of the software industry. This sector provides the applications and tools needed to ensure the provision, capacity, performance and availability of an organization's computing, networking and software applications resources. Most of our customers are information technology departments of businesses and government and education entities. These entities face intense pressure to deliver highly reliable always-available service. Global enterprises today must routinely manage tens of thousands of information technology assets, which include desktop and laptop computers, servers, routers and other computer-networking devices, data storage devices, off-the-shelf and custom software housed on servers and personal computers, cell phones, personal digital assistant (PDA) devices and other technology. Over the past decade these enterprises have faced increasing costs and operational and business risks in acquiring, managing and servicing information technology assets. Our comprehensive asset management products enable organizations to manage the financial and physical elements of massive amounts of information technology and other infrastructure assets. Our service management products enable organizations to improve the reliability and availability of their infrastructure by providing support for information technology assets and by efficiently managing the problem resolution process as well as additions, changes in location, upgrades and other changes to these assets within the enterprise.

Technology

Our applications automate information technology business processes and provide tailoring and workflow capabilities that enable the product to be modified to meet customer-specific business needs. Our client-server applications are built using modern technologies and standard protocols to support distributed, heterogeneous architectures and to cooperate with common middleware—that is, the software that resides between the operating system and the end user application software—found in most enterprise environments. We also develop tools, which we term "light-weight" agents, to automate complex discovery and administrative tasks, such as the distribution of software corrections or remote process execution. Our newer products use industry-standard protocols such as J2EE, XML, SOAP and HTTP to facilitate integration with other enterprise software.

In addition to creating technology for our products, we incorporate into our products certain technology created by other companies, some of which is critical to product use. When we incorporate third-party technology into our products, we may be required to pay royalties to the technology providers.

As part of our relationship with IBM, we have an obligation to maintain compatibility between our products and certain IBM middleware components. In return, we gain access to certain technical services from IBM, including technical and development support, education and training. In addition, we have early access to IBM's emerging technologies.

Product Licensing

We generate revenues from our software products by licensing them to our customers on a fee basis. We typically license our software products on a perpetual basis under a non-exclusive license agreement. License fees depend on the product licensed, the product's use and functionality, the number of users of the product licensed and the country in which the license is sold. We offer discounts to customers based on competitive factors and the size or number of implementations they require. We sometimes offer special discounts to educational and governmental institutions. Indirect sales through our alliance partners are made at discounts from our list prices based on the program and level in which the particular alliance partner participates.

Customer Support and Maintenance Services

Customer support and maintenance services represent an integral part of our relationships with our customers by facilitating their success with our products and services. Our tiered-support offerings are designed to provide customers with a choice of maintenance plans so that they can select the plan that best fits their organizational support needs. Our offerings include e-mail, phone and web-based support services. Additional offerings are available either as part of a higher service level plan or as a stand-alone offering. Examples include 24-hour customer support, use of a designated support account manager and an annual system check. We maintain customer support centers in Canada, France, Germany, the United Kingdom and the United States. We also have relationships with third parties that provide customer support and maintenance services for specified customers and local markets. In addition, IBM agreed with certain customers to provide maintenance services on Peregrine products it sold in the event we become unable to fulfill those obligations.

Professional and Educational Services

In most cases, third parties are responsible for implementing the products that we sell and are paid directly by the customer. IBM, for example, has trained a significant number of its consultants to deliver a broad range of professional services tied to our products. In addition, our own professional services group offers consulting and project management services to help customers enjoy the full value of our products. In order to manage fluctuating demand for our services, we usually subcontract these integration services we are responsible for to one of our integration partners. We also sometimes act as a subcontractor to a third-party service provider, such as IBM.

The basic consulting services we offer include:

• Analyzing user requirements and integrating basic functions that will quickly demonstrate the benefits of our products;


• Comprehensive upgrade planning and execution to enable cost-effective software version migrations to our most-current products; and


• Pre-packaged offerings that address specific customer requirements with best-practice, repeatable procedures.
Our professional and educational services group also provides instructor-led training, web-based training, virtual classroom sessions and on-site training to our customers.

Our professional services group has staff in France, Germany, the United Kingdom and the United States. In areas where we do not have professional and educational services personnel, partners deliver these services.

 

Competition

Sources of Existing Competition. The market for our products is highly competitive and diverse. Our competitors vary in size and in the scope and breadth of the products and services offered. These competitors include large, mid-tier and small vendors. Our closest competitors are Fortune 500 technology vendors that have greater financial resources than we do and offer a wide range of products and services, including offerings that compete with our information technology asset and service management software, as well as a number of smaller niche vendors. Our competitors include: Altiris; Computer Associates; Hewlett-Packard; MRO Software; Remedy, a BMC Software company; and USU Software AG.

We believe that the principal competitive factors affecting our market are:

• Product functionality;

• Price and cost effectiveness;


• Product performance;

• Quality of support and professional services; and

• Company reputation.


Although we believe that our products and services compete favorably with respect to these factors, the market for our products is highly competitive. In addition, potential customers may have concerns about purchasing from us because of our size relative to larger competitors and our past accounting irregularities and bankruptcy proceedings. Finally, large enterprises that compete with us have better access to potential customers, and may be able to price their products more competitively because of their size and the breadth of their product offerings.

Sources of Future Competition. We believe that competition will be influenced by continuing consolidation in the software industry. It is possible that new competitors or alliances among competitors may emerge and rapidly acquire a significant market share. Current and potential competitors have established, or may in the future establish, cooperative relationships among themselves or with third parties.

General Competitive Factors in the Industry. Some of our current and potential competitors have greater financial, technical, marketing and other resources than we do. As a result, they may be able to respond more quickly than we can to new or emerging technologies and changes in customer needs. They may also be able to devote greater resources to the development, promotion and sale of their products. We also believe that there is a trend among competitors toward securing market share at the expense of profitability. We may not be able to compete successfully against current and future competitors that seek to improve market share at the expense of profitability. If this occurs, our responses to competitive pressures may adversely affect our business, operating results and financial condition.
 

Asset Management Software Companies in the Directory

Altiris

Computer Associates

Datastream Systems

MRO Software

Peregrine Systems

Remedy

 


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