BMC Software, Inc. is an American company specializing in business service management (BSM) software. Headquartered in Houston, Texas, BMC develops, markets and sells software used for multiple functions, including IT service management, data center automation, performance management, virtualization lifecycle management and cloud computing management. The name "BMC" is taken from the surnames of its three founders — Scott Boulette, John Moores, and Dan Cloer.Employing over 6,900 people, BMC is often credited with pioneering the Business Service Management BSM concept as a way to help better align IT operations with business needs. For 2011, the company recorded an annual revenue of $2.1 billion, making it the 20th largest software company in the world measured by revenue.In September 2013, BMC Software was acquired by a group of private investors in a privatization process. These investors included Bain Capital, Golden Gate Capital, Insight Venture Partners, GIC Private Limited's GIC Special Investments Pte Ltd and Elliott Management Corporation.1970s and 1980sDuring the late 1970s, BMC Software founders Scott Boulette, John J. Moores, and Dan Cloer began a contract programming partnership. All three were employed at Shell Oil as software developers.