BMC Software's Remedy for Lumen21

BMC Software Inc. (BMC - Analyst Report) recently clinched a service deal with Lumen21. Financial details of the deal were not disclosed.

Lumen21 builds customized solutions based on information technology (IT) organization strengths and core competencies. It develops infrastructure services, managed services and application development solutions. The company sells their solutions through cloud-based systems and hence prefers a software-as-a-service platform to efficiently manage its business.

As per the terms of the deal, BMC Software offered its cloud-based Remedyforce Service Desk solutions to Lumen21, helping it to replace its existing service-desk systems. This simplifies IT management required by service-desk systems, thereby helping cost reduction. The self-service portal and easier communication increased customer satisfaction by an impressive 20%.

The Remedyforce solution was developed by BMC Software and Salesforce.com Inc. (CRM - Analyst Report) to reduce complexities in IT service management (ITSM). The solution integrates core help desk capabilities, including change management, asset management and request management services. Remedyforce is the next iteration or software-as-a-service model of BMC Software’s traditional on-premise Remedy suites.

BMC Software’s Remedy suites are in demand due to their capacity to reduce costs. Last month, Tokyo-based food and beverage producer, Yakult Honsha Co. Ltd. deployed BMC Remedyforce Service Desk solutions. In March, the Australian unit of Manheim, a premier online vehicle remarketing/auction services provider worldwide, selected the Remedy OnDemand service desk solution to integrate and manage all its business units and operating departments under a single IT roof. In February, New York City Health and Hospitals Corp. consolidated its data centers with the help of the BMC Remedy ITSM Suite.

Apart from this, we remain encouraged by BMC Software’s impressive fourth quarter results, attributable to strong customer demand for its Service Automation, SaaS and cloud solutions.

At the same time, the growing competition from big industry players such as International Business Machines Inc. (IBM - Analyst Report), Hewlett-Packard Company (HPQ - Analyst Report), EMC Corp. (EMC - Analyst Report) and CA Inc. (CA - Analyst Report) remains a concern.

Currently, BMC Software has a Zacks #3 Rank, indicating a short-term Hold recommendation.

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