BMC Software ITSM Suite in Demand

BMC Software Inc. (BMC - Analyst Report) bagged twin information technology service management (ITSM) deals earlier this week. The first was a deal with Germany-based TUI InfoTec GmbH, and the second with CITIC Telecom International CPC Limited. However, financial details of the deals were kept confidential.

TUI InfoTec GmbH selected BMC Software’s Remedy ITSM suite to improve its existing customer services and overall IT support system. TUI InfoTec’s IT support and services encompass infrastructure management, help desk and hosting services.

Leveraging BMC Remedy ITSM suite, TUI InfoTec will now be able to improve productivity and reduce cost and has become ITIL (Information technology Infrastructure Library) compliant. ITIL is a guideline which describes procedures, tasks and checklists to be used by an organization for establishing a minimum level of IT competency with its ongoing business needs.

In an effort to transform TUI InfoTec’s legacy IT system, BMC Software partnered with ComConsult, a provider of IT management and enterprise solutions in Germany, Austria and Switzerland. Both worked on TUI InfoTec’s business model and planned an effective implementation of the whole ITSM system. BMC Software and ComConsult provided workshops and all technical details of the Remedy ITSM system to make the IT staff of TUI InfoTec well equipped to handle the system effectively.

This apart, CITIC Telecom International CPC Limited also opted for BMC Software’s Remedy Action Request System and Remedy Service Desk solutions, both of which are the part of Remedy ITSM suite. With BMC’s support, CITIC Telecom has been able to consolidate multiple IT service management processes and platforms, ultimately leading to time and cost saving.

BMC Remedy suite reduces complexities in ITSM. The solution integrates core help desk capabilities, including change management, asset management and request management services. BMC Software’s Remedy suites are in demand due to their capacity to reduce costs.

The incremental popularity of the product has called for an ITIL certification, which was awarded by Pink Elephant, the world’s leading IT service management education and consulting provider. As an ITIL-certified solution, BMC’s Remedy suite reduces complexities in managing the IT environment. The solution integrates core help desk capabilities, including change management, asset management and request management services.

Further, in an effort to make the product suite more advanced, BMC Software recently announced its intention to acquire Numara Software, a provider of integrated IT management solutions for medium-sized businesses. The strategic acquisition will provide BMC Software access to more than 13,000 service and asset management solutions that will enable IT organizations to improve the services they offer to end users.

Growth seems imminent for the IT solutions provider. Nonetheless, weaker expenditure from different government and private customers and the recent European economic turmoil will also remain a headwind for the next few quarters. 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.