Capgemini Selects BMC Solution

In a bid to explore the full potential of cloud computing in Europe, major companies are joining hands even amid the economic turmoil. The expansion of BMC Software’s ( BMC - Analyst Report ) agreement with Capgemini is one such example.

Accordingly, Capgemini’s outsourced infrastructure customers in Europe will shift their IT infrastructure from their existing IT service desk solution to the new BMC Remedy OnDemand solution.

The solution will help reduce key security and privacy concerns by leveraging locally hosted cloud environments. It is also expected to drastically reduce the overall cost of IT service management for about 200 Capgemini outsourced infrastructure customers in Europe.

Both companies expect that Remedy OnDemand’s differentiated mobile and social capabilities, which are expected to result in better flexibility and innovation for these customers.

Apart from Remedy OnDemand, BMC is promoting its Remedy ITSM suite in other domains as well, striking a deal with TUI InfoTec to improve the latter’s productivity, reduce costs and help it 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 minimum level of IT competency with its ongoing business needs.

This apart, BMC has taken several strategic initiatives to expand in the virtualization/cloud computing space, which is fast becoming a crowded market. The company acquired Numara Software. Numara provides integrated IT management solutions to over 13,000 customers. The acquisition will further enhance BMC's Software-as-a-Service (SaaS) business and also provide customers of the combined entity access to its IT management capabilities.

Moreover, BMC has also adopted a go-to-market strategy, under which the company is expected to host Remedy OnDemand in Capgemini datacenters in Europe, and taken together, the companies are expected to provide shared services capabilities to Capgemini customers via a joint center of excellence. The company is expected to team with Capgemini and deliver ITSM (IT Service Management) along with BSM (Business Service Management) services to the end customers.

Although, the company is making every possible effort to improve its business, lower expenditure from different government and private customers and the ongoing European economic turmoil will remain headwinds for the next few quarters. At the same time, heightened competition from big industry players such as International Business Machines ( 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 rating.