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BMC to Launch New Mobile Solution

by Zacks Equity Research

July 06, 2012 | Comments : 0 Recommended this article: (0)

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BMC Software (BMC - Analyst Report) is geared up to launch the BMC Mobile Device Management solution, leveraging technology from AirWatch. The company is a renowned provider of Mobile Device Management software, for which it has been awarded a leadership position in 2012 Gartner Magic Quadrant.

BMC Sofwtare’s new solution will cater to all types of hand-held devices, including mobile phones and tablets, along with other mobile applications and content.

Increased traction of mobile IT devices is expected to drive the demand of this solution. As per Gartner, 33.0% of the business intelligence functionality will be consumed through hand-held devices by the year 2013.

Moreover, it is also evident from the CRN research that this is the third most in-demand enterprise mobile application, behind only e-mail and personal information management apps such as calendars. Moreover, 68.0% of that survey's participants rated mobile Business Intelligence as "critical" or "very important" – up from 52.0% in the year-ago level.

Moreover, as per a recent report published by a website “displaysearch.com”, Apple shipped nearly 17.2million mobile PCs in the first quarter of 2012, thereby registering a year-over-year shipment growth of 118%. Around 80% of Apple’s mobile PC shipments were attributed to the iPads, which increased 162%year over year to 13.6 million units.

Total mobile PC shipments during the first quarter of 2012 stood at 76.2million units, down 15% on a sequential basis. Although shipments declined, opportunity in this segment is immense.

Management of mobile devices is slowly becoming the order of the day and this has induced BMC to take several strategic initiatives to expand its mobile device management capabilities through virtualization/cloud computing space, which is fast becoming saturated.

Although the company is making every possible move 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. Concurrently, 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.

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