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BMC Software Inc.’s Business Service Management (BSM) platform has tasted success with China E-Port, an integrated data exchange portal. The administrative heads of China E-Port opted for the BSM platform to efficiently manage their data center operations. Terms of the deal were kept confidential.

The China E-Port system was developed in 1999 in an attempt to develop a common database to foster smooth logistics and custom processing. The web-platform connects 12 ministries of the State Council, the Hong Kong trade department, Macao Economic Services Bureau, and other agencies, as well as 14 commercial banks. The platform serves 550,000 companies through its 80 online services. Managing such large-scale workflow operations through complex information technology (IT) system was just not feasible, which made the authorities look for a better option to manage the entire IT ecosystem.

BMC Software’s BSM platform helps to achieve an efficient IT ecosystem by reducing downtime up to 75.0%, delivering services 30.0% faster, adapting to a new system promptly and minimizing cost through centralized supervision. Considering this, China E-Port authorities found the solution to be apt for managing and monitoring its datacenter as well as service desk operations. The solution has reportedly improved datacenter efficiency helping to reduce cost and supervision time. Moreover, the burden of manual work processes have been replaced by automated processes, which led China E-Port staff to deliver error-free services.

BSM platform’s success in reducing IT complexities is attracting firms in leveraging various solutions under the platform. Last week, cloud ad hosting services provider Infoplex sealed a deal with BMC Software to deploy its BSM platform to efficiently manage its services. Last month, two cloud-based companies, JDA Software Group and Quality Technology Services IT outsourcing services provider CompuCom Systems Inc. opted for BMC Software’s BSM platform.

The deal flows over the past few quarters are encouraging. Though BMC’s first quarter results were modest, we believe that the series of deal wins could have a positive impact on next quarter’s revenue.

However, weaker expenditure from different governments and ongoing European economic turmoil will remain headwinds in the near term. At the same time, heightened competition from big industry players such as IBM Corp. (IBM - Analyst Report), Hewlett-Packard Company (HPQ - Analyst Report), EMC Corp. (EMC - Analyst Report) and CA Inc. (CA - Analyst Report) remain a concern.

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

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