BMC Software continues to win deals and will now be offering solutions to managed IT service provider Applaud. The latter is improving the quality of its professional services to Australian organizations, for which it needed to counter headwinds related to its help desk ticketing system. This led Applaud to BMC’s Remedy IT Service Management (ITSM) solution that has solved the problem.
Separately, France Telecom has selected the BMC ProactiveNet Performance Management solution for efficient customer services. This solution identifies and prioritizes real-time problems. The actual work of the solution is to identify the main reasons for the problems and thereafter inform the concerned team.
BMC has also recently secured an order from the Generali Deutschland Group. The life and general insurance company has deployed the BMC CMF MONITOR solution, which is expected to help the German company lower its mainframe costs, and improve its performance and capacity data to meet customer needs.
We believe that these offerings from BMC will find many takers, as it makes life easier for the customers. BMC has been enjoying a steady flow of deals and is also witnessing steady growth in its SaaS-based business. Cloud bookings have also improved.
On the other hand, significant Fed budget cuts have had an impact on government funds for IT administration. This apart, the economic weakness in Europe is also affecting business.
On the other hand, growing competition from big players such as IBM Corp. (IBM - Analyst Report), Hewlett-Packard Company (HPQ - Analyst Report), EMC Corp. (EMC - Analyst Report) and CA Technologies (CA - Analyst Report) will pose challenge for the company.
BMC carries a Zacks #3 Rank, implying a short-term Hold rating.