BMC Wins Swisscom Deal

Deals are indeed flowing for BMC Software (BMC - Analyst Report) and the company now serves a large chunk of firms with its cloud computing solutions. The new entrant in this list is Swisscom, which has opted for BMC’s solutions to curtail service delivery costs. Moreover, BMC’s offerings will help improve Swisscom’s customer service.

Swisscom will be using BMC Cloud Lifecycle Management and BMC Cloud Operations Management solutions to cut costs by 30% and also improve the end-user experience.Along with the cost effectiveness, the solution promises to offer value to the customers for IT services.

This deal win comes close on the heels of other wins from Australian IT service provider Applaud and France Telecom (FTE - Analyst Report). BMC will help Applaud in improving the quality of its professional services to Australian organizations and improving the desk ticketing system.

Again, 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.

We believe that this particular product from BMC will find many takers, as it makes life easier for Swisscom clients. 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 volume from that region.

Competition increases in accordance with the growth in business opportunity. Companies 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. Again, we have a long term Neutral rating on the stock.