BMC Software Inc. continues to build its customer base aggressively, recently winning a new deal from PrimeLending. The residential mortgage company has deployed “BMC FootPrints” for effectively managing its increasing service desk requests.
The company realized that it could effectively use this technology in multiple departments ranging from HR to Licensing. We believe this will help PrimeLending in the long run, as the company was looking for an effective system to address the incremental employee dissatisfaction with the functioning of the help desk performance. The company also needed a solution to support its growth.
This latest development comes on the heels of a separate deal with Royal DSM that BMC won late last month. The company will be offering its software-as-a-service (SaaS)-based Remedy OnDemand to Royal DSM, which is expected to expand its corporate IT offerings and improve customer satisfaction.
The selection of this SaaS-based solution will help Royal DSM to increase its service management capabilities, which will help it to better manage its customers. This new implementation is expected to improve the process execution capabilities of the company.
We believe that this particular product from BMC will find many takers, as it makes life easier for retailers and merchandisers. 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 - Free Report) , Hewlett-Packard Company (HPQ - Free Report) , EMC Corp. and CA Technologies (CA - Free Report) will pose challenge for the company.
BMC carries a Zacks #3 Rank, implying a short-term Hold rating.