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BMC Wins New Order from U.S. Navy

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Yet again, BMC Software won a new order from the U.S. Navy. After a look at the available products in the market, the U.S. Navy selected the company’s BMC Remedy IT Service Management Suite leading to better management of the company’s IT capabilities.  

The BMC Remedy IT Service Management Suite has been accepted by companies across the globe as it offers a comprehensive and scalable solution at a lower cost. This product will now deliver a single software solution to the NAVY 311, which will be centrally managed by the technology company but the implementation of this new technology will de-centralize the network of fleet support providers. After the implementation of the suite, the navy would be able to lower its technology cost to a considerable extent.

The analytics solution offered by BMC will help improve decisions on persistent problems by offering enhanced business intelligence. The analytics solution will help to “push” critical information to different customer groups in order to make decisions like planned expenditure and operations. This is a viable business proposition for BMC as it allows the company to earn revenue on a recurring basis.

BMC has been providing solutions to many companies. It recently delivered a streamlined Application Performance Management (APM) solution for AWS customers. BMC’s Application Diagnostics will become available in the AWS Marketplace, in a predetermined format, which will ultimately run on the Red Hat (RHT) Enterprise Linux (RHEL) platform.

This apart, the company has also provided solutions to Thai Airways, Infoplex Telecom Company, Swisscom IT Services, JDA Software Group and Quality Technology Services, as well as IT outsourcing services provider CompuCom Systems Inc.

Deal wins are visible as this is the fourth consecutive deal won by the company in 2013, adding value to the company’s revenue, but weaker technology expenditure by different governments and ongoing European economic turmoil will remain headwinds in the near term.

Again, a different cause for concern would be the use of the open source software by different companies. Although BMC has been successful in incorporating some open source software in its product portfolio, it has not been able to add substantially to its business volume. Currently, BMC Software has a Zacks Rank #4 (Sell).

We would recommend investors to consider Compuware Corp. , Symantec Corp. (SYMC - Free Report) , and CA Inc. (CA - Free Report) . While Symantec carries a Zacks Rank #1 (Strong Buy), Compuware and CA carry a Zacks Rank #2 (Buy).

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