Consistent with its recent acquisition spree,
) announced that it has bought I/O Concepts, a leader in the
ioEnterprise line of mainframe console security, automation and
The acquisition is expected to allow BMC to improve the
productivity of its customers, through a reduction in their
staffing requirements and also enhance systems availability for its
MainView Solutions. However, the financial terms of the transaction
were not disclosed.
The acquisition is expected to improve BMC's datacenter
management solutions and automation with the inclusion of a
best-in-class product that complements and enhances the company's
industry-leading monitoring and automation suite. The acquisition
will also enable BMC to offer the benefits of scaling operations to
its customers through improved and modernized business
BMC has always been active on the acquisition front. The company
earlier acquired Phurnace Software. Phurnace develops automation
software that helps to reduce the cost, complexity and risk of
deploying and configuring Java-based applications on physical,
virtual and cloud computing environments.
BMC has integrated Phurnace's technology into the BMC BladeLogic
Server Automation Suite product, thus providing customers with
seamless, rapid full-stack provisioning and compliance of all
infrastructure layers, including the operating system, patches,
middleware and applications. This acquisition has also helped the
company to enhance its server automation process.
Acquisitions may help the company to diversify its businesses,
but growth may be impacted by weaker expenditure from different
government and private customers. Moreover, the concern over the IT
spending growth may have a dampening effect. The recent European
economic turmoil may add to these pressures over the next few
Moreover, the company is trying to re-build its sales model,
which addresses sales compensation and attrition. It is also
implementing new strategies to manage sales efficiently. BMC is
also taking additional measures to improve its business pipeline.
This rebuild will help the company to improve its business volume,
which may be reflected in the results of the upcoming quarter.
BMC provided mediocre guidance for fiscal 2012 as it factored in
the lingering issues affecting the tech industry. This apart, the
company has been witnessing a reduction in total bookings. These
factors may take a toll on its business volume over the next few
quarters, in our view.
BMC has a Zacks #4 Rank, implying a short-term Sell rating.
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