BMC Software Inc.
) is winning deals at regular intervals. Recently, Saudi
Arabian mobile telecommunications company
opted for BMC's Cloud Lifecycle Management (CLM) solution.
Separately, cloud-based talent management software solutions
deployed BMC's End User Experience Management solution.
While mobily needed a solution for deploying cloud services
and automating its IT infrastructure; Cornerstone OnDemand wanted
to provide its 9.4 million users with top quality customer
service. BMC's solution is expected to help Cornerstone rectify
any glitch even before end consumers come to know about them.
As the complexity of the IT environment grows and consumerism
is further prioritized, spending on cloud computing is expected
to help companies increase their business potential.
The increasing number of deal flows has helped BMC to improve
its business volume and expand its customer base. Last month, BMC
had won a contract from Osiatis. Osiatis is using BMC's Business
Service Management solution for achieving several of its business
Prior to that, France Telecom had selected the BMC Proactive
Net Performance Management solution for efficient customer
services. This solution identifies and prioritizes practical
problems. The actual work of the solution is to identify the main
reasons for the problems and thereafter inform the concerned
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. Moreover, cloud bookings have
also improved during the current quarter.
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 has hurt business volume from that
Competition increases at par with the growth in business
opportunity. With companies such as
) trying to expand their cloud-based business, things could
become difficult for the company.
BMC carries a Zacks #3 Rank, implying a short-term Hold
rating. We have a long-term Neutral recommendation on the
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