) has introduced an analytical tool - BMC Cost Analyzer - that
reduces mainframe software expenses by approximately 5% to 20%.
Most importantly, the new tool lowers the costs of
International Machines Corp
) mainframe software by more than 20.0%.
The BMC Cost Analyzer for zEnterprise strategizes cost
reduction techniques by identifying peak workloads, work load
placement and workload management. This innovation from BMC is
particularly important as IBM mainframe licensing charges are
increasing by more than 7.0% annually, according to BMC. Swiss Re
Group, an insurance provider, has adopted the BMC Cost
Thus, BMC's analytical tool is expected to gain traction in
the mainframe market due to its cost saving capabilities and
ability to provide management with detailed insights into the
cost drivers. For these purposes, BMC has launched six mainframe
products that aim at efficient workload management and cost
However, there are other companies such as
) that provide similar tools. Thus, gaining market share might
prove to be difficult for the company. Moreover,
competition from companies such as
) and Oracle Corp. remains a headwind for the company, going
BMC's decision to privatize will help to revamp and
restructure its business model while capitalizing on its core
The company reported a tepid first quarter wherein the top and
bottom line missed the Zacks Consensus Estimate. Going forward,
we remain concerned due to weaker expenditure from different
governments, continuing macro economic sluggishness and
constrained IT spending projections.
Currently, BMC has a Zacks Rank #5 (Strong Sell).
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