BMC Remedy for Lenovo - Analyst Blog

By Zacks Equity Research,

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BMC Software Inc. ( BMC ) clinched an information technology service management (ITSM) deal, recently. This time the IT solutions provider is offering its services to China-based ace PC maker Lenovo Group Ltd. for an undisclosed amount.

Lenovo, which markets IBM Corp. 's ( IBM ) ThinkPad line of notebook PCs and ThinkCentre line of desktops apart from its own brands, is going to promote a new unified managed services solution for its customers. The solution is powered by BMC Software's Remedy ITSM suite. The idea behind using the Remedy suite is its strong track record in reducing ITSM related complexities. With the service suite, Lenovo's unified solution platform will be able to expedite process control, ensure system stability and deliver utmost customer satisfaction.

Commensurate with the growing population, China's market for unified managed IT services is expanding. The huge population is resulting in huge data growth and exchange, thereby forming a complex IT environment. The unified managed services platform enables organizations to store, monitor, troubleshoot and maintain IT environments.

We believe that Lenovo's success at providing comprehensive IT solutions could attract other Chinese tech firms to opt for BMC Software's Remedy platform.

BMC Remedy's popularity can be inferred from continuous deployments. Earlier this month, TUI InfoTec GmbH and CITIC Telecom International CPC Limited opted for BMC Software's Remedy suite.

The growing popularity of the product has called for an ITIL certification, which was awarded by Pink Elephant, the world's leading IT service management education and consulting provider. The solution integrates core help desk capabilities, including change management, asset management and request management services.

Further, in an effort to make the product suite more advanced, BMC Software recently announced its intention to acquire Numara Software, a provider of integrated IT management solutions for medium-sized businesses. The strategic acquisition will provide BMC Software access to more than 13,000 service and asset management solutions that will enable IT organizations to improve the services they offer to end users.

Growth seems imminent for the IT solutions provider. Nonetheless, weaker expenditure from different government and private customers and the recent European economic turmoil will remain headwinds for the next few quarters. At the same time, heightened competition from big industry players such as International Business Machines, Hewlett-Packard Company ( HPQ ), EMC Corp. ( EMC ) and CA Inc. ( CA ) remains a concern.

Currently, BMC Software has a Zacks #3 Rank, indicating a short-term Hold recommendation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BMC , CA , EMC , HPQ , IBM

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