) won two new deals from Amazon Web Services (AWS) and AtTask
that should add to its revenue stream going forward.
The company delivered a streamlined Application Performance
Management (APM) solution for AWS customers. As per the
latest agreement, BMC Application Diagnostics will become
available in the AWS Marketplace, in a predetermined format,
capable of running on the
) Enterprise Linux (RHEL) platform.
This application of the company has been paired with BMC's
recently announced Application Performance Management as a
Service (APMaaS) solution, which ultimately delivers deep insight
into complex, multi-tiered application performance.
This application will provide a foundation for enterprise
customers by constructing the RHEL-based applications, which are
expected to run on the Amazon cloud. Following implementation,
end customers will receive a pre-tested and supported solution
built by BMC, which will increase the efficacy of Red Hat
applications on AWS. Thus, the technology will likely reduce risk
and accelerate the delivery process of the cloud-based
Additionally, AtTask, a leading SaaS work management software
provider, selected BMC's End User Experience Management solution
to enhance user experience, maintain high quality service and
gain knowledge about product improvement.
This particular solution enables the company to look into
customer usages. Post implementation, the company can provide its
customers with up to date information, before they face any
problem, and advise them on how to improve the application.
The popularity of BMC Software's cloud suites are growing. We
also believe that the popularity will encourage the company to
grow its cloud exposure and capitalize on the increasing demand
for cloud computing. Another cloud solution offered by BMC is
Cloud Lifecycle Management.
This has been chosen by several companies in the past few
months, including Thai Airways, cloud services provider Infoplex,
telecom company Swisscom IT Services, JDA Software Group and
Quality Technology Services, and IT outsourcing services provider
CompuCom Systems Inc.
The company has been witnessing constant flow of deals over
the past few quarters. However, weaker expenditure from different
governments and the ongoing European economic turmoil will remain
headwinds in the near term. Moreover, BMC's weak third-quarter
2013 results have led to downward estimate revisions by most of
BMC SOFTWARE (BMC): Free Stock Analysis
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COMPUWARE CORP (CPWR): Free Stock Analysis
RED HAT INC (RHT): Free Stock Analysis Report
SYMANTEC CORP (SYMC): Free Stock Analysis
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Currently, BMC Software has a Zacks Rank #4 (Sell). However, not
all software companies are performing as badly as BMC. We would
recommend investors to consider
), which have a Zacks Rank #1 (Strong Buy). Another company,
) has a Zacks Rank #2 (Buy) and also looks like a good investment
at this point.