BMC Software Inc.
) has been actively winning deals and the latest addition to the
list is the contract from Osiatis. Osiatis will be using BMC's
Business Service Management solution towards several of its
As the complexity of the IT environment grows and customers
are driven by consumerism - in this case, spending on cloud
computing, the company is expected to ascertain customer
capabilities of infrastructure usage. Solutions utilize
their existing processes and personnel.
Again, last month BMC had won a deal from France Telecom,
which selected the BMC ProactiveNet 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 team.
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 is also affecting business.
Although BMC reported better-than-expected third quarter 2013
results with EPS beating the Zacks Consensus Estimate, we are a
bit apprehensive about the bleak business conditions in Europe.
Moreover, growing competition from big players such as
will pose a challenge for the company.
We have a Neutral recommendation on BMC over the long term.
Currently, BMC has a Zacks #3 Rank, which implies a Hold rating
on a short-term basis.
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