Deals are indeed flowing for
BMC Software
(
BMC
) and the company now serves a large chunk of firms with its cloud
computing solutions. The new entrant in this list is Swisscom,
which has opted for BMC's solutions to curtail service delivery
costs. Moreover, BMC's offerings will help improve Swisscom's
customer service.
Swisscom will be using BMC Cloud Lifecycle Management and BMC
Cloud Operations Management solutions to cut costs by 30% and also
improve the end-user experience.Along with the cost effectiveness,
the solution promises to offer value to the customers for IT
services.
This deal win comes close on the heels of other wins from
Australian IT service provider
Applaud
and
France Telecom
(
FTE
). BMC will help Applaud in improving the quality of its
professional services to Australian organizations and improving the
desk ticketing system.
Again, France Telecom has selected the BMC ProactiveNet
Performance Management solution for efficient customer services.
This solution identifies and prioritizes real-time 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 this particular product from BMC will find many
takers, as it makes life easier for Swisscom clients. BMC has been
enjoying a steady flow of deals and is also witnessing steady
growth in its SaaS-based business. Cloud bookings have also
improved.
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 volume from
that region.
Competition increases in accordance with the growth in business
opportunity. Companies such as
IBM Corp.
(
IBM
),
Hewlett-Packard Company
(
HPQ
),
EMC Corp.
(
EMC
) and
CA Technologies
(
CA
) will pose challenge for the company.
BMC carries a Zacks #3 Rank, implying a short-term Hold rating.
Again, we have a long term Neutral rating on the stock.
BMC SOFTWARE (BMC): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis
Report
FRANCE TELE-ADR (FTE): Free Stock Analysis
Report
HEWLETT PACKARD (HPQ): Free Stock Analysis
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INTL BUS MACH (IBM): Free Stock Analysis Report
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