In a bid to explore the full potential of cloud computing in
Europe, major companies are joining hands even amid the economic
turmoil. The expansion of
BMC Software
's (
BMC
) agreement with Capgemini is one such example.
Accordingly, Capgemini's outsourced infrastructure customers in
Europe will shift their IT infrastructure from their existing IT
service desk solution to the new BMC Remedy OnDemand solution.
The solution will help reduce key security and privacy concerns
by leveraging locally hosted cloud environments. It is also
expected to drastically reduce the overall cost of IT service
management for about 200 Capgemini outsourced infrastructure
customers in Europe.
Both companies expect that Remedy OnDemand's differentiated
mobile and social capabilities, which are expected to result in
better flexibility and innovation for these customers.
Apart from Remedy OnDemand, BMC is promoting its Remedy ITSM
suite in other domains as well, striking a deal with TUI InfoTec to
improve the latter's productivity, reduce costs and help it become
ITIL (Information technology Infrastructure Library) compliant.
ITIL is a guideline which describes procedures, tasks and
checklists to be used by an organization for establishing minimum
level of IT competency with its ongoing business needs.
This apart, BMC has taken several strategic initiatives to
expand in the virtualization/cloud computing space, which is fast
becoming a crowded market. The company acquired Numara Software.
Numara provides integrated IT management solutions to over 13,000
customers. The acquisition will further enhance BMC's
Software-as-a-Service (SaaS) business and also provide customers of
the combined entity access to its IT management capabilities.
Moreover, BMC has also adopted a go-to-market strategy, under
which the company is expected to host Remedy OnDemand in Capgemini
datacenters in Europe, and taken together, the companies are
expected to provide shared services capabilities to Capgemini
customers via a joint center of excellence. The company is expected
to team with Capgemini and deliver ITSM (IT Service Management)
along with BSM (Business Service Management) services to the end
customers.
Although, the company is making every possible effort to improve
its business, lower expenditure from different government and
private customers and the ongoing 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
(
IBM
),
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 rating.
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