BMC Software Inc.
) recently announced that a government consulting company, VVL
Systems & Consulting has adopted BMC's Business Service
Management (BSM) platform to efficiently manage its services and
shift its client's entire operation from physical to cloud
environment. Financial terms of the deal were kept confidential.
VVL Systems offers IT outsourcing and managed services to most of
the Fortune 500 companies and especially to the U.S. intelligence
community. The company helps in data center consolidation and
automation. Leveraging, BMC's cloud management solution, VVL
Systems will be able to meet the government's requirement by
transforming its operations into cloud, within its stipulated
As per the deal, BMC Software implemented its Cloud Lifecycle
Management solution to the VVL Systems' IT ecosystem to help the
company deliver its services faster. The solution leverages the
benefits of BSM platform and also builds up a private cloud
infrastructure that supports IT operations, helps to deliver
business solutions smoothly, and ensures customer satisfaction.
The BSM platform helps to achieve an efficient IT ecosystem by
reducing downtime up to 75.0%, delivering services 30.0% faster,
adapting to a new system promptly and minimizing cost through
centralized supervision. Overall, the cloud solution is now
helping VVL Systems to reduce operational, maintenance and
supervision costs as well as boost customer satisfaction.
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 climbing demand for
cloud computing. BMC Software's Cloud Lifecycle Management
solution was chosen by several companies in the past few months.
These include Thai Airways, cloud services provider Infoplex,
telecom company Swisscom IT Services, cloud-based companies, JDA
Software Group and Quality Technology Services, and IT
outsourcing services provider CompuCom Systems Inc.
The deal flows over the past few quarters are encouraging.
However, weaker expenditure from different governments and
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 the analysts.
Currently, BMC Software has a Zacks Rank #4 (Sell). But not all
software companies are performing as badly as BMC. We would
recommend investors to consider
), which has a Zacks Rank #1 (Strong Buy).
) have a Zacks Rank #2 (Buy) and are also performing well.
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