Leading large enterprise software company BMC Software Inc. (BMC) recently acquired privately held GridApp Systems Inc. in an effort to enrich its Business Service Management (BSM) product suite. Financial details of the deal were not disclosed.
New York based GridApp Systems is the leading provider of database automation solutions, which help businesses simplify, standardize and control their heterogeneous database assets. The solutions are cost effective and reduce complexities and risks associated with setting up and managing database infrastructure.
In any organization, deployment and configuration of enterprise databases in physical, virtual and cloud environments can be complex, making management of databases crucial. Manual database management is prone to process failure, human error and lack of co-ordination. GridApp's solutions automate the whole procedure, thereby increasing efficiency and alleviating complexities or repetitive mistakes.
With the acquisition, BMC Software is expanding its current BSM product line through the inclusion of database automation. In October, BMC Software added Milan-based Neptuny Software's Caplan portfolio, a Capacity Planning solution for large data centers and networks. These consecutive acquisitions have strengthened BMC Software's Business Service Management portfolio and Cloud Management offerings.
Expansion through acquisitions has been an important growth strategy for BMC Software. Opportunities for growth in the Software as a Service segment, a spate of successful government deals and strong cash generation abilities are the other positives for the company.
However, we remain apprehensive about the challenges posed by industry leaders, such as International Business Machines Inc. (IBM), Hewlett Packard Company (HPQ), EMC Corporation (EMC) and CA Technologies (CA) due to their strong positions in cloud computing and IT solutions markets.
Currently, BMC Software has a Zacks #3 Rank, implying a short-term Hold recommendation.
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