New Deals for BMC Software - Analyst Blog

Leading large enterprise software company BMC Software Inc. (BMC) recently announced that the New Zealand Transport Agency (NZTA) has successfully implemented its cloud-based, service-desk solution. Financial terms of the deal were not divulged.

The NZTA was formed through a merger between two government departments, namely Transit New Zealand and Land Transport New Zealand, to make traveling safer for residents. The service provided by the NZTA is based on the Information Technology Infrastructure Library (ITIL), which is a set of concepts and practices for managing IT services.

ServiceDesk on Force.com is a cloud-based information technology help desk service. The service is a combined effort of BMC Software and Salesforce.com (CRM) and provides preconfigured, ITIL-based incident management, self service, and inventory management processes and the infrastructure to host them. The solution speeds up response time and improves productivity, which is the main reason it was picked by NZTA.

Apart from this, Seattle Public Schools (SPS) selected BMC Software's Control-M and Batch Impact Manager solutions to automate job scheduling during the modernization of its computing system, reducing labor cost and chances of human error.

While the value of these agreements is unclear as of now, we believe the adoption of its cloud offerings by various parties all over the world is an indication of the value proposition offered by BMC Software. We believe this is the reason it has been able to sign up several notable customers, such as Adobe Inc. (ADBE), Computer Sciences Corp. (CSC) Australia, Swisscom IT Services and Harris Corp. (HRS). The expanding customer base will augment BMC Software's revenues in the coming quarters.

However, we remain slightly concerned about intensifying competition from big players such as International Business Machines Corp. (IBM), Hewlett-Packard & Co. (HPQ), EMC Corp. (EMC) and CA Technologies (CA), which bundle hardware and software offerings.

Currently, BMC Software has a Zacks #3 Rank, implying a short-term Hold recommendation.

 
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