Deal Wins Continue for BMC - Analyst Blog
06 Dicembre 2011 - 6:34PM
Zacks
Global software major BMC Software Inc. (BMC)
recently announced that it has won a new contract from Canadian
North Airlines, a major provider of scheduled passenger and cargo
services in Canada. As per the deal, BMC will provide its highly
efficient and cost effective software-as-a-service (SaaS)-based
help desk and IT systems support solution, Remedyforce Service Desk
to Canadian North Airlines to efficiently address its IT
requirements.
The airline presently deploys distributed web-based applications
for reservations, logistics, scheduling and coordination with other
regional carriers. The company has been using the freeware to
manage its IT services in the past, but with the advent of new
technology the company is searching for better options to manage
costs and improve profitability.
Winning new deals always helps the company to improve its
business and this, coupled with new product introductions further
enable the company to cater to a new set of customers. Concurrent
with this trend, the company recently introduced a self-service
mobile app and business intelligence enhancements for its powerful
workload automation solution, Control-M.
The company has further supplemented this device with new
features including a new wizard conversion toolset that makes it
simple and quicker for companies to consolidate Control-M and
achieve improved productivity and efficiency. This new product is
expected to attract many takers as it has a positive effect on the
productivity of the company.
Many companies are increasingly adopting the SaaS business model
to reduce capital investment. BMC has historically enabled managed
service providers to provide such services to customers through its
Remedy IT Service Management suite. Hence, new deal wins continue
for the company, with the most recent from
Salesforce.com (CRM) for the delivery of a
complete SaaS-enabled help desk solution.
As per a report published by the technology research firm
Gartner, the SaaS market will grow consistently through 2013 with
revenue totaling $16.0 billion for enterprise application markets.
We believe this offers immense growth opportunity for BMC going
forward, since the company is already well entrenched in this
space.
So it is evident that BMC Software's growth prospects remain
solid, given the steady flow of deal wins. However, near-term
challenges like the European exposure and lowered 2012 guidance are
headwinds. This apart, stiff competition from established companies
such as International Business Machines Corp.
(IBM), Hewlett-Packard Company (HPQ) and
CA Inc. (CA) in this space is also a challenge for
the company.
BMC Software holds a Zacks #3 Rank, implying a short-term Hold
rating.
BMC SOFTWARE (BMC): Free Stock Analysis Report
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SALESFORCE.COM (CRM): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
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