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Compuware Corporation (CPWR) recently announced that its Compuware Application Performance Management (APM) solution has been adopted by REALTECH AG. With this venture, REALTECH is deploying Compuware’s dynaTrace Data Center Real User Monitoring (DC RUM) services in its newly launched theGuard! Service Management Center. This was done with the clear intent of improving end-user experience and maximizing the performance of various applications including SAP, web, non-web and cloud services.

REALTECH AG is mainly engaged in providing SAP consulting services and enterprise-wide IT management solutions across Germany, Portugal, United States and Asia Pacific. It has recently introduced management software, theGuard! for supporting IT-related business applications and supervising a wide range of networks as well as processes in Europe. Now, with the addition of Compuware’s DC RUM solution in its product portfolio, REALTECH will be able to further upgrade its application performance management solutions.

The company, through its APM solution, will be offering in-depth knowledge of complex server networks, virtualized scenario and cloud infrastructure. Additionally, with the help of DC RUM solutions, REALTECH will be able to effectively manage its application performance, which in turn will help minimizing IT costs and enhancing the efficacy of data center and support desk. With this venture, REALTECH can easily meet the requirement of its clients by providing advanced APM solutions.

Compuware’s key objective is to provide user-friendly and technologically advanced services to its IT clients through improved software-as-a-service (SaaS), professional and application services platforms. In the rapidly changing technological world, the company’s advanced solutions empower customers to drive revenue and customer satisfaction by leveraging innovative technologies like cloud computing, virtualization and mobile computing.

Compuware operates in an intensely competitive landscape. In the software business, the company is always under pressure for innovating products to attract new clients and also maintain the existing associations, which may prove to be expensive.

According to management, the company competes with more than 40 firms in one or more of its offerings. Rivals include BMC Software Inc. (BMC), CA Technologies (CA), IBM Corporation (IBM). Recently, BMC’s BMC Cloud Lifecycle Management (CLM) solution has been chosen by mobily, a provider of mobile telecommunication services in Saudi Arabia. With this partnership, mobily will be incorporating the company’s cloud services and automate its IT infrastructure in its portfolio. Hence, Compuware has to undergo rapid technological changes, evolving standards, which may turn out to be costly.

The current Zacks Consensus Estimates for the third quarter of fiscal 2013 and for fiscal 2013 are 10 cents per share and 36 cents per share, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We also have a Neutral recommendation on the company’s stock.

 
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