BMC Software (BMC) recently signed a deal with Australia’s Monash University, where BMC will initiate a major information and communication technology (ICT) shared-service and provide improved service support.

The traditional faculty and school-driven heritage of universities mostly results in faulty network system development over time. The same happened at Monash University, which had numerous IT teams operating within faculties across its various campuses by the end of 2009.

Monash University deployed BMC Remedy solution and BMC Atrium for accessing data quickly for the IT teams attending the incidents and providing a clear log of all recorded incidents and requests. This system will help the company easily respond to service requests of more than 10,000 each month.

This new platform has been developed jointly by Monash and BMC.

In addition, we have noticed an encouraging trend recently; various government agencies perceive that they would gain from professional management of their IT infrastructure. This is resulting in many government contracts, especially the ones with U.S. defense organizations, such as the Air Force Services Agency, the Defense Logistics Agency, the Marine Corps Systems Command and the U.S. Air Force. We view these wins as significant, not only because government contracts are usually lucrative, but also because they usually span over a number of years and lend stability to the top-line numbers.

This new solution superseded the scores of other competing software solutions in the same segment. Further, EMA was also impressed by BMC’s advanced service-oriented problem diagnosis technology, which helps to locate workload failures and helps companies increase their operational efficiency. 

In spite of continuous deal wins and expanding global exposure, BMC Software’s share price remains depressed. Revenues from the mainframe division have not increased in the last couple of years due to replacement of mainframe systems by distributed computing networks, in which different parts of a program are run simultaneously on the computers in a connected network.

BMC Software also faces competition and 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 solution markets.

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


 
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