BMC Bmc Software, Inc.

BMC Software Inc. (BMC) recently sealed a deal with the Tokyo-based food and beverage producer, Yakult Honsha Co. Ltd.

Yakult pioneered the production of probiotic health drinks. It also deals in various consumer, cosmetics and pharmaceutical products.

The deal requires BMC Software to provide its cloud-based Remedyforce Service Desk solutions to Yakult for an undisclosed amount, helping it to replace its existing service-desk systems. This is expected to simplify information technology (IT) management required by service-desk systems, thereby helping cost reduction. Moreover, BMC’s Remedy software will enable Yakult to focus more on customer service and overall business growth.

Remedyforce solution was developed by BMC Software and Salesforce.com Inc. (CRM) to reduce complexities in IT service management (ITSM). The solution integrates core help desk capabilities, including change management, asset management and request management services. Remedyforce is the next iteration or software-as-a-service model of BMC Software’s traditional on-premise Remedy suites.

BMC Software’s Remedy suites are in demand due to their capacity to reduce costs. Last month, the Australian unit of Manheim, a premier online vehicle remarketing/auction services provider worldwide, selected Remedy OnDemand service desk solutions to integrate and manage all its business units and operating departments under a single IT roof. In February, New York City Health and Hospitals Corp. consolidated its data centers with the help of BMC Remedy ITSM Suite.

The IT solution provider also signed a distribution agreement last month with Ingram Micro Inc. (IM), under which the latter will resell BMC Remedyforce Service Desk solutions as well as its software building blocks, including BladeLogic Application Release Automation, BladeLogic Network Automation, BladeLogic for Client Automation and Atrium Orchestrator, particularly within the U.S. This will help BMC Software expand reach more customers all over the U.S.

We remain encouraged by BMC Software’s impressive third quarter results, which were attributable to strong customer demand for its Service Automation, SaaS and cloud solutions. Growth prospects in most of its business segments, its position in the government vertical and strong cash generation abilities are other positives.

Though BMC Software is still the leading large enterprise software company, we are a bit apprehensive about growing competition from big industry players such as International Business Machines Inc. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA), which are increasingly encroaching its served markets.

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

 
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