BMC Software Inc. (BMC) recently announced a success story with Thailand’s national aircraft, Thai Airways International plc. The airline has adopted BMC’s Business Service Management (BSM) platform to efficiently manage its services and transform its entire operation from physical to private cloud environment. Financial terms of the deal were kept confidential.
As per the deal, BMC Software implemented its Cloud Lifecycle Management solution to the carrier’s IT ecosystem to help the company automate its cloud services. The solution leverages the benefits of BSM platform and also builds up a private cloud infrastructure that supports IT operations, helps to deliver business solutions smoothly, and ensures customer satisfaction.
The BSM platform helps to achieve an efficient IT ecosystem by reducing downtime up to 75.0%, delivering services 30.0% faster, adapting to a new system promptly and minimizing cost through centralized supervision. Overall, the cloud solution is now helping Thai Airways to reduce operational, maintenance and supervision cost as well as boost customer satisfaction.
BMC Software shares a long-standing relationship with Thai Airways. The carrier has been using other BMC solutions. With the bunch of benefits realized with BMC Cloud Lifecycle, the carrier is now planning to move a step further with BMC Cloud Operations Management solution, which will complement the Cloud Lifecycle solution.
The popularity of BMC Software's cloud suites are growing. We also believe that the popularity will encourage the company to grow its cloud exposure and to capitalize on the climbing demand of cloud computing. BMC Software’s Cloud Lifecycle Management solution was chosen by several companies in the past few months. These include cloud services provider Infoplex, telecom company Swisscom IT Services, cloud-based companies, JDA Software Group and Quality Technology Services, and IT outsourcing services provider CompuCom Systems Inc.
The deal flows over the past few quarters are encouraging. However, weaker expenditure from different governments and ongoing European economic turmoil will remain headwinds in the near term. Moreover, BMC’s weak third quarter 2013 results have led to downward estimates revisions by most of the analysts.
Currently, BMC Software has a Zacks Rank #4 (Sell). But not all software companies are performing as badly as BMC. We would recommend investors to consider Compuware Corp. (CPWR) and Symantec Corp. (SYMC), which have a Zacks Rank #1 (Strong Buy). Another company, CA Inc. (CA) has a Zacks Rank #2 (Buy).
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