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In recent times, BMC Software (BMC) is seeing growing demand for its private cloud enhancement services. The recent taker of BMC’s services is Japanese IT infrastructure provider Fujitsu FSAS. Fujitsu has deployed the BMC BladeLogic Automation Suite to consolidate its nationwide servers and restructure the company’s private cloud.

FSAS had sprawling IT operations across 80 locations in Japan, which the company wanted to consolidate into its East and West divisions. The BMC BladeLogic Automation Suite has enabled Fujitsu to unify its operations across the two sites. Fujitsu FSAS initially approached Fujitsu Limited, a partnership concern of BMC Software, to provide a viable solution.

BMC is increasingly making its presence felt in the cloud computing market. Apart from cloud computing, BMC is promoting its Remedy ITSM suite, and also struck a deal with TUI InfoTec, to improve the latter’s productivity and reduce costs and help it become an ITIL (Information technology Infrastructure Library) compliant.

ITIL is a guideline which describes procedures, tasks and checklists to be used by an organization for establishing minimum level of IT competency with its ongoing business needs.

Moreover, the company is trying to rebuild its sales model, which addresses sales compensation and attrition. It is also implementing new strategies to manage sales efficiently. BMC is also taking additional measures to improve its business pipeline. This will help the company improve business volumes, which may be reflected in the upcoming quarter.

Despite the imminent growth potential, reduced expenditure from different government and private customers and the recent European economic turmoil will remain headwinds for the next few quarters. At the same time, heightened competition from big industry players such as IBM Corp. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA) remains a concern.

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

 
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