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BMC Software Inc. (BMC) recently announced that a government consulting company, VVL Systems & Consulting has adopted BMC’s Business Service Management (BSM) platform to efficiently manage its services and shift its client’s entire operation from physical to cloud environment. Financial terms of the deal were kept confidential.

VVL Systems offers IT outsourcing and managed services to most of the Fortune 500 companies and especially to the U.S. intelligence community. The company helps in data center consolidation and automation. Leveraging, BMC’s cloud management solution, VVL Systems will be able to meet the government’s requirement by transforming its operations into cloud, within its stipulated budget.

As per the deal, BMC Software implemented its Cloud Lifecycle Management solution to the VVL Systems’ IT ecosystem to help the company deliver its services faster. 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 VVL Systems to reduce operational, maintenance and supervision costs as well as boost customer satisfaction.

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 capitalize on the climbing demand for cloud computing. BMC Software’s Cloud Lifecycle Management solution was chosen by several companies in the past few months. These include Thai Airways, 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 estimate 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 Symantec Corp. (SYMC), which has a Zacks Rank #1 (Strong Buy). CA Inc. (CA) and Compuware Corp. (CPWR) have a Zacks Rank #2 (Buy) and are also performing well.

 
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