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Tickers in this Article: BMC, HPQ, CA, IBM, EMC
Australia's Special Broadcasting Service (SBS) recently opted for BMC Software's (BMC) IT Service Management (ITSM) solution. According to the contract, BMC is expected to provide its technical expertise so that the company can manage a large audience 24/7, 365 days a year. BMC's proof-of-concept is a process by which the company evaluates the whole broadcasting process. After adopting SBS, a company takes substantially less time than its competitors.

BMC is offering a single point contact for providing IT solutions which include change requests, problem management and configuration changes. This particular solution has helped SBS in reducing broadcasting bottlenecks and boosting efficiency.

Separately, BMC's ITSM was also selected by the Douglas County Library system to enhance their operational efficiency and customer service.

Douglas County Library will be using BMC's Track-It! solution. This solution easily assimilates IT management capabilities, ultimately improving customer service. Thus, we note that BMC's solutions are in demand and are being increasingly accepted by global customers.

The company is witnessing steady flow of deals from companies, also witnessing a steady growth in the SaaS-based business, and improvement in the cloud bookings. On the other hand, significant Fed budget cuts have had an impact on government funds for IT administration. Moreover, the protracted weakness in Europe led to a sluggish first quarter.

Growing competition from big players such as IBM Inc. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA) will however pose challenges for the company going forward.

BMC carries a Zacks #3 Rank, implying a short-term Hold rating.

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