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Tickers in this Article: BMC, HPQ, CA, IBM, EMC
BMC Software, Inc. (BMC) has secured a new deal from Northwestern University and is now responsible for delivering improved web applications to school. More than 25,000 students, faculty and staff of Northwestern University have embraced the software from BMC to facilitate the teaching process. Before choosing BMC software, the university had restricted visibility into its application performance management software, meaning that diagnosing and resolving problems took more time and effort.

Howeve, with BMC in the picture, the whole process should improve. BMC End User Experience Management has provided the much-needed solution to the university and has enhanced the capacity and availability of the service monitoring services.

BMC has been enjoying a steady flow of deals and is also witnessing steady growth in its SaaS-based business. Cloud bookings have also improved. On the other hand, significant Fed budget cuts have had an impact on government funds for IT administration. The economic weakness in Europe also led to a sluggish first quarter.

Moreover, the company took considerable time to rebuild its sales force. BMC is showing signs of stabilization, but it still continues to experience restricted visibility into the non-mainframe Enterprise Software Management (ESM) business.

Although most of the company's business segments witnessed growth and decent cash flow, BMC remains impacted by the bleak business conditions in Europe. Moreover, growing competition from big players such as IBM Inc. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA) will pose challenges for the company.

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

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