BMC Continues Its Winning Streak – Analyst Blog

Leading large enterprise software company, BMC Software Inc. (BMC) disclosed that the Singapore-based Resorts World Sentosa (RWS) has selected BMC Software to automate and manage its IT systems in order to enhance the quality of its customer service and better manage complex IT infrastructure. Resorts World is one of the largest integrated resorts in Singapore and serves more than 12 million guests every year.

This marks the continuation of a series of deal wins in recent times. A few weeks back, the company won a big deal with the world’s largest trading exchange NASDAQ OMX. The exchange has selected the “Business Service Management” (BSM) function offered by the IT major, as it is expected to increase the operational efficiency of the company. BMC has pioneered the business service management (BSM) concept, which helps to combine IT operations with the intention of achieving specific business goals. The service is targeted at large enterprises, which is the company’s primary served market.

In addition, various government agencies are increasingly feeling the need for professional management of their IT infrastructure. As a result, many U.S. defense organizations have selected BMC Software Inc. for their IT service management and software, including the Air Force Services Agency, Defense Logistics Agency, Marine Corps Systems Command, U.S. Air Force, U.S. Air Force Pentagon Communications Agency, U.S. Army, U.S. Coast Guard, U.S. Department of Defense, U.S. Department of Navy and others.

Apart from providing normal IT solutions and services, U.S. Government agencies have also chosen BMC Software for different IT initiatives, such as cloud computing, service desk consolidation and the management of hybrid IT environments. Cloud computing has taken the center stage in the company’s growth in recent times, and we believe that the segment will prosper in the coming years.

The company registered decent revenue growth of 3.0% in the fourth quarter of 2010, while EPS of 65 cents missed the Zacks Consensus Estimate by 5 cents. This apart, the company is also optimistic about its growth prospects, delivering a decent guidance for 2011.