BMC Software Inc. (BMC) announced the successful completion of a massive data center consolidation of New York City Health and Hospitals Corp. (“HHC”) that was facilitated through its information technology service management (ITSM) solutions.
New York HHC, an ace health care provider with 11 acute care hospitals and many other clinical facilities, consolidated its 11 data centers into 2. The consolidation was accomplished through BMC Software’s Remedy ITSM suite that created two applications, namely Service Management Office and Enterprise Service Desk, within HHC by joining multiple service centre configurations and forming a single point of communication.
New York HHC’s association with the Remedy ITSM suite started in late 2009. As of 2010, four HHC hospitals deployed the Remedy suite into their networks. Three others are expected to announce deployment anytime now. With the Remedy suite, HHC expects to cut its IT-related costs and to save roughly $88.0 million in the next five years. Based on the success of the Remedy suite, HHC plans to extend its relationship with BMC Software in carrying out further consolidation programs.
Apart from the Remedy suite, HHC is also keen on using BMC Software’s full range of Business Service Management (BSM) suite to manage hybrid data center workflow. Overall, we notice growing demand for BMC Software’s BSM solutions, which should drive the revenue growth, going forward.
We are also encouraged by BMC Software’s impressive third quarter results, which were attributable to strong customer demand for its Service Automation, SaaS and cloud solutions. Growth prospects in most of its business segments, its position in the government vertical and strong cash generation abilities are other positives.
However, we are a bit apprehensive about growing competition from big players such as International Business Machines Inc. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA), which bundle hardware and software offerings.
Currently, BMC Software has a Zacks #3 Rank (short-term Hold recommendation).
BMC SOFTWARE (BMC): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
Zacks Investment Research
