BMC Software Inc. (BMC) has chosen the leading information technology (IT) distributor, Ingram Micro Inc. (IM) to expand its reach into new markets.
Ingram Micro will be the first ever authorized distributor to market and sell BMC Software’s IT solutions in the U.S. market. The distributing activity will be performed by Ingram Micro’s Advanced Computing Division. This is a fairly new division formed in September 2010, to strengthen the company’s value chain and help its channel partners. The division will tap the growth potential in the computing and infrastructure technology market, including enterprise software, storage and virtualization. (Refer to this blog: Ingram Micro Adds New Units).
As of now, Ingram Micro will resell BMC Software’s cloud-based Remedyforce Service Desk solution, as well as its software building blocks, including BladeLogic Application Release Automation, BladeLogic Network Automation, BladeLogic for Client Automation and Atrium Orchestrator, particularly within the U.S. Apart from this reselling activity, Ingram Micro will provide technical assistance and sales support to BMC Software for setting up an effective reseller channel.
Both Ingram Micro and BMC Software are positive about the partnership and are looking forward to tapping the opportunities in the data center and cloud services market. We believe that the distributor partnership will prove to be a win-win situation for both the companies.
Given the increasing demand for virtualization and cloud computing, U.S. research firm IDC believes that advanced IT solutions will be required to effectively manage and control this dynamic market, which would create further opportunities for software developing firms. The partnership will enable BMC Software to extend its products through Ingram Micro’s distribution channel and reach out to new customers.
We remain 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
INGRAM MICRO (IM): Free Stock Analysis Report
Zacks Investment Research
