BMC Mainframe Solutions in Germany - Analyst Blog

BMC Software Inc. (BMC) recently announced that its Mainframe Service Management solutions have been deployed by a German insurance company, HUK-COBURG. Financial details of the deal were not divulged.

BMC Software’s CATALOG MANAGER for DB2 solutions will facilitate the insurer’s database administrative work, making it faster and more efficient. Almost 200 developers engaged in database administration and synchronizing will now find their task easier. Moreover, the cost of managing these databases can also be tamed by the CATALOG MANAGER.

The CATALOG MANAGER has already increased the productivity of HUK-COBURG developers by an impressive 20%. The insurance provider now expects the BMC solution to reduce its manual DB2 administration time, thereby making its developers 30% more efficient.

This is not the first time that BMC Software’s development and support teams and HUK-COBURG’s technicians will collaborate. HUK-COBURG has used BMC CHANGE MANAGER for DB2 for over 15 years. By the look of things, business ties between the two companies are set to continue and strengthen over time.

BMC Software began its journey as a mainframe software vendor, but later on got engaged in developing software to monitor, manage and automate distributed and mainframe systems.

The company has divided its business into two main units: Mainframe Service Management (MSM) and Enterprise Service Management (ESM), both offering systems management software and services to end customers. While the MSM business unit, dealing in the mainframe computing market, offers single-digit growth, ESM has a higher volume growth potential despite lower margins.

Apart from this, 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.

Growing competition from big industry players such as International Business Machines Inc. (IBM), Hewlett-Packard Company (HPQ), EMC Corp. (EMC) and CA Inc. (CA), remains a concern however, since they are increasingly encroaching its served markets.

Currently, BMC Software has a Zacks #2 Rank (short-term Buy recommendation).

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