More consolidation as BMC buys MQSoftware

BMC Software has announced the acquisition of middleware management vendor MQSoftware. The deal is expected to expand BMC’s management platform to enable clients to manage their entire mainframe infrastructure. The company claims that the unified offering will reduce costs by up to 30% by eliminating monitoring silos for transactions and messaging middleware; reduce downtime by 90% due to improved performance monitoring; and boost staff productivity by 40% by simplifying management tasks. BMC recently posted better than expected financial results, with a 3% rise in revenue to $450m. Software licence sales rose nearly 12% to $167m to boost net income to $82.4m, up from $1.2m for the year ago quarter. Although BMC has been active on the acquisition front, this is its first deal that will impact its mainframe business. Mark Bartrick, Managing Director at Silver Bullet Associates says “Mergers and Acquisitions are common in the IT industry, and with the difficult economic conditions driving down share prices, some IT suppliers have become attractive acquisition targets. Such consolidation can be a good thing and can help to eliminate some elements of cost. But be aware what’s in your IT Suppliers contracts regarding Mergers and Acquisitions and ensure you have control over what any acquiring supplier can do to your support charges or terms. Don’t get caught out with a sudden price hike or a cut in support services/hours”.  

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