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HP-EDS Deal Jars BMC Software

Stock quotes in this article: BMC , HPQ , EDS , ACN , IBM , CA  

SAN FRANCISCO - BMC Software(BMC Quote) expects to profit from Hewlett-Packard's(HPQ Quote) move into the outsourcing business.

H-P's acquisition of Electronic Data Systems(EDS Quote), announced Tuesday, puts both companies in competition with their traditional business partners.

Like many vendors, BMC is now faced with losing some business to H-P. However, the Houston-based software developer is positioning itself as the neutral middleware developer to which independent integrators can turn instead of H-P.

Following its fourth-quarter outperformance disclosed late Thursday, BMC's stock jumped $2.81, or 7.7%, to $39.24 in early trading Friday, before falling back to $38.74. BMC posted annual revenue of $1.73 billion for the fiscal year just ended. ...

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