Shares of BMC Software (NYSE:BMC) are getting shellacked today, even as shares of most technology firms are soaring. The company announced that it's going to miss numbers big-time this quarter, and Mr. Market isn't happy about it.

The software maker chopped its earnings estimates for its fiscal first quarter in half, and reduced revenue estimates for the same quarter by about 6%. Given the firm just gave the initial estimates in April, many investors feel there could be more bad news to come.

IBM (NYSE:IBM) is putting its deeper pockets to good use, stepping up sales efforts to punish smaller firms in this weak spending environment. Though BMC's products have a solid reputation and seem largely preferred to those of its competitors, customers are using IBM's aggressive deal-making to hold out for better prices from BMC.

Also, BMC has typically focused its sales efforts on larger deals -- those with price tags above $1 million. Unfortunately, those deals simply aren't getting made in this market. The company announced a commitment today to go after the smaller, but more abundant opportunities in the sector, which usually prove easier to close.

To give credit where it's due, BMC has actually held up fairly well in what has been a miserable environment for technology spending. The firm has maintained a solid balance sheet, with virtually no debt and nearly $650 million in cash and equivalents on the books.

It is also reasonably well-managed, and has the ability to survive this tough environment and potentially reemerge as a leaner, stronger competitor if it can continue to produce superior products.

However, the company's restructuring efforts are going to take time, and the brutal competition in the sector isn't likely to ease soon. Despite today's 7.8% drop in the shares, there aren't likely to be any near-term catalysts for the stock. That means if you're looking at the shares as a turnaround play, there's no need to be hasty.