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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K


                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 31, 1998





                               BMC SOFTWARE, INC.
             (Exact name of registrant as specified in its charter)



                                                                        
           DELAWARE                             0-17136                             74-21226120
  (State or other jurisdiction           (Commission File Number)     (I.R.S. Employer Identification No.)
of incorporation or organization)




            2101 CITY WEST BOULEVARD
                 HOUSTON, TEXAS                             77042-2827
   (Address of principal executive offices)                 (Zip code)


       Registrant's telephone number, including area code: (713) 918-8800



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Item 5.  Other Events.

         On November 2, 1998, BMC Software, Inc., a Delaware corporation
("BMC"), issued a press release announcing the execution of a definitive merger
agreement dated October 31, 1998, providing for the acquisition of Boole &
Babbage, Inc., a Delaware corporation ("Boole"), by BMC in a transaction valued
at approximately $900 million. BMC will issue 0.675 shares of BMC common stock
for each share of Boole common stock. The transaction is expected to close
within 60 to 90 days, subject to Boole stockholder approval, regulatory approval
and other customary closing conditions.

         The foregoing summary is subject to the full text of the press release
with respect thereto, a copy of which is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.

         A registration statement relating to BMC's common stock has not yet
been filed with the Securities and Exchange Commission (the "SEC"), nor has a
proxy statement relating to the vote of Boole's stockholders on the merger been
filed with the SEC. BMC's common stock may not be offered, nor may offers to
acquire such stock be accepted, prior to the time such registration statement
becomes effective. This report shall not constitute an offer to sell or the
solicitation of any offer to buy any of BMC's common stock or any other
security, and shall not constitute the solicitation of any vote with respect to
the merger.

Item 7.  Financial Statements and Exhibits.

(c)      Exhibits.

         99.1   Press Release of BMC Software, Inc. dated November 2, 1998
                reporting on the execution of a definitive merger agreement
                dated October 31, 1998.


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                                    SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                             BMC SOFTWARE, INC.



Date: November 6, 1998                       By:  /s/ M. BRINKLEY MORSE
                                                -----------------------
                                             Name:   M. Brinkley Morse
                                             Title:  Senior Vice President





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                                  EXHIBIT INDEX




      Exhibit
       Number                                    Description
      -------                                    -----------
                                                               
        99.1          Press Release of BMC Software, Inc. dated November 2, 1998 reporting on
                      the execution of a definitive merger agreement dated October 31, 1998.