CA Technologies

CA Technologies

Type	Public (NASDAQ: CA)
Industry	Enterprise software IT Services
Founded	1976
Founder(s)	Charles Wang Russ Artzt
Headquarters	Islandia, New York, U.S.
Key people	William McCracken, CEO Nancy E. Cooper, CFO David Dobson EVP George Fischer EVP Dr. Ajei Gopal EVP William L. Hughes CCO Jacob Lamm EVP Amy Fliegelman Olli EVP Phillip J. Harrington Jr. EVP
Products	Computer software
Revenue	$ 4.4 billion (2010)[1]
Operating income	$ 1.1247 billion (2010)[1]
Net income	$ 771 million (2010)[1]
Total assets	$ 11.838 billion (2010)[1]
Total equity	$ 4.983 billion (2010)[1]
Employees	13,200 (2010)[1]
Website	CA.com

CA Technologies (NASDAQ: CA), formerly CA, Inc. and Computer Associates, Inc., is a Fortune 500 company and one of the largest independent software corporations in the world.^[2] Headquartered in Islandia, New York, CA Technologies manages and secures IT environments and helps organizations deliver more flexible IT services.

Although the company sells anti-virus and internet security programs for consumer personal computers, it is primarily known for its mainframe computer and distributed computing applications and solutions used by businesses with CA Technologies claiming that its software is used by a majority of the Forbes Global 2000 companies.^[3]

CA Technologies, which posted $4.4 billion USD in revenue for fiscal year 2010 (ending March 31, 2010),^[4] maintains 150 offices in more than 45 countries.^[5] The company employs 13,200 people (March 31, 2010) ),^[4] including 5900 engineers.^[4] CA holds more than 400 patents worldwide, and more than 700 patent applications are pending.^[4]

On January 28, 2010, CA Technologies announced that William E. McCracken would be its chairman of the board and chief executive officer.^[6]

On May 6, 2010 Arthur F. Weinbach was appointed as Non-Executive Chairman.

Contents 1 History 1.1 Inception and early years 1.2 1980s 1.3 1990s 1.4 2000s 2 Software products 3 CA Services 4 CA Labs 5 Controversies 6 Acquisitions 7 See also 8 References 9 External links

[edit] History

Sources: ^[7][8]

[edit] Inception and early years

In 1969, under regulatory pressure, IBM announced its decision to unbundle the sale of mainframe computers from computer programs and support services.^[9] (At this time, the computer industry was dominated by mainframes, principally from IBM.) The decision opened new markets to competition and provided an opportunity for entrepreneurs to enter the nascent software industry — an opportunity that Charles Wang and his friend and business partner Russ Artzt exploited by creating a company to develop and market mainframe software, and they developed several products for the mainframe market, with modest success. In 1976, they obtained the North American distribution rights for CA-Sort, which had previously been distributed by Pansophic Systems under the name PanSort. CA-Sort was originally developed by a Swiss company named Computer Associates, which had been founded by Sam Goodner and Max Sevcik several years earlier. CA-Sort had found success in Europe, but sales in North America hadn't kept pace. Wang and Artzt established a new venture (in partnership with the Swiss company), which they named Trans-American Computer Associates, and went to market with CA-Sort, along with their original products.

The CA-Sort program helped computers to sort data efficiently. Its superior performance, combined with the sales acumen of Charles Wang, led to rapid growth in the large and lucrative North American market. After merging with the original Swiss company in 1980, the new global venture (subsequently known as Computer Associates International, Inc.) was able to expand, hiring more salespeople and programmers and acquiring many smaller software companies in the following years. The acquisition in 1987 of Uccel Corp. made CA the largest independent vendor of mainframe infrastructure software. It also made Walter Haefner, who was half-owner of Uccel at the time, its largest individual shareholder, a distinction he still enjoys.^[10]

[edit] 1980s

Following an initial public offering in 1981, the company expanded rapidly through a series of acquisitions, including software makers Capex, Information Unlimited Software, Johnson Systems, CGA Computer, and Uccel. Whereas CA’s focus during this time was on system utilities, the company also sought to compete in the applications market with firms such as Microsoft and Lotus Development Corporation through acquisition of companies that provided spreadsheet, word processor, graphics, and other application software. As the decade ended, CA became the first software company to exceed $1 billion USD in sales.

[edit] 1990s

In the early years of the 1990s, CA was forced to address criticism of the company (specifically, a lack of strategic focus, incompatibilities between its disparate product line, a reputation for poor customer service, and failure to win a significant share in application software markets) as well as a sharp decline in its stock price, which fell more than 50% during 1990. The ensuing changes included a push into foreign markets (Japan, Canada, Africa, and Latin America), reform in how the company charged its customers for software maintenance, and improved compatibility with products from other vendors such as Hewlett-Packard, Apple Computer, and Digital Equipment Corporation. Meanwhile, CA continued to expand through acquisitions, most notably in client-server computing (Legent Corporation for $1.78 billion USD in 1995, at that time the biggest ever acquisition in the software industry) and data storage software (Cheyenne Software for $1.2 billion USD in 1996).

[edit] 2000s

CA faced further challenges in the early 2000s including constraints imposed by the U.S. Department of Justice on acquisitions, the need to service and refinance large amounts of debt, and a proxy battle between the board and shareholders.^[11] The company also suffered from controversies regarding executive compensation, accounting methods, and insider-trading by its then CEO and chairman, Sanjay Kumar. Between 2004 and 2006, CA made sweeping changes among its board and executive team, including the appointment of a new CEO, John Swainson, plus new appointments in the roles of Chairman, Executive Vice President of Strategy and Business Development, CFO, COO, CTO, Chief Marketing Officer, Chief Administrative Officer, and co-General Counsel, most of which were outside appointments. On September 1, 2009, CA announced the decision of CEO John Swainson to retire by December 31, 2009.^[12]

During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT^[13] and debuted the largest number of products in its history. Underscoring the message of a changed company, CA also unveiled a new global branding program to inspire the industry to “Believe Again” in the power of technology to support business.^[14] CA changed its name from Computer Associates Inc. to CA Inc. in 2006 and to CA Technologies in 2010.^[15] Most recently, the company announced its support for Lean IT through an announcement of 13 new and enhanced EITM products.^[16]

[edit] Software products

It has been suggested that CA Anti-Spyware be merged into this article or section. (Discuss)

CA offers a broad portfolio of software products and services for both distributed computing and mainframe environments in support of its Enterprise IT Management (EITM) vision.^[17] The portfolio spans the following product categories:^[18]

• Infrastructure and operations management
• Project, portfolio, and financial management
• Security management
• IT service and asset management
• Application development and databases
• Database management
• Application performance management
• Storage and recovery management
• Business governance

The company maintains product development staff in locations worldwide including the United States, Australia, China, the Czech Republic, Germany, India, Israel, Japan, and the United Kingdom.^[19] Most of CA’s products target large and medium-size enterprises, but some of its product line — for example, its anti-virus, anti-spyware, and personal firewall solutions — are for home and home-office users.^[20]

[edit] CA Services

CA Services is a world-class services organization within CA Technologies. Primarily known for its accredited team of over 1200 expert consultants, CA Services collaborates with partners, sales, education, and support to optimize customer’s investments in CA technology. The team’s integrated approach is based on over 30 years of industry experience to ensure precision, confidence, value, and above all, fast results.

With a presence in over 25 countries, CA Services works with businesses of all sizes to develop the right implementation, technology roadmap, and education plan to support each customer’s ever-changing environment. The organization, which posted US$280M in revenue for fiscal year 2010 (ending March 31, 2010), prides itself on the ongoing development of its consultant team, their knowledge and experience to help improve future CA product releases, and an iterative nine-stage deployment methodology that, combined with proven best practices, lowers risk and accelerates time-to-value. Working across internal and external teams alike, CA Services:

• Deploys CA technology to work seamlessly with existing environments and third party software
• Supports an agile business by enabling customers to quickly adopt emerging technologies such as virtualization, cloud, and SaaS
• Maintains a disciplined, business case-based governance system that draws on thousands of real world deployments

The organization’s mantra “No one knows CA Technologies better than CA Services,” is backed by thousands of successful projects. In fact, the team averages 500 active CA Technologies projects at any given time.

CA Services offers a broad portfolio of offerings and resources that support the software portfolio above:

• Rapid Implementations – Fast, pre-defined results at a fixed price
• Solution Implementations – Provide greater flexibility in scope/scale, delivered in phases
• Deployment Playbooks – Case-driven, these provide proven documents and tools that are helpful for achieving timely and cost-effective implementations
• Managed Services – Provide complete end-to-end functional and technical support of your mission-critical CA solutions, acting as an extension of your IT organization
• Software Rationalization – Identifies, catalogues, and assesses accumulated IT infrastructure tools against business criteria
• Global Delivery – A 75+ global team that delivers implementations, components and managed services using a blended on shore/off shore delivery model.

[edit] CA Labs

CA Labs was established in 2005 to strengthen relationships between research communities and CA. CA Labs has been working closely with universities, professional associations and government on various projects that relate to CA products, technologies and methodologies. The results of these projects vary from research publications, to best practices, to new directions for products.

Through a variety of University Relations programs, CA is working with many universities to enable and promote innovation—including funding university research projects in specific areas, working with faculty to enhance curriculum, and providing opportunities to interact with CA research and development experts. For more information, go to http://www.ca.com/us/about/content.aspx?cid=120936

[edit] Controversies

CA has been party to a number of lawsuits over its thirty-plus year history, and particularly so during the period from the early 1990s to early 2000s. One of the higher-profile disputes was a 1992 suit by Electronic Data Systems (EDS), which was a CA customer. EDS accused CA of breach of contract, including misuse of copyright, and violations of anti-trust laws. CA filed a counter-claim, also alleging breach of contract, including copyright infringement and misappropriation of trade secrets.^[21] The companies reached a settlement in 1996.^[7][8] Meanwhile, a hostile (and unsuccessful) takeover bid by CA in 1998 for computer consulting firm Computer Sciences Corporation (CSC) prompted a bribery suit by CSC’s (then) chairman Van Honeycutt against CA’s founder and (then) CEO, Charles Wang.^[22]

Further controversy followed in 1999 when Wang received the largest bonus in history at that time from a public company. Moreover, this receipt (a $670 million stock grant that dated to the vesting of a 1995 stock option^[23]) occurred while the company faced a slowdown in European markets and an economic slump in Asia, both of which had affected CA's earnings and stock price. In total, the company took a $675 million after-tax charge for $1.1 billion in payouts to Wang and other top CA executives.^[24][8]

In 2000 a shareholder-based class-action lawsuit accused CA of misstating more than $500 million in revenue in its 1998 and 1999 fiscal years in order to artificially inflate its stock price. An investigation by the Securities and Exchange Commission (SEC) also followed, which resulted in charges against the company and some of its former top executives. The SEC alleged that from 1998 to 2000, CA routinely kept its books open to include quarterly revenue from contracts executed after the quarter ended in order to meet Wall Street analysts’ expectations.^[25] The company reached a settlement with the SEC and Department of Justice in 2004, agreeing to pay $225 million in restitution to shareholders and to reform its corporate governance and financial accounting controls. Eight CA executives since pleaded guilty to fraud charges — most notably, former CEO and chairman Sanjay Kumar, who received a 12-year prison sentence for orchestrating the scandal.^[26] The company subsequently made sweeping changes through virtually all of its senior leadership positions.^[7]

[edit] Acquisitions

CA has a long history of acquisitions in the software industry.^[8]

• 2010: Hyperformix ^[27] (undisclosed amount)
• 2010: Arcot Systems (200 million)
• 2010: 4Base Technology (undisclosed amount)
• 2010: Nimsoft (350 million)
• 2010: 3tera
• 2010: Cassatt
• 2010: Oblicore
• 2009: NetQoS Inc. ^[28]
• 2009: Orchestria
• 2008: Eurekify, Inc.
• 2008: IDFocus, LLC.
• 2006: MDY Group (undisclosed amount)^[29]
• 2006: Cendura (undisclosed amount)^[30]
• 2006: Control-F1 Corporation (undisclosed amount)^[31]
• 2006: Cybermation Inc. — US$75 million^[32]
• 2006: XOsoft, Inc. ^[33]
• 2006: Wily Technology — US$375 million^[34]
• 2005: Niku — US$350 million (renamed CA Clarity)^[35]
• 2005: Concord Communications/Aprisma Management Technologies^[36]
• 2005: iLumin Software Services
• 2005: Tiny Software ^[37]
• 2004: Netegrity
• 2004: PestPatrol (undisclosed amount)^[38]
• 2004: Miramar (undisclosed amount)^[39]
• 2003: Netreon (undisclosed amount)^[40]
• 2003: SilentRunner (undisclosed amount)^[41]
• 2000: Sterling Software — US$3.91 billion^[42]
• 2000: Applied Management Systems Inc.^{[citation needed]}
• 1999: Platinum Technology International — US$3.5 billion^[43]
• 1999: CMSI (Computer Management Sciences, Inc.) — US$435 million^[44]
• 1998: QXCOM (undisclosed amount)^[45]
• 1998: Viewpoint DataLabs International, Inc.^[46]
• 1998: LDA Systems, Inc.
• 1998: Realogic, Inc.
• 1997: AI Ware, Inc.
• 1997: Avalan Technology, Inc.^[47]
• 1996: Cheyenne Software — US$1.2 billion^[48]
• 1995: Legent Corporation — US$1.78 billion
• 1994: The ASK Group, Inc. — US$311 million^[49]
• 1992: Glockenspiel Ltd
• 1992: Nantucket Corporation
• 1991: Access Technology
• 1991: Pansophic Systems, Inc.^[50] — US$290 million
• 1991: On-Line Software International Inc. — $120 million
• 1989: Cullinet — US$289 million
• 1988: Applied Data Research — US$170 million
• 1987: Uccel — US$830 million
• 1986: Software International — US$24 million
• 1986: Integrated Software Systems Corporation (ISSCO) — US$67 million
• 1985: Top Secret (from CGA for US$25 million)
• 1985: Sorcim — US$27 million
• 1985: Arkay Computer (undisclosed amount)
• 1984: Johnson Systems, Inc. — US$16 million
• 1983: Information Unlimited Software — US$10 million
• 1983: Stewart P. Orr Associates — US$2 million
• 1982: Capex Corporation — US$22 million
• 1981: Viking Data Systems, Inc. ^[51]

[edit] See also

[edit] References

[edit] External links

• Oral history interview with Sam Wyly, Charles Babbage Institute, University of Minnesota, by David Allison, December 6, 2002. Wyly discusses his formation of University Computer Corporation (UCC), a software services business, the eventual sale of this firm to Computer Associates, his formation of Sterling Software, its acquisition of Informatics, the sale of Sterling, and his ideas on the future of information technology
• CA Technologies
• CA AntiVirus & Internet Security Software
• CA Services
• CA Services LinkedIn Group

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