CA Technologies

Type	Public company
Traded as	NASDAQ: CA NASDAQ-100 Component S&P 500 Component
Industry	Enterprise software
Founded	1976
Founder(s)	Charles Wang Russ Artzt
Headquarters	Islandia, New York, U.S.
Key people	Arthur F. Weinbach (Chairman) William McCracken (CEO)
Products	Computer software
Revenue	US$ 5.082 billion (FY 2011)[1]
Operating income	US$ 1.57 billion (FY 2011)[1]
Net income	US$ 870 million (FY 2011)[1]
Total assets	US$ 12.838 billion (FY 2011)[1]
Total equity	US$ 5.312 billion (FY 2011)[1]
Employees	13,800 (March 2011)
Website	CA.com

CA Technologies, Inc. (NASDAQ: CA), formerly CA, Inc. and Computer Associates International, Inc., is one of the largest independent software corporations in the world.^[2] Headquartered in Islandia, New York, the company creates software which runs in mainframe, distributed, virtualized and cloud environments.

Although the company once sold anti-virus and Internet security programs for consumer personal computers, it is primarily known for its commercial mainframe computer and distributed computing applications since the spin off of their security products into Total Defense.^[3] CA Technologies claims that its software is used by a majority of the Forbes Global 2000 companies.^[4]

CA Technologies posted $4.4 billion US$ in revenue for fiscal year 2010 (ending March 31, 2010)^[5] and maintains 150 offices in more than 45 countries.^[6] The company employs 13,200 people (March 31, 2010),^[5] including 5,900 engineers.^[5] CA holds more than 400 patents worldwide, and has more than 700 patent applications pending.^[5]

In 2010 the company acquired eight companies to support its cloud strategy: 3Tera,^[7] Nimsoft,^[8] NetQoS,^[9] Oblicore,^[10] Cassatt,^[11] 4Base Technology,^[12] Arcot Systems,^[13] and Hyperformix.^[14][15]

History[link]

Sources:^[16][17]

Inception and early years[link]

Headquarters on Long Island

In 1969, under regulatory pressure, IBM announced its decision to unbundle the sale of mainframe computers from computer programs and support services.^[18] (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. The CA-Sort program is a sort/merge/copy and data management utility that helps mainframe computers manipulate data efficiently. The product 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.

CA-Sort's superior performance (mostly on the DOS/VSE platform) and modest price, combined with the sales acumen of Charles Wang, led to rapid growth in the large and lucrative North American market. Helping fuel that growth was CA's entry to the DOS/VSE storage management market with CA-Dynam/T, CA-Dynam/D and CA-Dynam/FI. Another product that brought OS/MVS sophistication to DOS/VSE computing environments was CA-Driver, a JCL (job control language) management product. "Synergy" among CA's products became the consistent theme that brought competitive advantage and laid the foundation for the Unicenter concept years later.

1980s[link]

After merging with the original Swiss company in 1980, the new global venture (Computer Associates International, Inc.) was able to expand following an initial public offering in 1981 by hiring more salespeople and programmers while acquiring many smaller software companies. CA transitioned from selling its flagship products via telephone to selling them in the field by opening several regional offices and by repopulating the facilities of those acquired companies. Very few salespeople and almost no sales managers or executive management of the acquired companies remained. The typical CA salesperson had some sales experience, but not in software and it was rare for a technician to be considered for a sales position. Training was done in-house and was product oriented (instead of sales training). Promotions at CA were from within almost exclusively.

Throughout the decade, the company grew rapidly via several strategic, sometimes surprising acquisitions: CGA Computer's Top Secret product, plus software makers Capex Corporation, Johnson Systems, Value Software and Uccel^[19] among them. In May 1985, CA-Unicenter was introduced as an integrated collection of many of its recently acquired, mainframe systems products. Its sales (often "wrap & roll" financial deals) helped bring CA enough revenue and market share, especially from existing customers converting from DOS/VSE to OS/MVS, that CA was eventually able to acquire its archrival, UCCEL Corporation in 1987. Ownership of UCCEL's flagship products (UCC-1, UCC-7, UCC-11, plus ACF2) made CA the largest independent vendor of mainframe infrastructure software and dominant vendor of OS/MVS security software with CA-Top Secret and CA-ACF2. It also made Walter Haefner, who was half-owner of UCCEL at the time, CA's largest individual shareholder – a distinction he still enjoys.^[20]

Whereas CA's historical focus had been on system utilities, the company also sought via its 1986 acquisition of Software International to compete in the applications arena against Dun & Bradstreet's former market leaders Management Science America (MSA) and McCormack & Dodge (M&D). CA also competed against Microsoft and Lotus Development Corporation through the acquisition of companies such as Information Unlimited Software that provided spreadsheet, word processor, graphics and other applications. Additionally, CA joined the fray in the database market by acquiring Applied Data Research (ADR) and Cullinet. In 1987, CA's stock began trading on the NYSE using the stock symbol "CA" following its time on the NASDAQ using the stock symbol "CASI". As the decade ended, CA became the first software company after Microsoft to exceed $1 billion USD in sales.

1990s[link]

Early in the decade, CA was forced to address criticism of the company (lack of strategic focus, incompatibilities among its disparate product lines, a reputation for poor customer service, plus failure to win a significant share in application software and database 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, 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. CA became the target of several competitors' aggressive "rip & replace" sales campaigns often led by ex-CA employees motivated by revenge. Meanwhile, CA continued its expansion through acquisitions (including many of those competitors), 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). CA again laid claim to the software industry's then-largest acquisition ($3.5 billion USD) via Platinum Technology International in 1999. As part of that acquisition, CA obtained the AutoSys distributed systems (vs. mainframe) job scheduler, which Platinum had acquired in 1995. Shortly after its acquisition of Platinum, in order to avoid anti-trust problems, CA had to divest itself of certain mainframe products (owning at least 6 batch job schedulers). The divestiture was primarily of the Z/Team products (Zeke job scheduler, etc.) originally from Altai, Inc. – also acquired by Platinum in 1995. ASG Software Solutions eventually took ownership of those former Altai products.

2000s[link]

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.^[21] 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 to the positions 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 CEO John Swainson's decision to retire by the end of the year.^[22]

During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT^[23] and debuted the largest number of products in its history. In 2006, CA obtained yet another mainframe job scheduling product, ESP, by acquiring Cybermation, Inc. 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.^[24] CA changed its name from Computer Associates International, Inc. to CA, Inc. in 2006 and to CA Technologies in 2010.^[25] In Q2 of 2009, the company announced its support for Lean IT through an announcement of 13 new and enhanced EITM products.^[26]

2010s[link]

CA Technologies embraced the Cloud Strategy by launching the unique^{[citation needed]} concept of IT Supply Chain, allowing a company to manage and secure dynamically both physical and virtual environments and to deliver more flexible IT services.

On January 28, 2010, CA Technologies announced that William E. McCracken would be its chairman of the board and chief executive officer.^[27]

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

On October 22, 2010, the company was ranked among the greenest companies by Newsweek magazine’s Green rankings.^[28]

In 2011 CA sold its antivirus properties to Updata Partners, which spun the division off as 'Total Defense'.^[29]

Software products[link]

CA offers software products and services for distributed computing, mainframe environments, as well as virtualization and cloud. The portfolio spans the following product categories:^[30]

• Mainframe
• Security/Identity and Access Management
• Cloud
• Virtualization and Automation
• IT Management SaaS
• Service Assurance
• Service and Portfolio Management
• EcoSoftware
• Recovery Management and Data Modeling
• Nimsoft

CA House in Canberra.

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.^[31] 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.^[32]

CA Services[link]

CA Services is a services organization within CA Technologies employing over 1200 consultants.

With a presence in over 25 countries, CA Services works with businesses of all sizes to develop implementation, technology roadmap, and education plan. The organization posted US$280M in revenue for fiscal year 2010 (ending March 31, 2010).^{[citation needed]}

CA Labs[link]

CA Labs in Herzliya, Israel

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.

Controversies[link]

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.^[33] The companies reached a settlement in 1996.^[16][17] 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.^[34]

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^[35]) 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.^[17][36]

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.^[37] 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.^[38] The company subsequently made sweeping changes through virtually all of its senior leadership positions.^[16]

Acquisitions[link]

This article is in a list format that may be better presented using prose. You can help by converting this article to prose, if appropriate. Editing help is available. (March 2012)

CA has a long history of acquisitions in the software industry.^[17]

• 1981: Viking Data Systems, Inc.^[39]
• 1982: Capex Corporation  — US$22 million
• 1987: Uccel — US$830 million
• 1988: Applied Data Research — US$170 million
• 1989: Cullinet — US$289 million
• 1991: On-Line Software International, Inc. — $120 million
• 1991: Pansophic Systems, Inc.^[40] — US$290 million
• 1994: The ASK Group, Inc. — US$311 million^[41]
• 1995: Legent Corporation — US$1.78 billion
• 1996: Cheyenne Software — US$1.2 billion^[42]
• 1999: CMSI (Computer Management Sciences, Inc.) — US$435 million^[43]
• 1999: Platinum Technology International — US$3.5 billion^[44]
• 2000: Sterling Software — US$3.91 billion^[45]
• 2005: Tiny Software^[46]
• 2005: Niku – US$350 million (renamed CA Clarity)^[47]
• 2006: Wily Technology — US$375 million^[48]
• 2009: NetQoS Inc.^[49]
• 2010: Oblicore
• 2010: 3tera
• 2010: Nimsoft ($350 million)
• 2010: Arcot Systems ($200 million)
• 2011: ITKO, Inc.^[50] ($330 million)

See also[link]

Companies portal

• Endevor

References[link]

External links[link]

Wikimedia Commons has media related to: CA Technologies

• CA Technologies

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