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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.
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===
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 [[DBMS]] 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]] (HP), [[Apple Computer]], and [[Digital Equipment Corporation]] (DEC). In 1994, CA acquired [[ASK Corporation|ASK Group, Inc.]] (which had acquired Ingres Corporation in 1990) and continued to offer [[Ingres]] (a DBMS) under a variety of brand names (for example, OpenIngres, Ingres II, or Advantage Ingres).

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 device|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 [[antitrust]] 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.

CA's stock price (in 2012 dollars) spanned a range from a low of $1.38 USD in September 1990 to just over $70 USD in December 1999.


===2000s===
===2000s===

Revision as of 21:28, 23 October 2012

CA Technologies
Company typePublic
Nasdaq: CA
NASDAQ-100 Component
S&P 500 Component
IndustrieEnterprise software
Gegründet1976
GründerCharles B. Wang
Russell M. Artzt
HauptsitzIslandia, New York, U.S.
Key people
Arthur F. Weinbach (Chairman)
William McCracken (CEO)
ProdukteComputer software
RevenueIncrease US$ 5.082 billion (FY 2011)[1]
Increase US$ 1.57 billion (FY 2011)[1]
Increase US$ 870 million (FY 2011)[1]
Total assetsIncrease US$ 12.838 billion (FY 2011)[1]
Total equityIncrease US$ 5.312 billion (FY 2011)[1]
Number of employees
13,800 (March 2011)
WebsiteCA.com

CA Technologies, Inc., formerly CA, Inc. and Computer Associates International, Inc., is one of the largest independent software corporations in the world.[2] "CA" for short, is an American, multinational, publicly held company headquartered in Islandia, New York. The company creates systems software (and previously applications software) that runs in mainframe, distributed computing, virtual machine and Cloud computing environments.

Although the company once sold anti-virus and Internet security commercial software programs for personal computers during its venture into the business-to-consumer ("B2C") market, it remains primarily known for its business-to-business ("B2B") mainframe and distributed (client/server, etc.) information technology ("IT") infrastructure applications since the spin off of their security products into Total Defense.[3] CA Technologies claims that its computer software products are used by a majority of the Forbes Global 2,000 companies.[4]

CA Technologies posted $4.4 billion US$ in revenue for fiscal year 2010 (ending March 31, 2010)[5] and maintains 100 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

See also: Charles Wang and Russell Artzt

Sources:[16][17]

1980s

After merging with the original Swiss company in 1980, the new global venture (Computer Associates International, Inc.) was able to significantly expand following an initial public offering in 1981 by hiring more salespeople and programmers while acquiring many smaller ISVs. 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 (flagship product JARS), Value Software (flagship product DISPATCH) and Uccel Corporation[18] 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 (z/VSE today) to OS/MVS (z/OS today), that CA was eventually able to acquire its archrival, UCCEL Corporation, in 1987. Ownership of those industry-standard, 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 (#2 market share) and CA-ACF2 (#1 market share). IBM's RACF product held the #3 market share position. UCCEL's acquisition also made Walter Haefner, that company's half-owner at the time, CA's largest individual shareholder – a distinction he enjoyed[19] until his death in June 2012.

Whereas CA's historical focus had been on system utilities including those for the VM/CMS (z/VM today) mainframe platform, 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. In addition to its existing CA-Universe database management system ("DBMS") product, CA acquired independent software vendors Applied Data Research (ADR) in 1988 and Cullinet in 1989. Both companies were struggling against IBM and its DB2 product offering.

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.

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.[20] The company also suffered from controversies regarding executive compensation, accounting methods, and insider-trading by its then CEO and chairman, Sanjay Kumar. CA started the India Technology Centre in Hyderabad on December 10, 2003 with an initial group of engineers recruited in the first batch of 50 employees. 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.[21]

During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT[22] and debuted the largest number of products in its history. In 2004, CA released Ingres r3 under an open source license. The code includes the DBMS server and utilities and the character-based front-end and application-development tools. In essence, the code has everything except OpenROAD, the Windows 4GL GUI-based development environment. In November 2005, Garnett & Helfrich Capital, in partnership with CA, created a new company called Ingres Corporation, which provides support and services for Ingres, OpenROAD, and the connectivity products. In 2006, CA obtained yet another well-respected, mainframe-centric, job scheduling / workload automation 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.[23] CA changed its name from Computer Associates International, Inc. to CA, Inc. in 2006 and to CA Technologies in 2010.[24] In Q2 of 2009, the company announced its support for Lean IT through an announcement of 13 new and enhanced EITM products.[25]

2010s

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.[26]

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.[27]

In 2011, CA sold its antivirus properties to Updata Partners, which spun the division off as 'Total Defense'.[28]

In 2012 Royal Bank of Scotland Group, a UK banking group, told journalists it was considering legal action against CA as a consequence of large scale disruption in payment processing identified as having a root cause in the CA-7 mainframe job workflow and scheduling software provided by CA.[29]

Software products

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 – were for home and home-office users.[32]

CA Services

CA Services is a services organization within CA Technologies employing over 1,200 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

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

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

Main article: List of acquisitions by CA Technologies

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

See also

References

  1. ^ a b c d e "2010 Form 10-K, CA Technologies". United States Securities and Exchange Commission.
  2. ^ "CA – Fortune 500 2010 – CNNMoney". CNN.
  3. ^ "Total Defense, About Us". Total Defense. Retrieved May 25, 2012.
  4. ^ "CA Inc (CA.O)". Reuters.
  5. ^ a b c d "CA Annual Report 2010" (PDF). CA, Inc. [dead link]
  6. ^ "CA – CA, Inc. – Fortune 500 2006 – CNNMoney". CNN.
  7. ^ "CA.com". CA.com. Retrieved November 13, 2011.
  8. ^ "Investor.ca.com". Investor.ca.com. Retrieved November 13, 2011.
  9. ^ "Investor.ca.com". Investor.ca.com. November 19, 2009. Retrieved November 13, 2011.
  10. ^ "Arcserve.com". Arcserve.com. Retrieved November 13, 2011.
  11. ^ "CA.com". CA.com. Retrieved November 13, 2011.
  12. ^ "CA.com". CA.com. Retrieved November 13, 2011.
  13. ^ "CA.com". CA.com. Retrieved November 13, 2011.
  14. ^ "CA.com". CA.com. Retrieved November 13, 2011.
  15. ^ CA Technologies#cite note-Funding Universe History-6
  16. ^ a b c "CA History". Ca.com. September 22, 2008. Retrieved November 13, 2011.
  17. ^ a b c d "Company History". Fundinguniverse.com. Retrieved November 13, 2011.
  18. ^ Tom Shea (July 25, 1983). "Mainframe software firm buys micro equivalent". InfoWorld. 5 (30). Palo Alto, CA: InfoWorld Media Group, Inc.: 7. ISSN 0199-6649. Retrieved January 13, 2012.
  19. ^ "Activist investor group becomes No. 1 institutional holder". Findarticles.com. January 27, 2006. Retrieved November 13, 2011. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help) [dead link]
  20. ^ Berenson, Alex (June 21, 2001). "Entrepreneur to Begin Proxy Fight for Computer Associates, ''New York Times,'' June 21, 2001". New York Times. Retrieved November 13, 2011.
  21. ^ Taft, Darryl K. (September 2, 2009). "CA's CEO Swainson to Retire by End of 2009". eWeek.
  22. ^ "– 'Believe Again' in CA". Internetnews.com. November 14, 2005. Retrieved November 13, 2011.
  23. ^ CA Press Release, November 13, 2005: CA Launches New Global Branding Program[dead link]
  24. ^ "CA, Inc. Has a New Name: CA Technologies". CA.com. May 16, 2010.
  25. ^ CA Enables Lean IT to Help Maximize Value and Minimize Cost. April 27, 2009.
  26. ^ "CA, Inc. Names William E. McCracken Chief Executive Officer". Ca.com. Retrieved November 13, 2011.
  27. ^ Gopnik, Blake (October 16, 2011). "Newsweek.com". Newsweek. Retrieved November 13, 2011.
  28. ^ http://www.theregister.co.uk/2011/05/17/ca_quits_anti_virus_biz/
  29. ^ http://www.ft.com/cms/s/0/b03dd574-bf8e-11e1-a476-00144feabdc0.html
  30. ^ "CA's Product Categories (CA web site)". Ca.com. September 22, 2008. Retrieved November 13, 2011.
  31. ^ "CA Annual Report 2008" (PDF). CA, Inc. Retrieved August 29, 2008. [dead link]
  32. ^ "CA's Home and Home-Office Products (CA web site)". Shop.ca.com. Retrieved November 13, 2011.
  33. ^ "Excerpt from General Motors 10-K SEC Filing, March 29, 1994". Sec.edgar-online.com. Retrieved November 13, 2011.
  34. ^ "A pain in the posterior, ''Forbes,'' May 18, 1998". Forbes. Retrieved November 13, 2011.
  35. ^ "Computer Associates Accounting Scandal". Corporatenarc.com. Retrieved November 13, 2011.
  36. ^ "Executive Pay: Up, Up and Away, ''Business Week'' Online, April 19, 1999". Bloomberg BusinessWeek. April 19, 1999. Retrieved November 13, 2011.
  37. ^ "SEC files securities fraud charges against Computer Associates, Inc". Sec.gov. Retrieved November 13, 2011.
  38. ^ De, Michael J. (November 3, 2006). "Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine, ''New York Times,'' November 3, 2006". The New York Times. Retrieved November 13, 2011.
  39. ^ "CBI Begins Study of The History of Software" (PDF). Charles Babbage Institute Newsletter. 9 (2). Charles Babbage Institute: 11. 1987.
  40. ^ Oral history interview with Joseph Piscopo, Charles Babbage Institute, University of Minnesota. Piscopo founded Pansophic Systems in 1969 and led it until his retirement in 1987. Interview explains the circumstances behind the firm's stumble in the late 1980s and acquisition by Computer Associates.
  41. ^ "Computer Associates springs a bid on ASK Group, ''Corporate Growth Report Weekly,'' May 30, 1994". Findarticles.com. Retrieved November 13, 2011. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help) [dead link]
  42. ^ "Computer Associates To Acquire Cheyenne Software, Inc., BusinessWire, October 7, 1996". Findarticles.com. October 7, 1996. Retrieved November 13, 2011.
  43. ^ By Eric Hausman, CRN. "CA To Acquire CMSI For $435 Million, CRN, February 8, 1999". Crn.com. Retrieved November 13, 2011.
  44. ^ "Computer Associates To Acquire PLATINUM Technology in Largest Software Deal in History, BusinessWire, March 29, 1999". Findarticles.com. March 29, 1999. Retrieved November 13, 2011.
  45. ^ "Computer Associates in $3.91 billion deal; in industry's biggest pact, Sterling Software to add to mainframe business". Faqs.org. Retrieved November 13, 2011.
  46. ^ "CA Acquires Tiny Software, June 27, 2006 (CA web page)". Investor.ca.com. June 27, 2005. Retrieved November 13, 2011.
  47. ^ "Computer Associates to acquire Niku in USD350m deal". Findarticles.com. June 10, 2005. Retrieved November 13, 2011.
  48. ^ "CA Acquires Privately Held Wily Technology (CA web page)". Investor.ca.com. Retrieved November 13, 2011.
  49. ^ NetQoS, a CA Technologies Company – CA Technologies. Ca.com. Retrieved on November 9, 2010.
  50. ^ "CA Technologies acquires Hyperformix". Nov 02, 2010. Retrieved July 25, 2012. {{cite news}}: Check date values in: |date= (help)
  51. ^ "CA To Acquire Software Maker Interactive TKO For $1". The Wall Street Journal. June 29, 2011. Retrieved November 13, 2011. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help) [dead link]
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