CA to maximise management software potential

26 Aug 2004

Computer Associates (CA), the software giant that has been beleaguered by embarrassing financial scandals and management reshuffles, says it is poised to seize tremendous opportunities in the management software segment of the industry in 2005.

The company’s chairman Lewis Ranieri told shareholders at the company’s annual meeting of shareholders yesterday that the company has now found the strategy for growth, has the leadership to bring the company forward and the products and people to make it happen. “This is a company poised for the future,” he said.

“CA is leading the field in one of the hottest and fastest growing market segments today – management software,” said Ranieri. “Outperforming applications in new license revenue, management software is growing at 19pc a year – and could well be a US$45bn market by 2007. With our number one position in enterprise security, operations management and asset management, CA is clearly setting the pace.”

In commenting on the ongoing government investigation, Ranieri said: “This has been a challenging time for CA’s board, as it has been for everyone at the company. I want to make it clear that the actions that occurred during the period under investigation were wrong. The individuals responsible are no longer with the company.”

Ranieri added: “We are taking aggressive steps to ensure that these unacceptable practices will never again occur at CA. We are working with the government to resolve all outstanding issues and are reviewing compensation paid to certain officers in prior years. While I cannot say exactly when this chapter in CA’s history will be over, I can assure you that the members of CA’s board of directors and management team are working with the government and doing everything we can to reach closure. In the meantime, CA is moving ahead.”

Chief executive officer Kenneth Cron outlined the company’s four key growth strategies: internal product development, geographic expansion, new ways to market CA software and acquisitions.

“CA offers our customers something no other software company can – the ability to leverage the investments they’ve already made in IT and cut through the complexity that makes IT inefficient. We enable our customers to optimise their IT investment, thereby lowering the cost of IT ownership while at the same time minimising their risk, by selling complete, integrated and open software suites.”

Chief operating officer Jeff Clarke outlined the changes underway at CA to help the company better execute towards these customer needs over the long term. “Enhancing and strengthening our financial controls and accounting practices; seeking out efficiencies and cost savings; and investing in key growth drivers are critical components of CA’s strategy for success.”

By John Kennedy