Computer Associates 2007 Annual Report Download - page 16

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Model provides a 360-degree view into the technology, assets, people, projects and processes supporting any given service,
and the relationships among these components. With this insight, customers can manage IT more effectively.
Growth Strategy
We are pursuing a multi-year, four-part growth strategy to make our EITM vision real for our customers, enable a competitive
cost structure for CA and move our company from transaction-oriented sales to a relationship focus on the largest enterprise
customers:
1. Internal Product Development
•In the past fiscal year, CA made significant progress on delivering new products and integrations supporting our EITM
vision. We shipped new versions or new releases of virtually every major CA product, along with integrating our
acquisitions including MDY, iLumin Software Services, Inc. (iLumin), Cybermation, XOsoft, and Cendura. In addition, we
began to see synergies from some of our larger prior period acquisitions of Wily Technology, Inc. (Wily), Netegrity, Inc.
(Netegrity), Niku Corporation (Niku) and Concord Communications, Inc. (Concord) with some of our other CA products
like CA Unicenter Service Desk, CA Unicenter Network and Systems Management, CA Unicenter Asset Management and
the security products.
•We have approximately 5,800 engineers globally who design and support CA software and have charged approximately
$0.7 billion to operations in each of the fiscal years ended March 31, 2007, 2006, and 2005 for product development and
enhancements.
•We also are becoming more efficient in our development. We are growing our India Technology Center (in Hyderabad),
which has expanded to approximately 1,200 developers and support engineers since its launch in 2003; and tapping an
important talent pool in the Czech Republic (Prague) for mainframe development with approximately 100 developers
there.
2. Strengthening Partner Relationships
•Partners are critical to our success. We need a broad base of partners to improve our reach, complement our expertise in
niche areas and provide fulfillment and distribution. We partner with global systems integrators for their process design
and planning as well as vertical expertise. We also work with value-added partners to offer enterprise solution
implementation and we work with distribution partners who have specific market expertise.
•We have an active channel partner program. By developing strong relationships with global systems integrators,
distribution channel partners, value-added resellers (VARs), system builders and original equipment manufacturers
(OEMs), we extend CA technology to customers who otherwise wouldn’t have access to it and expand the value we bring
to customers overall. Our channel partners sell certain CA solutions that require a high level of expertise to sell.
•Our Enterprise Solution Provider Program supports our partners by recruiting, training and educating resellers on CA
products and solutions. Through this program, we have authorized approximately 500 channel partners worldwide to sell
certain CA solutions and are working with selected global solutions providers who sell solutions to multi-national
companies. In the past year, we strengthened our business with our global systems integrators (including, but not limited
to, companies such as Accenture, Deloitte, and PricewaterhouseCoopers).
•In April 2007, we formed our Mid-Market and Storage organization to develop and package solutions that focus on
companies with 500-5,000 employees and revenue of $100 million to $1 billion.This organization will deliver CA solutions
for this market through CA’s channel-enabling partners to capitalize on the multi-billion dollar opportunity represented by
the estimated 66,000 such companies around the world.
3. International Expansion
•We continue to invest internationally to increase the revenue we generate outside of the U.S. in areas where we believe the
opportunities are greatest.
•In September 2006, we restructured our Latin America operation to be more aligned with market conditions and
opportunities while reducing overall costs of the operation.
4