Computer Associates 2010 Annual Report Download - page 16

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We work with several types of partners:
•Global Systems Integrators (GSIs) offer our products and solutions in their business practices and leverage their process
design, planning, and vertical expertise to ensure that holistic solutions and services are enabled to benefit our customers.
These relationships provide a strong route to market for our products and solutions.
•Managed Service Providers use our software products and solutions to deliver IT services to organizations that prefer to
outsource their IT operations or enable specific services provided by these partners. As customers look toward outsourcing
IT services, this is an important market for us going forward. Our acquisition of Nimsoft greatly broadens our ability to
reach into this market.
•Technology Partners enable strong product integration and technical collaboration by helping us ensure that our products
and our partners’ products deliver comprehensive solutions to our customers’ IT environments. In addition to ensuring our
software remains compatible with complementary hardware and software, these valued partners help us adapt and
respond to the emergence of new technologies and trends, such as virtualization and cloud computing, to ensure that the
release of new IT solutions is coupled with management tools that support those installations.
•Value-Added Resellers combine our software products with specialized consulting services and provide enhanced, user-
specific solutions to a particular market or sector. Their expertise in best practices, training and other services add value to
our offerings as they target the needs of specialized customers.
•Distributors and Volume Partners enable us to broaden our reach to the small and medium business market segment.
These partners provide efficient and personalized local delivery, service and support to our customers in this market.
•Exclusive Representatives represent our interests in a growth or emerging territory on an exclusive basis. These partners
have been chosen for their deep understanding of the applicable territory and have an established business within the
region. We believe the combination of these factors will help us accelerate our penetration of these markets.
Customers
We have a large and broad base of customers, including the majority of the Forbes Global 2000. Most of our revenue is
generated from enterprise customers who have the ability to make substantial commitments to software and hardware
implementations. Our growth strategy is aimed at expanding our reach into the mid-market and emerging markets, and with
emerging enterprises and managed service providers. Our software products are used in a broad range of industries,
businesses and applications. We currently service companies across most major industries worldwide, including banks,
insurance companies, other financial services providers, governmental agencies, manufacturers, technology companies,
retailers, educational institutions and health care institutions.
When customers enter into software license agreements with us, they often pay for the right to use our software for a
specified period of time. When the terms of these agreements expire, the customers may either renew the license agreements
or pay usage and maintenance fees, if applicable, for the right to continue to use our software, receive support, and/or receive
future upgrades. Our customers’ satisfaction is important to us and we believe that our flexible business model allows us to
maintain our customer base while allowing us to cross-sell new software products and services to them.
No individual customer accounted for a material portion of our revenue during any of the past three fiscal years.
Research and development
We invest in product development and enhancements to bring innovative solutions to market and to ensure that our products
are compatible with hardware and operating system changes and our customers’ evolving needs. We focus our development
efforts for new and updated products by investing in areas where we have a leadership position or we believe represent the
fastest growing segments of our markets: service management and assurance; mainframe; project and portfolio management;
security; virtualization and automation; cloud computing; and Software-as-a-Service.
Our research and development activities also include a number of efforts to support our technical community in its pursuit of
leading solutions for customers. CA Labs strengthens our relationships with research communities by enabling us to work with
academia, professional associations, industry standards bodies, customers and partners to explore novel products and
emerging technologies. Our CA Council for Technical Excellence leads innovative projects designed to promote communication,
collaboration and synergy throughout our global technical community. We also formed the CA Architecture Board to ensure a
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