Computer Associates 2011 Annual Report Download - page 16

physical, virtual and cloud IT infrastructures with our acquisition of Hyperformix. Our solutions include CA Automation Suite
for Data Centers, CA Client Automation and CA Workload Automation.
•Cloud Computing, where we provide large enterprises with solutions to design, automate, secure and assure services to
transform data centers into private clouds and leverage public cloud services. Cloud computing also creates opportunities
to expand our reach to new markets. Our offerings such as those from our Arcot acquisition and our fiscal 2010 Nimsoft
AS (Nimsoft) acquisition, as well as 3Tera AppLogic, enable new revenue streams and business models for managed
service providers. These offerings also provide emerging enterprises, which we view as companies with annual revenue
between $300 million and $2 billion, with subscription-based cloud services that help IT professionals of all skill levels
quickly adopt best practices. Our solutions cover turnkey cloud platforms, automated capacity management, cloud vendor
management services and cloud service quality assurance.
We offer our software products and solutions directly to our customers through our sales force and indirectly through global
systems integrators, technology partners, managed service providers, solution providers, distributors and volume partners, and
exclusive representatives. We deliver all of our products on-premises or, for certain products, using SaaS.
We license our products worldwide. We service companies across most major industries around the world, including banks,
insurance companies, other financial services providers, government agencies, manufacturers, technology companies, retailers,
educational organizations and health care institutions. The majority of the Global Fortune 500 uses our software to manage
evolving IT environments.
Some of our business results are seasonal, including software license transactions and cash flows from operations. These
business results typically increase during each consecutive quarter of our fiscal year, with the fourth quarter typically having
the highest results.
Business strategy
Our industry is experiencing high levels of change as innovations in virtualization, cloud computing and SaaS offer new, high-
value solutions to our customers’ business and IT needs. Our strategy is to help our customers manage, secure and automate
IT and to make us their strategic partner as they deploy new technologies and maximize their investments in current systems
and applications. Our strategy is intended to build on our core strengths in IT management and to position us to drive sales
in next-generation markets, including virtualization, cloud and SaaS. We have continued our ongoing efforts to shift our
product portfolio to higher growth areas and modified our routes to market to match customer preferences. We are focused
on making additional progress in these areas. We are executing our strategy through a combination of internal development
and targeted acquisitions that are intended to add key technologies to our portfolio and extend our reach into new markets
and segments. We believe the continuing evolution of IT opens the door for us to cross-sell and up-sell solutions to existing
customers and attract new customers, all of which should help us drive new sales of products. This strategy is providing
opportunities to develop new addressable markets and revenue streams for us.
We serve a core set of large enterprise customers who have highly complex and heterogeneous computing environments.
Many of our customers run critical applications on a mainframe, have sizeable physical systems and are adopting
virtualization and cloud computing technologies. We believe they need to leverage their existing IT investments while taking
advantage of new technologies and the on-demand delivery made possible by SaaS. We are focused on strengthening our
relationships with these core customers through improved account management and reinvigorating our end-to-end customer
experience. Simultaneously, we have refreshed our product and services portfolio, introducing or acquiring more than 40 new
products within the last 12 months. This enables us to offer new products and support the value of our maintenance renewal
stream, while at the same time adding new enterprise customers to CA Technologies.
In addition to investing in technologies to serve our core enterprise market, we also are extending our reach to emerging
enterprises and emerging geographies (which we also refer to as our growth geographies), such as Asia, Eastern Europe and
Latin America. These markets are generally experiencing rapid economic growth and accelerating demand for IT products and
services. For us, emerging markets also includes Japan, where we are expanding our presence. In addition, new technologies
are key to business development in Brazil, China, India, Mexico and southeast Asia. During fiscal 2011, we enhanced our
ability to address these markets with the introduction of new SaaS, virtualization, cloud and security solutions.
Customers rely on various types of service providers to help them select, deploy and use IT services and products. We are
increasing the number of our relationships and expanding existing relationships with these providers, particularly global
outsourcers, regional managed service providers and communication network operators. At the same time, we are improving
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