Computer Associates 2011 Annual Report Download - page 17

the capabilities of our products and services to meet the unique needs of service providers. For example, our acquisition of
Torokina enhances our ability to meet the performance management needs for both internal IT and network operations within
the communications service provider market. The acquisition of Arcot added technology for fraud prevention and
authentication to address the needs of both enterprise users and financial service providers. We also introduced new versions
of our CA Service Desk Manager product targeting the largest providers of help desk services.
We believe that emerging enterprises are early adopters of cloud services and seek the increased flexibility, convenience and
reduced costs that cloud computing can offer. To realize the benefits of cloud computing, these emerging enterprises need
effective solutions for management and security. We believe that there are more than 14,000 emerging enterprises worldwide,
which significantly expands our addressable market. We are delivering a suite of capabilities designed to meet the specific
needs of this market. For example, following our acquisition of Nimsoft in fiscal 2010, we introduced Nimsoft Unified
Monitoring for enterprises and service providers to centrally monitor their entire IT infrastructures, from the data center to the
cloud. Nimsoft is offered as both an on-premises solution and SaaS, and offers the simple, quick-to-deploy functionality this
market segment requires. We also have introduced CA Clarity PPM On Demand and CA Service Desk Manager On Demand to
expand our SaaS offerings. Managed service providers who predominantly serve emerging enterprises are adopting our new
suite, which creates an important new route to market for us. These product introductions represent our initial steps to
capitalize on this market, and we are continuing to expand our capabilities to address the needs of emerging enterprises.
Customers
We have a large and broad base of customers, including the majority of the Global Fortune 500. Most of our revenue is
generated from enterprise customers who have the ability to make substantial commitments to software and hardware
implementations. While we continue to focus on solutions to offer to these customers, our strategy is also aimed at
expanding our reach in emerging markets. This includes expanding in new geographies and segments such as managed
service providers and emerging enterprises. Our software products are used in a broad range of industries, businesses and
applications. We currently serve customers across most major industries worldwide, including banks, insurance companies,
other financial services providers, government agencies, manufacturers, technology companies, retailers, educational
organizations 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, 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 enhanced product portfolio allows us
to maintain our customer base, cross-sell new software products and services to them, and attract new customers.
No single customer accounted for 10% or more of total revenue for fiscal 2011, 2010 and 2009. Approximately 9% of our
total revenue backlog at March 31, 2011 is associated with multi-year contracts signed with the U.S. federal government and
other U.S. state and local government agencies which are generally subject to any or all of the following: annual fiscal
funding approval, renegotiation or termination at the discretion of the government.
Partners
Strategic partners are an important component of how we do business. We go to market with partners to increase sales in
new market segments, complement our technology and services, provide more comprehensive offerings, and help build brand
awareness. We continue to build strategic alliances to increase our share of currently served markets and penetrate additional
markets. We are expanding our alliance partnerships globally, enhancing our network of regional “lead solution providers” who
can extend our cloud technologies beyond our current customer base, and growing our next-generation offerings for service
providers.
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.
•Technology Partners enable strong product integration and technical collaboration of our products with their products to
deliver comprehensive solutions for our customers’ IT environments. In addition to ensuring that our software remains
compatible with complementary hardware and software, these partners help us adapt and respond to the emergence of
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