Computer Associates 2013 Annual Report Download - page 21

•Leveraging new business models. We intend to take advantage of new routes to market and delivery models that will
make our business more efficient, while meeting consumer demands. For example, we expect to expand and enhance
our IT Management SaaS offerings to provide a lower acquisition cost, simplified operation and faster time to value
demanded by today’s IT consumers.
Customers
Our traditional core customers generally consist of large enterprises that have computing environments from multiple
vendors and are highly complex. Many of our customers run critical applications on a mainframe and have sizeable physical
systems, but are also adopting virtualization and cloud computing technologies and embracing social media and the
proliferation of mobile devices. 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, global service providers, telecommunication providers, manufacturers, technology
companies, retailers, educational organizations and health care institutions.
In the beginning of fiscal 2013, we divided our customers into three groups: (1) approximately 1,000 core large existing
enterprise customers with annual revenue in excess of $2 billion (Large Existing Enterprises), which accounted for
approximately 80% of our revenue; (2) enterprises with revenue in excess of $2 billion that were not historically significant
customers of ours (Large New Enterprises), a customer segment that included an estimated 4,500 potential new customers,
but where we focused on approximately only 1,000 of these customers selected based on our geographical and vertical
strengths; and (3) more than 7,000 enterprises with revenue between $300 million and $2 billion and in fast growing
geographies like Latin America and Asia (Growth Markets). At the beginning of fiscal 2014 we further refined our
approach, combining our Large New Enterprises and Growth Markets go-to-market efforts into a single sales coverage
model to better capture these opportunities. All these efforts are designed to accelerate new product sales outside of our
contract renewal cycle.
Across all segments, we consider customer relationships important to the success of our business strategy. We remain
focused on strengthening relationships with our core customers through product leadership, improved account management
and a differentiated customer experience. We believe enhanced relationships in our traditional customer base of Large
Existing Enterprises will drive improved renewal pricing and provide opportunities to increase account penetration, which
we believe will help to drive revenue growth.
At the same time, we continue to dedicate sales resources and deploy additional solutions to address opportunities to sell to
new customers. We believe we can grow our business and increase market share by delivering differentiated technology and
working in collaboration with partners to leverage their relationships, market reach and implementation capacity. This
go-to-market segmentation allows us to better align marketing and sales resources with how customers want to buy. We
have also implemented broad-based business initiatives to drive accountability for execution.
We also continue to expand our reach to organizations in geographies that offer growth opportunities. These geographies
include Asia, Eastern Europe and Latin America. We remain specifically focused on Brazil, China, India, Mexico and
Southeast Asia, where new technologies are key to business development.
No single customer accounted for 10% or more of our total revenue for fiscal 2013, 2012 or 2011. Approximately 11% of
our total revenue backlog at March 31, 2013, 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 and renegotiation or termination at the discretion of the government.
Partners
To reach new customers we continue to expand our go-to-market business model and partner relationships. Our partner
strategy aligns our sales and technical resources with a variety of types of business partners to address specific market
segments and buyer preferences.
We work with several types of partners:
•Technology partners help us ensure that our software remains compatible with complementary hardware and software,
and help us adapt and respond to the emergence of new technologies and trends.
•We also work with global systems integrators who offer our software and solutions in their business practices and
leverage their process design, planning and vertical expertise to provide holistic solutions and implementation services
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