Computer Associates 2016 Annual Report Download - page 16

mainframe. This is critical as customers focus on their end users’ experiences on their apps and the underlying transactions that
traverse their heterogeneous environment. CA is one of the few companies positioned to deliver solutions that span cloud, open
systems and mainframe environments, reducing our customers’ cost of ownership and improving their time to service error
resolution. Second, we are able to leverage our core strengths and development efforts in our products within the Enterprise
Solutions segment to bring new innovations to the mainframe. This continued investment sustains ongoing customer
commitment to our mainframe solutions. From our Agile and Security expertise to UIM and APM solutions specifically tailored
for the mainframe, our customers benefit from our synergistic portfolio. Third, the Enterprise Solutions segment benefits from
CA’s heritage in running mission critical applications for many of the world’s largest companies. This gives us access to decision
makers and consideration for new sales opportunities that would otherwise be more difficult to obtain. Finally, CA benefits
from the operational and financial synergies that are the result of our expertise in both segments.
Services helps customers reach their IT and business goals primarily by enabling the rapid implementation and adoption of our
mainframe and enterprise solutions. Our professional services team consists of experienced professionals who provide a variety
of services, such as consulting, implementation, application management services, education and support services, to both
commercial and government customers. With approximately 1,000 certified consultants, architects, project managers and
advisors located in 30 countries and an extensive partner ecosystem, CA Services works with customers to navigate complex
business and technology challenges and deliver the services that best meet the customer’s business goals throughout the entire
solution lifecycle. In fiscal 2016, as a result of our acquisition of Rally, Agile coaches, whose primary focus is training customers
on the implementation of the Agile software development methodology, are incorporated into the Services segment.
Business Strategy
Our goal is to be the world’s leading independent software provider for IT management and security solutions that help
organizations and enterprises plan, develop, manage, and secure modern software environments, across mainframe, distributed,
cloud and mobile platforms. To accomplish this, key elements of our strategy include:
•Drive organic innovation. Our product development strategy is built around key growth areas, where we are focused on
innovating and delivering differentiated products and solutions across both distributed and mainframe. We are focused on
developing solutions that are easy to use, easy to implement and have a low total cost of ownership. A key element of our
organic innovation approach is the broad adoption of the Agile methodology to govern our software development process,
which we believe will improve our product development time-to-market, quality and relevance, and support our customer
success initiatives.
•Incubate technology for next generation products. We are researching and dedicating resources to the development of
emerging technologies that are logical extensions of our core areas of focus. We are working on opportunities in areas such
as containers, data analytics, big data and open source, some of which may become enhancements or extensions of our
current product portfolio and others may evolve to new product categories.
•Pursue new business models and expanded routes to market. While our traditional on-premise software delivery remains core
to many enterprise customers, we see cloud-based and try-and-buy models as increasingly attractive for our customers.
These models simplify their decision-making and accelerate the value they can derive from new solution investments. New
delivery models allow us to extend our market reach, speed adoption of our solutions, improve our efficiencies and
compete more effectively for a larger number of customers globally. As such, our new product development is focused on
our customers’ need for solutions that are simple and cost-effective to buy, install, deploy, manage and secure.
•Expand relationships with our global customer base and address opportunities with new and underserved customers. We are
focused on maintaining and expanding the strong relationships with our established customer base, and will proactively
target growth with other potential customers that we do not currently serve. In parallel, we are seeking to broaden our
customer base to new buyers in geographic regions we have underserved. The emerging roles of CISOs and Chief
Development Officers impacts who and where IT environment purchasing decisions are made within our customers. This
shift aligns with the product portfolio decisions we are making across our solutions set to meet our customers’ accelerating
need for speed and agility. We are refining our sales, services, marketing and customer success resources to reach beyond
the customers’ CIO and IT department to serve these new customer roles and respond to changes in customer buying
behaviors.
•Execute strategic and disciplined technology acquisitions. We intend to supplement our organic innovation efforts with key
technology acquisitions that are within or adjacent to our core areas of focus. We conduct a thorough acquisition process,
which includes build vs. buy analysis and opportunity identification, detailed business case modeling, rigorous due diligence
and extensive integration, to fully realize the value of our acquisitions.
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