Computer Associates 2012 Annual Report Download - page 17

We consider customer relationships important to the success of our business strategy, and we remain focused on strengthening
relationships with our approximately 1,000 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 are dedicating more sales resources and deploying additional solutions to address opportunities we see to sell to
new customers. These include approximately another 1,000 Large New Enterprises with annual revenue of more than $2 billion and
approximately 7,000 Growth Market customers with annual revenue of $300 million to $2 billion. We believe we have a significant
opportunity to grow our business and increase share in these markets.
To this end, in the last half of fiscal 2012, we began rebalancing our sales force to add 300 new quota-carrying sales representatives,
of which one-third are new to the Company. These incremental representatives will be dedicated to and compensated for selling
products to new customers. In February 2012, we aligned our business, including both internal business units and some operational
functions, to more closely align with our products to reflect both the evolving markets and our new target customers.
We have identified a core set of solutions that are differentiated in the market and that we believe will allow us to rapidly establish
relationships with new customers that provide a foundation for subsequent sales. Our Nimsoft Unified Manager, backup and recovery
solutions and SaaS-based offerings are well-suited to customers in the Growth Market, and we have invested in expanding our
channel relationships to broaden our reach. 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, while we continue to expand our presence in Japan.
No single customer accounted for 10% or more of our total revenue for fiscal 2012, 2011 or 2010. Approximately 9% of our total
revenue backlog at March 31, 2012, 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
To reach Large New Enterprises and Growth Markets, we continue to expand our go-to-market business model to embrace partners.
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:
•To reach Large New Enterprises, we leverage technology partners. They 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 services for our customers.
•To reach Growth Markets that have more sophisticated technology requirements, we collaborate with a network of regional
solution providers that have the sales and implementation resources to deliver and support IT solutions tailored for this market.
•For customers of all sizes who prefer to buy IT as a service rather than through a traditional licensed software model, we have
tailored our technology solutions and partner strategies to enable a large cross-section of service providers to deliver IT
management-as-a-service. These service provider partners range from the largest global IT outsourcing and telecommunications
firms to regional and local infrastructure service and managed service providers. Service providers are both buyers of technology
and “sell through” partners to buyers of IT as a service.
Because these partner business models are blurring due to rapid changes in technology capabilities, buyer preferences and
competitive dynamics, we have created a single global partner program office to consolidate and align partner strategies, program
offerings and recruitment and enablement activities.
In certain non-U.S. geographic locations, including in the Asia-Pacific and Japan region, our primary routes to market are value-
added distributors and volume partners. In other non-U.S. geographic locations, principally in southern Eastern Europe, the Middle
East and Africa, we use a franchise model with exclusive representatives, who represent our interests in a particular geography on an
exclusive basis, as our primary route to market.
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