CA’s Perfect Storm (But For How Long?)
Nov16

CA’s Perfect Storm (But For How Long?)

LAS VEGAS:  This would appear to be the perfect time for CA Technologies, which has gathered its key customers and partners here for CA World ‘17. A growing data deluge, a sweeping digital transformation revolution, a heightening focus on security, and the exploding need for constantly evolving apps are all driving this perfect storm at which CA should be at the epicenter. However, neither a perfect storm, nor an epicenter can be weathered without severe risks, and based on the software giant’s most recent financial results CA’s success is still problematic. On October 25 the company reported FY18 Q2 revenue of $1.034 billion, and while that was up 2% year over year, net income was down 13% and bookings were down 1%. The outlook for the remainder of the fiscal year is approximately 5% increase in revenue to between $4.22-$4.25 billion, and a 5%-8% decrease in earnings per share. While painting an optimistic picture — highlighting the SaaS business growth, total new sales, Enterprise Solutions new sales, and Mainframe new sales “all outperformed the year-over-year decline in the renewal portfolio” — during the analysts’ call following the earnings report, CEO Mike Gregoire also noted “disappointing” sales execution in Q2. “In particular, velocity in sales outside of the renewal cycle of Enterprise Solutions products was short of our expectations.’ Overall, Gregoire said the company was well-positioned for the future. “We are well positioned in great markets, and our solutions are solving real problems for our customers.” CA sees itself as the toolmaker for the DT generation, pushing its modern software factory philosophy. Digital transformation should be an ISV’s dream market: spending on DT technologies will exceed more than $1.2 trillion this year, and continue to grow at almost 18% per year to $2 trillion by 2020, almost 20X the anemic growth forecast for the overall IT market. At last year’s event the company trotted out the its Built To Change paradigm, and reinforced it with the ‘Built to Change Summit’ in June. This week’s theme, No Barriers, is all about marrying CA’s own transformation experience with its products, services and expertise, to help its customers overcome the barriers embodied by DT, as Gregoire stated in his keynote yesterday. “The focus today is on innovating the next big shift for your company,” he said. “That is the number one priority we are focused on – providing you with solutions that will remove the barriers between your ideas and outcomes.” CA is helping a lot of companies to change, and Gregoire called out a few, including FedEx, Netflix and Citi, as well as telling the audience that they will be instrumental in...

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VMware’s Intention to Acquire VeloCloud…

The announcement of VMware’s intention to acquire VeloCloud signals the broadening of the NSX Everywhere story. SD-WAN is a solution that offers agility, security, orchestration, and other business outcomes for remote and branch offices. It should not be considered just an MPLS replacement for the WAN with savings on bandwidth costs. At a core level, both NSX and VeloCloud’s products are based on an overlay network, which offers the flexibility to treat a logical network separately from the physical network, and this core concept has been popularized for many years via MPLS. Ironically, it’s the perceived lack of flexibility and costs of MPLS that have become the initial drivers for the popularization of SD-WAN, which promised to modernize the branch networks and WAN. VMware’s NSX Everywhere plan is similar to Cisco’s ACI Anywhere plan since it enables the core data center networks to reach out into other locations such as a public cloud. To read the complete article, CLICK...

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…Security Operations Automation before Orchestration

Based upon numerous conversations with CISOs, there is widespread interest in automating and orchestrating security operations. In fact, lots of enterprises are already doing so. According to ESG research, 19% of enterprise organizations have already deployed security operations automation/orchestration technologies “extensively,” while another 39% of enterprises have done so on a limited basis. Now we tend to lump automation and orchestration together, but there are vast differences between the two. In a recent survey on security operations, ESG defined these term as follows: To read the complete article, CLICK...

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And Now For Something Completely Different… And This Time We Mean It

Just days after unloading the majority of its software business HPE reported better-than-expected financial results, including $8.2 billion in revenues. “Execution continued to improve and our profitability increased over last quarter as we reduced costs across the organization and we successfully closed the spin merge of our software business late last week,” said CEO Meg Whitman during the earnings call. “With that milestone behind us, we are off and running.” Whitman attributed the “strong Q3 performance” primarily to better execution and a “compelling portfolio”, i.e. core server revenue was up 13% year-over-year, 200% growth in HPE SimpliVity hyperconverged offering (albeit off a small base), 30% year-over-year all-flash storage growth (driven by Nimble), and continued success with Aruba, including 30% growth in wireless LAN solutions. She also announced the intent to acquire Cloud Technology Partners, which helps Fortune 500 customers move to a cloud, build new cloud-based solutions and manage their cloud environment. Of course it wouldn’t be HPE without some controversy, and this time it was the stories circulating about Whitman jumping ship to Uber. Her explanation during the earnings call left something to be desired: she said she was called in late to be interviewed for the CEO position but “in the end that wasn’t the right thing.” She stated that there is lots more work to do at HPE to make it successful and “I actually am not going anywhere.” At least until the next time. The company was generating close to $120 billion annually just five years ago, and under Whitman’s guidance the company split into two — HP (PCs and printers) and HPE (enterprise) — and spun-merged software and services to shrink HPE down to a still significant, but significantly smaller $30-billion powerhouse. HPE is a Jekyll and Hyde, difficult to figure out, according to Mark Peters, ESG Practice Director and Senior Analyst (Storage), Enterprise Strategy Group. In June he noted that the company’s direction is becoming clearer. Whitman said things were getting easier, with “nowhere left to hide.” That’s no longer the case, said Whitman in a post-earnings call. “Now we can see Hewlett Packard Enterprise on a go-forward basis with perfect clarity.” The proof is in the performance of high-performance computing, Synergy, Simplivity, and Nimble all-flash arrays, she added. “What we have done, if you pull the lens all the way back,” said Whitman, “is to focus on higher-growth, higher-margin products, while stabilizing the core.” Software continues to be critical, but HPE’s focus is on system software, not the application software spun-merged with Micro Focus. “We are focused, though, on moving hard to software-defined infrastructure, with a stack that is quite modern, including...

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Micro Focus HyPEs New Security Business
Sep14

Micro Focus HyPEs New Security Business

“It was the best of times, it was the worst of times…” Charles Dickens, A Tale of Two Cities (1859)   Last week Equifax, a supplier of credit information, reported that a recent data breach could affect up to 143 million consumers in the U.S. It’s even worse for businesses: according to Cisco’s 2017 Midyear Cybersecurity Report, only 66% of organizations are investigating security alerts, and businesses are mitigating less than 50% of attacks they know are legitimate. More than 150 years ago author Charles Dickens started off his novel ‘A Tale of Two Cities’ with “It was the best of times, it was the worst of times…”, and that line is still timely when it comes to cybersecurity and the new and improved Micro Focus. The new company officially debuted on September 1 with the ‘spin-merge’ acquisition of Hewlett Packard Enterprise’s software business valued at $8.8 billion, making it the world’s ‘seventh largest pure-play software company’, with annual revenue of $4.4 billion. Chris Hsu, formerly COO of HPE and EVP and GM of HPE Software, is now CEO of Micro Focus. Under the terms of the deal, HPE shareholders own 50.1% of the new company, which works out to approximately $6.3 billion, which is in addition to the $2.5 billion cash payment that HPE received. The deal involved the ArcSight security and Mercury Interactive application management assets, as well as the late and unlamented Autonomy Corp. plc, which HP acquired in 2011 for $11.1 billion (more than $16 billion for all three acquisitions), but ended up writing off almost $9 billion of the purchase price. According to Securities and Exchange Commission filings, HPE’s software business revenue in the 12 months through Oct. 31, 2016 were $3.17 billion. ITOM (IT Operations Management) comprised 61% of the revenue; Enterprise Security Products (18%); Information Management and Governance (16%); and Big Data Analytics (5%). Revenue for all products broke down to: 28% license, 9% software-as-a-service (SaaS), 50% maintenance, and 13% professional services. On Tuesday the company refreshed its expanded security portfolio, with new and enhanced offerings, including: -ArcSight Data Platform (ADP) 2.2 (GA October) brings native, realtime log parsing, security data enrichment and normalization into the innovative Event Broker for security operations that scales to any data volumes, building the power of ArcSight’s connectors directly into the Event Broker; -a new partnership provides IT and security teams with data that has been enriched for better visibility and customization within powerful search dashboards of Elastic; –ArcSight Investigate 2.0 (GA October) with built-in security analytics displayed in pre-defined dashboards that are powered by Vertica to provide actionable intelligence for front-line analysts; -Change Guardian 5.0...

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