CA: Toolmaker For The DT Generation

SAN JOSE: CA Technologies has weathered tremendous changes since planting its mainframe roots in 1976, but as it starts its fiscal 2018, following a year of relatively flat sales and profits, the $4 billion software vendor is facing its greatest challenge… and opportunity. The challenge is transforming a company that is primarily based upon the legacy software business into a fast and agile contributor to the emerging Digital Transformation revolution. The opportunity: 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. There weren’t a lot of answers at last week’s ‘Built to Change Summit’, but the company’s senior management, including CTO/EVP Otto Berkes and President and Chief Product Officer Ayman Sayed, spoke frequently, and in depth, about the onrushing DT express, and how CA is positioned to help its customers weather the journey. We are one of the few companies uniquely positioned to help companies manage digital transformation, stated Sayed. “Effectively we are helping them build a modern software factory,” he said. “If you look at our customers, almost every single one of them is racing to transform their business into a software factory.” A week prior to the event the company unveiled The Modern Software Factory as its new marketing campaign to showcase the full spectrum of capability CA brings — either a single solution, or a combination of solutions across the areas of Agile, DevOps and Security — to customers navigating the challenges of digital transformation. CA has been pushing DT and the application economy for some time, and the opportunity was one of the reasons why Berkes moved over from HBO in 2015, following almost 20 years at Microsoft. “… that transformation was formative in bringing me to CA… to build the tools to enable enterprises to manage that transformation…” DT (AKA digitization or Industry 4.0) and its related technologies — cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security — is generating tremendous change, but only 5% of large companies are prepared to meet the IT requirements of the Digital Business era. Given the stakes — i.e. a 33% increase in speed to market; 40% increase in customer satisfaction; 37% increase in new business revenue; an expected increase in annual revenues by an average of 2.9%; an expected reduction in costs by an average of 3.6%; while “first movers” ‘are far more likely to be forecasting both revenue gains of more than 30% and cost reduction of more than 30%...

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ITOM Drives Pending HPE/Micro-Focus Spin-Merge
May04

ITOM Drives Pending HPE/Micro-Focus Spin-Merge

The Hewlett Packard Enterprise IT Operations Management Summit, this week’s three-day event in Dallas, is over, but how the ITOM business will move forward when HPE’s spin-merge with Micro-Focus is completed remains to be seen. The $8.8 billion transaction, which will earn HPE a $2.5 billion cash payment and a 50.1% stake in the combined company, is expected to close August 31, at which time Chris Hsu, COO and Executive Vice President of HPE Software, will become the CEO of the new entity. Recent Securities and Exchange Commission filings included details about HPE’s software business: total revenue in the 12 months through Oct. 31, 2016 were $3.17 billion and ITOM comprised 61% of the revenue. The rest of the portfolio changing hands were: Enterprise Security Products (18% of revenue), 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. While a pure-play software company offers ‘promise’, Gartner stated that adding HPE’s ITOM and ADM offerings to Micro Focus’ portfolio creates ‘significant, complex and uncertain overlaps’. Analyst Rob Enderle, who has been unimpressed with the performance of HPE and President and CEO Meg Whitman, called the software business the idea that ‘just hasn’t died a well-deserved death.’ Prior to the spin-merge Forrester Research analyst Glenn O’Donnell predicted that a software deal would play into the direction the company has taken since it separated from HP Inc. “Selling the software business fits in with the strategy of breaking into smaller pieces, which is the company’s plan now,” he said. “There’s a lot of merit in that position, as a lot of those software components are not necessarily at the core for them.” There are no recent number for the ITOM market, but as of last July one survey put it as the largest component of the IT operations and services management market, and it was predicted to grow 7.5% annually between 2016 and 2024. The global ITOSM market was valued at $17.40 billion in 2015 and it is expected to expand at a CAGR of 6.5% through 2024 to reach $30.96 billion. In addition to HPE, key vendors include: IBM, Oracle, Microsoft, BMC Software, ServiceNow, VMware, Compuware, and CA Technology. In March the company announced the release of Docker-certified ITOM monitoring solutions for Docker containers on the new Docker store, which was followed shortly after by the launch of four containerized versions of its ITOM offerings: Hybrid Cloud Management, Data Center Automation, Operations Bridge, and IT Service Management Automation. Incorporating built-in, open source container technology from Docker and Kubernetes, the four suites feature...

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…EMC Really is a Software Company

Storage hardware vendors like to refer to themselves as software companies. While it is true that most of them write storage software that runs on off-the-shelf hardware, most of them require that you buy their hardware to get their storage software. EMC, one of the first to claim to be a software, has evolved into a real software company. Other than the obvious software properties, like Networker or Vipr, an increasing percentage of its storage solutions are available as software. To read the complete article, CLICK THE AUTHOR’S NAME NOTE: This column was originally published in the Storage Switzerland Weekly...

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Compuware Drapes Mainframe In DevOps’ Clothing
Jan20

Compuware Drapes Mainframe In DevOps’ Clothing

Do Not Go Gentle Into That Good Night Do not go gentle into that good night, Old age should burn and rave at close of day; Rage, rage against the dying of the light. Dylan Thomas Mainframe vendors, once the only platform in the computer industry, have given way to new entrants, with the likes of commodity hardware, open source software and the cloud. While still holding a sizable slice of the IT market, even IBM has broadened its focus, but not so for privately held Compuware. It has taken on the mission to “mainstream the mainframe” and is making a set of announcements intended to make Big Iron more popular, including: integrations with Splunk, Atlassian, SonarSource, AppDynamics and Jenkins; and the acquisition of assets of ISPW, a provider of agile source code management and release automation solutions for cross-platform development. Despite decades of progress on other platforms, ‘mainframe code is still managed by siloed teams using slow processes and obsolete tools, stated the company. “If your mainframe application development isn’t Agile, your business can’t be agile,” said Compuware CEO Chris O’Malley in a prepared statement. “Our mission is to help customers achieve that essential business agility by empowering Agile DevOps teams to master the mainframe just as they do other platforms in the multi-platform enterprise.” Clearly the mainframe will remain a critical platform for the foreseeable future, O’Malley told IT Trends & Analysis, but the perception is much bleaker. Customers are cynical about the mainframe vendors, they lie and have lost the will to innovate, he said. We’re “proving we can innovate… and we’re trying to bring the mainframe to mainstreet”. “You’ve got to work hard to re-earn that trust.” Compuware wants to reach out to what it calls the “renegade developers” and motivate and enable them to leverage the mainframe. “To do that… we’re going to get rid of the esoteric differences on the mainframe… (and make it) a collaborator with the usual suspects in DevOps.” Since going private at the end of 2014, the company, which was founded in 1973, has been on an aggressive pace of innovation. In addition to a constant flood of new products, it has been receiving positive reviews, as well as increasing revenues and bookings each quarter, said O’Malley. In July analyst Rich Ptak, Ptak Associates LLC, lauded Compuware for delivering on its promises. ‘They not only provide much needed and highly effective solutions, they are living proof of the high efficiency and agility that can be accomplished in mainframe computing by delivering high quality solutions at an unheard of pace. Congratulations to them.’ Joe Clabby, Clabby Analytics, was equally effusive...

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CA & CAW15: The Rest Of The Story
Nov23

CA & CAW15: The Rest Of The Story

With the fun and games behind them (CA World ’15), CA Technologies has to get back to the work at hand, continuing its reinvention. The software giant is pinning its future on where the market is going — variously tagged as the digital economy and the API/business as software worlds — while chained to its very profitable, if more slowly growing (or slowly declining), mainframe (over 50% of company revenues), management and security software roots. It’s a monumental task: can CA sell enough product and services to its new opportunities (which grew more than 40% year-over-year last quarter), while keeping its mature business moving forward, albeit at a snail’s pace (overall revenues continued to decline and share prices are anemic), and stave off the possibility of shareholders looking for more value, and/or potential acquirers? CA has made great progress in its offerings, but they are not satisfied, said CEO Mike Gregoire in his opening keynote to 5,000 customers plus assorted partners and staff. “We are committed to raising our game. There is no finish line in customer service.” I asked analyst Joe Clabby, Clabby Analytics, what CA got right at this year’s event, and what they need to do moving forward. He said they stuck to the messages that they came out with last year on application development the application economy, DevOps, management, agile, etc. and “showed solid progress” in all of those areas (including customer case studies). “They appear to me to have a solid strategy, and they’re executing well. Gregoire has revamped the salesforce, made his workforce more efficient, and is well-prepared for growth. The financial analyst who sat behind me on day one has even issued a strong buy recommendation.” As for what remains undone for CA is getting more analytics into their management offerings. “Here’s the deal: they collect tons and tons of big data information about the health of systems, on applications behavior and the like. They then turn all of that data over to humans to figure out what to do with it. They need to get analytics programs in place that will help sort through that data, making it easier to do root cause analysis and fix things. They have a few products that do analytics on the data that they capture, they need a lot more.” The company is moving as quickly as possible down the “agile” path, and its 4,000 software developers all being trained in agile, said Gregoire. “Within one year, my expectation is everybody in the company, especially on the development side, will be proficient.” He expects this to be reflected positively in their products, although with caveats....

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