CA: A Lot Of Activity, Not Much Movement

LAS VEGAS: At last year’s event, in front of 4,000 customers, CA Technologies said it was tooling up for the application economy; before 5,000 customers — including 45% new customers — at CA World ’15, the company said the digital/application/API economy is here, and now it’s just a case of getting the laggards, i.e. the overwhelming majority, up to speed. However, while CA retools for the digital economy, it doesn’t look like the digital economy is buying in at a fast-enough pace. For its most recent quarter (2QFY16, which ended September 30), the company reported $1.005 billion in revenues, with new sales up more than 40% year-over-year. That’s the good news; the bad news is that every major metric, including revenues and profits, were down YoY, and the outlook for the rest of the year is lukewarm. From a product perspective, the mainframe is CA’s heritage, and still a strong contributor to its bottom line (over 50% of revenue), which should continue to be so for the foreseeable. After refreshing its Z Series, IBM’s revenues in the $250k-plus server segment shot up 66.1% in Q1. “People say the mainframe is dead,” said Vernon Turner, an analyst at IDC, “but we say, hmmm, that’s a $4.5 billion tombstone.” According to IBM: -more than 70% of enterprise data resides on a mainframe; -71% of all Fortune 500 companies have their core businesses on a mainframe; -92 of the top 100 banks use the mainframe; -23 of the world’s top 25 retailers use the mainframe; -10 out of 10 of the top insurers use the cloud on the mainframe; and, -more than 225 state and local governments worldwide rely on a mainframe. Identity-centric security is another core focus of CA, which was given a helping hand recently with the acquisition of Xceedium. The good news for CA is that security is broken, breaches are climbing and insiders are to blame for the majority of the problems. Mordecai (Mo) Rosen, CA Technologies VP, Product Management and Strategy for Privileged Access Management, used the military term adopted by infosec, killchain, to describe the three-step process in cyber attacks: obtain access; elevate privilege; and wreak havoc. The industry’s traditional perimeter approach is largely to blame, he added. “A tech refresh has to happen in security.” For most of the last 30 years, it’s been a case of building a perimeter and then letting everybody in. “Identity management… has to become an enormous priority”. One area undergoing a change in direction is data center infrastructure management (DCIM). Rated as a leading vendor in this category just a year ago, the company has announced it will no longer sell its standalone solution,...

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IBM and Cleversafe: The Objective Value of Object Storage

IBM’s announced purchase of Cleversafe, a Chicago-based developer and maker of object-based storage software and appliances, is an interesting move for a vendor whose roots are deep in enterprise computing. IBM says that the acquisition strengthens its positions in storage and hybrid cloud, and will also support the adoption and use of next-gen mobile, social and analytics applications To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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IBM Plans to Acquire… Cleversafe

IBM has announced its intention to acquire Cleversafe, which is recognized as a leader in the development and manufacture of object-based storage software and appliances. The deal (for undisclosed terms) is expected to close in the fourth calendar quarter of 2015. Upon closure of the deal, IBM will integrate Cleversafe into its IBM Cloud business unit. The reason is that object-based storage plays a key role in hybrid cloud deployments today (think Amazon S3 for the public cloud), and its importance is expected to increase dramati-cally. Let’s examine three questions to better understand why IBM is acquiring Cleversafe and why that is important. -What is object-based storage and why does it matter? -What does Cleversafe bring to the table? -How will IBM integrate Cleversafe? For more information, EMAIL davidhill@mesabigroup.com NOTE: This column was originally published in the Pund-IT...

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Countdown To Failure: 6 Seconds Or Bust!
Mar05

Countdown To Failure: 6 Seconds Or Bust!

Businesses that fail to deliver a positive application experience risk losing as much as 27% of their customer base, according to a new study from CA Technologies. Another key finding: brand loyalty has a 6-second shelf life. That’s all you’ve got to get it right or you’ll risk doing irreparable damage to your business. The bottom line, said CA’s Andi Mann, VP Office of the CEO, is that the customer experience is critical, and most organizations don’t understand that. “What does surprise me [from the study, Software: the New Battleground for Brand Loyalty] is the fact that business decision makers don’t understand where they’re falling down in every single category. I think that is a wake-up call.” Businesses think application delivery is largely better than consumers do. There is a difference of 15% in financial services, and 14% each in Information and Technology and Government Administration. The second surprise was just how easy it is to lose a customer if the application is not right. “It’s quite shocking, a third of the users will click away… after just 3 seconds… two thirds after 6 seconds… and 10% don’t even wait one second,” he told IT Trends & Analysis. This is a broad study: 6,770 consumers and 809 business decision makers in 18 countries. According to the consumers the three application characteristics with the biggest impact on the user experience are: -quick loading – 68% who left a brand because of poor load times said a loading time of six or less seconds was acceptable – and slightly more than half of those respondents demand a load time of less than three seconds; -simple functionality – more than 70 % ranked ‘perform tasks with little difficulty’ and almost 80% ranked applications that have ‘easy to use features’ as top drivers of their decision to utilize or purchase an application; and, -security – out of users who had a fair or poor experience, 10% said that they would leave a brand forever because of issues with security. Mann added that applications are critical. According to the survey, 49% of consumers are using applications to bank, 48% use applications to shop, and more than half say they’d be willing to use applications to perform tasks like paying taxes, managing healthcare or even voting in elections. Mann said businesses need to pay attention to the “app gap”, the delta between consumer demands and their own goals for application development. The things that matter most to consumers are that the application is quick, secure and delivers on its promise without much effort on their part. The good news is that it’s relatively easy to...

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Aruba Just The $2.7B Tip Of HP’s Acquisition Iceberg?

HP has announced it will shell out $2.7 billion to acquire Aruba Networks, which trails only Cisco in selling wireless networking equipment, but is far ahead of HP. Acquiring Aruba will change that, says IDC analyst Crawford Del Prete. “This definitely moves them to be competing more with Cisco than any other (Wi-Fi) networking supplier today.” Aruba had revenues of $729 million in fiscal 2014, and has reported compound annual revenue growth of 30% over the last five years. “By combining Aruba’s world-class wireless mobility solutions with HP’s leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP. However HP needs to do a lot more, said Del Prete, who predicts enterprise software companies will likely be its next targets, especially after seeing its software sales fall nearly 5% year over year. “They are not moving fast enough in software,” he said. “They need to continue to build out that portfolio, particularly around information management, security and Big Data – and it’s just not there yet.” Abhey Lamba, Mizuho Securities USA, believes the deal will help HP’s networking efforts, but it is “unlikely to move the needle” for the company overall: Aruba has grown revenues at a 30% CAGR over the past five years and is expected to expand its sales in the mid to high teens over the next couple of years. However, the company’s revenue run rate of ~$800-850mm would represent less than 2% of HP Enterprise’s overall revenues. As such, even high teens’ rise is unlikely to help solve the growth problem within the company. However, it will clearly help enhance HP’s offerings in the networking space that posted 4% growth in FY14 and 11% Y/Y decline last...

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