CA WORLD, LAS VEGAS, November 15, 2005 – At CA World, Andrew Dutton, senior vice president and general manager for Europe Middle East & Africa (EMEA) at Computer Associates International, Inc. (NYSE: CA), outlined his vision for CA and the enterprise software industry in his region. Central to Dutton's vision for CA is a focus on delivering more value to customers by addressing their complex IT management challenges. Dutton also outlined what he sees as the major challenges facing Chief Information Officers (CIOs) which should create the impetus for change among IT vendors.
“The CIOs I talk to recognise all too clearly that their job is becoming more challenging, and their business and IT environment even more complex. Even so, today's organizations still want, need — and expect — IT to continue to do great things for the business,” explains Dutton.
Dutton stated that the three main challenges facing CIOs of leading corporations in EMEA were first, to simplify and reduce the cost of managing complex IT infrastructures; second, to better manage risk especially in the areas of security and compliance; and third, to manage IT as a business serving their corporation's strategic goals. He said these observations were supported by the findings of CA's first Annual IT Management Index conducted by independent UK market research company MORI. A key finding of the survey, the full results of which will be released shortly, was that complexity is the biggest single issue facing CIOs, with half of those surveyed viewing complexity as the “enemy” of the CIO.
“CA's goal is to simplify this complexity and unify the computing infrastructure of our customers by becoming more customer-facing and offering deeper technical and business expertise than our competitors. With this in mind, over the next two years we plan to substantially increase the ratio of CA employees who are customer-facing and can deliver the breadth and depth of expertise that enterprises are demanding. We are also unleashing the value delivered by the people and technologies that have come to CA through recent acquisitions such as Concord, Netegrity and Niku. In so doing, we are able to provide CIOs with complete, unified solutions that address their most pressing IT management challenges."
Strategy for sustained, profitable growth in EMEA
CA in EMEA today delivers over $1 billion per annum in revenue, which represents more than a quarter of the company's total worldwide revenues. However, CA has set a new challenge to achieve growth in EMEA — above the overall enterprise software market.
CA plans to realise its growth objectives by executing a strategy focused on four key areas. Firstly, by packaging CA's IT assets as 'business enablers' that address specific business needs; secondly, by leveraging its comprehensive IT management software portfolio to achieve competitive differentiation; thirdly, by strengthening its leadership position in the mainframe business; and fourthly, by expanding operations in fast growing geographic markets.
At CA World, Dutton announced a newly focused organisation for CA's business operations in EMEA which positions the company for sustained year-on-year growth over the medium to long term. The new organisation comprises five new business units, simplified geographic regions and a strengthened EMEA central management team. Outlining the company's strategy, Dutton said, “We are embarking on a new and very exciting era at CA in which we have one primary goal - to ignite growth in our business across EMEA.”
Region-wide business units focused on growth segments
The five new business units for CA in EMEA comprise enterprise systems management, security management, storage management, business service optimisation and mainframe.
Geographical simplification
CA's EMEA organization currently incorporates 33 countries, which have now been consolidated into five regional groups run by senior managers reporting to Dutton. These regions are western markets (UK, Ireland, South Africa and Israel), southern markets (France, Iberia, Italy and Greece), central markets (Germany, Switzerland and Austria), northern markets (Sweden, Norway, Finland, Denmark, Benelux and the Baltic states), and eastern markets (Arab countries, Russia, Central & Eastern Europe, Pakistan and Northern & Central Africa).
Strengthened central EMEA management team
At the core of CA's new business model is a reinvigorated management team who will drive this simplified organizational and business model to ensure better execution and greater accountability. This involves new senior appointments such as Sabby Gill, vice president, operations and integration, EMEA, and a new head of CA's western market operations, Alan Banks, as well as the appointment to senior positions of key managers from companies recently acquired by CA (see accompanying news release).
“Our market is constantly changing. Successful companies are able to move and change course fast. With this re-alignment of our efforts, we believe that we can evolve to take advantage of new market opportunities and deliver what today's CIOs really want from an IT partner,” Dutton concluded. “We'll be executing against this new model over the coming weeks, months and years to drive sustained expansion of CA's business both geographically and within key business segments showing high growth potential.”
* Editors note: CA's Annual IT Management Index is the result of a MORI survey of CIOs from more than 130 leading companies in the UK & Ireland conducted in Autumn 2005.
NOTES TO EDITORS
About CA
CA (NYSE: CA), one of the world's largest information technology (IT) management software companies, unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA is headquartered in Islandia, N.Y., and serves customers in more than 140 countries. For more information, please visit http://ca.com.
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Certain statements in this communication (such as statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) constitute “forward-looking statements.” A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the risks and uncertainties associated with the CA deferred prosecution agreement with the United States Attorney's Office of the Eastern District, including that CA could be subject to criminal prosecution or civil penalties if it violates this agreement; the risks and uncertainties associated with the agreement that CA entered into with the Securities and Exchange Commission (“SEC”), including that CA may be subject to criminal prosecution or substantial civil penalties and fines if it violates this agreement; civil litigation arising out of the matters that are the subject of the Department of Justice and the Securities and Exchange Commission investigations, including shareholder derivative litigation; changes to the compensation plan of CA's sales organization may encourage behaviour not anticipated or intended as it is implemented; CA may encounter difficulty in successfully integrating acquired companies and products into its existing businesses; CA is subject to intense competition in product and service offerings and pricing and increased competition is expected in the future; certain software that CA uses in daily operations is licensed from third parties and thus may not be available to CA in the future, which has the potential to delay product development and production; if CA's products do not remain compatible with ever-changing operating environments, CA could lose customers and the demand for CA's products and services could decrease; CA's credit ratings have been downgraded and could be downgraded further which would require CA to pay additional interest under its credit agreement and could adversely affect CA's ability to borrow; CA has a significant amount of debt; the failure to protect CA's intellectual property rights would weaken its competitive position; CA may become dependent upon large transactions; general economic conditions may lead CA's customers to delay or forgo technology upgrades; the market for some or all of CA's key product areas may not grow; third parties could claim that CA's products infringe their intellectual property rights; fluctuations in foreign currencies could result in transaction losses; and the other factors described in CA's Annual Report on Form 10-K for the year ended March 31, 2005, and any amendment thereto, and in its most recent quarterly report filed with the SEC. CA assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
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