CA's new strategy: build on Unicenter
Computer Associates is as hot as a bevy of cajun spices. CA's chief strategist tells why.
The company's stock is booming, its CA World 97 user conference has attracted 25,000 devotees, and a new strategy for its flagship management software offering has garnered the support of heavy-hitters such as Hewlett-Packard, Sun Microsystems, and Digital Equipment.
CNET's NEWS.COM talked with CA's Marc Sokol, senior vice president of advanced technology, to discuss the debut of a new stripped-down framework for the Unicenter enterprise management platform at the show, the slow death of long-held perceptions about the company, and the state of the booming enterprise network and systems management software market.
NEWS.COM: How does CA, a $4 billion player, continue to expand its role in
the industry?
SOKOL: On the growth side, I think our goal is to turn Unicenter into the
kind of platform that Microsoft
Windows is on the desktop. I'm not talking about technically doing that,
I'm talking about building an industry around Unicenter. I think the
framework is the second step toward that. I think the fact that we are now
going to be able to make Unicenter ubiquitous by driving the cost of
Unicenter down and raising its value and then selling management
applications that sit on top of it is a strategy that worked very well for
Microsoft with Office, for example. To show how open the framework is, we
have to have competitive products on there, we have to have another single
sign-on product, we have to have another scheduling product--that's fine,
we'll build on the framework and compete head-to-head when we go to the
customer.
NEWS.COM: What other things can users expect from CA in carrying out this
Windows-style strategy?
SOKOL: What people are going to recognize is the delivery of the
non-Windows NT user interface--this browser-based interface. It'll be due
soon. The use of Unicenter for non-computing devices more and more will
show its ubiquity to a certain extent in managing telephone switches and
meters and things like that. I think that as Jasmine multimedia database
rolls out, the intertwining of Jasmine technology and Unicenter technology
will spread it even further.
NEWS.COM: CA is not the best-known $4 billion company. How would you
explain what CA provides?
SOKOL: The goal is for us to basically provide the software infrastructure
to allow you to develop, deploy, and manage software and your
computing environment. To a certain extent, we're kind of like an insurance
policy for our clients. One thing you can't depend on is what platforms,
what operating systems, what devices you're going to be using in the next
five years. And we provide a guarantee, if you will, that no matter what
they are, if they are in use, if they're something that our clients want,
we will support them. If you build on top of our infrastructure, we will
support the platforms you have.
NEWS.COM: CA officials are quick to note that Unicenter is the "de facto"
standard enterprise management platform in the industry. What evidence is
there to support that?
SOKOL: There's a lot of indicators. The first indicator is that, although
we don't announce revenue by product, Wall Street has basically estimated
that we did a billion dollars with Unicenter alone in our fiscal year which
ended at the end of March. The other indicator is research companies like
International Data Corporation
show us with something like 70-odd percent market share. In any case,
we are dramatically ahead of everyone else. Just the framework release
alone is going to ship over a million copies in the next year. I think we
are breaking new ground. It's not a question of us competing deal for deal
with other companies.
NEWS.COM: Several analysts have noted that there seems to be a pitched
battle between you and IBM subsidiary Tivoli Systems. Is that how you see
things shaking out in this space?
SOKOL: IBM is a very large hardware company with a lot of sales people.
They have a growing services business. Where we see Tivoli is on deals
where IBM basically throws the software in and throws the services in to
get the deal. If IBM is outsourcing a large company to its Global Services
organization, lo and behold, they pick Tivoli. But in the cases where IBM
hardware is not involved, we hardly ever see them. What I like to say is
that if Tivoli brought in no revenue next year it would have almost no
effect on IBM's bottom line and have no effect on their top line. It's just
an afterthought really to the IBM hardware guys.
NEWS.COM: CA executives have said 60 percent of revenue still comes from
the company's mainframe-based products. What is an optimal percentage for
client-server-based software?
SOKOL: We hope that with client-server growing so fast that within five years it
will be 75 percent of our revenue. And it's not that our mainframe revenue
is not growing--it's growing high single digits. In most industries,
people would say "that's pretty awesome," but client-server is growing at
an unbelievable rate. Mainframe revenue will be there for a very, very long
time. The total number of mainframes shipped is not growing, but the total
size of those mainframes is growing. That really affects us.
NEWS.COM: How do you fight the perception that CA remains a
mainframe-centric company?
SOKOL: If Unicenter itself was a separate company, the revenue from it
would make us one of the top-ten software companies in the world. I think
it takes a very long time to lose an image that is so ingrained in the
public, but I think we'll just plod along and show people what we can deliver.