Ca Technologies Case Study

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MG 6503: Management of Information Technology and Information Systems Spring 2013
Prof. Kevin Brabazon

CA Technologies Case Study

Prepared By
Xi Lou
Lun Li
Yang Cao
Yashen Wu

Table of Contents
Executive Summary
Overview
Problems & Alternatives
Scenario
Conclusion
Appendix I: SWOT Analysis
Appendix II: Porter’s Five Forces

Executive Summary
Technology changes will significantly reshape IT companies like CA Technologies. CA has kept its mainframe and clients’ server business in the past 30 years. The company provides the latest mainframe innovations. But CA has to face a new challenge whether it continuous to keep major business in mainframe or make a thorough transformation from mainframe to cloud computing. In the process of developing, CA met a lot of problems. Developing cloud computing needs a huge amount of money. CA needs to hire more high-tech specialists. In the meantime, maybe CA still needs to spend time on maintaining current mainframe and its clients’ data. If CA want to keep its mainframe and develop cloud computing in the same time, CA should separate the company into two major department: mainframe department and cloud computing department.

Even though we think CA have a lot of challenges in the transformation process. CA still has a lot of opportunities and advantages in the technology field. We recommend CA to maintain its main business in mainframe, and increase the investment in development of cloud computing.

Overview
CA Technologies is one of the largest independent software corporations in the world. They have maintained its well-respected position in the mainframe and client server business for the past thirty years. CA Technologies have expended their business to Asia, Africa and South America. The company created software that runs in mainframe, distributed, virtualized environments. Early mainframe computers ran software applications to help manage and automate a company’s many processes. CA Technologies and other software management companies developed software that streamlined and automated mainframe operations, lowering cost and freeing IT staff to work on more strategic projects. As the evolution of computing technologies, cloud computing dominated IT discussions. In 2007, as a 30-year-old technology business, CA had the most complete portfolio of management software from mainframe to client server. But some insiders thought the old strategy would cause the declining of the company’s revenue. After firm-wide strategic sessions and internal surveys, CA was reorganized to a new strategy. Four strategic pillars were established and a fifth area covered all aspects of CA cloud offerings. To strengthen the cloud computing capabilities, CA made some acquisitions from 2008 to 2010. Some insiders worried about this newborn company. Concerns regarding the security of cloud offerings surfaced from critics and others and positioned CA Technologies on a test to justify that cloud is safe to use. Not only opportunities, CA still faces a lot of challenges. Many challenges for CA would be solved like how to communicate the nature of CA Technologies’ strategy and transformation to its customers or something about technology and organizational issues still need to be done. Despite all the problems and challenges, CA’s leaders strongly believed the cloud computing will make the company to become the pioneer of this field.

Problems
Technology Issue:
1. Uncertainty of CA’s capability to do the cloud computing. As we all known that the main business of CA technologies was mainframe, and it accounted for over 60% revenue and majority of its profits. Furthermore, CA technology has possessed a good reputation in the mainframe market. As the new technology developed and the evolution of the industry, cloud computing appeared and has become the trend for the present business world. In order to develop its promising succession plan and maintain its highly competitive...
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