When CA Technologies (NASDAQ: CA) announced Q3 2013 results today, new CEO Mike Gregoire put a big spotlight on the company’s managed services provider (MSP) software business. Indeed, he mentioned CA Nimsoft by name in an earnings release, a timely statement that could quiet some of the company’s M&A critics. Plus, there are signs CA’s AppLogic cloud platform also gained renewed focus. Here’s why.CA acquired Nimsoft in March 2010. Nimsoft makes IT management and monitoring software, which typically appeals to mid-market and larger MSPs. The company also offers IT service management (ITSM) software. Nimsoft has remained in growth mode, expanding its MSP installed base by about 72 percent since CA acquired the company.
However, Nimsoft has had multiple leaders under CA’s ownership. And more recently, Nimsoft was more deeply integrated into CA Technologies. The result: Some critics wondered if CA was somehow squandering Nimsoft’s assets and unique position in the MSP mid-market. Critics also wondered if another acquisition — AppLogic — was losing momentum among cloud services providers (CSPs) and aspiring SaaS providers.
Now for the reality check. In its most recent quarter, CA’s revenue slipped 4 percent to $1.195 billion. But earnings per share rose 4 percent, and the company reaffirmed its outlook for the full fiscal year 2013. That forecast was critical to silencing CA’s critics. Then came the most important statement, at least for Nimsoft’s partners.
In a prepared quote, Gregoire said:
“While we are encouraged by improvements we saw in the business during our third quarter, including increased demand for our Nimsoft, Infrastructure Management and Service Virtualization offerings, we know that we need to do more to accelerate innovation, gain market share and better differentiate our solutions in the marketplace.”That’s a direct endorsement of Nimsoft, and an indirect vow that AppLogic (service virtualization) is also a core focus going forward, under the leadership of Senior VP Adam Famularo. UPDATE:
So while CA Technologies’ top line revenues fell a bit, it sounds like the Nimsoft and AppLogic acquisitions are atop Gregoire’s priority list for the rest of this fiscal year.
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