CA buys Concord to boost management

It’s all change at Computer Associates (CA), with the software giant announcing a corporate restructuring and the acquisition of network services company Concord Communications for US$330 million.

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By  Peter Branton Published  April 17, 2005

It’s all change at Computer Associates (CA), with the software giant announcing a corporate restructuring and the acquisition of network services company Concord Communications for US$330 million. Both moves are designed to strengthen the company’s presence in the security and systems management markets, the company said. On April 5, CA announced it was reorganising its product structure into five separate business units, with the general managers of each unit taking on more responsibility. “The business unit structure is a proven tool in the technology industry and is a natural next step for CA,” said John Swainson, CA’s president & CEO. One of the main units will be the enterprise systems management business, and CA promptly strengthened this with the purchase of Concord, which will become part of the unit. Concord makes business service management software, which helps to reduce IT downtime by monitoring network traffic and predicting how much bandwidth will be needed for applications. “With CA’s acquisition of Concord, we can provide our mutual customers with the broadest and deepest enterprise systems management offerings in the industry,” Swainson said. Analyst firm Gartner said the Concord purchase was a good move for CA, as it would help it compete with rivals such as HP’s OpenView. However, it warned CA would face integration challenges with its own offerings and Concord’s apps. While CA has developed a massive product portfolio over the years, Swainson is keen for CA to focus on its security and systems management busineses. The restructuring will give each business unit greater focus, with older products being shifted into one business unit.

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