Gartner welcomes CA’s clever purchase of Wily

CA’s capture of application management firm Wily Techno- logy is good news for its customers, according to analyst group Gartner. However, it warned that CA will probably need to make more acquisitions if it wants to bolster its offerings in this space.

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By  Chris Whyatt Published  January 22, 2006

CA’s capture of application management firm Wily Techno- logy is good news for its customers, according to analyst group Gartner. However, it warned that CA will probably need to make more acquisitions if it wants to bolster its offerings in this space. Earlier this month the software giant confirmed its purc- hase of Wily for US$375million (see IT Weekly 14- 20 January 2006). Wily primarily sells Java 2 platform, Enterprise Edition (J2EE) application and middleware management technology. In an online advisory, Gartner said the move would be beneficial for CA customers because the vendor “will now have access to one of the most competitive J2EE application management platforms in the IT operations management industry.” However, it also warned that “this acquisition is just one of several steps CA must take to bolster its application management product line.” Gartner expects CA to either make more acquisitions, or rely on internal development to enhance its support of various application packages — including Exchange, SAP and Oracle. Gartner also had good news for Wily customers, pointing out that CA’s record of bad customer relations was improving. “Historically, the acquisition of a company by CA has tended to be cause for customer apprehension,” the advisory said. “However, with recent purchases of Concord Communicati- ons, Netegrity and Niku, CA has seemingly demonstrated that it is now able to retain key personnel while continuing to grow the acquired businesses,” it stated. “Whether Wily customers can continue to receive from CA the “high touch” market approach they once received from CA remains to be seen,” it continued. CA said it hoped to reap the benefit of expansion in the applications management market by providing its customers with more tools to manage IT environments. “Application management is key to enabling customers to manage IT environments from end-to-end — from applications to infrastructure — and delivering on CA’s Enterprise IT Management vision,” said Gilbert Lacroix, vice president and general manager of CA for Middle East and Africa (MEA). “Wily is the leader in this sector and the fastest growing major company in a fast growing market. With this acquisition, CA will be the only company to address the management of applications, IT assets and users across all hardware and software, from the mainframe to the distributed environment,” he went on to claim. CA said it expects the Wily capture to contribute about US$72million in revenue for the financial year 2007. The firm’s optimism appears well-placed; Wily’s revenues grew by 48% in 2004, and 2005 revenues are expected to increase by 75% —more than three times as fast as its overall segment. “With CA, we can reach more organisations than ever before with our innovative technology, expert people and best practices,” explained Dick Williams, CEO of Wily Technology.

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