CA cuts its costs

Software giant CA has cut 60% off the IT costs for firms it has acquired, its most senior IT executive claimed last month.

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By  Peter Branton Published  March 5, 2006

Software giant CA has cut 60% off the IT costs for firms it has acquired, its most senior IT executive claimed last month. CA has invested US$1.5 billion in acquiring 10 companies over the past 18 months. That investment comes on top of a US$700million bill for research and development, said Kevin Kern, CA’s CIO, in an exclusive interview with IT Weekly. “Every acquisition that we have done this past year-and-a half, we have very good processes in place,” Kern claimed. “We’ve been able to save 60% of the IT costs by absorbing them into our infrastructure, which is very automated and fine-tuned,” he claimed. That saving has meant some staff have left, he admitted, although he said he had “kept the people I wanted to keep”. He has also been able to reduce CA’s own IT operating expense by more than 10% for two years, he said. “I’m having difficulty continuing to get that type of savings because I’m very efficient, I run a data centre with two people per shift, I do security with five people for 16,000 employees,” Kern added. Those cost savings have been driven by automated processes and greater centralisation of resources, Kern revealed, describing his company’s IT infrastructure as more automated than any other in the world.

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