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In the beginning Computer Associates International is the No. 3 independent software company behind Microsoft and Oracle. Originally a Swiss company, Charles Wang founded a U.S. subsidiary in 1976, bought out his partners in 1980, and took Computer Associates public in 1981. The multibillion-dollar technology company began by making mainframes and managing data center systems, and entered the software business in 1994. Today it is a major force in distributed enterprise management (client/server) networks. Predator or scavenger? CA's clients include more than 90 percent of Fortune 500 companies. Commonly referred to as the vulture of the software industry, the company has a 20-year history of acquiring ailing competitors and cutting costs - and jobs - in the assimilation process. CA has also succeeded by creating partnerships, developing strong products, and integrating key technologies. Now offering 500 different products, CA has the ability to deal with technology ranging from COBOL to the latest NT, on any platform. Industry insiders (some, grudgingly) refer to CA as "the plumbers," because they offer so many options, enabling businesses to integrate their existing applications with new technologies, and "manage the network mess." A stellar product In 1997, CA launched Unicenter TNG ("The Next Generation"), which allows access to each component of a company's internal and external links from a central console. One of the most desirable aspects of the program is its 3-D monitoring capability, which allows users to see how problems affect the entire network. Sales of the product have skyrocketed since its release, and revenues are expected to continue growing, as more and more companies establish their own intranets. CA now offers Neugent (neural network agent) add-ons to the Unicenter program. "Smarter than a million Albert Einsteins" (according to CA), the artificially intelligent Neugents can manage systems and learn from mistakes. Land of the mudslingers Today the company is concentrating on further diversifying its product mix and improving its notoriously poor client services. Ironically, the company tried to strengthen its client services business by acquiring Computer Sciences Corp. (CSC) in a hostile takeover. CA publicly pursued the consulting/computer service company for three weeks before it finally withdrew, citing "ugly mudslinging tactics" and accusing the would-be target of making negative racial overtones concerning Wang's Asian heritage. CSC likewise accused the technology giant of illegal business practices and "economic extortion." The two companies have since made up, recognizing that their strained relationship was "unhealthy for CSC, CA, and the technology industry that has served us both so well." Though CA may never attempt another hostile takeover, Wang and his company seem to have recovered just fine. CA effectively beat out rival IBM's Tivoli Systems for a partnership with Microsoft. As one industry analyst put it: "CA's the preferred partner. It's the one Microsoft's getting behind" (Note: IBM's Tivoli division is CA's main competitor for the small-business market.) The Web-based enterprise management application offers a 3-D view of different sources, giving users a cohesive view of their IT environment. This deal further cements the relationship CA has been trying to build with Microsoft over the past few years. CA has also forged pacts with Intel, Tandem Computers, and Hewlett-Packard to bundle software and develop new products. Harmony Though CA has traditionally marketed its network management software to big corporations, it is now eyeing the growing small-business market. Bundling the Real World Interface with Windows NT is a good first step, as this Microsoft product is widely used by smaller companies. CA plans to use independent resellers, systems integrators, and consultants to serve small business customers - a cheaper alternative to using its own direct sales force. In addition, CA has launched its own professional services organization, which is expected to employ 3,000 people by the end of 2000. The company's software offerings include Harmony, a strategy for information management, and Jasmine, a multimedia object-oriented database and development environment. Where CA has not done so well is desktop management - but it has launched an Open Desktop Management Initiative, and is looking into partnerships with Intel and Microsoft. Partnering abroad CA has also been expanding internationally. In 1996, it acquired South African Dimension Data Group's share of their joint software distribution and servicing center in sub-Saharan Africa. The following year, the company stepped into India, investing $100 million dollars to build a technology center, complete with dormitories and several offices. CA continued with its acquisitive strategy throughout the rest of Asia, opening an office in Japan. Late in 1999 CA expanded to Lima, Peru, joining the company's offices in Brazil, Argentina, Chile, Colombia, Mexico, and Venezuela. The newest overseas CA office opened in January 2000 in Athens, Greece. In April 1999, the company forged a joint venture with the Italian Post Office (Poste Italiane) to increase the quality, speed, and cost efficency of that service. Poste Italiane will control a 51 percent stake in the business, and CA will own the rest. In the future, the new company will offer management and monitoring services to other public and private organizations in Italy. At your service CA has not given up on building itself a formidable IT consulting practice, as Wang has recognized the lucrative potentials of complementing hardware with advice. The company has bought up smaller service providers, including Realogic in 1998 and Computer Management Sciences in 1999. Its more recent acquisitions are also keeping its fledgling services unit in mind. In 1999, CA was cleared to purchase Platinum Technology for $3.5 billion - the largest price tag in software history - after it agreed to sell off overlapping operations. The merger will enable CA's entrance into e-commerce. CA aquired Sterling Software Inc. in February 2000, uniting the former rivals in corporate and government software sales. This new entity is now the largest storage and network provider in the world. Diverging from its favored track of buying and dismantling companies, CA in April 2000 began a joint venture with an existing corporation and created a new company. This joint venture company will link buyers and sellers across industries and across the globe as the first business-to-business trading exchange of its kind.
CA recruits on college campuses, especially at SUNY Stony Brook, a university near its Long Island, New York headquarters. The company also posts job listings on its web site, in major metropolitan newspapers, and on billboards along the Long Island Expressway. In addition to participating in job fairs around the country, CA holds several of its own on-site each year. The interview process generally starts with a phone interview, followed by a meeting with the hiring manager. Successful candidates generally come in for another round with people on the tech side (if that's where they are applying). Insiders say the process sometimes take a long time - one tech employee reports waiting four months for an offer. For marketing or sales, the process may not be as rigorous, but does include "several rounds of interviews starting with middle managers and ending with one of the VPs." Says an insider: "They tend to do some things the old fashioned way, with a formal approach unlike a lot of the Silicon Valley-type companies."
Meritocracy Though it tends to fight dirty on the corporate playing field, on the inside, CA is "a true meritocracy," where "everyone has a chance to go as far as they want to." One employee on the technical side reports, "I have found my raises accurately track what I did in the previous year," and "my responsibilities have increased as I have asked for them to be." Further, they advise that "it's important to be very proactive." Money-makers: in Employees say the company is very open to women and minorities, which is common for the industry, and point out that "the CEO and COO are both minorities." One employee adds that, "the overall attitude is positive towards advancement of anyone who can generate revenue." If they can't, however, they're out. Some insiders - salespeople, at least - say "there is a medium to high turnover rate" for those who do not meet the company's quotas. Computer "Associates" also enjoy the "team mentality" within the company, and its "second family" feel. One insider, however, makes you wonder whether there isn't a little human-type programming going on at CA: "No matter the country where you live or the language you speak, if you are a man or a woman, there is only one important thing: CA. Remember these words, because I'm sure you'll hear them. Remember!" Bagels for nothing and your kicks for free CA offers an extensive array of perks, including free breakfast, tuition reimbursement, fully-paid medical benefits, and a "discretionary distribution" - where the company matches up to 8 percent of your base salary in a 401(k) plan. CA maintains "first rate" corporate fitness facilities and on-site child care centers in its offices all over the world. Perks like this gain a great deal of publicity for a company so commonly criticized for its surly business demeanor. In fact, CA is consistently ranked high on "top places to work" surveys in publications around the country. The dress code in the corporate offices is pretty straightforward: "If you meet clients, you wear full business attire; if you don't, you wear business casual." The lucky employees in development and tech support outside the New York headquarters say they wear jeans and T-shirts on a regular basis.
Deborah Coughlin Human Resources More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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