CA Offers New Solutions - Analyst Blog
15 Février 2012 - 4:48PM
Zacks
Computing major CA Technologies (CA) has
recently made some strategic moves, which reiterates the fact that
cloud computing and enterprise services are the two main areas of
development for the company. CA is leveraging its cloud computing
expertise and rolling out innovative solutions to grow its
business.
CA has recently integrated its new cloud offering CA AppLogic
turnkey platform with International Game Technology’s (IGT) IGT
Cloud for delivering advanced casino software and better gaming
experience to the end user.
IGT is trying to capitalize on the expertise of CA’s cloud
computing platform in order to enhance its operational efficiency,
and shift focus from infrastructure, maintenance and operations to
innovative product development.
The cloud computing segment of the company is slowly gaining
traction and the new orders in this segment include the Cal Credit
Card company, which deployed its "Safe Shopping" system deploying
CA Arcot TransFort for Issuers. This software provides 3-D secure
authentication and fraud prevention services for card processors
and issuers.
This cloud-based solution provides multiple layers of protection
and identity verification during a shopping transaction, where the
cardholder is not present physically. These solutions are
user-friendly and also time-saving and thus attract more companies
to implement them.
CA Inc.’s emerging opportunity in the virtualization/cloud
computing space is significant and could help accelerate growth
over the next 2-3 years. Cloud computing leads to increased service
and elevated security requirements for the companies that use them
and CA's product portfolio is well positioned to benefit from
it.
In the enterprise business segment, CA Cross-Enterprise
Application Performance Management (CA CE APM), is witnessing
massive customer adoption. The solution extends
mainframe monitoring capabilities and provides richer information
about the health and performance of key IT services.
This particular solution helps organizations shift to enhanced
IT management and maintenance for delivering quality business
services to support organizational goals. This solution also
deploys cloud computing to offer better solutions.
CA reported excellent third quarter results with EPS exceeding
our earnings estimates. Revenue also improved on a year-over-year
basis. However, the product demand was moderate in the quarter,
although fiscal 2012 guidance was conservative, in our view.
On the other hand, we are apprehensive about other important
players making strategic moves to grab a major chunk of the
software & cloud computing space, which includes the likes of
International Business Machines (IBM) and
Hewlett-Packard Company (HPQ). In addition, its
high debt balance, reduction in tech spending by government
agencies and European exposure may pose some challenges going
forward.
The company has a short term Zacks#1 Rank (implying a Strong Buy
rating).
CA INC (CA): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
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