CAWorld2010 Exclusive: Strategy for emerging mkts

by Jamsheed Gandhi    May 17, 2010

US-based CA Technologies, a US $10 billion information technology management company, has unveiled its strategy for optimizing its presence in the emerging markets. Created in November 2009 and represented as GEM or Growth and Emerging Markets within the company, this business unit will be targeting companies with revenues between US $300 million to US $2 billion and is expected to generate twice the growth rate that it currently enjoys from the mature markets. This will be delivered on the back of the company’s cloud connected enterprise strategy.

Talking to CXOtoday at a select press briefing at the company’s annual gathering, CA World 2010 in Las Vegas, John Ruthven, Executive Vice President, Growth and Emerging Markets, CA Technologies said, "We are looking at opportunities that the emerging markets offer to us as a company and have internally embarked on this roadmap. We believe to achieve this growth from the emerging markets, we need to be in a ’start-up’ like mode and have identified and mapped global senior management to this effort. Urgency, growth and agility are what will drive this effort within the company as well as externally."

This business unit aims to have a team strength of over 650 people by the end of FY11. For this initiative, the company aims to increase its current staff by 25 percent to its current team structure. The company will look at Software as a Service (SaaS) and Managed Service Providers (MSP) to help them take their products to market.

Through this offering the company aims to tap into those customers that need a data center but do not have one of their own, and can bypass the entire effort of building and running their own datacenter through this offering. Executing much of this in the cloud is what will make this effort worthwhile while playing to the company’s strengths in security solutions, infrastructure management, governance, business agility and speed to market.

While comparing client revenue to the company’s sales, it earns 65 percent from customers with revenue in excess of US $10 billion; 20 percent from customers with revenue between US $10 - $20 billion; 10 percent from customers with revenue between US $300 million - $2 billion and the balance from customers with less than US $300 million in revenue.

The emerging markets will include geographies such as Central and Eastern Europe in addition to the usual ones such as Latin America, the Middle East, APAC and Japan.

The company has recently changed its name from CA Inc to CA Technologies to impress to its customers and the industry that they will deliver revolutionizing technology which will change the way business is nimbly powered.