CA's ecosoftware Finds a New Taker

Apart from developing advanced ecofriendly software, CA has rolled out new cloud computing offerings. Cloud computing is increasingly becoming a focal point for the company. CA is leveraging its cloud computing expertise and rolling out innovative solutions exactly targeting opportunities in the area.

Eco-friendly manner

CA ecoSoftware primarily helps organizations to better manage their resources in an eco-friendly manner, thereby integrating the maintenance for delivering quality business services to support organizational goals. This solution as well helps organizations to abide by the government pollution control norms.

Backed by good results in the recently concluded quarter, CA furthermore seeks to expand into identity management and cloud computing areas to strengthen its business model. Nevertheless, the product demand does not seem to be very strong right now, though fiscal 2012 guidance was conservative, in our view.

CA has made strategic moves to capitalize on its virtualization/cloud computing expertise, which is expected to be accretive to growth over the straightway two-three years. Cloud computing leads to increased service and elevated security requirements for the companies that use them and CA's product portfolio is so then positioned to benefit from it.

The other hand

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, including the likes of  International Business Machines and Hewlett-Packard Company. Just in case, its high debt balance, reduction in tech spending by government agencies and European exposure may pose some challenges going forward.