CA Launches Business Units

Divisions to explore growth opportunities.

Computer Associates International Inc. last week put the final pieces of its reorganization puzzle together when it inaugurated five business units, each with profit-and-loss responsibility.

The business units, designed by new CEO John Swainson to bring greater focus to CAs growth opportunities, are Enterprise Systems Management, Security Management, Storage Management, Business Service Optimization and a CA Products Group unit.

Each units general manager will be accountable for profit and loss, product development and marketing, staffing, strategic planning and execution, and customer satisfaction. The general managers will report to Russ Artzt, who was named executive vice president for all CA products earlier this year.

According to officials, no layoffs are planned as a result of the reorganization.

Each unit will begin to report on financial metrics, such as revenue generation, in the first quarter of fiscal 2006.

One industry watcher briefed on the changes said he believes they are a logical extension of other changes Swainson has made since he was named CEO of the Islandia, N.Y., company in November.

"Theyre trying to place focus on Unicenter and eTrust and move decision making down in the organization. These units have to make decisions in order for the business to scale," said Ray Paquet, an analyst at Gartner Inc., in Lowell, Mass.

Although there is no "short-term impact" on customers, the intent is to make CA more responsive to them, said Swainson in an interview last week. Leading the Enterprise Systems Management unit will be Alan Nugent, former chief technology officer at Novell Inc. Nugent, who started at CA last week, will be charged with extending CAs lead in the systems and database management arena. Most Unicenter products will fall under this groups umbrella.

Paquet said he believes the one surprise among the new business groups is Business Service Optimization, which will be led by Jacob Lamm, former product development lead for Unicenter. This division, which will include Unicenter Service Desk offerings as well as Harvest products from CAs AllFusion product line, will see significant investment, Swainson said.

The Business Service Optimization unit will focus on BPM (business process modeling), IT governance, IT service management and enterprise change management.

Leading the Security Management group will be Toby Weiss, formerly CAs senior vice president for eTrust product management and marketing. Chris Broderick will continue to lead the storage business unit and focus on greater integration of storage management with systems and security management.

The CA Products Group, led by Mark Combs, will include products from different CA brands that arent part of the companys core systems and security management offerings but are nonetheless important to CA customers and represent significant revenue for CA.