CA Teams with HyTrust to futher build out Cloud Offering

Grazed from Zacks.  Author: PR Announcement.

Computing major CA Technologies (CA – Analyst Report) recently collaborated with a leading policy management and access control company HyTrust Inc. for further improving security and compliance for customers leveraging virtualized systems and cloud infrastructures.

This collaboration creates a win-win situation for the company, as HyTrust Appliance complements CA Access Control by controlling various aspects of a virtual infrastructure such as unified access control, policy enforcement and audit-quality logging. HyTrust will also provide support to the recently announced CA Automation Suite for Clouds through an enhanced security policy and compliance capabilities required to safeguard cloud infrastructure…


The company is undertaking various initiatives to gain further traction in the field of cloud computing. Large enterprises continue to benefit from cloud-based solutions riding on their experience in virtualization, according to a study conducted by Management Insight on behalf of CA Technologies in December 2010. The recent collaboration enables CA to efficiently shift to a more complex infrastructure that demands more sophisticated and automated management and security.

Moreover, in an attempt to further strengthen its position in the cloud computing space, CA recently revealed that its cloud computing, energy management and service assurance solutions will support StratITsphere’s new package of cloud-based services (Nimbus) and other offerings.

Nimbus was developed on CA AppLogic cloud platform and will be delivered on the same, including virtual private data centers (VPDC) with full failover and disaster recovery capabilities.

This should help StratITsphere’s Fortune 1000 customers to access the dynamically provisioned and secure cloud services, providing an agile and highly efficient platform with lower capital investment compared to traditional computing solutions.

The company’s recent acquisition of the cloud computing company, Oblicore Inc. testifies the company’s increasing focus on the cloud computing business. Cloud computing is witnessing strong demand and is being increasingly adopted by not just the small and medium businesses, but also larger players.

Moreover, CA Inc.’s record management business is poised for growth. The company’s Records Manager, a part of its comprehensive Information Governance solution, automates record-keeping processes to help users gain faster access to information, save resources and facilitate compliance with regulatory, legal and business requirements. Research firm Gartner estimates that the worldwide records management market will see a five-year compound annual growth rate (CAGR) of 12% between 2009 and 2014.

CA Inc. posted decent first quarter results, exceeding earnings estimates. Revenue also improved on a year-over-year basis. However, the product demand trend was moderate in the reported quarter. Keeping in mind the quarter’s revenue backlog, we believe the fiscal 2012 guidance is a bit conservative.

We further believe that CA Inc.’s endeavor to return shareholder value through share buybacks and dividend increases will boost investor sentiment. On the other hand, we are apprehensive about intense competition in the software & cloud computing space from big players, such as International Business Machines (IBM – Analyst Report) and Hewlett-Packard Company (HPQ – Analyst Report). In addition, its high debt balance and European exposure may pose some challenges going forward.