Cloud Computing: CA’s New CEO Faces Big Balancing Act
December 14, 2012
Grazed from InformationWeek. Author: Charles Babcock.
When the youthful Michael Gregoire takes over as CEO of CA Technologies on April 1, he will find he’s inherited a large company in a state of transition.
CA is caught between breaking away from dependence on mainframe products, which still provide 80% of its revenues, and initiating new cloud and virtual infrastructure management products, which have not yet taken off. Riding these two horses in tandem may prove a tricky balancing act for any CEO.
Gregoire, 46, was selected by CA’s board Thursday to succeed William McCracken, who initiated the company’s transition when he took office in January 2010. He is stepping down at the age of 70 before the transition can be brought to full bloom. Gregoire is the former of chairman, president and CEO of Taleo, the talent management software firm acquired by Oracle in February for $1.9 billion. Gregoire took Taleo from $78 million to $324 million over a seven year period. He will join CA on Jan. 7…
He will have his work cut out for him. He only needs to turn to latest quarterly earnings report to spot the trouble. On Oct. 25, McCracken told investors that second quarter fiscal 2013 "was short of our objectives in several areas. We are disappointed in our performance." Mainframe revenues were off 5% at $619 million, enterprise solutions were down 2% and services were down 1%…
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