CA Technologies Strengthens Cloud Computing Portfolio with Acquisition
Several larger companies have been buying up niche firms to strengthen their presence in the cloud computing space. CA Technologies made a move in this direction with its acquisition of privately-held consulting firm Base Technologies. I had earlier written about possible consolidation in this sector, and recent trends suggest likewise (See: Is Consolidation Coming to Cloud Computing? ).
With this acquisition, CA Technologies will also get access to the federal IT space, a region where Virginia-based Base Technologies already has a strong foothold. Its list of customers includes the US Department of Defense, the Department of Homeland Security, National Institutes of Health, the Federal Aviation Administration, and Commuter Connections.
This sector has opened up to the possibilities of cloud computing and offers tremendous potential for growth (See: Governments and Cloud Computing – Where Do They Stand?). A recent report puts the market size for software and IT services in the federal space at $86 billion, and cloud computing will constitute a big chunk of it.
“The acquisition of Base Technologies further expands our role as a strategic partner and advisor to U.S. public sector customers on all computing environments and platforms,” said Adam Elster, general manager, CA Technologies.
“CA Technologies and Base Technologies will provide customers with both deep industry and technical expertise as well as leading management and security products and services for the cloud and virtualization. Together, we will help government customers identify the most efficient use of their investments, manage their large-scale programs more effectively, and determine the best use of virtualization and cloud computing,” Elster added.
While CA will benefit from Base’s niche knowledge and clientele, the latter can leverage CA’s size to get more business. “The requirements of our U.S. public sector customers and system integrator partners are increasingly complex across all IT environments. We are thrilled to join forces with CA Technologies to help government customers gain more value from their IT investment as they work to achieve the business agility, cost savings and risk reduction of a cloud-connected enterprise,” said Rob Davies, CEO of Base Technologies.
“It will be business as usual for us in the health care space and federal market, but right off the bat, it gives us a lot more technical capability to deliver to those customers, and greater resources to bid other contracts with other customers, and in the greater health care IT space. Whether it’s providing registry applications for the VA or supporting the transmission of images across DOD networks for supporting the war fighter and injured soldiers as they traverse the health care system there, it’s all about the infrastructure that supports the IT,” Davies added.
This is CA’s seventh cloud computing acquisition in the recent past. Last year, it had purchased Oblicore, 3Tera, NetQOS, Arcot Systems, 4Base and Nimsoft, collectively spending over a billion dollars. However, its first cloud computing buy was even earlier – Cassatt, acquired back in June 2009. This shows a consistent pattern in CA looking to challenge the bigger players in this space.
By Sourya Biswas