Nimsoft acquisition to better position CA for cloud computing growth

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Friday, March 19, 2010

US software provider CA's (NYSE: CA) recent acquisition of compatriot monitoring solution provider Nimsoft will allow the company to capitalize on cloud computing growth in Latin America, the company's vice president of marketing for Latin America, André Echeverria, told BNamericas.

Earlier this month, CA announced that it had acquired Nimsoft for US$350mn. Nimsoft provides monitoring solutions for virtualized datacenters, hosted and managed services, cloud platforms and software as a service (SaaS) resources.

Echeverria said the acquisition will complement CA's monitoring software, which is installed through traditional on-site implementations. On the other hand, Nimsoft's solutions are most frequently made available on demand.

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Within Latin America, CA will be able to tap business opportunities in what CA describes as "emerging companies," which refers to firms that rely heavily on technological solutions provided on demand.

"They have more modern management and IT infrastructure," he said. "For example, Gol Airlines has entered the Brazilian market with far less infrastructure and more technological services obtained through outsourcing... and now you have [Brazil's] Azul Airlines which practically has no infrastructure at all."

Echeverria said Nimsoft's solutions will be introduced in Latin America starting in April, prioritizing business opportunities in Mexico, where Nimsoft has existing clients, as well as Brazil, because of its data center market dynamism.

In a second stage, CA will look to leverage Nimsoft's solutions in other Latin American countries, such as Chile, Argentina and Colombia.

CA sees many business opportunities in companies that provide hosting services, such as Brazilian data storage company Locaweb, as well as telecommunications companies that have started to enter the cloud computing market.

Of the 800 global companies which are Nimsoft's clients, roughly 300 are data center service providers, the executive said.

In Latin America, CA has offices in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.

Globally, CA saw net profits increase 21% to US$257mn during its fiscal third quarter 2010, ended December 31. Quarterly revenues crept up 4% to US$1.13bn.