U.S. Markets closed

CA Offers New Management Solution

Zacks Equity Research

CA Technologies (CA) is rolling out newer and better solutions at regular intervals. The company recently announced the latest version of its Infrastructure Management solutions—CA Infrastructure Management 2.2—which is capable of proving for Citrix XenDesktop 7. 

CA has completed nearly eight months of collaboration with Citrix, which has enabled them to deliver some innovative solution through the “CA Infrastructure Management” for enterprises and also for “CA Nimsoft Monitor” for managed service providers (MSPs). This will help the customers to gain better control and as also improve visibility into the performance, activities and events of their infrastructure and virtual desktop services.

Moreover, CA has announced a recent collaboration with SAP, whereby the former will extend its application-performance solution offerings and an application-performance services implementation package. As part of this joint collaboration, CA Technologies will also deliver a new solution, christened CA Application Performance Management Rapid-Deployment Solution.

The implementation of this service will help customers measure the performance and quality of Web-based, end-user transactions as the application moves through a network. CA Application Performance Management Rapid-Deployment Solution will help companies to work with the SAP Extended Diagnostics suite.

Apart from winning new deals, the company will benefit from the recovery in the Mainframe segment during fiscal year 2014. Over the years, the growth in the Mainframe market has had a significant impact on CA’s results. Moreover, the order renewal in this segment also results in higher revenues, as customers are offered a high-value product.

Apart from this, the Enterprise Solutions business in the coming year is expected to generate a 20.0% margin, relative to 8%-12% margins the business segment has produced over the past two-plus years. Cost restructuring and other such initiatives are also in place.

Overall, the growth path for CA looks encouraging, with the Enterprise solution expected to move up and the demand for cloud-based solutions picking up. On the other hand, the European business is yet to catch up.

CA currently has a Zacks Rank #3 (Hold).

Investors can also consider other stocks in the technology industry that are currently performing well, such as Aspen Tech Inc. (AZPN), SanDisk Corp. (SNDK) with a Zacks Rank #1 (Strong Buy) and Western Digital Corp. (WDC), which has a Zacks Rank #2 (Buy).

Read the Full Research Report on CA

Read the Full Research Report on WDC

Read the Full Research Report on SNDK

Read the Full Research Report on AZPN

Zacks Investment Research

More From Zacks.com