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CA focusing on 'organic growth'

CA Technologies is well known for acquiring companies, but it is now placing more emphasis on organic growth.

Over the years CA Technologies has acquired more than its share of other companies. While it continues to buy businesses where that its appropriate (such as this week's announcements that it has acquired Nolio and Level 7), it is now focusing more on organic growth.

"That's been weak in the past," executive vice president of strategy and corporate development Jacob Lamm told iTWire.

This does not mean CA will stop buying companies, just that any acquisitions will be part of a long-term plan rather that a rush to fill a gap in CA's portfolio, Mr Lamm said.

CA tracks around 300 companies as part of "a very disciplined approach to mergers and acquisitions," Mr Lamm said.

CEO Mike Gregoire described acquisitions as a "core competency" for CA, and observed that the company's global reach means they see many companies that could be acquisition targets. CA has a very good relationship with tech startups in Israel, he noted.

CA is ready to use its balance sheet to make acquisitions, but it will be "picky," he said.

The company also has an incubation program that seeks to match its core competencies with emerging markets where they can be applied.

"I think we've got some of the best engineers in the world," said Mr Gregoire.

For example, around three years CA started looking at the ways that the massive amount of data generated by the millions of healthcare devices could be managed and used, much as CA does with IT operations data, Mr Lamm explained. The result was a cloud platform that was spun out of CA as Watermark Healthcare Services which subsequently merged with other companies.

Similarly, CA is applying its expertise in data centre infrastructure management to energy consumption across the entire enterprise.

"The world has become a big data problem," Mr Lamm said.

Disclosure: The writer attended CA World as the guest of the company.

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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.