CA Tech Helps Spanish Banking Group - Analyst Blog

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Spanish banking group BBVA is taking the help of CA Technologies ( CA ) to improve its energy efficiency. The banking company has recently implemented the CA ecoMeter in its Uptime Institute Tier IV certified data center. The CA ecoMeter helps energy management by providing energy data points that can be studied, analyzed and regulated to generate increased energy efficiency and reduced consumption.

The "CA DCIM solution" will cater to the data center that BBVA has in Madrid. This includes a 1,525 square meter computer room with 2000 servers, through which 52 million transactions take place on a daily basis. Since data centers are being added and expanded all over the world and the increased virtualization and cloud computing further increases the demand for data centers, this kind of a solution has a broad market.

CA's varied product range and skilled man power, helps it to cater to companies across the globe. Most of CA's products target large and medium-size enterprises, but some of the products - for example, its anti-virus, anti-spyware and personal firewall solutions - are meant for home and home-office users. We believe that this huge product range helps attract customers across sectors, thereby lending stability to the business model.


CA's deal wins are likely to continue since 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 renewals in this segment yield higher revenues, as customers are offered a high-value product.

Moreover, the addition of Layer 7 Technology products to the CA portfolio benefitted the company. This acquisition has enabled the company to securely enable a strategic cloud environment. It also helps service delivery thus increasing profitability by generating more revenues from existing technology assets. This is a great technology in CA's portfolio to offer to its new and existing clients.

While the reasonable client growth, strengthening position in the cloud market, decent renewal rate, modest cash position and share repurchase activities are encouraging, CA continues to see tough competition from companies such as Dell Inc. ( DELL ), IBM ( IBM ) and Hewlett-Packard Co. ( HPQ ).

CA carries a Zacks Rank #3 (Hold).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CA , DELL , HPQ , IBM

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