CA channels more cash into local coffers

CA channels more cash into local coffers

Driving more sales through channel partners has helped CA’s local subsidiary outperform its global parent by doubling its profit, while its US-based owner saw a drop in earnings last year.

For the year ending March 31, CA in New Zealand increased its revenue by 12 percent taking in $12.7 million and earned $1.7 million compared to $872,000 in 2006.

In the same period profit at CA in the US dropped by almost US$40m to $121m (NZ$ 55.8m to $168.9m) despite an increase in revenue from US$3772m to $3943m (NZ$5265m to $5503m).

The local results are the first since Stuart Preston took on the role as country manager in April 2006, replacing Tony Armfield who was promoted to regional manager and managing director of CA Pacific, based in Sydney.

Preston says the results were achieved despite a slightly reduced headcount in New Zealand and came as the company redirected some of its direct salespeople to focus on channel sales.

“Partners continue to play a key role for us. We now have more partner salespeople than direct salespeople.”

This strategy reflects a global trend for CA, says Wellington-based Pacific marketing director Andy Cooper. “CA has reduced the number of direct accounts globally and we now only have around a dozen in New Zealand. The vast majority of the New Zealand market is served through partners.”

Another important change has been CA’s move towards a more traditional reseller model, in addition to working with well-established outsourcing partners such as Datacom, Gen-i and Fujitsu, says Cooper.

Preston meanwhile expects the company to continue performing well locally over the coming 12 months, as it introduces a range of new products into the market on the back of a number of recent acquisitions. “CA acquired several technologies that were not represented here. We can now push these through the channel.”

CA has bought around 20 companies in the past two-and-a-half years, creating opportunities for partners, says Cooper. “What we acquired has given us capabilities we didn’t have and complement our traditional business. We have not realised the value of these acquisitions yet.”

CA’s most recent acquisitions will generate most of its new partner recruitment, he adds.

These include the web-based transaction measurement tool Wily, IT governance and project and portfolio management software Clarity and XOSoft data recovery software.

The company’s overall profitability is also due to a leaner structure and its renewed focus on its core governance and security management offerings, says Preston.

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