Computer Associates' growth isn't a sure bet anymore; revenue shortfall and stock drop raise questions about long-term strategy

Article Abstract:

Computer Associates International (CA) is the the second largest software vendor in the world, but some analysts questions whether the company's business strategy can continue to be successful. The questions are prompted by an apparent slowing in the company's revenue at the end of 1996. CA grows by acquiring smaller software firms, reducing costs, then using its aggressive sales force to market the acquired products. Some analysts claim that CA should concentrate more on creating its own products, especially since the industry is consolidating, making acquisitions less likely. CA relies on mainframe products for 60% of its revenue, which makes the company vulnerable if mainframe software prices fall dramatically. CA's client/server efforts have not been well received in Europe, where customers are clinging to mainframe products. The company points out that it has a strong position in the systems management category and also notes that its Unicenter management product was mostly developed in-house.

Analysis, Management, CA Inc., CA, Company analysis, Company Business Management

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Microsoft gives technology away to beat rival

Article Abstract:

Microsoft invested over $100 million to develop its ActiveX technology, but is now giving control of the file-linking standard to the Open Group. The company believes the move will enable its Internet products to be successful in a market currently dominated by Netscape. Microsoft's transfer of the ActiveX technology to a little-known industry group is supported by over 100 software developers from more than 80 companies, and is reflective of Microsoft's new responsiveness to the opinions of the industry. The Open Group will control the ActiveX specifications, although Microsoft will be able to develop and market its own enhancements. Netscape is competing with Microsoft in the establishment of standards for linking parts of Web pages. The two companies' technologies are currently incompatible, forcing developers to choose between the systems.

Networking Software Pkgs, Standards, Planning, Product information, Marketing, Standard, Standardization, World Wide Web, Web site/Web page development, Network software, Company product planning, Open Group

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ESPN plans on-line sports service with Microsoft Corp. co-founder Allen

Article Abstract:

Microsoft Corp co-founder Paul Allen has formed an agreement with the ESPN cable network to develop an on-line sports information service that will be offered over the Internet and Microsoft Corp's forthcoming Microsoft Network. The new service will build on the Satchel sports service, available from Allen's Starwave Corp, and the Espnet sports service, available from ESPN. Although the ESPN-Starwave service will build on these existing services, it will include new features and a new name. The service will provide scores, statistics, a fantasy baseball game, bulletin boards and eventually ticketing services. It will first be introduced in Apr 1995 on the Internet as part of the World Wide Web. It will also be offered as part of the Microsoft Network on-line service when it begins operation later in 1995.

Cable Networks, Cable and other pay TV services, Cable TV Entertainment Networks, Product development, Services, Contracts, Online information services, Information services, Cable networks (Television), Sports, Information services industry, Company services, Allen, Paul (American entrepreneur), Cooperative agreement for product development, Alliances and partnerships, Online information service, Entertainment networks (Television), ESPN Inc.

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