Jump to content

Standard Data Corporation

From Alfawiki
Adapted from the English Wikipedia article Standard Data Corporation, available under CC BY-SA 4.0Updated 9 August 202520 sources
CA Technologies, Inc.
Company typePublic (until 2018)
IndustryEnterprise software development and publishing
Founded1976; 50 years ago (1976)
FounderCharles B. Wang
Defunct2018 (2018)
FateAcquired by Broadcom Inc.
Headquarters
Manhattan, New York City (final headquarters)
,
United States
Area served
Worldwide
Key people
Charles B. Wang (founder and president)
ProductsSystems software, application software for IBM mainframes, distributed platforms, virtual machines, cloud infrastructures
Number of employees
~7,000 (early 1990s)
ParentBroadcom Inc. (from 2018)

CA Technologies, Inc., previously known as Computer Associates International, Inc. and CA, Inc., was a prominent American multinational company specializing in enterprise software development and publishing from 1976 until 2018. At one stage, CA ranked as the second-largest independent software firm worldwide. Its portfolio included systems software—and for a brief period, application software—designed for IBM mainframes, distributed computing platforms, virtual machines, and cloud infrastructures.

The company's foundation was largely credited to Charles B. Wang, with its rapid expansion fueled by acquiring numerous smaller software companies focused on the IBM mainframe market. CA gained a reputation for substantial workforce reductions following acquisitions and often emphasized generating revenue from acquired products rather than investing in their ongoing development. Customers commonly expressed dissatisfaction with CA's technical support quality and perceived aggressive business tactics. In the early 2000s, the firm was embroiled in a significant accounting scandal that led to prison terms for several senior executives. Nevertheless, by the 2010s, CA had improved its corporate responsibility profile and earned considerable industry accolades.

Though its roots trace back to Switzerland (specifically Zurich and Geneva) and New York City, CA’s headquarters were primarily located on Long Island—initially in Jericho and Garden City within Nassau County, then for approximately twenty years in Islandia, Suffolk County—before moving to Manhattan in 2014. In 2018, semiconductor giant Broadcom Inc. completed the acquisition of CA Technologies for close to $19 billion.

Origins

Computer Associates International emerged from the combination of a Swiss software product company and a New York-based data services enterprise.

Samuel W. Goodner, originally from Texas and employed by Sam Wyly’s University Computing Company (UCC), was dispatched to Europe to manage Automation Center A.G., a Swiss computer services firm acquired by UCC. Confronted with financial struggles around 1970, Goodner departed to establish his own software product company. This led to the creation of Computer Associates A.G., headquartered in Zurich, Switzerland, in 1970.

In 1969, regulatory changes compelled IBM to separate hardware sales from software and services, thereby enabling independent software vendors to enter the market. Goodner seized this opportunity by developing software tailored for IBM mainframe systems.

Despite limited initial funding, Computer Associates secured Hoffmann-La Roche as a client through its effective sorting solution, CA-SORT. Starting in 1971, CA-SORT was marketed throughout Europe as an alternative to IBM’s sorting utilities on System/360 and System/370 mainframes. The company broadened its European reach via holding companies and acquisitions, establishing its headquarters in Geneva during the 1970s. By mid-1974, Pansophic Systems was distributing CA-SORT in the United States under the brand Pansort. At that time, the company operated under the name Computer Associates International Ltd.

Concurrently in New York City, Standard Data Corporation, founded in 1959 and based at 1540 Broadway, functioned primarily as an electronic data processing service bureau. In 1973, Standard Data introduced SYMBUG, a symbolic debugger designed for COBOL running on IBM’s VM/370 platform. By 1974, it had expanded its offerings to include additional VM/CMS products such as VM/370 ISAM and various language debuggers. The company established a Software Products Division under vice-president Charles B. Wang, who pursued opportunities created by IBM’s unbundling policy by developing software products targeting IBM mainframe systems.

In January 1976, Standard Data secured exclusive U.S. distribution rights for CA-SORT from Pansophic Systems and reinstated the product’s original name. Additionally, Standard Data acquired U.S. rights to EARL (Easy Access Report Language), a report generation package.

1970s

In October 1976, the merger of Computer Associates International Ltd with the Software Products Division of Standard Data Corporation gave rise to Computer Associates, Inc. Charles Wang assumed the role of president. The newly formed firm distributed CA-SORT across the Americas, while its European branch managed offerings such as SYMBUG. The company’s initial headquarters was situated at 655 Madison Avenue in Manhattan. Meanwhile, Standard Data Corporation continued independently, delivering computer services well into the 2010s.

This 1976 consolidation is recognized as the inception of the entity now known as Computer Associates.[1][2] Beginning with a team of four employees, including co-founder Russell Artzt—who had collaborated with Wang at Standard Data and was instrumental in early software development—the company established its early groundwork.[3][2]

By September 1977, operations were conducted under the name Trans-American Computer Associates, Inc. This American corporation held trademarks for products such as DYNAM/D, a disk utility designed for IBM mainframes operating on DOS/360 and its successors.[4][5]

In 1979, the U.S. headquarters moved to 125 Jericho Turnpike in Jericho, Long Island.[6]Cite error: The opening <ref> tag is malformed or has a bad name By 1980, Computer Associates International had grown to approximately 300 employees worldwide and marketed a portfolio of 12 products to nearly 9,000 client sites, primarily within the United States.[7][8] That same year, Wang secured full ownership by purchasing the Swiss parent company’s shares, consolidating control under Computer Associates International, Inc..[7]

1980s

In 1981, Computer Associates went public through an IPO, generating $3.2 million in capital.[9] Its shares were listed on the NASDAQ exchange under the ticker "CASI".

The company’s inaugural significant acquisition took place in 1982 with the merger of Capex Corporation, enhancing CA’s revenue by 50 percent.[9] Both organizations specialized in software for IBM mainframes; however, CA concentrated on IBM’s DOS mainframe operating system, whereas Capex had a stronger foothold in the IBM OS mainframe operating system sector.[10][11]

This acquisition initiated a strategic pattern of acquiring third-party mainframe software vendors.[12][13]

By 1986, CA had relocated its corporate headquarters to Garden City, eventually occupying several buildings within Nassau County.[14][15] That year, revenues reached $265 million with net income surpassing $30 million; personal computer software sales were estimated between $60 million and $70 million.[16]

Growth surged further following CA’s 1987 acquisition of Uccel for $800 million—a transaction substantially larger than previous deals.[9] Formerly known as UCC, Uccel had been under Haefner’s control since 1976.[17] After the acquisition, nearly half of Uccel’s workforce of 1,200 was laid off as part of CA’s customary cost reduction measures.[9] Haefner became the largest individual shareholder, holding roughly a 25% interest.[17]

In that same year, CA transitioned its stock listing to the New York Stock Exchange under the symbol "CA". The following year saw the purchase of Consco's primary software product.[18]

By the close of the decade, CA ranked as the second software company after Microsoft to exceed $1 billion in annual sales.[19] In 1990, Information Week placed Computer Associates ahead of Microsoft in its "Software's Heavy Hitters" ranking.[20]

1990s

At the start of the 1990s, Computer Associates encountered significant criticism and experienced a steep drop in its stock value, losing more than half of its worth in 1990. To counter these challenges, the company broadened its reach into international markets such as Japan, Canada, Africa, and Latin America, restructured its software maintenance fees, and enhanced compatibility with partners including Hewlett-Packard (HP), Apple Computer, and Digital Equipment Corporation (DEC). The recession in the early part of the decade further affected CA's performance, with its stock price falling approximately 70 percent by October 1991 compared to its peak in May 1989. During this period, CA employed roughly 7,000 individuals and generated sales nearing $1.4 billion.

In 1991, CA expanded through the acquisition of Pansophic Systems. After extensive planning lasting two and a half years, the company relocated its headquarters to Islandia, New York in 1992, centralizing its Nassau County operations on a sizeable corporate campus. By then, CA had become the second largest private employer on Long Island after Grumman Aerospace, benefiting from substantial tax incentives and construction financing facilitated by local government officials.

The year 1994 saw CA acquire the ASK Group and continue promoting the Ingres database management system under multiple brand names. That same year, Electronic Data Systems (EDS) filed a lawsuit against CA alleging breach of contract and antitrust violations; CA responded with a counterclaim. The legal dispute was resolved in 1996.

CA pursued significant acquisitions throughout the mid-1990s, including purchasing Legent Corporation for $1.78 billion in 1995—a record-setting transaction in the software industry at that time—and acquiring Cheyenne Software for $1.2 billion in 1996. In 1999, CA completed what was then the largest software acquisition ever by buying Platinum Technology International for $3.5 billion.

An attempted hostile takeover of consulting firm Computer Sciences Corporation (CSC) in 1998 was unsuccessful and subsequently resulted in a bribery lawsuit involving CA’s founder and CEO Charles Wang.

By the close of the decade, CA had established dominance within the mainframe utility software sector—a profitable yet less publicly prominent market compared to companies like Microsoft, Lotus Software, and WordPerfect Corporation. A 1996 profile in Business Week described CA as "Sexy? No. Profitable? You Bet."

In May 1998, Wang along with two associates received stock grants valued at $1.1 billion. The following year Wang secured an unprecedented $670 million bonus from a vested stock option issued in 1995 amid weakening earnings and stock performance due to slowdowns in European and Asian markets. These large payouts generated controversy; overall, CA recorded an after-tax charge of $675 million tied to $1.1 billion paid to Wang and other executives.

Company culture

Computer Associates earned a reputation for emphasizing sales over customer service, often leaving clients dissatisfied with high costs and inadequate technical support. Its sales personnel sometimes regarded clients more as adversaries than partners. Critics contended that CA deliberately placed acquired software into maintenance mode to maximize revenue streams, making these expensive products difficult for corporate IT departments to replace. While this approach ensured consistent income, it also bred customer frustration and an image of managerial arrogance. Nevertheless, CA consistently outperformed its critics.

The corporate culture reflected founder Charles Wang’s immigrant background and education at Queens College—distinct from Silicon Valley’s environment. The sales force primarily comprised individuals from blue-collar origins in New York’s outer boroughs and Long Island, contributing to a reputation for aggressive tactics paired with steady profitability.

Within the company, abrupt layoffs were common following acquisitions. For instance, approximately 200 Applied Data Research employees were suddenly let go in 1988; similarly, Cullinet experienced a quarter of its workforce dismissed overnight in 1989. These practices caused unease among partners; Sam Wyly of Sterling Software expressed reservations about selling his company to CA but proceeded due to fiduciary responsibilities toward shareholders.

Some industry scholars have offered more balanced perspectives. Martin Campbell-Kelly credited CA with sustaining and improving important database products such as DATACOM/DB and IDMS while fostering interoperability across its portfolio. He also characterized workforce reductions as efforts to streamline underperforming units. Likewise, Joseph A. Piscopo—founder of Pansophic Systems acquired by CA—acknowledged typical staff cuts but highlighted occasional investments in acquisitions that aligned with internal product development strategies, citing Cheyenne Software as an example.

Accounting controversy

By the year 2000, Computer Associates had completed approximately 200 acquisitions. That same year, Sanjay Kumar succeeded Wang as CEO, while Wang continued as chairman. In 2002, Wang fully departed from the company, with Kumar assuming the chairman role as well.

In 2000, a class-action lawsuit filed by shareholders alleged that CA had inflated its revenue figures by over $500 million during fiscal years 1998 and 1999 to boost its stock valuation. The following year, a proxy contest emerged between the board and shareholders led by Wyly, who was dissatisfied with management and the handling of his acquisition, Sterling Software. Wyly's attempts to gain control of the board failed twice, ultimately resulting in a $10 million payout described by some as "greenmail."

By early 2002, investigations into accounting fraud by the Securities and Exchange Commission (SEC) and the U.S. Attorney's Office for the Eastern District of New York had become public knowledge. CA halted plans for debt refinancing after Moody's Investors Service downgraded its credit rating. The U.S. Department of Justice also imposed restrictions on CA’s ability to pursue acquisitions that year.

The SEC accused CA and former executives of regularly extending accounting periods to record revenue from contracts signed after quarter-end in order to meet Wall Street expectations. Between 1998 and 2000, the company prematurely recognized $3.3 billion in revenue from 363 contracts. Executives held substantial stock options, which encouraged artificially boosted financial results.

Kumar stepped down as CEO and chairman in 2004 but briefly remained as chief software architect before departing entirely. The firm restated its earnings for 2000 and 2001 due to improper revenue reporting. That year, CA reached settlements with the SEC and DOJ, agreeing to pay $225 million in restitution and implement reforms in corporate governance and accounting practices.

Eight executives pleaded guilty to charges of fraud or obstruction; several received prison sentences. Kumar was notably sentenced in 2006 to 12 years imprisonment and fined $8 million for his involvement in the accounting scandal. In response, CA revamped its senior leadership team and invested over $500 million in investigations and penalties.

Developments in the 2000s

By 2001, Computer Associates ranked as the fourth-largest independent software provider with a workforce of 18,000 employees. Efforts to expand beyond mainframe software met with limited success.

In December 2003, CA inaugurated its India Technology Centre located in Hyderabad. The following year, former IBM executive John Swainson was appointed CEO. Swainson sought to rejuvenate the company but encountered difficulties stemming from ongoing financial and accounting challenges.

During this era, CA introduced its Enterprise IT Management (EITM) strategy aimed at integrating enterprise IT operations. By 2006, employee numbers had declined to around 15,000.

In January 2006, the company rebranded itself from Computer Associates International, Inc. to simply CA, Inc., reflecting a strategic emphasis on streamlining enterprise IT management; this rebranding coincided with founder Kumar’s guilty plea on multiple charges.

Starting in May 2008, CA became part of the Nasdaq-100 index.

On September 1, 2009, CEO Swainson announced his intention to retire at year-end. William E. McCracken took over as chairman and CEO beginning January 2010.

2010s

In May 2010, the company underwent another rebranding, adopting the name CA Technologies to better represent its broadened range of products.

During that year, CA expanded its cloud computing capabilities by acquiring eight firms: 3Tera, Nimsoft, NetQoS, Oblicore, Cassatt, 4Base Technology, Arcot Systems, and Hyperformix. Additionally, it took over Replay Solutions. In 2011, CA completed the purchase of ITKO for $330 million. Later acquisitions included Nolio, specializing in application deployment (approximately $40 million), and Layer7.

Originally known for consumer antivirus and internet security software, CA divested these businesses in 2011 to Updata Partners, which subsequently launched Total Defense. After this divestiture, CA shifted its focus toward providing software solutions for business-to-business mainframe and distributed IT infrastructures.

Michael P. Gregoire assumed the role of CEO in January 2013. By June 2014, CA discreetly moved its headquarters from Islandia, New York to an office at 520 Madison Avenue in Manhattan.

In 2015, CA completed four acquisitions: Rally Software for $480 million, Unifyalm, Gridtools, Idmlogic, and Xceedium.

Between 2016 and 2017, the company further enhanced its automation and security portfolio by acquiring BlazeMeter ($90 million), Automic, Veracode, and Runscope.

For the fiscal year ending March 2018, CA Technologies reported revenues of $4.2 billion. Mainframe products continued as the largest contributor with around $2.2 billion; enterprise solutions generated $1.75 billion; and services accounted for $300 million. The firm operated across more than 40 countries with a workforce of approximately 11,300 employees.

On August 8, 2018, CEO Mike Gregoire was elevated to chairman of the board, succeeding Art Weinbach.

Acquisition by Broadcom

On July 11, 2018, Broadcom Inc. announced its intention to acquire CA Technologies for $18.9 billion in cash. CA’s CEO Mike Gregoire remarked that this merger combined their software expertise with Broadcom’s semiconductor leadership. The acquisition caught some industry participants off guard due to the companies’ divergent core focuses. One analyst acknowledged the financial benefits but questioned the strategic fit. The Register dubbed it the "Weirdest. Acquisition. Ever." The transaction was finalized on November 5, 2018.

The Register also noted the irony that CA Technologies—once an aggressive acquirer—was itself absorbed by Broadcom, a company known for extensive workforce reductions after acquisitions. Following the takeover, Broadcom implemented layoffs affecting former CA personnel in Silicon Valley, Plano (Texas), Islandia (New York), and Manhattan locations. Reports suggested nearly 40% of CA’s U.S.-based employees—close to 2,000 staff members—were dismissed. Consequently, the sizable CA campus in Islandia was vacated.

Corporate responsibility and recognition

During the mid-1990s, Computer Associates sought to improve its public image by establishing a dedicated public relations team and introducing more employee-centric human resources policies.

Sustainability

In 2010, CA was recognized among the most environmentally responsible companies in Newsweek’s Green rankings. It maintained a position on the Dow Jones Sustainability Indexes for seven consecutive years from 2012 through 2018 and was named one of America’s Greenest companies by Newsweek in both 2015 and 2016.

In 2017, CA received an A− rating from CDP for its environmental transparency and performance. The company’s sustainability report in 2018 highlighted a reduction exceeding 35% in its greenhouse gas emissions footprint since 2006. That year also saw CA honored with the Climate Leadership Award for Excellence in GHG Management and inclusion on Barron’s list of the 100 Most Sustainable Companies.

By February 2018, CA had been recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute for a third consecutive year.

Equality and Diversity

Between 2015 and 2018, CA Technologies earned recognition from Working Mother Magazine as a leading employer for multicultural women and was listed among the 100 Best Companies from 2015 through 2017. In 2017, InHerSight awarded the company a rating of 4.3 out of 5 stars, placing it within the Top 10 IT Companies for Women. Furthermore, Fatherly.com included CA in its Best Places to Work for New Fathers rankings in both 2015 and 2016.

In 2018, CA was honored as a top organization for executive women by NAFE and was also featured in the Bloomberg Gender-Equality Index (GEI). Marking its fourth year in a row, the Human Rights Campaign Foundation recognized CA as one of the Best Places to Work for LGBTQ+ Equality.

CA’s CEO, Mike Gregoire, has committed to diversity and inclusion by signing the CEO Action for Diversity and Inclusion pledge.

Work Environments

From 2015 through 2018, CA earned accolades from Computerworld as one of the Best Places to Work in IT. The company appeared on Forbes’ list of America’s Best Employers in 2017 and received a STAR Award for Leadership and Innovation from the Technology Services Industry Association (TSIA) that same year.

In 2018, CA was named among Thomson Reuters' World's Top 100 Technology companies and secured the NorthFace ScoreBoard Award from the Customer Relationship Management Institute (CRMI) for six consecutive years.

Acquisitions

CA broadened its software offerings through multiple acquisitions targeting enterprise system monitoring, ID management, security solutions, and anti-virus technologies, thereby strengthening its foothold across various technological domains.

See also

Further reading

  • 21st Century Management: The Revolutionary Strategies That Have Made Computer Associates a Multibillion-Dollar Software Giant, by Hesh Kestin, (1992, Atlantic Monthly Press)

External links

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Sort.CA
  2. ↑ 2.0 2.1 Cite error: Invalid <ref> tag; no text was provided for refs named WSJ
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named nd-artzt-1997
  4. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named cw-1997-ad
  5. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named cw-dynamd-1977
  6. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named libw-2003
  7. ↑ 7.0 7.1 Cite error: Invalid <ref> tag; no text was provided for refs named cw-1980-boom
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named nd-goodner
  9. ↑ 9.0 9.1 9.2 9.3 Cite error: Invalid <ref> tag; no text was provided for refs named campbell
  10. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ca-ad
  11. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ca-growth
  12. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named register-weirdest
  13. ↑ Wilder, Clinton (August 29, 1988). "Who's Next?". Computerworld. p. 97.
  14. ↑ "D.P. Software Pros Career Invitational". Newsday. October 12, 1986. p. 38.
  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named newsday-1991
  16. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ryanpitta19871102
  17. ↑ 17.0 17.1 Cite error: Invalid <ref> tag; no text was provided for refs named nd-haefner
  18. ↑ "Consco sells product line to Computer Associates. (Consco Enterprises Inc., Computer Associates International Inc.)". press release. May 26, 1988.
  19. ↑ Schmitt, Eric (February 4, 1989). "Big Employer On L.I. Agrees To Stay There". The New York Times.
  20. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named IW1990

Related profiles

CCA TechnologiesIInformation Unlimited SoftwareIIntegrated Software Systems CorporationSSoftware International
Retrieved from "https://www.alfawiki.org/index.php?title=Standard_Data_Corporation&oldid=27188"