Posted on Wednesday, February 29th, 2012 | In Current Market News, Stocks to Watch
CA Inc. (CA) recently announced its intent of further enhancing its Content-Aware Identity and Access management (IAM) solution in order to deliver an upgraded security solution for Microsoft SharePoint to help improve information security, reduce risk and meet compliance requirements.
The technology major’s Content-Aware IAM vision is unique in its own way as it helps control users, enhances their access and facilitates the information handling process. These enhanced solutions help organizations protect their information from security breaches.
This new product is expected to help the internet security professionals to manage data efficiently and protecting the same as data security has become the top priority of organizations across the globe.
This apart, CA has further rolled out new cloud computing offerings. Cloud computing is increasingly becoming a focal point for the company. CA is leveraging its cloud computing expertise and rolling out innovative solutions to grow its business.
The company has recently integrated its new cloud offering CA AppLogic turnkey platform with International Game Technology’s (IGT) IGT Cloud for delivering advanced casino software and better gaming experience to the end user.
Cloud computing is currently being adopted by a number of organizations. This segment is slowly gaining traction and the new orders in this segment include the Cal Credit Card company, which integrated its "Safe Shopping" system with CA Arcot TransFort for Issuers. This software provides 3-D secure authentication and fraud prevention services for card processors and issuers.
Backed by good results in the recently concluded quarter, CA further seeks to expand into identity management and cloud computing areas to strengthen its business model. However, the product demand seems to be moderate for the company, although fiscal 2012 guidance was conservative, in our view.
On the other hand, we are apprehensive about other important players making strategic moves to grab a major chunk of the software & cloud computing space, which includes the likes of International Business Machines (IBM) and Hewlett-Packard Company (HPQ). In addition, its high debt balance, reduction in tech spending by government agencies and European exposure may pose some challenges going forward.
The company has a short term Zacks #1 Rank (implying a Strong Buy rating).
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