CA Technologies, a global software firm that offers solutions ranging from planning to DevOps to security and systems management, recently conducted a global study that highlighted that majority of Indian enterprises are affected by the Application Economy. The study also reveals that 52% of Indian respondents plan to adopt DevOps in the next two years to address the growing application demand. In an interview to India media personnel in Singapore, Kenneth Arredondo, President & General Manager, Asia Pacific & Japan at CA Technologies said that Application economy presents huge opportunity for the firm and that India remains one of the focus market for them. Excerpts:
How has the whole approach towards software development changed in recent years?
The game is definitely changing a lot. Software till about 15-20 years ago, the expectation was that you buy it, it would take a year or two to implement it, there would be bugs, you paid consultants who would come in and fix it and then integrate and so on. The expectations now are much more about instant gratification, expectation is everything works out of box, but the tradeoff is that everything is plain vanilla – what you are buying is probably 80% of that you would have purchased earlier. The tradeoff today is that between speed and features, and the choice depends on what’s more important to an individual organization. However the standards remain the same — that is the pressure to be up and running as soon as possible with highest quality and security, it’s still there across the board.
What opportunities does the application economy present for IT companies today?
IT is the business, we see it more and more with companies like Google, Amazon, transition that Nike is doing from being a shoe maker to making wearable devices. Today software drives the business. Application economy is very good for us and we are gearing up all around that. 58% of those surveyed are looking at adopting application economy and are neither leaders not laggards. Its a huge opportunity for us.
The CIOs today everywhere struggle with the same set of issues related to demanding CEOs, demanding customers and so on. The value proposition that we bring to the CIOs today is the agility to rapidly respond to the changing dynamics of the internal and external stakeholders and clients. When we talk about release automation and service visualization aspects, it’s not only about saving of labor, it’s more about speed to market , quality of code, getting defects out of the system before release production. So the old objective to save costs, say by getting 40 people out of the department is what doesn’t matter now. What matters now is the revenue aspect and how to get to market quicker. That’s the value proposition we work with the CIOs.
How are you seeing enterprise management trends and adoption levels for some in India?
As we define enterprise management, it constitutes application performance monitoring, networking, server monitoring and so on. We do see it’s a very strong market for us in India. Modi government’s new focus on smart cities, the more business focused environment and the whole infrastructure build-up lend themselves very well with what we call enterprise management. In fact, it’s a large part of what we do in India.
How has been the demand and response from Indian CIOs for CA Technologies’ products?
We are seeing traction for DevOps in India amongst the BFSI companies. We are seeing more traction and demand for Release Automation products, with Service Visualization coming next. The largest transaction we did for API management solution during the quarter ended September 2014 was in India, and it was in BFSI vertical. Till about couple of years ago, this would not have been possible. But today with the kind of competition Indian companies are facing, the ability to get the products to market in a rapid manner and in a secure way is increasing, so we are seeing more and more CIOs looking at these solutions. We expect increased demand for enterprise management as India continues to build up its infrastructure and bandwidth capabilities and the pressure on CIOs in India increase (to deliver products rapidly).
So what role you see CA Technologies playing in government’s infrastructure build up?
We are in talks with the state government and are already doing projects for them. Government projects form a growing piece of our business. With state elections now over, we are seeing pick up again. As far as smart cities is concerned, we are looking at partnerships with Indian GSIs (global system integrators), local providers and other consultancy and IT firms — we are all working together to help build and monitor the functioning of infrastructure.
How do you intend to grow your offerings further in coming years?
We are at our core a software company and organic development is key to our growth. We spend nearly $ 600 million every year towards development, and our largest development center happens to be in India where we have invested $ 60 million at Hyderabad R&D centre. We also have facilities across Bangalore and Baroda. Having said that, we are also always in look out for inorganic opportunities related to new technologies that fit in with our core technology strengths.
Which verticals or segments are you focused on in India?
In India we focus on BFSI, government, telecom and a bit of retail. Having said that, we are into infrastructure management, enterprise management and application delivery – kind of common things that every industry is facing. So we have team focusing on specific sectors and companies, and at the same time working with our partners to make sure that we are not missing opportunity in other areas.
What are your medium term plans or targets for growth in emerging markets like India?
Currently we derive majority of our revenues from US market, which is more than the rest of the world combined. Our intent as an organisation is to grow our international business, but not at the expense of what we are doing in North America. We are seeing good traction for our solutions in the Asia Pacific and Japan region and going forward, we remain optimistic on — what we are doing, about products we are bringing to the market, the market opportunities we have and the people identifying those opportunities.
(The reporter’s trip to Singapore was sponsored by CA Technologies)