Computer Associates officials at CA World, the company's
annual customer conference in Las Vegas, were keen to reassure
customers that CA is ready to move on from the accounting turmoil
of the past few months.
"CA World 2004 marks the beginning of a new chapter for this
company," said interim chief executive officer Ken Cron. "I'm here
to tell you that I'm committing CA to the highest standards of
fiscal discipline and integrity."
CA has recently been under an uncomfortable spotlight as the US
Securities and Exchange Commission and Department of Justice neared
the end of investigations into a multibillion-dollar accounting
fraud at CA. The scandal's fallout has led to criminal charges
against four former executives and the forced resignations of more
than a dozen management employees.
Sanjay Kumar, who stepped down from his position as CEO last
month, is now chief software architect, a position Cron described
as an envoy to customers.
CA's technology strategy will be led by a group including chief
technology officer Yogesh Gupta, senior vice president of product
development Mark Barrenechea and executive vice president Russ
Artzt.
"In his position [Kumar] can take information from the
customers and bring it back, and with the other three create the
[technology] team," said Cron.
Kumar reports directly to Cron and supervises no staff other
than administrative employees. It is a position that will allow
Kumar to continue carrying out the strategic plans he helped draft,
executives said - but it is also one that leaves him
organisationally isolated, an arrangement that could prove useful
if CA needs to further distance itself from its former leader.
He claimed to be adjusting well to his new role: "I'm not the
CEO of the company, that's very clear. A lot of people wonder, how
do you make that transition? I care so deeply about this place -
unless you understand how deeply I care, it can be hard to
understand how I can kind of flip my hat and say, 'It doesn’t
matter.' Ken will decide some things differently than I would have.
That's perfectly cool with me."
In a wide-ranging interview, Kumar, Cron and chairman Ranieri
portrayed CA as a company with a deep executive team continuing to
carry out a steady product development and customer service plan.
In the three weeks he has held office, Cron said he has met with 20
of CA's largest customers, all of which expressed satisfaction with
the company's execution.
In general, customers were happy with the service improvements
the company has made in recent years and supportive of the steps it
has taken since the accounting scandal came to light, Cron said. No
customers have asked for price breaks or more flexible licensing
terms in light of the company's corporate turmoil.
Cron declined to comment on the timeline of the company's search
for a new CEO, but reiterated earlier comments that he is not a
candidate for the permanent job. CA is also searching for a new
general counsel, to replace the one it ousted in connection with
the accounting investigation, and a new CFO, to replace Jeff
Clarke, who was promoted to chief operating officer soon after
being recruited.
One partner attending the show, NIIT Technologies products and
services head Jurgen Niegengerd, said CA has made great strides in
the past year to improve its sometimes rocky relationship with its
partners.
"I was wondering about the new CEO, but I think the good changes
will be continued," said Niegengerd.
Several customers said they were curious to hear how Cron would
address the accounting fraud and management overhaul. Joe Egger, of
First Data, said he was pleased Cron dealt forthrightly with the
issue. Egger came away with a positive impression of the new CEO,
and of CA's corporate direction.
First-time CA World attendee Beatrice Sirchis, head of the
computer security department at Israeli telecom Bezeq, said she
appreciated hearing about the depth of CA's product portfolio and
planning. The company's accounting problems and management
turnover did not concern her. "As long as everything is going okay
with the products, we don’t mind any changes. It's an internal
affair," she said.
Stacy Cowley writes for IDG News
Service