Computer Associates last week detailed its post-merger plans for the holdings it garnered through its $US3.5 billion acquisition of Platinum Technology, outlining its product strategy and signaling impending staff cuts.
CA officials detailed plans to integrate the respective CA and Platinum lines and maintain individual products. The company also announced an overarching electronic-commerce strategy and mapped out management changes.
Sanjay Kumar, CA's president and chief operating officer, said CA expects to reduce Platinum's 6,000-employee workforce in order to improve Platinum's profitability. Yogesh Gupta, senior vice president of product strategy at CA, also said that CA does not yet expect to discontinue any of Platinum's products.
"We will support all Platinum products for at least two years," Gupta promised.
Also, CA expects to continue using Platinum's brand names, although they will be preceded by "CA."
Additionally, Kumar indicated that the company is forging ahead with plans to integrate CA's and Platinum's products.
The Platinum acquisition also gives CA a stronger playing hand than it had following its failed bid to take over Computer Sciences.
CA plans to provide specific solutions to a company's unique business challenges, primarily using CA products, Gupta said.
The CA e-commerce plans, which entail unspecified investments in the Platinum software, appear to run counter to common perceptions of CA's usual handling of acquired products, which is considered by some industry observers to be light on research and development and heavy on capitalising on installed bases.
More information on the post-merger plans will be released in July in New Orleans at CA World 1999 and Platinum Platforum, the companies' combined user group meetings.
Platinum CEO and President Andrew "Flip" Filipowski revealed that this week was his last official week as a CA employee, although he said he will continue to act as a consultant on its behalf.www.cai.com.