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Computer Associates buys a channel

Computer Associates buys a channel

Data protection specialist Cheyenne Software has experienced a boom in sales and staff since its $1.2 billion acquisition by Computer Associates last year.

In its December 1996 quarter - the first since the CA takeover - Cheyenne recorded global sales of $68 million, nearly $20 million more than in the preceding quarter.

Cheyenne's regional manager for Asia/ Pacific and Latin America, Roy Olsen, who joined the company in October after seven years with Novell, said part of the revenue increase could be attributed to a positive spinoff from the CA purchase. "Some big corporations that are traditional CA clients have jumped in. Certain Fortune 2000 companies only do business with other Fortune 2000 companies and will not deal with a $200 million company."

Cheyenne's Australia/New Zealand subsidiary is also recording a sales spurt, with current sales suggesting last year's less than $6 million turnover is likely to grow to $10 million this financial year.

Cheyenne develops and distributes a range of cross-platform data protection products including those used for data backup and storage, anti-virus monitoring and messaging [See story page 14].

However, according to Cheyenne executives, CA acquired more than just industry-leading data protection products when it bought the company.

Several benefits

TM Ravi, vice-president of Cheyenne's NT sales and marketing division, said CA obtained several main benefits from the $1.2 billion purchase. "One of the things CA has acquired in Cheyenne is an indirect sales channel," he said.

"CA predominantly operates through a direct sales channel, about 90 per cent direct, while Cheyenne is predominantly indirect - about 95 per cent through distributor, reseller and integrator channels. This is particularly important for CA as it starts moving down from the mainframe space to the client/ server space and platforms such as Windows NT and NetWare.

"The second important benefit is that CA recognises the importance of backup and antivirus, particularly with respect to systems management.

"In Cheyenne, they have best-of-breed products in these areas."


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