Comment by gregw2

8 months ago

Salesforce... working hard to become the SaaS-era equivalent of mid-90s "Computer Associates" (CA) ...

(Regarding acquisitions of Heroic, Sendgrid, Slack, Tableau, Mulesoft, and most recently Informatica...)

For those less-familiar with the reference, the Wikipedia entry[1] tells it well:

In 2001, The New York Times wrote that "Computer Associates has infuriated clients with high prices and poor technical support." Fortune wrote, "For all its ubiquity inside the tech departments of corporate America, CA had a horrendous reputation. Where Microsoft has long been the most feared software company, the old CA claimed the title of most despised – not by competitors but by its own customers."

Detractors of CA accused it of putting newly acquired software products into maintenance mode and milking them for cash flow. The products themselves were expensive and central to what corporate IT departments were doing, and so customers found it difficult to move away from CA. As Fortune wrote, "These products made it the barnacle of corporate America: Once you had CA software onboard, it was so onerous and expensive to pull it out that few customers ever did. That led to a lot of steady cash flow – and to arrogance on the part of CA's management." Or as The Register wrote, "CA used acquisitions to grow its portfolio.... Along the way it acquired a reputation as the place decent software goes to die."

[1] https://en.wikipedia.org/wiki/CA_Technologies

>On July 11, 2018, Broadcom Inc. announced it would acquire CA Technologies for $18.9 billion in cash.

I'm not surprised. That sounds exactly like Broadcom.

  • Broadcom cleaned house though - the overwhelming majority of old school CA Technologies from line level ICs to VPs and Execs were all cut.

    There was a notorious incident where some ex-VPs at CA made a whole stink about being downgraded to Managers at Broadcom due to title inflation at CA and Hock Tan personally flamed them, along with CA's shenanigans around their private jet (Broadcom demanded CA to fly commercial).

    Sometimes, companies with lazy and inefficient leadership and staff need to get the stick.

  • You’d think they failed based on the description given earlier. But that doesn’t sound like failure to me…

As a millennial, I never understood CA’s business model. While I was too young to have exposure to the B2B software sales market, they also had a tiny presence in retail software, so I was always confused about what kind of software they actually wrote. I could grasp product-oriented companies like SAP and Microsoft, but I had no clue how a company with no obvious central product could take in the epic cash flows publicized during their accounting scandal: https://en.wikipedia.org/wiki/35_day_month