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» VIEW ALL POSTS Aug 25 2010   7:51PM GMT

CA spends close to $1 billion on cloud acquisitions



Posted by: JoMaitland
Tags:
4Base
CA cloud acquisitions
cloud computing consulting
virtualization consulting

CA’s spending spree in the cloud market is far from over according to Adam Elster, SVP and general manager of CA’s services business.

The software giant has gobbled up five companies in the last 12 months including Cassatt (resource optimization), Oblicore (IT service catalog), 3Tera (application deployment in the cloud), Nimsoft (monitoring and reporting of Google Apps, Rackspace, AWS and Salesforce.com) and most recently, 4Base Techbologies (a cloud consulting and integration firm). Some back of the envelope math says that’s close to a billion dollars worth of acquistions so far.

Elster says the company is looking to make an acquistion every 60 to 90 days to build out its portfolio of cloud offerings. It’s not done with services either. “We’re looking at a couple of others from a services perspective,” Elster said. CA’s focus, as always, is on management. It’s also looking at security in the cloud.

For now, the 4Base deal is keeping CA busy. A Sunnyvale, CA-based virtualization consulting firm, 4Base has about 300 projects on the go with companies including Visa, ebay and T-mobile. It charges around $250,000 per phase of a project and most projects are at least two phases. CA found itself in many of the same deals with 4Base, but 4Base was winning the IT strategy and consulting part of the deal, hence the acquisition.

It’s seems like an expensive proposition to hire the 4Base guys, but Elster says for many large companies it’s a time to market issue versus retraining “senior” inhouse IT staff. “Your challenge is those people do not have the large virtualization and cloud project experience … for $250,000 4Base does the assessment and builds the roadmap, it’s a hot space as it gets the organization to market quicker and reduces risk,” he said.

Most of the projects 4Base is working on involve helping companies build out their virtualization environments beyond a single application or test and dev environment. Rolling out virtualization to a larger scale means getting an ITIL framework in place, updating incident and capacity management reporting tools and creating more standardized IT processes, according to 4Base.

If you’re looking for other boutique companies in the virtualization and cloud consulting market there are a lot out there. Service Mesh, CloudManage.com, New Age Technologies, AllVirtualGroup.net, VirtualServerConsulting, Green Pages Technology Solutions and IT@Once spring to mind.

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