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By Mel Duvall
CA continued to fill out its cloud computing strategy this week, announcing that it had struck a deal to acquire privately held Nimsoft.
Nimsoft specializes in monitoring systems for managed service providers and cloud computing providers. Its software is being used by early cloud computing and software-as-a-service providers such as Google Apps, Amazon Web Services, Salesforce.com and Rackspace Cloud.
CA, which specializes in systems that monitor and manage large corporate computing installations, says the deal will give it a window into the emerging cloud computing opportunity.
“With our planned acquisition of Nimsoft, CA will be equipped to capture several important growth market segments -- including emerging enterprises, emerging national economies, and the [managed service providers] who are providing these customers with IT management services via the cloud,” Chris O’Malley, CA’s executive vice president of cloud products and solutions, said in a statement.
“Penetration of these markets will further expand our global leadership in IT management and complement our existing strength with large enterprise customers,” he added.
CA estimates that emerging enterprises and managed service providers, which it categorizes as organizations with annual revenues from $300 million to $2 billion, will account for approximately one-quarter of the software spending in CA’s market space by 2013.
The Nimsoft purchase follows several other acquisitions the Islandia, N.Y.-based company has made in the cloud arena. Last month, CA announced it had struck a deal to acquire virtual appliance builder 3Tera of Aliso Viejo, Calif. In January, it acquired IT service level management supplier Oblicore of Waltham, Mass., and last November it purchased Austin, Texas-based network service level monitoring provider NetQoS.
CA believes the Nimsoft acquisition will give it an edge in the service assurance market segment, providing systems to monitor application behaviors and infrastructure health.
Nimsoft was originally established as Nimbus Software in 1998 and renamed Nimsoft in 2004. It has about 800 customers, including nearly 300 managed service providers.
Nimbus president and chief executive Gary Read said on a conference call that the deal makes sense for Nimbus because it has been having difficulty keeping up with growth in the market on its own. “We are joining a company that wrote the book on enterprise management,” Read said.
The deal is expected to close at the end of CA’s fourth fiscal quarter, ending March 31.
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