In July of 2018, Broadcom announced its intentions to acquire CA Technologies. In the press release, Hock Tan, President and Chief Executive Officer of Broadcom, said:
“This transaction represents an important building block as we create one of the world’s leading infrastructure technology companies. With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses. We intend to continue to strengthen these franchises to meet the growing demand for infrastructure software solutions.”
While those words look nice on paper, the acquisition is old news. Customers of both companies are now asking, “What’s in it for me?”
Broadcom believes in the future of the enterprise data center market – a belief that drove the pursuit of this merger. The companies’ networking and storage businesses have grown rapidly due to industry demand and transformation initiatives. Companies must securely and reliably scale data centers to drive digital transformation initiatives and compete in today’s marketplace. This merger gives existing customers of both corporations the opportunity to benefit from the natural synergy of Broadcom’s industry-leading IT Infrastructure offerings and CA’s industry-leading suite of mainframe solutions.
I recently listened to Dez Blanchfield’s podcast , Conversations with Dez. In this episode, he sat down with Greg Lotko, Senior Vice President and General Manager, Broadcom Mainframe Division, to discuss the future of the platform.
Let’s dive into a few of the key takeaways.
What Does the Acquisition Mean for the Market, and for Customers?
CA Technologies is an industry leader in mainframe software solutions across application development, security, and ITOM, and that doesn’t seem to be changing anytime soon. According to Greg Lotko, General Manager and SVP of Broadcom’s Mainframe division, “The recent acquisition by Broadcom will allow us to accelerate our innovation with additional investments.” Hock Tan, Broadcom’s CEO, also stated during their 3QFY19 Earnings call that the company is planning to “double down” mainframe investment.
Broadcom has a decades-long track record of being the technology leader in the markets they serve, investing over $3.2 billion a year on R&D and product development – a good sign of things to come.
CA Technologies and Broadcom both have a strong history of innovation and commitment to customers, and together they share a common vision for delivering the mission-critical technologies that enterprises need to compete and win.
The Mainframe is Part of a Hybrid IT and Multi-Cloud World.
Businesses are expected to excel at digital engagement. In a recent study, conducted by IBM, 68 percent of Chief Experience Officers surveyed said that they expect the industry will emphasize customer experience over products in the future.
The modern enterprise must gain a true understanding of what their customer is doing in real-time, anticipate future interactions to meet – and exceed – expectations, and leverage data and IT architectures to deliver up-to-the-moment and personalized digital experiences – all while “keeping the lights on”. Digital transformation initiatives are focused on enhancing the organization’s ability to do just that – continuously interact and engage with their end customers in a meaningful way.
The performance, reliability, scalability, and security of your IT architecture is critical to delivering digital experiences that continuously “wow” the customer, but you may have a few things working against you. The complexity of today’s data-ridden and interconnected business environment. The rate of business and technology change. Growing customer demands. So, put simply, how do you digitally transform the business in the face of great change and complexity?
Your efforts to sustain and innovate digital transformation must include the mainframe, and more specifically, a reinvention of the platform.
CA Technologies, a Broadcom Company is an ISV focused on delivering hybrid IT solutions that:
- Open the mainframe that work with the latest technologies across all environments
- Simplify user experiences to deliver frictionless IT that empowers teams and drives efficiency
- Take advantage of intelligence and automation to optimize back-end systems.
Enterprises that work across their IT architecture to bring these principles to life will dominate in the new digital world.
Deliver on DevOps
Open source on the mainframe was unheard of – until now. Mainframe industry leaders, Broadcom, IBM and Rocket Software, took charge in creating an open-source mainframe software framework – Project Zowe. The three companies collaborated with Linux Foundation’s Open Mainframe Project to bring Zowe to life —a modern interface for z/OS. This helps organizations drive innovation by tapping into new frameworks, skills, and technologies; address the Mainframe skills gap by widening the pool of available talent; and quickly respond to market changes through agile development, the modern DevOps approach, and increased innovation.
Solutions like CA Brightside are a perfect complement to any organization’s digital transformation efforts. CA Brightside allows development and operations teams to securely, manage, control, script, and develop on the mainframe like any other cloud platform. The modern CLI empowers next-generation developers to apply their experience and skills to mainframe development.
Implement Intelligence and Automation
IT operations leaders are being asked to manage increasingly complex environments inclusive of mainframe, cloud, and distributed platforms. To achieve this, organizations must find new ways to deliver seamless end-to-end digital experiences – and without incurring downtime or additional costs.
However, enterprises are also challenged with:
- Data complexity and disparate data silos inhibiting business growth and driving up costs
- Multiple data formats and exponential data growth “bogging down” operations
- Skills shortage threatening continuity.
CA Operational Intelligence – recently introduced as part of CA’s AI Ops-driven platform – provides comprehensive service intelligence, analyzes multivariate data sources across the IT architecture to identify potential issues earlier, isolate root causes faster, and ultimately, remediate issues before they can impact the business.
Mainframe software like CA Mainframe Operational Intelligence (part of the CA Operational Intelligence stack) that apply intelligence and automation to deliver data insights, proactively identify and address performance issues, and automate processes to drive efficiency are already leading the pack.
Ensure Enterprise Security and Compliance
Security and compliance are a fundamental aspect of modern business. They are a requirement for continued business delivery and an opportunity to establish a competitive advantage through digital trust. The right information and data protection strategies are critical to rebuilding that trust by ensuring a better – and safer – customer experience. The landscape itself it also constantly changing with new rules, regulations, standards, and threats driving new strategy foci.
The mainframe – as the most secure platform on the planet – is still home to most transaction processing data. Enterprises that lean into the inherent security of the platform will succeed in maintaining compliance and security. Tools like CA Compliance Event Manager continuously monitor file integrity and suspicious activity and alert to any changes for complete oversight of any security threats.
The Path Forward
The Mainframe synergies coming out of the Broadcom-CA Technologies acquisition are slated to drive change and innovation in the space. Together, Broadcom and CA’s technology expertise and commitment to delivering customer value will continue to impact the market in a positive and enduring way. That continued drive for innovation is critical to enterprises looking to digitally transform their business with technology-enabled change.
If your organization is undertaking digital transformation, I encourage you to reach out to Greg Lotko at email@example.com to learn more about how you can take advantage of these synergies.