Computer Associates to focus on indirect sales

By siliconindia staff writer   |   Friday, 02 April 2004, 20:30 IST
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NEW YORK : Computer Associates International Inc. said on Thursday it will make partnerships with other tech companies a top priority this year, in an effort to drive more software sales from small- and medium-sized companies. Computer Associates currently generates more than 80 per cent of its revenue via its 1,500 salesforce, focusing on big corporate customers. But as it looks to capture the rapidly growing demand from smaller companies, it decided to work more closely with resellers, hardware vendors, and technology services providers. "We are now determined to make partnerships and alliances a top priority and the cornerstone of our future success," Chief Executive Officer Sanjay Kumar said in a memo to employees. Computer Associates named Gary Quinn, who was in charge of international sales, to lead this effort. It also appointed former Hewlett-Packard Co. top executive Jeff Clarke as it chief financial officer. Quinn said indirect sales currently account for only 10 percent of CA's total sales and other software companies such Veritas Software Corp. already have almost a third of its sales from its partners. CA's partners include Microsoft Corp., Dell Inc., and services company Electronic Data Systems Corp. CA said it is not in the business of software installation, thus it is not sacrificing its services revenue for more business from partners.