Computer Associates' reshuffling of upper management earlier this month and its decision to spin off some businesses may play well on Wall Street, but observers say the moves probably won't mean much to enterprise network customers in the short run.
CA, which has seen its stock plunge nearly 50% since the company warned in early July that its first-quarter earnings would be well below expectations, has replaced company head and founder Charles Wang with operations chief Sanjay Kumar.
Wang will remain as chairman of the board and develop new, unspecified business ventures.
The company says it remains committed to its enterprise product lines for storage, security, and network and systems management, as well as its application development and business intelligence wares.
But it plans to sell some of its noncore businesses, such as AccPac, a desktop accounting and management software product. CA will also spin off a company, dubbed iCan-ASP, devoted to help application service providers run their businesses.
The reorganisation is the second announced by CA this year.