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Summary:

CA today announced that it is acquiring privately held Nimsoft, which makes performance and availability monitoring software, in an all cash transaction valued at $350 million. According to CA, Nimsoft will help it better serve “emerging enterprises” (read smaller businesses) adopting cloud computing solutions.

CA said today it’s agreed to buy privately held Nimsoft, which makes performance and availability monitoring software, in an all-cash transaction valued at $350 million. According to CA, Nimsoft will help it better serve “emerging enterprises” (read smaller businesses) adopting cloud computing solutions.

According to a statement from CA:

“CA estimates that emerging enterprises, which it categorizes as organizations with annual revenues from $300 million to $2 billion, will account for approximately a quarter of the software spending in CA’s market space by 2013.  By leveraging Nimsoft’s market expertise and technology, CA expects to add an entirely new set of customers to its base, which historically has been comprised of large enterprises.”

Chris O’Malley, CA’s executive VP of cloud products and solutions, added that Nimsoft could also help CA focus on “emerging national economies,” and opportunities outside the U.S. In a blog post, Nimsoft CEO Gary Read said he was initially hesitant to open talks with CA, but eventually became convinced that a deal could help scale Nimsoft’s business to keep up with growth in cloud computing. Many of Nimsoft’s customers are smaller companies.

In addition to providing more evidence that M&A activity is on the rise, CA’s Nimsoft purchase is just the latest in a string of cloud-focused acquisitions the company has made, including NetQoS (performance and app monitoring), Oblicore (dashboard monitoring services), Cassatt (automating cloud app scalability) and 3Tera (infrastructure management). CA is clearly diversifying into very diverse kinds of cloud-focused applications and services.

As Derrick Harris has pointed out, the company formerly named Computer Associates wants to be the enterprise watchdog in the cloud, providing end-to-end services and tools to IT departments. Its latest acquisition makes clear that the company also wants to extend that focus to smaller companies, and extend it overseas.

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  1. $350 million? Seems like a lot…from a Google search, Nimsoft had $32 million in revenue for 2009 (interestingly $41.5mil in 2008) but they were also cash flow positive for the last 4 quarters. Does $350 seem high to anyone else? I think CA bought NetQoS for roughly 5x sales…

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  2. [...] obtain a first mover advantage (from a set of recent acquisitions: 3Tera, Oblicore, Cassatt, and now Nimsoft) that becomes hard to displace for slower moving multinational Tier 1 technology companies. [...]

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  3. [...] a wise move, as enterprises aren’t going to hop wholesale into the cloud. CA has also recently decided to acquire several startups aimed at performing a similar support function for corporate customers trying out infrastructure, [...]

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  4. [...] a wise move, as enterprises aren’t going to hop wholesale into the cloud. CA has also recently decided to acquire several startups aimed at performing a similar support function for corporate customers trying out infrastructure, [...]

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  5. [...] a wise move, as enterprises aren’t going to hop wholesale into the cloud. CA has also recently decided to acquire several startups aimed at performing a similar support function for corporate customers trying out infrastructure, [...]

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  6. [...] operating without competition in the hybrid monitoring space. The field actually is quite small, but recent CA purchase Nimsoft is another third party offering single-pane-of-glass monitoring of internal and external resources, [...]

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  7. [...] to offer monitoring and management tools is clear, but Rackspace already has a partnership with CA-owned Nimsoft. I suspect the purchase was spurred by a desire to compete more closely with Amazon Web [...]

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