Growing Profitable Strategic Alliances in a Complex Global Economy Case study in managing co-opetitive alliancesThe Conference Board

October 20, 2011

Hotel Intercontinental, New York, NY

“Alliances have become crucial to many companies in this competitive global economy and yet more than half of them fail. This session will identify and discuss key elements critical to the development and management of successful alliances.”

—Managing an alliance ecosystem

—Fostering trust with partners

—Partnering with competitors

Presentation Abstract

2 Copyright © 2011 CA. All rights reserved.April 17, 2023

—CA Technologies Overview −Market dynamics, technology alliance program

—Cloud−Mapping to CA’s Alliance strategy

—VCE alliance: Market and corporate drivers, objectives, CSF’s−Ecosystem: Building trust in a co-opetitive environment

−Increasing strategic relevance

Presentation Agenda

3 Copyright © 2011 CA. All rights reserved.April 17, 2023

#1 Management Software Vendor*

$4.5 billion annual revenue and strong profit

Customers in virtually every country, including a majority of theForbes Global 2000

~$500 million and ~5,000 people annually designing and supporting software

30+ years in business managing complex heterogeneous environments

Ranked among top 50 Greenest US companies

CA Technologies leads the way globally

*Source: Forrester Research, Inc., “Who’s Who in IT Management Software 2.0” by Jean-Pierre Garbani and Thomas Mendel, August 12, 2010

CA Technologies is an IT management software and solutions company.

Our products enable customers to automate, manage and secure IT environments and deliver more flexible IT services.

CA Technologies makes agility possible.

Partnering Taxonomy

Global Service Providers/Outsourcers CSC, EDS

Systems Integrators: Accenture, Deloitte

Service Providers - traditional, cloud, SaaS. PaaS

Technology Alliances: Microsoft, Cisco, SAP, VMware…

Technology Integration Partners: An ecosystem of low to medium touch technology partners that deliver integrated add-on products to enhance CA’s solutions and align to meet CSU needs

OEM/Resale/M&A

Volume Channel

5 CA CONFIDENTIAL - Internal Use Only

Charter: To develop market-changing, global technology-

based alliances which provide material impact to market

share, competitive differentiation and revenue for

CA and its partners.

Technology Partner Stratification

Strategic Alliances

TechnologyAlliances

Platform Partners

Technology Partner Program

Strategy alignmen

t

Revenue opportun

ity

Sponsorship

Scope Scale Feasibility

Commitment

Benefits, investment

7

CEO Priorities

Apply innovationCan we drive growth and competitive differentiation through innovation?

Maintain cost efficienciesCan we support continued cash and profit generation?

Build/maintain a positive public reputationCan we grow our market share through a positive image?

CIO Challenges

Business Expectations have never been higher

CEO priorities of ‘return to growth” drive new implications for CIOs

Increase business impactCan you explore new ways to serve the business?

Increase business impactCan you explore new ways to serve the business?

Improve quality of serviceCan you meet the performance demands of the organization — cost efficiently?Improve quality of service

Can you meet the performance demands of the organization — cost efficiently?

Manage riskCan you see risk to control it?

Manage riskCan you see risk to control it?

Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?

Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?

Provide transparencyCan you see and resolve risk and performance issues in your business?

Provide transparencyCan you see and resolve risk and performance issues in your business?

CEO priorities of “return to growth” drive new implications for CIOs

CIO ChallengesCEO Priorities

Grow through innovationCan we drive growth and competitive differentiation through innovation?

Maintain cost efficienciesCan we support continued cash and profit generation?

Attract and retain new customersCan we grow our market share through a positive corporate image?

Increase speed and agilityCan you find new ways to serve the business by delivering services faster and more cost effectively?

Mitigate riskCan you see and resolve risk and security issues transparently for your business?

Reduce IT costsCan you embrace innovation for competitive differentiation and reduce costs?

CA Technologies VSA Overview Copyright © 2011 CA. All rights reserved.

8

CIO’s are living with a “new normal”…but enterprise IT needs a game changer

Recession

New Normal

Demand Shorter Cycle Times

TransformativeMarketOpportunity

Consumerization of IT

Collapse Cycle Times

IT Budget

Business Demand for IT Services

Public

Private

IaaS SaaS

PaaS

Cloud: the “IT Light Switch”

Use Computing power . . .

−On demand

−Only for the time you need it

−Give it back when you are finished

−Pay for metered usage

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Customers choose different paths to cloud

Do It Yourself Tools

Converged Stacks

Turnkey Solutions

Service Provider Solutions

CUSTOMER CHOICE

CA’s mission: To provide exceptional value to our customers around cloud, no matter how it is acquired

Application Modernization

Mobility

Collaboration

SAP, Oracle, MS Dynamics, PeopleSoft, Siebel, CA Clarity

Virtual Desktop, Workspace Management, Mobile Applications

Cisco QUAD, SharePoint, Exchange, Unified Communications, Knowledge Management

Drive Adoption – Lower TCO – Migrate Application Workloads

“Converged Stacks” form the basis for private clouds

SaaS

Middleware

Database

Virtualization/ Operating System

Cloud Computing/ SaaS

Applications

Enterprise Data Center/Private Cloud

Cloud creates additional complexity; requires a new management model

Top 5 challenges of cloud computing

Management of hybrid world

Performance monitoring

Reliability/service assurance

Automating service delivery across platforms

Security

Middleware

Database

Virtualization/ Operating System

Public Cloud

SaaS Infrastructure

SaaS Applications

Virtualization / Operating System

Database

Middleware

Servers Storage Networking

Applications

All trademarks, trade names, service marks and logos referenced herein belong to their respective companies

12

Market sizing

13 Copyright © 2011 CA. All rights reserved.April 17, 2023

Global Launch: Breakout Innovation and New Market Entry

“CA Technologies and VCE announced a global strategic alliance to deliver integrated private cloud solutions for VCE Vblock™ Infrastructure Platforms that help customers increase agility, reduce risk and lower costs…”

May 4th Press Release

Intranet/Extranet Presence

EMC World, May 9-12, Las Vegas, NV

Customer ROIReduces deployment cost & risk

Shared customer base

Complementary offerings

Provisional balance sheet for a technology alliance

Shared competitors

“Startup” – like operating

model

Sales & marketing alignment

Competitive roadmap from

other participants

Matching speed, direction

Channel scope

Leveraged investment

Trust, aligned execution & governance

Revenues & margins

Assets Targeted outcomes Liabilities / challenges

Plan of Record Set, staff, measure, interlock, govern

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Strategy: Provide a portfolio of solutions for enterprises and service providers which directly impact economics, risk and time to market for Vblock-based services. Create market changing dynamics with partner/competitors.

Objectives: 1 – Revenues2 – Wins vs. HP, IBM3 - Demonstrate first to market innovation

Measures: 1 – Sell with and sell through revenues by geo2 – Competitive wins vs. parent company offerings 3 – Routes to market

Tactics:

1 – Assymetrical investment2 – Level the playing field vs. parents’ competitive roadmap3 – Establish references to create self sustaining momentum

Dependencies:

1 – Alliance management and funding

2 – Marketing and development funding

3 – Sales & RTM enablement

SWOT, gap analysis, solutions roadmap

Committed business plan, shared incentives

Market assessment, steering committee gates,

exec sponsorship

Aligned operating plans, contracts,

partner enablement

Balanced scorecard, GTM

interlock

Gates

Staffing, risk mgmt,

governance gates

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Offset weaknesses with strengthsThe Power of the Portfolio

Source: CA Global Analysis TeamDisclosed at CA Investor Day 29 July 2011 *As a percentage of 60% cross sell

Lead ~20%*

Service & Portfolio Management

Virtualization and Automation

Lead ~20%*

Security ManagementService Assurance

Lead ~40%*

Lead ~20%*

60% of CA’s transactions are

cross sells

CA VCE Parent A Parent B Parent C

Product A Parity / second source

Weak - Preferred

Product C Weak Weak Preferred

Product Cap

Strong - Limited -

Product Sec

Strong Strong

Product SA Strong Emerging

Product N Strong Emerging -

Solution V Entry Entry

Solution I Entry Entry

RTM A Strong Strong Strong Strong Weak

RTM U Strong Limited Weak Strong Strong

RTM F Weak Strong Strong Strong Strong

ISV 1 S Strong Limited Limited Limited Limited

Alliance Compete/collaboration mappingRequires clear communication and Rules of Engagement

18 Copyright © 2011 CA. All rights reserved.April 17, 2023

Lead / collaborate

Proceed with caution / RoE

Compete

Concede

Risks and Mitigation

19

Pro

babi

lity

of O

ccur

ence H

igh

> 7

5%Lo

w<

25%

Impact (Deadlines, Costs, Quality, Revenue)

Low High

Med

ium

25

%-7

5%

1

2

3

4

6

5

7

1. Alliance participant buys competitor

2. Alliance participant develops competitive offering

3. Joint Venture is disbanded

4. …

5. …

6. RTM expansion not realized

7. …

8. …

9. Enablement

10. Fail to align GTM

Medium

89

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Alliance virtual team structure

– Strategy– Governance– Contracts– Alliance Launch– RTM Enablement – Portfolio Leverage

– Reference Architecture

– Field Technical Enablement

– Sales & Pre-sales Interlock

– Engagement Support

– Solutions Strategy– Product Management– Engineering Interlock– Portfolio Leverage

– Launch and Integrated Marketing

– Communications, Events– Field Enablement– Collateral– Launch Mgmt – AR/PR

GSPs GSIs Solution Providers Direct

BU Solutio

ns

Alliance Marketi

ng

AllianceProgra

m mgmt

Field

– Solutions mgmt– Solutions marketing

– Channel enablement

Post Contract Roles: Alliance through Launch

Invest-ment

Review

Strategy /

Market req’mtsdefinitio

n

Devel. & product mgmt

PRD and roadmap

Launch

Sales

Partner sales

RTMAuthEnab

le

Enable

Enable

Lead organ. / partner

Inter-dependency

Alliance governanceEMT/GM

Alliance / strategy

** * *

Development

Design Build Release

Marketing

** **

Sales

RTM

Partner

1. Shared interests are the cornerstone− Maintain interlock across sponsors, functions & geos

− Build trust through honesty, communication and performance

− Focus on the shortest path to first wins

2. Set clear, objective metrics, roles, boundaries and governance

3. Have frank discussions early and often− Level match, identify areas of sensitivity/contention, anticipate

challenges

− Pre-emptive conflict resolution and re-focus on intersecting interests. Focus on the issues, but don’t forget individual perspectives & bias.

− Test boundaries and admit fault.

4. Never assume the situation will remain constant− Competitive pressures will mount

− When the facts change, change the plan

− Evolve the relationship

Managing co-opetitive alliances

22

Questions?

End of presentation

FY’12 Summary of Operational Metrics

Metric

Measure

Source

Market Influence

# partner press releasesGSI demand

pull

CA website, All. Mkg, corporate commun.

Team, GSI offerings

Partner Monetization

OEM Royalty Revenue to

CA

SAP tracking for SKUs

Bookings from resold

products

Bookings by SKUs

Influence Bookings from Joint

selling/marketing

SFDC, w/tech partner

specified

Partner Satisfacti

on

Partner satisfaction

scoreAlliance

expansion

Annual survey QBR scorecards

Amendments, HC

Technology Enablement

Certifications (product and

program)

Day 0 support for new releasesIn Prime process

Beta customers

Solutions SKU’s

In Prime processAdvance funding

Beta customers

25 CA CONFIDENTIAL - Internal Use Only

Corporate

GoalsAccelerate Growth Delight

Customers

Thought &

Technology

Leader

14,000People Cascaded goals throughout

organization

AlignmentAlliance PlanStrategy Creation

Execution with

Partner(s)

Market-Driven Strategic Alliance Development

PartnersMutual InterestsBusiness ArrangementSponsors

OWNER: Alliance MgrCO-Owner EMT Sponsor

DESCRIPTION: Define Strategy, Objectives & RationaleDefine Alliance Impact including Market Positioning, Competitive Advantage, Revenue Impact, RisksDetermine Metrics for SuccessDefine EMT SponsorshipGain EMT Approval

PartnersPartner resource allocation & business case Joint execution plan developed

OWNER: Alliance MgrCo-Owner: EMT Sponsor

DESCRIPTION:Deliverables & TimelineVirtual Team establishedPartner Message (win-win)Required BudgetQuarterly reporting and metrics for successInternal linkages to Sales, Mktg, and R&D (op plans, cascaded goals)

Partners:AgreementsRoadblock & Resource issuesMilestones

OWNER: Alliance ManagerCo-Owner: EMT Sponsor

DESCRIPTION:Execution Management and Governance of specific project plansRoadblock & Resource IssuesSpecific Execution with Sales, Mktg, & R&D

CA Corporate Strategy and CSG Strategy Defines Alliances

Alliance ideas generated by Corporate Strategy, CSU’s

OWNER: CSU GMCO-OWNER: EMT, SBD

DESCRIPTION:Alliance Partner SelectionDevelop Win-Win scenario & Big PlaysDevelop thesis for alignment to Strategy, Sales/Revenue, Market Impact, and Feasibility

CA’s most strategic alliances executed as clearly defined programs with deliverables, executive sponsorship, committed resources, and

objective measures for success.

Go/

no go

Go/

no go

Go/

no go