ca-logo-2008.jpg
IT management software company CA (news, site)  has announced that it has just closed a cash deal worth US$ 350 million to buy monitoring solutions provider Nimsoft.

The Islandia, NY-based giant says this acquisition will open up a whole new customer base of midmarket/emerging enterprises and management service providers (MSPs).

The all-in-cash transaction will give it a stronger foothold with organizations with annual turnovers of between US $300 million and US $2 billion and which operate principally in the cloud computing market place. CA estimates that by 2013 these companies will account for up to 25% of spending in CA’s space.

In a statement issued at the time the deal was announced, Chris O’Malley, CA’s VP for cloud products and solutions, said the deal would also target not just enterprises, but whole national economies:

. . .CA will be equipped to capture several important growth market segments -- including emerging enterprises, emerging national economies and the MSPs who are providing these customers with IT management services via the cloud . . . and complement our existing strength with large enterprise customers.

Nimsoft's Spot in CA's Recent Acquisitions

CA has been splurging a bit recently with two other acquisitions already this year -- 3tera and Oblicore. Last year,  they bought NetQoS and Cassatt -- all aimed at extending its cloud management services.

According to technology consultancy 451 group, this acquisition will have the most impact as it gives CA access to the Nimsoft marketplace, which consists of developers and vendors of network, service level, application and cloud management software products.

While Nimsoft’s operations will report under CA’s cloud products and solutions business line, CA intends to keep Nimsoft intact and independently run in the midmarket/emerging enterprise space and MSP segment, giving CA presence in that sector for the first time.

Nimsoft Unified Monitoring Solution

So what is CA getting? Released in October 2009, Nimsoft’s Unified Monitoring (UM) aims to give MSPs complete visibility of application performance and availability in both internal and external IT infrastructures.

While this is not unique, UM is easy to deploy, has little need for maintenance and streamlines the monitoring of business applications for multiple users. The result is a solution that will optimize the performance of applications by improving services and identifying gaps.

And it appears to be doing this quite successfully. In recent years, it has developed solutions for public and private clouds including Google Apps, the Rackspace Cloud, Amazon Web Services and Salesforce.com.

Currently, CA is competing with IBM (news, site), Hewlett-Packard (news, site) and business service management provider BMC. To date, only IBM has targeted this midmarket segment with products like Tivoli Monitoring Express, which provides management and monitoring to SMBs.