CA Technologies, Oracle among identity and access governance market leaders, says Gartner

CA's aggressive cloud strategy does not translate into positive financial results this quarter

Aveksa, CA Technologies (Nasdaq: CA), Courion, Oracle (Nasdaq: ORCL) and SailPoint have been named leaders in the identity and access governance (IAG) market, according to research firm Gartner.

Knowing who is accessing the corporate network and data is vital for the security of the enterprise. IAG vendors enable enterprises to monitor the process of requesting, approving, certifying and auditing access to sensitive applications, data and other IT services. In addition, vendors deliver security and business intelligence on how identities are created, managed and used for access, according to Gartner's IAG magic quadrant report.

The research firm judged that IAG is replacing user administration and provision as the primary method of identity and access management in the enterprise. IAG developed out of user administration and provision in response to enterprise concerns about access to critical IT resources as well as usability, particularly for non-IT professionals.

Gartner estimates that IAG product sales ranged between $200 million and $300 million in 2011, with expected market growth exceeding 35 percent to 40 percent in 2012. The research firm predicts that the peak period for the IAG market will come in four to six years. In the meantime, IAG vendors are likely to experience healthy growth rates as enterprises struggle to secure their networks from unauthorized networks.

The research firm noted that CA Technologies is carrying out an "aggressive" cloud strategy across all of its identity and access management products, including IAG.

While its cloud strategy might be aggressive, CA's financial results were quite timid in the most recent quarter. The firm reported revenue of $1,190 million for its most recent quarter, down 5 percent from the $1,260 million reported in the same quarter last year. The firm reported GAAP operating income of $370 million, down 10 percent year-over-year.

"While we are encouraged by improvements we saw in the business during our third quarter, including increased demand for our Nimsoft, infrastructure management and service virtualization offerings, we know that we need to do more to accelerate innovation, gain market share and better differentiate our solutions in the marketplace… Over the next few months we will perform a detailed diagnostic of where we are, and lay out a plan on how to achieve our strategic and financial goals," commented Mike Gregoire, the newly appointed CEO of CA Technologies.     

While CA Technologies is a market leader in the identity and access management market, it is struggling in some of its other markets, such as its computer mainframe business, which declined 9 percent in the most recent quarter. For the future, the firm may need to move away from mainframes and toward the cloud.

For more:
- check out Gartner's IAG report (reg. req.)
- see CA's financial results

Special Report: Enterprise communications in the third quarter of 2012

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