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CA Nets Netreon: Page 2 of 3

"They generally do big cash-flow oriented deals, so this is a new face from CA and a refreshing sign for the industry," says Richard Vieira, managing director of Broadview
International LLC
, a mergers and acquisitions advisor.

Moreover, CA officials say Netreon won't be the last tools-based software company it acquires as it develops its vision of managing storage "without boundaries."

"There are other tools we need to develop or acquire," McGuire says. He declined to elaborate.

Vieira says the Netreon deal also indicates CA is putting its revenue recognition and corporate governance problems behind it. "They've had a lot of non-operating activities, which has held them back," he says. In June 2001, Sam Wyly, along with his investment company Ranger Governance, announced that he would wage a proxy fight for control of CA's board of directors, citing poor stock performance and abuse of customers and employees. Wyly lost the battle, but CA's image suffered in the process.

The market for SAN management tools is on the rise as companies look for ways to better manage the storage they have already purchased -- generally considered to be a cheaper option than forking out for more hardware. But with such a mix of technology deployed in most companies, analysts say the tools on the market need to be more heterogeneous and to work in real time, with the ability to pinpoint potential problems before they happen (see SAN Monitoring Tools Grow Up).