Software Giants Expand Strategic Alliance

Two giants of the software industry moved closer together Tuesday when Microsoft Corp. and Computer Associates International Inc. said they will jointly market a combined product for business customers.

The companies announced at the Comdex/Windows World convention in Atlanta that they are expanding an alliance that began in 1993. The alliance, said Computer Associates Chairman Charles B. Wang, “is destined to grow.”

Under the agreement, Computer Associates will deliver its business application software on Microsoft’s Windows NT network system software. And Microsoft will create an integrated product that includes the CA-Unicenter computer systems management software.

In a bid to promote the new products, Wang said thousands will be given away to those attending CA’s annual user’s conference in New Orleans in July. The companies also will sponsor a 250-city tour to present seminars highlighting the product.

“The availability of CA’s business applications and CA-Unicenter on Windows NT will enable thousands of mainframe installations to more easily migrate to Windows NT,” said Microsoft Chairman Bill Gates.

Gates added at a news conference that the two companies will split the profits from their joint venture. “The profits are completely linear and shared,” he said.

The executives declined to make specific sales predictions for their joint products, but said the market potential is huge.

“We (Computer Associates) are in the business of providing software that runs people’s businesses, and certainly people have said they want to run their businesses on NT,” Wang said.

Redmond, Wash.-based Microsoft’s operating systems, MS-DOS and Windows, are the programming foundation of about 75 percent of the world’s personal computers.

Computer Associates, based in Islandia, N.Y., makes software programs primarily for mainframe computers used by businesses and government.

In the software industry, Microsoft and CA are ranked first and second in sales.