June 9, 2005

Computer Associates has acquired Niku, a firm specializing in portfolio-based asset allocation in IT and B2B planning for $350 million.

This is where Niku differentiates itself, according to Niku CEO Joshua Pickus, as "a system of record...used to enable control of an organization's portfolio of IT projects. Without this critical link between strategy and execution, even well conceived investment decisions can produce poor returns."

CA likes this story. "governance is the number one priority for CIOs," stated CA CEO John Swainson, who is leading the new CA. One reason that rule-governed, system-supported governance is so important is that, without it, moving forward on big initiatives like SOA becomes difficult.

Niku's governance software also adds to CA's extensive portfolio of products, which analysts have always pointed to as a strong point for the scandal-plagued company.

Source: Line 56