Welcome!

Java IoT Authors: APM Blog, Stackify Blog, XebiaLabs Blog, Liz McMillan, William Schmarzo

Related Topics: Open Source Cloud, Java IoT, Microservices Expo, Linux Containers

Open Source Cloud: Article

Kumar Finally Abandons CA - Indictment Expected

Kumar Finally Abandons CA - Indictment Expected

Sanjay Kumar, the 42-year-old Sri Lankan immigrant who lived the American dream and became CEO of Computer Associates, the third-largest American software company, finally severed his connection with the firm on Friday after an ill-conceived, if short-lived, attempt to cling to the company as chief software architect rather than as CEO failed.

Sources say Kumar finally pulled the ripcord because the government is preparing to indict him in the next week or two, capping the twin investigations into CA's books that the SEC and the Justice Department have been conducting for over two years.

The parallel investigations uncovered billions in prematurely booked revenues that inflated CA's stock price.

The government is reportedly finally ready to move against Kumar now that it has dealt with Long Island-based Symbol Technologies Inc.

The same federal offices have been handling both the Symbol and CA cases and their plate has been kind of full, but last week 11 of Symbol's former executives were charged with fraud, and criminal indictments were handed down against eight former Symbol officials including its president and chief executive officer.

Despite the reports of Kumar's imminent indictment, CA Friday stonewalled and refused to discuss the issue, or anything else for that matter beyond its canned statement. The government is also mum.

The official statement CA issued Friday had Kumar explain his departure by saying, "It has become increasingly clear to me in the past few days that my continued role at CA is not helping the company's efforts to move forward. I understood that my stepping down as chairman and CEO represented a break with the past, but I have reluctantly concluded that as long as I hold any position, focus on past issues and my current role will continue."

Kumar said in the statement that he hoped his departure "will permit CA to move forward" and from a canned quote added to the press release by CA's recently installed new chairman Lewis Ranieri, one of its board of directors, it's transparent that Kumar's departure is meant to appease the government prosecutors, who have publicly branded CA a "corrupt culture " and have wanted Kumar out for months.

The CA board, Ranieri said, "is committed to reaching a settlement of the government's investigation into the company's past accounting practices as quickly as possible. We are working hard to take the remedial steps necessary to put this entire matter behind CA. Sanjay's decision to leave CA was made in that spirit."

CA, of course, is trying to avoid getting hauled into court itself as the government has threatened.

Sources claim that Kumar blew any chance to cop a plea by not throwing himself on the tender mercies of the government prosecutors a year ago. Subsequently, CA and Kumar's reactions have been a series of too-little-too-late concessions reportedly driving the chief prosecutor to remark a few days ago that she was "done with them [email protected]*king with me."

Kumar stepped down as chairman and CEO of CA six weeks ago, but was believed to be still running the company through a puppet regime consisting of Ranieri, interim CEO Ken Kron, another CA board member, and HP émigré Jeff Clarke, who was brought in recently to replace CA's ousted CFO Ira Zar, the first CA executive to fall to the government probe last October.

Clarke was made COO as well as CFO when Kumar styled himself chief software architect.

The government reportedly saw through Kumar's governance ploy, and its desire to hang Kumar's scalp from its lodge pole, already finely honed by the fact that CA's internal audit committee's investigation of the fraud absolved Kumar of any wrong-doing or responsibility, sources say, was further exercised when Kumar was lauded at CA World and in the press days after he gave up his CEO title.

Heck, the government was ticked that Kumar even showed up at the user conference and its mood didn't improve when CA subsequently let it out that it had offered to buy the government off with a measly $10 million fine to keep the company out of court.

Apparently CA was supposed to keep that offer, which it described as an "initial" one, to itself and didn't have to take a reserve to cover it like it did. Taking the reserve in the financial statement CA filed with the SEC covering its fiscal fourth quarter a few days ago made the offer grist for the press mill.

The government, however, reportedly thought it was exactly the wrong message to send to the market. Presumably one of the reasons the government felt it was inappropriate was the fact that CA was offering to pay for the sins of its officials with stockholder money. In addition, the size of the offer in no way mirrors the size of CA's fraud and it did not accomplish the government's goal of ousting Kumar.

Kumar's ultimate departure - despite the fact that he'll be using up vacation time until the end of the month, according to Newsday - makes him something of a Robespierre figure.

Since last October, CA has thrown most of its senior managers, one by one, to the government probe, hoping to placate the righteous blood lust of the federal prosecutors and save Kumar.

In the long run, the stratagem failed to protect Kumar and not only prolonged CA agonies, but also backfired in Kumar's face.

So far four former CA executives, including its ex-CFO and three other financial guys, have pleaded guilty to charges of securities fraud and obstructing justice. The testimony they gave to the court implicated a high-ranking grey eminence publicly identified so far only as "Executive A" widely identified as Kumar.

Meanwhile, CA's battered executive ranks have retracted again. The company's senior VP of corporate communications Charlie Holleran has reportedly bailed out to go to Ford.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (10) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
bentover 06/10/04 10:43:44 AM EDT

This is the perspective of an ex-CA employee. This company stinks from the top to the bottom. Questionable practices abound. Marginal employees are commended while those who threaten others professionally are ousted. Old-timers advise new blood to shut up and put up with questionable activities. CA should be indicated as a corporation. Let the carnival begin.

Nivlem 06/08/04 09:41:16 AM EDT

I remember S. Kumar form the mid 80s in SC. He was a scheming person then. Finally, the evils of his ways has caught up with him. Time to pay the piper.

Tim 06/08/04 06:51:24 AM EDT

Could it be true Kumar miss that the stock values were inflated? We haven’t been able to get a true financial picture of our operation since we instituted Computer Associates (CA) LMP programs. Why should we believe their financial records are better than ours?

Anthony Friday 06/08/04 02:15:19 AM EDT

I am surprised at the level of vehemence in some of the feedback to this forum. To all of CA's detractors who "hope they go bust" - perhaps they should consider the millions of dollars poured into community relations programmes around the world, consider the sponsorship of the Smile Train, consider the KaBoom playgrounds, and consider the robust software driving many of the Fortune 1000 companies. CA is more than a set of accounting practices. It is a thriving company with a solid and ethical "employee" culture that strongly focuses on delivering real value for both its clients and the community in which it operates. In case you haven't already guessed - I am a CA employee - and proud of it.
Anthony Friday (CA-Australia)

Ray Mossom 06/08/04 12:16:45 AM EDT

As an ex employee of the Legent Corporation who CA bought in 1995. All I can say is that I am pleased to see CA finally get their just desserts. Good riddance to them is all I can say I hope they go bust.

Just Desserts 06/07/04 10:30:36 PM EDT

The shenanigans of CA and its executives finally caught up with them. It's been 13 years since I met Sanjay Kumar and I've waited patiently and hopefully to see him get what he deserved. I, for one, will be in the courtroom for his sentencing and expect to be tossed out because of my cheering.

TheTruth 06/07/04 08:16:39 PM EDT

All of these clowns that game the market should be forced into bankruptcy and locked away for a long, long time. People are trying to build retirements by investing in these companies run by deceit and inflated earnings They're much worse than common criminals. Take them down.

David 06/07/04 01:35:25 PM EDT

Shouldn't it be "CA Finally Abandons Kumar"?

CAproblems 06/07/04 11:16:23 AM EDT

So now we know he meant it when last week he wrote, in his last official e-mail to CA's 15,000 employees:

"I was getting in the way of progress."

FallFromGrace 06/07/04 11:03:46 AM EDT

yet just a few days ago he still had his feet firmly under the desk:

Kumar, whom the board in April awarded three-year stock grants valued at $8 million and a half-million options, does not appear to have significantly altered his daily routine since stepping down last month. He still jets around the world to visit with clients, plays ambassador to the new executive team with its biggest international clients and partners, and remains a regular fixture at CA, occupying in his old office. In an interview Sunday he spoke of the "moral obligation" he felt toward CA, which he called "part of my DNA...It's 17 years of what's in my head."

Kumar said while he's no longer involved in the company's financial affairs, his other responsibilities keep him as busy as ever. "If I wasn't so busy I'd probably miss a lot of things," he said.

@ThingsExpo Stories
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...