Java IoT Authors: Pat Romanski, Yeshim Deniz, Elizabeth White, Roger Strukhoff, Liz McMillan

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
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...