CA's Sanjay Kumar has had a difficult time saving the firm from extinction, writes Karlin Lillington

If the past few years have been a rough ride for most technology company chief executives, they've been seismically difficult for Computer Associates (CA) chief executive Mr Sanjay Kumar, in Dublin this week to meet customers and visit companies.

In 2000, there was the failed hostile proxy bid by Texas financier Mr Sam Wyly, who wanted to wrest the company away from then chief executive Mr Charles Wang.

Mr Wang stepped down and his protégé, Sri Lankan-born Mr Kumar, stepped in - just in time to face a Securities Exchange Commission (SEC) investigation - still ongoing - into the company's accounting practices, primarily for allegedly double-booking some sales revenue.

Then there were multi-million dollar shareholder lawsuits that questioned statements about the company's financial performance.

And the company saw the resignation of some of its most senior financial executives, including its chief financial officer Mr Ira Zar, in October, and this week, senior vice-president of finance, Mr David Kaplan.

Some analysts and commentators have called for Mr Kumar's resignation as well, noting that he was chief operations officer at the time some of the alleged wrongdoing took place.

Set against those negatives, Mr Kumar has overseen a remaking of a computing giant many thought might not survive to see a profitable quarter again - but the company went back into profit last summer.

He has authorised an internal examination of CA's accounting practices and implemented a number of changes in how revenue is recorded and when accounts are filed.

It was at his own instigation that three top financial executives, including his chief financial officer, tendered their resignations in October. And this week, the US courts recognised a circa $100 million (€82 million) settlement reached in the shareholder lawsuits, drawing another awkward chapter to a close.

And as far as stepping down, Mr Kumar - an elegant, tall man with a calm demeanour - shows no inclination to change jobs.

"I've been there since 1987 - so I understand the issue about people in management taking decisions that they must accept responsibility for. But where there's been a problem, I've stepped in quickly. There are a lot of issues to step up to, and close."

He ticks them off straightforwardly: litigation, regulatory investigations, internal issues, proving that CA could grow by means other than making acquisitions.

"Part of my strategy has been to lay to rest those issues and to cast a path for the future."

Indeed, that straightforwardness is why many investors breathed a sigh of relief when Mr Kumar came in to replace Mr Wang. He is matter of fact in acknowledging the difficulties his company has had, and the problems it continues to face.

He says that asking for his former chief financial officer's resignation was particularly hard.

"My low point in the company was having to ask someone who's been there 20 years to leave. It was especially tough because whatever issues we've had in the past are not issues today. But it was a confidence issue, and I think you need to step up and address those quickly."

He notes himself that the SEC investigation is ongoing, with no end in sight: "And I think to be fair in this environment, regulators have to take their time."

He shrugs off any suggestion that he's planning to step down. "Ultimately, it's a board decision - and they haven't asked me."

In his favour, he can point among other things to the fact that CA's shares have gone from a slow slide to stability and even have reached several leading analyst "outperform" lists.

A top priority now is looking ahead, and he warms to a question about where CA sees future market potential.

First come Web services - a whole sector that has been very slow to take off, despite great promise, and which until now has been dominated by small companies.

With the launch of a major Web services product this Monday, CA has the potential to help jump-start a more serious move towards Web services by large organisations that want services managed across their systems.

As expansion areas for CA, he also cites security - an area where CA has made a number of strides in recent months - wireless management (which he sees as a serious growth area), and systems management in general.

CA's Web services product is a mix of inhouse development and technology acquired through acquisition - about a 60/40 split. Interestingly, he hints that CA looked at one or more Irish software companies which specialise in this area for potential acquisition - "but the problem was their technology was not far enough along", he says.

This is an issue for many Irish companies at the moment, he thinks. "It's a thing I've found with Irish companies. There are very good companies, and very good ideas and development. But there's not enough commercialisation."

He sees the same problems in China and India.

It's not a throwaway comment - he comes here several times a year to meet customers and see what Irish technology companies are doing. "I always have my shopping list out," he says, smiling.

Along with noting that he's "always gotten good people out of Ireland" - including one of his senior vice-presidents - he adds, "I'm also looking to distribute our development worldwide."

If some CA R&D were to come to the Republic, it would likely be through an acquisition, he says.

In what potential areas? Web services, to start, he says. "Ireland was always on the fringe of application development tools. There's an interesting population of people around that have thought about these problems for a while."

Other strengths here include security and e-commerce technologies.

"Ireland has this wealth of e-commerce technology that has been under-utilised," he says. He agrees that this goes back to the problem of under-commercialisation.

"Getting the product into the customers' hands is just as important as developing the product," he says.

Asked for some general predictions for the future, he is big on consolidation - "customers don't want bits and bytes, they want whole solutions" - and what he calls "putting technology on a price curve".

A changed marketplace, a buyer's market in which the customer will demand more innovation for less cost, is driving the latter.

Technology's move from the IT department into boardroom discussions also has created increased demand for value, he says.

"Software and services have held out for a long time, but I don't think that's the case anymore."