CA Technologies (CA) is involved in a rapidly growing and necessary part of IT. It’s called Data Center Infrastructure Management, or DCIM. Rather than go into eye-glazing detail about what it does, let’s just focus on this business’s staggering market potential. Fewer than 10% of mid- to large-sized data centers utilize it, and 451 Research says DCIM supplier revenue will reach $1.8 billion by 2016, representing a 44% compound annual growth rate.
While migrating away from mainframe services, ala IBM (IBM), CA Technologies, a $15 billion DCIM provider, is also focusing on growing its cloud market share. Cloud is estimated to become a $148.8 billion global market in 2014, $160 billion in 2015, and $207 billion in 2016. Known for having a strong pipeline and healthy financial books, CA Technology ended 2013 up 44% and the stock currently yields 3%.