Compuware is more than aware of the power of diversity. The company's software includes testing, development, and management tools for programs running on traditional mainframe computer systems, distributed computer networks, Web-based systems, and cloud-based applications. It also makes application development, implementation, and support software for programmers, as well as file, data, and systems management tools. Compuware's services include consulting, systems integration, custom programming, maintenance, and support. Altogether the company counts the IT departments of some 7,100 companies as customers.
Compuware operates in three segments: Application Performance Management (45% of sales), Mainframe Productivity and Performance (40% of sales), and Application Services (15% of sales). Application Performance Management, or APM, tools are used by IT departments to measure the effectiveness of digital transactions and other IT systems usage, and provide data to help improve operational efficiency. Mainframe applications improve the productivity and performance of IBM mainframe platforms while helping reduce associated costs; and Application Services consists of its Covisint subsidiary.
The company has about 60 sales offices in 30 countries; counting distributors, it has a presence in about 60 countries. However, the US is its largest single market, accounting for almost 60% of sales.
Sales and Marketing
Compuware uses a direct sales force as well as independent distributors and partners. AT&T and General Motors are Covisint's largest customers, each accounting for about 10% of sales. In 2013 AT&T, which sold the Covisint platform to healthcare customers, ceased being a reseller.
The company has experienced declining revenues as its divests certain businesses and restructures its business. Overall sales decreased 23% to $720 million in fiscal 2014 (year-end March) after it divested two business segments. Compuware returned to profitability in 2014 after recording a net loss for the first time in 2013. In 2014 it made $71 million in profit.
In order to focus on the growing APM sector and improve its financial future, Compuware has restructured its business. In early 2014 it sold its Changepoint, Uniface, and Professional Services business units to to Marlin Equity Partners for $160 million. The divestments reduced its headcount by 1,500 people. It also cut staff in the general, administrative and shared services divisions and closed some offices.