Compuware wares could fill a shop of technology tools. 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. It was acquired by private-equity firm Thoma Bravo in late 2014.
Change in Corporate Type
Private equity firm Thoma Bravo added Compuware to its growing portfolio of privatized technology companies. Compuware shareholders OKed the deal which sold the company to Thoma Bravo for $2.4 billion.
Prior to its a acquisition, Compuware operated in three segments: Application Performance Management, Mainframe Productivity and Performance, and Application Services. 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 Covisint, a subsidiary.
The company has had about 60 sales offices in 30 countries; counting distributors, it has a presence in about 60 countries. However, the US has been its largest single market, accounting for almost 60% of sales.
Sales and Marketing
Compuware has used a direct sales force as well as independent distributors and partners. AT&T and General Motors have been Covisint's largest customers, each accounting for about 10% of sales.
The company's revenues declined in 2014 (ended March 2014) as it sold off certain businesses and restructured. Overall sales decreased 23% to $720 million in 2014 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.
Compuware is one of several software companies that ran into trouble as many software companies move their offerings to the cloud and the Software-as-a-Service model. After forestalling one takeover bid in early 2014, the company accepted the $2.4 billion offer from Thoma Bravo.
In 2015, Compuware released an upgrade to Topaz, its software designed to get the most out of IBM z Systems environments. The new version helps a new generation of developers, data architects, and QA professionals take over as those used to working with mainframe computers retire. Topaz’s new Program Analysis component analyzes mainframe programs and presents results visually.
Compuware teamed up with BMC, another privatized company, to improve the economics of IBM Systems ownership. The partnership is to help companies reduce the cost of operating mainframes.