Computer Associates Changes Business Model

Computer Associates International Inc., the No. 4 U.S. software maker, said it will let customers pick the price and length of software licenses as the company changes its business model. Contracts may be shorter, and discounts will be determined by the length and value of the agreement, Chief Executive Sanjay Kumar said. The company wants to spread its income over months, rather than record sales after a contract is signed and software delivered. “The quarterly bumps down the road will get eliminated,” Kumar said. “We will be able to predict a substantial amount of quarterly revenue before we even begin the quarter.” Computer Associates shares rose $2 to close at $28.81 on the New York Stock Exchange.