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Compuware Units Predict Growth 20150209-NEWS--0001-NAT-CCI-CD_-- 2/6/2015 5:20 PM Page 1 ® www.crainsdetroit.com Vol. 31, No. 6 FEBRUARY 9 – 15, 2015 $2 a copy; $59 a year ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved Page 3 Compuware units predict growth Nonprofit offers to help startups become high-fliers Lori Blaker: Strategy: Push mainframes, seed cloud biz LIFE AFTER COMPUWARE: Making a world BY TOM HENDERSON When Compuware, the Detroit- CRAIN’S DETROIT BUSINESS based computer services company, WHATFORMER CEO of difference was bought by Thoma Bravo LLC, a BOB PAUL IS DOING with family biz Chris O’Malley, the president and Chicago-based private equity firm, CEO of Compuware Corp., which was for $2.4 billion in a deal that closed in – AND PLANNING reconfigured as a mainframe-only December, it was quickly split into Inventors make Ernest effort business in December, says he has two companies, which long had been PAGE 26 to revive the typewriter no intention of running a shrinking a goal of former Compuware CEO company. He says that within three Bob Paul. (See accompanying Q&A.) years he will halt a decade-long de- Compuware was founded in 1973 cline in revenue and prove wrong CRAIN’S O’Malley Van Siclen as a mainframe support business, those who say an ongoing slide for but recent acquisitions had made it MICHIGAN BUSINESS the aging computer platform is inevitable. a major player in the a segment known as application John Van Siclen, the president and CEO of Dynatrace performance management, which allows large compa- Kennedy: More LLC, the stand-alone business spun out from Com- nies to monitor in real time the performance of their than Obamacare puware to focus on cutting-edge, cloud-based technolo- various software applications. gies, says his company will beat early expectations, The mainframe business has high margins, but has mandate foe, too, and despite a round of layoffs in January is on a Page 17 fast growth track. See Compuware, Page 26 Second Stage On Feb. 11, 1985, Crain’s reported that Stroh’s Detroit LOOKING BACKDetroitplant was plant likely was to likely be torn to bedown. torn Stroh’s down troublesand razed. Thiswere storyan omen tells ofhow a shift Stroh’s in the troubles beer industry. were representative of a shift in the beer industry. ISTOCK PHOTO 30 YEARS AGO THIS WEEK How 3 startups survived the first 3 months, Page 11 This Just In For Stroh’s, the Bell’s tolled 2 businesses win $100,000 grants in NEI challenge The New Economy Initiative The crumbling of a Detroit institution rang in has announced the two win- ners of its $100,000 NEIdeas CLICK BACK crainsdetroit.com/30 challenge: Detroit-based J & G the era of craft breweries Pallets and Trucking and High- To read 1985 story: land Park-based Sherwood Pro- BY DUSTIN WALSH Also, look at Page One from Feb. 11, 1985, plus more about our 30th year. totype. The two firms will both CRAIN’S DETROIT BUSINESS receive $100,000 grants to help them grow their businesses. troh Brewery Co. announced 30 years ago it would raze “These are businesses that its 1 million-square-foot brewery, bottling and ware- have wreathed a lot of storms house buildings on Gratiot Avenue at I-75. The late Pe- and have the potential to grow ter Stroh, chairman of the iconic Detroit beer company, quite significantly,” said Dave S Egner, executive director of said no amount of investment could save the brewery in the face NEI. of a declining beer audience — which dropped from 31 million NEI devised NEIdeas last barrels to 24 million barrels annually. year to help small businesses That year, 1985, marked the beginning of the in Detroit, Highland Park and Hamtramck that have been end of Stroh and a culture shift for Michigan beer open at least three years and drinkers as a small-time home brewer took his are looking to grow. The chal- craft legal. lenge was broken into two Larry Bell founded Kalamazoo-based Bell’s Brew- parts: $10,000 grants to 30 ery Inc. the same year Stroh’s was razed and today is firms and $100,000 grants to one of the largest local beer producers — expected to The Stroh Brewery Co. plant along two firms. The program is ex- Gratiot Avenue in Detroit. Today, it’s the site of pected to relaunch this spring. produce 410,000 barrels of craft beer in 2015. Brewery Park, the headquarters of Crain Communications Inc. — Amy Haimerl – and where Crain’s Detroit Business has been written since 2001. Bell See Beer, Page 29 NEWSPAPER 20150209-NEWS--0002-NAT-CCI-CD_-- 2/6/2015 1:57 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 9, 2015 MICHIGAN BRIEFS Survey: More small firms leave it ping channels or other repairs, re- placement or construction. to workers to buy health coverage State turns on money spigot to end Flint water torture Ⅲ A subsidiary of Grand Rapids- Only 28 percent of small-business based Universal Forest Products Inc. ac- owners who offer employee health The problems for the Flint water system just keep disinfectant byproduct. Flint, formerly a major cus- quired assets of Rapid Wood Mfg. LLC coverage indicated they intend to going drip, drip, drip. … Last week, the Genesee In- tomer of the Detroit Water and Sewerage Department, of Caldwell, Idaho, MiBiz reported. continue those benefits into 2016, ac- termediate School District said it had stopped using severed those ties last year to build a pipe into Lake In January, Universal acquired a cording to a Grand Valley State Univer- city water and was giving bottled water to about Huron, ostensibly to save money. majority stake in Australia’s Integra sity survey that asked how they were 1,300 preschoolers. Until the pipe is ready in 16 months, Flint gets wa- Packaging Proprietary Ltd. reacting to the Affordable Care Act. Also last week, Gov. Rick Snyder and the state ter from the Flint River, which residents say has the Ⅲ Carson Health in Montcalm That move stems in part from the stepped in, pledging $2 million in grants. The money smell, taste and appearance of something that looks County was acquired by Sparrow option available for individuals to will pay for a contractor to perform a leak detection less like water and more like, well. Health of Lansing, Sparrow said in buy coverage through public health survey of city water lines and shut down the Water Last year, a General Motors Co. engine plant a statement. Carson, with 61 beds, exchanges created under Oba- Pollution Control Facility incinerator, replacing it stopped using water from the Flint River after the had been an affiliate of the Spar- macare, MiBiz reported. with facilities allowing for waste disposal in land- automaker said it caused rusting on its engine row system since 1997. The results confirm much of fills, The Associated Press reported. parts. Ⅲ The Daily News in New York what insurance carriers have seen Flint’s emergency manager, Jerry Ambrose, said The decision is expected to cost the city about City reports that Dow Chemical Co. and heard from small employers, the financial relief also will free money to acceler- $400,000 per year in lost revenue. Chairman and CEO Andrew Liv- said Scott Norman, vice president ate the replacement of major pipelines, which he “The water today is within all acceptable guide- eris bought a condominium in Man- of sales and client services at Priori- said will increase water circulation and improve lines — and that’s an improvement over where it hattan’s Chelsea neighborhood for ty Health, which sponsored the quality. was a couple months ago,” Ambrose said. “That $10.75 million. The 2,500-square-foot GVSU survey. The results also In January, Flint’s system was in violation of the says the water is safe. It doesn’t say the quality is abode on the 17th floor has three point to the expected rise of the in- Safe Drinking Water Act because of high levels of a acceptable, and that’s not acceptable to us.” bedrooms, “sweeping views of Mid- dividual market. town ... and 12-foot ceilings.” It is said that his neighbors include ac- The de-malling strategy effective- will not cut back on its expansion Ⅲ The U.S. Army Corps of Engineers tress Cameron Diaz. How can you save a mall? Some ly breathed new life into Grand plans or workforce despite an will spend an additional $12 million developers turn to ‘de-malling’ Rapids’ Centerpointe Mall, now about 8 percent decline in sales last year. this year on improvements to the Find business news from 98 percent occupied, according to Amway attributed the decline to a Great Lakes navigational system, around the state at crainsdetroit Despite numerous headlines Colliers International. The de-malling strong U.S. dollar and lower sales The Associated Press reported. The .com/crainsmichiganbusiness. touting the death of the American of Centerpointe has inspired devel- in China, the Ada-based compa- additional money allocated to the Sign up for the Crain’s Michi- shopping mall, West Michigan de- opers to do a similar project at an- ny’s largest market. Detroit district will pay for eight gan Morning e-newsletter at velopers have avoided an untimely other mall that has fallen on hard Ⅲ The latest quarterly survey of projects involving dredging of ship- crainsdetroit.com/emailsignup. demise. One key has been a push times in recent years: Holland’s office furniture executives by to effectively “de-mall” the sprawl- Westshore Mall on U.S.
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