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CA Survey: More Than Half of Businesses Choose Private Cloud

Results Point to High Growth for North American Cloud Service Providers.

CA Survey: More Than Half of Businesses Choose Private Cloud
They (CSPs) are ... looking to see significant growth this year through efforts like vertical specialization and ramped up marketing initiatives. Adam Famularosenior vice president, Cloud Solutions and Service Providers, CA Technologies

According to a survey of North American cloud service providers (CSPs) announced by CA Technologies, more than 50 percent reported that their customers were opting for the private cloud services model, while 32 percent were choosing public cloud services. Moreover, these CSPs expect to grow their businesses by 30 percent in 2012. 

Nearly 25 percent of the respondents indicated they had been “extremely successful” in their cloud services activities—having met or exceeded their goals—while another 35 percent noted they had been “moderately successful” in their efforts. 

The respondents offer a diverse set of services cutting across Infrastructure as a Service, Platform as a Service, Software as a Service (SaaS), virtual private data centers and other services, with the highest percentage (two-thirds of respondents) indicating that they sold SaaS solutions.

Adam Famularo, senior vice president, Cloud Solutions and Service Providers, CA Technologies, was quoted in the press release as saying, "Third party providers come from a range of backgrounds – managed services, software development, value-added resellers, even IT consulting and technology outsourcing – and they’re leveraging the cloud to transform their businesses and those of their end customers."

In terms of their 2012 investments to grow cloud revenue, 55 percent of the respondents indicated they intend to increase their marketing activities, while 46 percent planned to create new cloud services to expand their existing offerings.

The survey also explored challenges and areas of investment for CSPs. Nnearly fifty percent cited dealing with their customers’ security concerns as the top challenge. Issues around billing strategies (39 percent) and ensuring customer satisfaction (27 percent) were the next largest concerns, while issues like ensuring regulatory compliance (17 percent) and managing data center capital costs (12 percent) appeared much lower on the list.

In terms of their 2012 investments to grow cloud revenue, 55 percent of the respondents indicated they intend to increase their marketing activities, while 46 percent planned to create new cloud services to expand their existing offerings. Thirty-one percent will make investments to specialize in vertical markets. These areas of investment suggest that CSPs have recognized the need to differentiate their services in a highly competitive marketplace, and to increase awareness to drive new customer wins.

"They (CSPs) are expanding from their earlier roots and finding competitive advantage through delivery of new cloud-based services, and they are looking to see significant growth this year through efforts like vertical specialization and ramped up marketing initiatives," Famularo additionally stated in the press release.

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