CA Technologies survey reveals more than 50% of businesses choose private cloud

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

The IT management software and solutions company surveyed CSPs and discovered respondents were upbeat about their performance and planned to continue investing in additional resources to increase business throughout the remainder of the year.

Although the cloud market is still considered to be fairly nascent, the average survey respondent has been delivering cloud services since 2009, with 22% reporting having offered cloud-based services before then. Nearly 25% indicate they had been "extremely successful" in their cloud services activities - having met or exceeded their goals - while another 35% noted they had been "moderately successful" in their efforts.

Respondents also offer a diverse set of services cutting across infrastructure as a service, platform as a service, software as a service (SaaS), virtual private data centres and other services, with the highest percentage (two-thirds of respondents) indicating they sell SaaS solutions.

"Cloud service providers are critical players in the cloud computing ecosystem," says Gary Lawrence, managing director of CA Southern Africa. "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."

The survey also explored challenges and areas of investment for CSPs. Not surprisingly, nearly 50% cited dealing with their customers' security concerns as the top challenge. Issues around billing strategies (39%) and ensuring customer satisfaction (27%) were the next largest concerns, while ensuring regulatory compliance (17%) and managing data centre capital costs (12%) appeared much lower on the list.

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

"The survey results mirror many of the conversations we've had with our service provider partners," continues Lawrence. "They 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 specialisation and ramped-up marketing initiatives. It's a fast-paced market with a lot of opportunity, and we're eager to work with our partners to help our mutual clients accelerate, transform and secure IT."

About the survey

The survey was conducted in March 2012 of registered users of SearchCloudComputing.com and generated 121 responses from a representative cross-section of cloud service providers in North America. Download the full Research Brief "Service Providers Put Their Heads in the Cloud", or the companion white paper "Rising Above the Competition as a Cloud Services Provider."

CA Southern Africa - IT management experts

CA Southern Africa is SA's leading IT management software and solutions company with expertise across all IT environments - from mainframe and distributed - to virtual and cloud.

It utilises international innovation, augmented by locally based exceptional expertise, to simplify, manage and secure IT and support complex computing environments. Its solutions enable the construction of cloud platforms and are the building blocks for cloud-based IT.

Through its solutions and services, CA Southern Africa provides the means by which its customers can translate the promise of flexible IT and agile business into a reality.

CA Southern Africa is the sole representative of CA Technologies in sub-Saharan Africa and is a member of the JSE-listed EOH group of companies.

For further information, log on to: www.ca.com/za.