CSP Optimism is Boon to Cloud Players - Analyst Blog
15 Juin 2012 - 7:01PM
Zacks
In the latest survey conducted by CA
Technologies (CA), the North American cloud service
providers (CSPs) surveyed revealed that around half of their
customers were opting for private cloud services, while around
32.0% have chosen public cloud services. The latest survey also
reveals that CSPs expect to grow their businesses by 30.0% in
2012.
As defined by searchcloudcomputing.techtarget.com, a dedicated
cloud computing website, a private cloud or internal cloud or
corporate cloud is a marketing term for a proprietary computing
architecture that provides hosted services to a limited number of
people behind a particular firewall.
With innovation in virtualization and distributed computing,
corporate network and datacenter administrators have effectively
become service providers that meet the needs of their "customers"
within the corporation.
We believe that the popularity of the “private cloud" has
increased as organizations want to have more control over their
data than they can get by using third-party-hosted services such as
Amazon's (AMZN) Elastic Compute Cloud (EC2) or
Simple Storage Service (S3).
This market may be in the nascent stage, going by the fact that
most surveyed CSPs have been offering services since 2009 (just 22%
started earlier). Therefore there is room for substantial
growth.
This apart, more than 25.0% indicated that they considered
themselves “extremely successful,”, while around 35.0% thought they
had achieved moderate success.
Moreover, in 2012, the CSPs adopted strategies to further
increase revenue, out of which 55% included respondents who would
increase their marketing activities, while 46.0% planned to create
new cloud services to expand their existing offerings. Furthermore,
31.0% will make investments to specialize in vertical markets. The
differing strategies indicate that the market is proving lucrative
to a large number of players that are therefore trying to
differentiate their offerings to focus on customer acquisition.
The optimism at CSPs bodes well for cloud infrastructure
players. Moreover, the increasing competition between them and
their desire to differentiate their offerings will also work in
favor of these IT companies, as they will push up demand for
software and storage offerings. As things stand now, companies like
IBM (IBM), EMC Corp. (EMC),
Salesforce.com (CRM), VMWare
(VMW), and now Hewlett-Packard Company (HPQ) and
Dell Inc. (DELL) will be prime beneficiaries.
CA Technologies has a Zacks #3 Rank, implying a short-term Hold
recommendation.
AMAZON.COM INC (AMZN): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
SALESFORCE.COM (CRM): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
VMWARE INC-A (VMW): Free Stock Analysis Report
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