CA, Logicalis Extend Partnership - Analyst Blog
20 Août 2012 - 9:05PM
Zacks
CA Technologies
(CA) recently extended its partnership with the IT solution and
managed services provider Logicalis in the U.S. The two companies
extended their agreement to provide customers a more flexible
enterprise-class cloud computing platform.
Logicalis has been using solutions
from CA for some time now. It already uses several CA products
including Nimsoft, a monitoring-as-a-service solution, which
Logicalis offers to its managed services customers. The extension
of the partnership allows customers to opt for CA’s Automation
Suite for Clouds.
CA is gradually tapping the huge
opportunity available in the cloud computing space. The emerging
opportunity in the virtualization/cloud computing space is
significant and could help accelerate CA’s growth over the next 2-3
years.
The year 2012 is more likely to be
the turning point for CA, establishing the company as a major
beneficiary of virtualization/cloud computing, as the company
provides innovative user-friendly solutions attracting more
customers.
Businesses are increasingly
adopting cloud computing, as the companies have understood the kind
of cost advantage it can have using this technology.
The recent change in the sales
strategy could have a negative impact on its results however, as
the company has moved into a three-tiered sales structure, which is
expected to cause some disruption. This may result in a delay
securing repeated sales orders from large enterprises and in other
growth markets in a timely manner. Moreover, this can also affect
the sales from customers.
Apart from launching new products,
entering into strategic tie-ups and adopting new business
strategies, the company has been reshuffling its management team in
order to promote the innovation of new products and solutions.
Besides this, the company has adopted certain strategies to drive
growth, of which the focus on the SaaS/service provider market is
notable.
Other players are also coming up
with new products and solutions targeting the software and cloud
computing space. The company is pitted against technology stalwarts
like IBM Corp. (IBM) and Hewlett-Packard
Company (HPQ). Moreover, we believe that tech spending
will take some time to pick up and European exposure may continue
to pose some challenges over the next few quarters.
Dell shares have a Zacks #3 Rank
(short-term Hold rating).
CA INC (CA): Free Stock Analysis Report
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