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Cloud Computing: Businesses Favor Private Clouds
Increasingly businesses are shifting their infrastructures to include some component of cloud computing. Many businesses are risk adverse in their approach and wary of adopting services hosted in the public cloud. In fact, more than half of businesses working with Cloud Service Providers (CSP) are opting for private clouds while about a third are choosing public cloud services. That’s based on a report by CA Technologies called “Service Providers Put Their Heads in the Cloud”.
The CA report surveyed Cloud Service Providers, asking them about their business and their customers. On average, CSP’s expect that their businesses will grow by 30 percent this year. These cloud vendors are exceptionally upbeat about their business and their ability to execute on their business plans. Increasingly, in order to better differentiate themselves, CSPs are targeting the specific needs of different vertical markets.
When asked about their greatest challenges, CSP’s ranked the following issues as ones that they’ve had to contend with:
- 47 percent – Customers’ security concerns
- 39 percent – How to charge customers for our services
- 27 percent – Ensuring customer satisfaction
- 26 percent – Maintaining proper mix of cloud/non-cloud services
- 22 percent – Customer confusion about benefits of cloud computing
- 21 percent – Marketing and sales resources
- 21 percent – Managing data center operating costs
- 20 percent – Competing with larger CSPs
- 20 percent – Generating high-quality sales leads
- 17 percent – Finding a market niche where we can specialize
- 17 percent – Ensuring regulatory compliance for our customers
- 13 percent – Raising sufficient capital to meet needs for this segment
- 12 percent – Managing technology supplier relationships
- 12 percent – Managing data center capital costs
Adam Famularo, CA senior vice president of cloud solutions and service providers said that “CSP’s 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.”
