CA Signs Bird Hosting Deal - Analyst Blog
08 Aprile 2011 - 6:15PM
Zacks
CA Inc. (CA) recently signed a multi-year
licensing agreement with privately held Bird Hosting Inc. Financial
details of the agreement were not disclosed.
Web-hosting solutions provider Bird Hosting has been using CA
Inc.’s 3Tera Applogic platform since 2009. According to a company
official, the transition by to the 3Tera AppLogic platform enabled
Bird Hosting to reduce its data centre footprint by 64% and
consolidate 200 servers to just 10 in a single data centre.
Moreover, the company has satisfied customers with increased
connectivity.
Under the terms of agreement, Bird Hosting will extend its
monthly arrangement with CA, tripling the number of servers running
the software. With this extended arrangement, Bird Hosting will be
able to serve more customers through a single grid environment.
In March 2010, CA completed the acquisition of cloud-computing
pioneer 3Tera Inc. The company’s flagship AppLogic offering helps
customers to easily build up cloud services and deploy complex
applications to public and private cloud environments. Bird Hosting
was one of 3Tera’s customers.
We remain encouraged by the long-running business tie-up between
the two companies. Moreover, we think that CA’s emerging
opportunity in the virtualization/cloud computing space is
significant and could help accelerate growth over the next 2–3
years.
CA is doing well in most of its business segments. We believe
that with macroeconomic and IT spending recoveries, the company
should be able to deliver decent numbers in the upcoming
quarters.
However, we are a bit concerned about intense competition in the
software and cloud computing space from big players, such as
International Business Machines Corp. (IBM) and
Hewlett-Packard Company (HPQ).
Currently, CA holds a Zacks #3 Rank, implying a short-term Hold
rating.
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