CA to Support StratITsphere Cloud - Analyst Blog
07 Luglio 2011 - 2:10PM
Zacks
Information technology (IT) and management software developer,
CA Inc. (CA) recently revealed that its cloud
computing, energy management and service assurance solutions will
support StratITsphere’s new package of cloud-based services
(Nimbus) and other offerings.
Nimbus was developed on CA AppLogic cloud platform and will be
delivered on the same, including virtual private data centers
(VPDC) with full failover and disaster recovery capabilities.
This should help StratITsphere's Fortune 1000 customers who
would be able to access dynamically provisioned and secure cloud
services, providing an agile and highly efficient platform with a
lower capital investment than traditional computing solutions.
The company will be using CA ecoSoftware to enable customers in
its co-location facility, which will in turn help lower their
electricity costs and make the entire facility more energy
efficient. CA’s solutions will enable SratITsphere to see energy
consumption patterns at the device and system levels, thereby
providing them the opportunity of making necessary adjustments that
could improve power usage effectiveness (PUE) and make the billing
process more efficient.
The company is slowly tapping the huge opportunity available in
the cloud computing space. CA Inc.’s emerging opportunity in the
virtualization/cloud computing space is significant and could help
accelerate growth over the next 2-3 years. CA believes that 2011
will be crucial as the company seeks to establish itself as a
beneficiary of virtualization/cloud computing.
The company’s recent acquisition of the cloud computing company
Oblicore Inc. is also an indication of its focus on the cloud
computing business. Cloud computing is witnessing strong demand and
is being increasingly adopted by not just the small and medium
businesses, but also large players.
Moreover, CA Inc.’s record management business is poised for
growth. The company’s Records Manager, part of its comprehensive
Information Governance solution, automates the record-keeping
processes to help users gain faster access to information, save
resources and facilitate compliance with regulatory, legal and
business requirements. Gartner estimates that the worldwide records
management market will see a five-year compound annual growth rate
(CAGR) of 12% between 2009 and 2014.
CA Inc. posted modest fourth quarter results, with EPS in line
with the Zacks Consensus Estimate, although revenues missed.
However, the demand trend noticed in the quarter was encouraging.
Keeping in mind the quarter’s revenue backlog, we find the fiscal
2012 guidance a bit conservative. We think that CA Inc.’s endeavor
to return shareholder value with share buybacks and dividend
increases could boost investor sentiment.
On the other hand, we are a bit concerned about the intense
competition in the software & cloud computing space from big
players, such as International Business Machines
(IBM) and Hewlett-Packard Company (HPQ). This
apart, its high debt balance and European exposure remain headwinds
going forward.
Currently, CA Inc. has a Zacks #3 Rank, implying a short-term
Hold rating.
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