A recent survey conducted by cloud management software and solutions company CA (News - Alert) found that over fifty percent of North American cloud service providers (CSPs) are opting for the private cloud services model, while 32 percent are choosing public cloud services. Moreover, as per the survey, these CSPs expect to grow their businesses by 30 percent in 2012.

The surveyed CSPs and discovered respondents were upbeat about their performance and planned to continue investing in additional resources to increase business throughout the remainder of the year.

Although the cloud management software market is still considered to be fairly nascent, the average survey respondent has been delivering cloud management services since 2009, with 22 percent reporting having offered cloud-based management services before then. Likewise, some 25 percent of the respondents indicate they have been “extremely successful” in their cloud management software activities—having met or exceeded their goals—while another 35 percent noted they have been “moderately successful” in their efforts.

In reality, the respondents offered a diverse set of services, which include Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS (News - Alert)), virtual private data centers and other services. Two-thirds of the respondents indicated they sell SaaS solutions.

“Cloud service providers are critical players in the cloud computing ecosystem and important drivers in this new cloud economy,” said Adam Famularo (News - Alert), senior vice president, Cloud Solutions and Service Providers, CA Technologies. “Third party providers come from a range of backgrounds – managed services, software development, value-added resellers, even IT consulting and technology outsourcing – and they’re leveraging the cloud to transform their businesses and those of their end customers.”

Additionally, the survey also probed challenges and areas of investment for the CSPs. Not surprisingly, nearly 50 percent cited dealing with their customers’ security concerns as the top challenge. Likewise, 39 percent alluded to issues around billing strategies and 27 percent named  ensuring customer satisfaction as the next largest concerns, while problems like ensuring regulatory compliance (17 percent) and managing data center capital costs (12 percent) were much lower on the list.In terms of their 2012 investments to grow cloud management software revenues, 55 percent of the respondents indicated they intend to increase their marketing activities, and 46 percent planned to create new cloud management software services to expand their existing offerings. Furthermore, 31 percent will make investments to specialize in vertical markets. These areas of investment suggest that CSPs have recognized the need to differentiate their cloud management services in a highly competitive marketplace, as well as the need to increase awareness to gain new customers.

 Commenting in regard to this trend, Famularo stated, “The survey results mirror many of the conversations we’ve had with our service provider partners. They 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. It’s a fast-paced market with a lot of opportunity, and we’re eager to work with our partners to achieve our mutual goal: to help companies accelerate, transform and secure IT.”