The world’s leading information technology (IT) management software sompany CA Inc. (CA) recently disclosed through a press release that its virtualization management solutions now support Sun’s Solaris Zones virtualization platform. 

This enhanced service from CA is expected to help enterprise and service customers realize greater cost optimization, increase efficiency and enhance their cloud computing infrastructure. This is one of the biggest joint ventures that CA has entered in recent times. This combination creates a win-win situation, as it also helps customers to simplify management of their complex IT environments. 

Cloud computing offers immense business potential, enjoys strong demand and is being increasingly adopted by businesses. However, managing the way it is used will be very important. As per a recent study conducted by Market Research Media, the U.S. government’s spending on cloud computing is entering a phase of explosive growth and is expected to grow at a CAGR of 40% from 2010 to 2015, crossing $7.0 billion in 2015. 

The company is slowly emerging as a strong player in the cloud computing space. CA’s emerging opportunity in the virtualization/cloud computing space is significant and could help accelerate growth over the next 2-3 years. Particularly, 2010 is likely to be the turning point, establishing CA as a beneficiary of virtualization/cloud computing. The company’s recent acquisition of the cloud computing company Oblicore Inc. enabled it to harness the technical know-how of Oblicore to enter the cloud computing business in a big way. 

Besides, CA has been nurturing relationships with peers in the cloud computing space. The company recently announced that it has entered into an agreement with a privately held cloud computing company 3Tera Inc., which we believe will strengthen its cloud computing business, making it a complete service provider. 

The company also reported decent results in the last reported quarter, with EPS of 43 cents, exceeding the Zacks Consensus Estimate. However, competition remains intense in this segment, as IT behemoths like International Business Machines (IBM), (CRM) and Hewlett-Packard Co. (HPQ) are making smart moves to grab greater share of this lucrative business.
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