Companies may be more inclined to select a cloud service provider if they offer a large number of diverse applications, stated a new report by Tecala.

The survey, which was conducted in Australia, found that a large number of the country's businesses have already begun cloud computing or plan to implement the software in the near future. Accordingly, 69 percent of respondents expect to increase their cloud holdings in the next year and will expand their IT budgets to meet this growing enterprise demand.

Among the most significant traits governing cloud provider selections are the services and applications they offer. According to the report, respondents cited application variety, along with platform security, as two of the most important factors considered when picking a web-hosted service.

"The survey has provided a wake-up call to vendors to ensure that they have the expertise to offer a broad range of technologies," said Gleuto Serafim, CEO of Tecala, "and that their people and processes are agile enough to continually serve the evolving needs of today's businesses as they embrace new technologies for efficiency and collaboration."

Service agreements may also play a role in cloud vendor selection. According to Fox Small Business Center, cloud buyers are encouraged to enter into agreements with web-hosted services that have certain guarantees, such as provider penalties in the event of an extended outage.