Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Govt urged to cut costs with offshore cloud computing

Govt urged to cut costs with offshore cloud computing

By Pattrick Smellie

June 5 (BusinessDesk) - The government should lead the way to cheaper cloud computing services by using offshore providers rather than just New Zealand firms, the Productivity Commission says in its final report on improving productivity in the services industries.

"By favouring domestic cloud services, which are significantly more expensive than similar overseas services, the government has missed opportunities for cost savings and technology demonstrations," the report, issued this afternoon, says.

"The government should address any data sovereignty, security and privacy risks associated with offshore cloud computing through international negotiations, with Australia in the first instance."

To deal with the issue of cloud-stored data being, in effect, "everywhere and nowhere" because of its storage on servers around the globe, the government should pursue "free-trade-in-data agreements" with other countries to ensure that the rights and responsibilities of data owners "do not vary with the physical location of their data."

Resolving these issues would assist New Zealand firms in adopting cloud computing, where the barrier to its adoption in the first place is often psychological rather than technological, since it involves ceding physical control of on-site data to a contractual relationship with an offsite, potentially offshore, provider.

"Overcoming barriers to adoption of cloud computing typically involves designing contracts and institutions to minimise and best allocate risk, and building trust in those contracts and institutions," the commission says.

The report identifies the uptake of information technology as one of the biggest trends driving service sector productivity and gives evidence that New Zealand is slower than other developed countries to adopt it. Appropriately skilled business leadership and workforces are part of the issue, as well as the fact that software is an intangible, fast-depreciating asset.

To encourage investment and innovation in ICT, the commission suggests relaxing KiwiSaver mandates to allow more investment in private equity and venture capital markets. Policymakers should also ensure regulation is not stifling uptake.

"When procuring ICT, the government should purchase non-exclusive rights for the use of intellectual property," the commission says. "This would encourage lower prices for the government and allow the productive reuse of that IP by suppliers."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news