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

 

NZ companies and cloud solutions

Frost & Sullivan: 40% of New Zealand companies spend 10% of IT budget on
cloud solutions; 57% intend to increase cloud based budgets

Ability to lower overall IT costs is the leading driver for adoption
of cloud computing; security the top criteria for selecting a cloud vendor

Auckland, 26 November 2012 – Interest in cloud computing has grown
substantially over the past couple of years. Enterprises in New Zealand are
constantly evaluating adoption of cloud computing to improve business
agility, increase standardisation of IT infrastructure and lower cost of
delivering IT services.

Frost & Sullivan’s research, State of Cloud Computing New Zealand 2012
reports that of the organisations in New Zealand that currently use cloud
computing services, 40% spend more than 10% of their total IT budget on
cloud solutions or services, while 20% spend more than 20% of their total
IT budget. Larger organisations generally spend significantly more on cloud
computing services than smaller ones.

Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice,
Frost & Sullivan says that 57% of organisations in New Zealand that are
currently using cloud solutions plan to increase their cloud-based
solutions budget significantly over the next 12 months, reflecting a market
very much in a growth phase.

Security was cited as the most important criteria when selecting a cloud
vendor, followed by trust, reliable services and support, hosting
capabilities in NZ, company reputation, value added services, price and
ROI. “Vendors must also have sufficient SLAs, a good product roadmap, offer
sufficient product scalability and demonstrate strong channel partner
capabilities” Harpur added.

Compared to Australia, where 70% of organisations plan to increase their
spending on cloud services, New Zealand’s tempered growth is largely due to
data sovereignty and latency issues. “Local providers guarantee data
remains in New Zealand but are more expensive than multinationals hosting
data offshore, thus the value proposition is not as strong” Harpur
explained.

Benefits of moving to the cloud

The ability to lower overall IT costs is the leading driver for the
adoption of cloud computing. Andre Clarke, Country Manager, New Zealand,
Frost & Sullivan says “Moving to the cloud enables organsiations to reduce
CAPEX, and provides a great deal of flexibility and agility allowing
organisations to add scalable computing resources very quickly and at
relatively low cost. This in turn greatly reduces some of the risk
associated with developing new products which in the medium to long term
will help stimulate market innovation.”

It also allows organisations to free up key resources previously dedicated
to more traditional IT services and focus on other aspects of operations
while providing flexibility to meet business demand via
real-time /on-demand computing.

Cloud deployments of most New Zealand organisations are fully deployed
rather than in pilot phase. HRM and Unified Communications are the slowest
applications to move out of pilot phase, whereas storage & computing
solutions have the highest rate of full deployment.

“Key challenges include integrating “shadow IT” cloud purchases into a
corporate framework, ensuring effective SLAs and security measures are in
place, and managing the increased level of complexity that comes with
combining multiple clouds with on-premise resources” Clarke mentions.


Potential for share of pie in the cloud

Software as a Service (SaaS) is the most commonly used delivery model in
the cloud offering several benefits over on-premise software such as lower
upfront costs, standardisation and ease of upgrade, ubiquitous access and
seamless integration with in-house infrastructure. Adoption rates of SaaS
applications are positively correlated with the size of the organisation.
Larger organisations are more likely to be using software applications
accessed via the cloud, especially for office productivity applications,
CRM, HRM and ERP.

Data sovereignty is a prominent issue in New Zealand, particularly in the
public sector, where the government’s cloud strategy mandates that in
certain scenarios data remain in New Zealand; thus limiting the number of
potential suppliers. Those with NZ data centres are advantaged, while
others have and will forge partnerships to meet this requirement.

E-mail and storage & computing resources (ie.IaaS) are commonly accessed
via the cloud with 53% of New Zealand organisations accessing e-mail via
the cloud, and 44% accessing storage & computing resources via the cloud.
Office productivity applications, web security and e-mail security are also
commonly accessed via the cloud.

Frost & Sullivan's State of Cloud Computing New Zealand 2012 report forms
part of the Frost & Sullivan New Zealand Enterprise Communications program.
All research services included in this subscription provide detailed market
opportunities and industry trends evaluated following extensive interviews
with market participants. Interviews with the press are available. If you
are interested in more information on this study, please send an e-mail
with your contact details to Donna Jeremiah, Corporate Communications, at
djeremiah@frost.com.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration
with clients to leverage visionary innovation that addresses the global
challenges and related growth opportunities that will make or break today's
market participants.

Our “Growth Partnership” supports clients by addressing these opportunities
and incorporating two key elements driving visionary innovation: The
Integrated Value Proposition and The Partnership Infrastructure.

· The Integrated Value Proposition provides support to our clients
throughout all phases of their journey to visionary innovation including:
research, analysis, strategy, vision, innovation and implementation.

· The Partnership Infrastructure is entirely unique as it constructs
the foundation upon which visionary innovation becomes possible. This
includes our 360 degree research, comprehensive industry coverage, career
best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the
global 1000, emerging businesses, the public sector and the investment
community. Is your organization prepared for the next profound wave of
industry convergence, disruptive technologies, increasing competitive
intensity, Mega Trends, breakthrough best practices, changing customer
dynamics and emerging economies?

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tiwai Point: Rio Tinto Announces Plans To Close Tiwai Point Smelter

Rio Tinto has just announced that it will wind down New Zealand Aluminium Smelters - the Tiwai Point smelter - saying the business is no longer viable. More>>

ALSO:

Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>

ALSO:

Chartered Accountants: COVID-19 Fails To Knock Kiwi Investor Confidence, But More Disclosure Wanted

Three months of COVID-19 lockdown and investment turmoil has done little to knock confidence in New Zealand capital markets and listed companies with overall investor sentiment very similar to 2019, an investor survey held in mid June shows. However, ... More>>

ALSO:

Taxation: Black-Market Tobacco Sidesteps $287 Million In Excise Tax

Year-on-year increases in consumption of illicit tobacco in New Zealand have seen illegal trade swell to 11.5% of the total market. If consumed legally, illicit products would have netted the Government $287 million in excise tax during 2019. Independent ... More>>

ALSO:

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO:

NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>

ALSO:

Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>

ALSO:

Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO: