Welcome!

Containers Expo Blog Authors: Yeshim Deniz, Pat Romanski, Liz McMillan, Elizabeth White, Ravi Rajamiyer

News Feed Item

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, New Zealand, Nov. 26, 2012 /PRNewswire/ -- 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 [email protected].

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?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

MEDIA CONTACT:

Donna Jeremiah
Corporate Communications
E: [email protected]
P: + 612 8247 8927

Andre Clarke
Country Manager, New Zealand
E: [email protected]
P: + 64 9903 0076

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...