Welcome!

@CloudExpo Authors: Yeshim Deniz, Pat Romanski, William Schmarzo, Stefana Muller, Elizabeth White

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.

CloudEXPO Stories
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is being used on IBM Cloud, Amazon, and Microsoft Azure and how to gain access to these resources in the cloud... for FREE!
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, shared success stories from a few folks who have already started using VM-aware storage. By managing storage operations at the VM-level, they’ve been able to solve their most vexing storage problems, and create infrastructures that scale to meet the needs of their applications. Best of all, they’ve got predictable, manageable storage performance – at a level conventional storage can’t match. ...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and storage creates a platform for consolidation, migration and enabling digital transformation.