Cloud on the rise in New Zealand as firms spend more

James is editor in chief of TechForge Media, with a passion for how technologies influence business and several Mobile World Congress events under his belt. James has interviewed a variety of leading figures in his career, from former Mafia boss Michael Franzese, to Steve Wozniak, and Jean Michel Jarre. James can be found tweeting at @James_T_Bourne.

Research published by analysts Frost & Sullivan this week has revealed that over half of New Zealand companies surveyed are looking to increase their cloud budgets.

Two in five organisations which use cloud services in New Zealand spend more than 10% of their total IT budget on the cloud, whilst 57% of organisations intend to increase their cloudy budgets in the next 12 months.

As part of its State of Cloud Computing New Zealand 2012 research, Frost & Sullivan examined the usual metrics concerning the cloud – primarily the biggest drivers, concerns, as well as costs.

The research found that software as a service (SaaS) was, unsurprisingly, the most commonly used cloud model, with lower costs, standardisation, and seamless integration with legacy systems cited as the main reasons for SaaS success. This doesn’t come as a huge surprise, as it hits prevalent trends.

Similarly, security was cited as the most important criterion when choosing a cloud vendor in NZ. Recent research from Israel-based database security providers GreenSQL has revealed that four in five IT professionals have security worries when shipping data to the cloud.

Again, this news hardly breaks any ground – a database security company would cite cloud security problems after all – but the statistics make interesting reading.

Of the GreenSQL survey respondents, nearly one in three (31%) resonated with the sentence “I do not trust the level of security in cloud services”; 22% agreed with “I cannot control my data on the cloud”, although nearly three in five (59%) said cloud computing was “a must” for their operation.

Other important features for cloud companies according to the Frost & Sullivan research included trust, reliable services and support, value added services and return on investment.

In terms of benefits, New Zealand respondents saw lowering IT costs as the principal driver for cloud computing.

How does this fit in with other Asia Pacific research?

The Asia Pacific region has come in for scrutiny in terms of recent cloud research.

A recent report from the Asia Cloud Computing Association crowned Japan as the most cloud-ready nation, whilst the VMware Cloud Index Survey, conducted by Forrester, showed Singapore and Hong Kong as being the most cloud-knowledgeable Asia Pacific nations.

As for New Zealand, it placed 6th out of 14 nations in the 2012 ACCA survey, showing no change from the previous year.

One of the key areas NZ needs to improve on, according to the Frost & Sullivan research, was data sovereignty and latency. The ACCA report brought up similar issues, noting that while NZ was punching above its weight, it is “held back mainly by [its] low offshore bandwidth score.” New Zealand placed last for bandwidth in the survey.

Do you agree that New Zealand is punching above its weight given the country’s size? How is this investment going to impact upon the NZ cloud?

View Comments
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *