Datacom’s Fifth Annual Cloud Report: Growth and Innovation in New Zealand’s Business Landscape
Datacom has recently unveiled its fifth Annual Cloud Report, a comprehensive analysis that sheds light on the current state of cloud computing and technology investment priorities among New Zealand businesses. For the second consecutive year, growth has emerged as the leading priority, with a clear focus on enhancing IT platforms. This report, developed in collaboration with research partner Tech Research Asia, draws insights from over 700 organizations across Australia and New Zealand, providing a robust overview of the region’s technological landscape.
Cloud Computing Expenditure on the Rise
One of the most striking findings from the report is that more than 40% of New Zealand organizations are planning to increase their spending on cloud computing in the upcoming year. This marks a significant shift in how businesses are allocating their IT budgets, with cloud computing, artificial intelligence (AI), and cybersecurity emerging as key areas of investment. The trend indicates a growing recognition of the importance of cloud technologies in driving business efficiency and innovation. Furthermore, approximately 25% of businesses are prioritizing re-platforming as a strategy for modernization, signaling a robust opportunity for growth within New Zealand’s tech sector.
Challenges Facing New Zealand Businesses
Despite the optimistic outlook for cloud investment, the report highlights several challenges that New Zealand businesses currently face. Budget constraints, security challenges, and difficulties in recruiting and retaining skilled staff are identified as the primary obstacles. Notably, automation and DevOps have entered the top five business challenges for the first time, reflecting a shift in organizational focus towards more agile and efficient operational practices. This evolution underscores the need for businesses to adapt to the rapidly changing technological landscape while managing their resources effectively.
The Hybrid Cloud Strategy: A Balancing Act
A significant trend emerging from the report is the move towards a hybrid cloud strategy, where application workloads are managed based on situational needs. This approach aims to strike a balance between performance, efficiency, and cost-effectiveness. However, despite the strategic advantages of hybrid cloud solutions, only 35% of New Zealand organizations report having a formal hybrid cloud strategy in place. The report identifies key areas for improvement, including the enhancement of skills and training, governance over cloud utilization, and the implementation of appropriate cloud structures.
Mike Walls, Director of Cloud at Datacom, emphasizes the importance of getting cloud strategies right: "This reflects a growing understanding that cloud is a new mode of operating rather than just a destination. If organizations get their platforms and cloud strategy right, the foundation is there for every other aspect of their business, including better security and future growth."
The Shift Towards Private Cloud Solutions
Another noteworthy trend highlighted in the report is the increasing preference for private cloud solutions to support AI initiatives. This shift is primarily driven by concerns over privacy and security, which are critical factors for organizations looking to adopt AI technologies. Justin Gray, Managing Director of Datacom New Zealand, stresses the necessity of addressing these concerns to prevent them from becoming barriers to AI implementation. "There is a need to tackle privacy and security concerns to ensure they do not become barriers for AI adoption," he stated, underscoring the importance of a secure infrastructure in fostering innovation.
Conclusion: A Dynamic Future for Cloud Computing in New Zealand
Datacom’s Annual Cloud Report stands as one of the most extensive studies of cloud computing trends within Australasia, offering valuable insights into the evolving landscape of IT priorities. The findings underscore a growing emphasis on growth and platform development, even amidst various operational challenges faced by businesses. As New Zealand organizations continue to navigate the complexities of cloud computing, the focus on strategic investment, skill enhancement, and security will be crucial in shaping a dynamic and innovative future for the region’s business landscape.
In summary, the report not only highlights the current state of cloud computing in New Zealand but also sets the stage for future developments, encouraging businesses to embrace the transformative potential of technology in their pursuit of growth and efficiency.