Cloud 'extremely important' to future growth, report finds

New research from CCL, the cloud specialist within Spark Business Group, reveals that 'cost' and 'lack of expertise and capability' are the key impediments for businesses adopting cloud and embracing digital transformation.

The survey of more than 400 technology and business decision-makers across New Zealand discovered that two out of five respondents (43%) see the cloud as being extremely important to their organisation's future strategy and growth, with a similar proportion looking to increase investment in cloud services in the next six to 12 months.

However, two out of five organisations (37%) cited a lack of skills within their organisation when resourcing cloud projects, while 39% said lack of expertise and capability was a challenge when it comes to adoption of cloud transformation technologies.

CCL director marketing and strategy Tim Howell says, "While most businesses see cloud adoption as a key driver to a more productive New Zealand economy, better understanding and action is needed to support organisations prioritising this core stepping stone for broader digital transformation."

Howell continues, "After more than 20 years in the IT industry here in New Zealand, it is clear there is both a right way and an expensive way to do things in the cloud.

"With a significant portion of organisations citing lack of skills or lack of expertise and capability, this puts the onus on industry to think differently about how to scale our sector.

"Organisations need to have the right people and process foundations in place to help ensure the successful implementation of any technology. Without these, they will not be able to achieve the outcomes they need."

In the State of New Zealand Cloud Transformation Report, more than 80% of respondents cited cloud technology as 'moderately important' or 'extremely important' to their future strategy and growth, signalling its critical role in spurring on a more productive, sustainable national economy.

Howell notes a trend of increased investment in cloud technology, with employee flexibility and operational efficiency the top driving forces.

He says, "With COVID-19 having accelerated many businesses' cloud adoption plans over the past two years, even greater adoption is forecasted - more than half of the businesses who responded plan to invest even more in cloud services this year.

"Organisations cite the ability of the cloud to improve operational efficiency, provide flexibility for employees and provide better insights for decision-making as key drivers for cloud adoption."

The research highlights that there is no single 'one size fits all' approach with cloud adoption, with organisations opting for the full range of cloud deployment options.

"Respondents told us they are embracing public, private and hybrid cloud deployments, acknowledging that many organisations need to take a progressive approach to moving to and embracing the cloud.

"Public cloud is seeing an acceleration in uptake, with more hybrid and multi-cloud models playing a more important role - both now and in the future," adds Howell.

Opportunities for emerging technologiesNew Zealand organisations are not looking to stand still, with many organisations looking to embrace emerging technologies in the years to come, the report shows.

Nearly half of respondents report already using data and analytics and the internet of things (IoT), while artificial intelligence (AI) is employed by almost 30% of organisations.Looking ahead, one in five respondents indicate their organisations are looking at machine/deep learning, virtual/augmented reality, and artificial intelligence - all of which are enabled by cloud technologies.

Howell concludes, "New Zealand organisations have a track record of innovation and the indications that organisations are embracing emerging technologies indicate that innovation is at the forefront of their planning.

"This is exciting for all of us: it helps New Zealand keep up with the rest of the world who are also adopting these technologies, while Kiwis can look forward to a vibrant and inclusive digital economy driven by data intelligence and AI technologies."