Growth tops New Zealand firms' priorities, says cloud report

Datacom has released its fifth Annual Cloud Report, revealing that growth remains the leading priority for New Zealand businesses for the second consecutive year. The report identifies IT platform enhancement as the principal technology investment focus for these companies. Conducted with the assistance of research partner Tech Research Asia, the survey gathered insights from over 700 organisations across Australia and New Zealand.

According to the report, more than 40% of New Zealand organisations plan to increase their expenditure on cloud computing in the forthcoming year compared to the previous year. This reflects a broader intention to allocate a significant portion of IT budgets to cloud computing, alongside artificial intelligence (AI) and cybersecurity developments. Approximately 25% of businesses view re-platforming as a key strategy for modernisation, signalling substantial opportunities within the tech sector in New Zealand.

The report highlights budget constraints, security challenges, and difficulties in recruiting and retaining skilled staff as the primary challenges currently faced by New Zealand businesses. Automation and DevOps have entered the top five business challenges for the first time, underscoring a shift in organisational focus.

There is a notable trend towards a hybrid cloud strategy, where application workloads are managed on a situational basis, seeking to balance performance, efficiency, and cost-effectiveness. Despite the strategic benefits, only 35% of New Zealand organisations report having a formal hybrid cloud strategy. Key areas identified for improvement include the enhancement of skills and training, governance over cloud utilisation, and implementation of appropriate cloud structures.

"This reflects a growing understanding that cloud is a new mode of operating rather than just a destination. If organisations get their platforms and cloud strategy right, the foundation is there for every other aspect of their business, including better security and future growth," said Mike Walls, Director of Cloud at Datacom.

The findings also reveal a shift towards private cloud solutions for supporting AI, driven by privacy and security concerns. Datacom New Zealand Managing Director Justin Gray emphasised the importance of addressing these issues to prevent them from hindering AI adoption. "There is a need to tackle privacy and security concerns to ensure they do not become barriers for AI implementation," he stated.

Datacom's Annual Cloud Report represents one of the largest and most detailed studies of cloud computing trends within Australasia. The report underscores the evolving landscape of IT priorities, highlighting the increasing emphasis on growth and platform development amidst various operational challenges faced by businesses.