Kiwis and Clouds

New Zealand firms jumping on cloud computing bandwagon

Countries such as New Zealand have come around to cloud computing recently. A new International Data Corporation report suggested the latter off-premise IT market will expand annually between 7 and 9 percent through 2019, with cloud computing achieving a compound annual growth rate of 15 to 27 percent during the same time frame.

The research firm noted that New Zealand businesses have increased their IT and communications budgets recently – a trend that is driving the off-premise marketplace.

"New Zealand organizations are committed to shifting their IT needs off premises and into the cloud. There is a strong appetite for services that drive cloud and cloud integration, as well as investments in a strong network to enable these solutions," explained IDC Services Market Analyst Donnie Krassiyenko.

A TechNavio report detailed the combined Australian and New Zealand IT market, indicating the region will achieve a CAGR of approximately 5.1 percent between 2014 and 2019. cloud computing is expected to be a key driver behind this growth.

Much like how certain vendors lead established cloud marketplaces, TechNavio suggested Google, IBM, HP and Amazon Web Services will be the top cloud providers in Australia and New Zealand through 2019.

The investment areas ahead
In the next two years, IDC sees New Zealand organizations will focus on data center migrations to the cloud, data analytics, unified communications and collaboration solutions and mobile systems, such as virtual desktop infrastructures.

Adam Dodds, IT services research manager at IDC, said the New Zealand businesses are also experiencing stronger relationships between their chief information officers and chief marketing officers.

"Marketing understands the value of leveraging information to drive stronger customer engagements however to do this in a way where applications are integrated and information is well governed the value of the CIO is critical," Dodds noted.

Cloud computing could be the perfect way for decision-makers to facilitate organization-wide collaboration. Cloud environments are available through Internet-connected devices, so employees, regardless of physical location, can use their PCs, tablets or even smartphones to access real-time information to perform their jobs more efficiently based on the content present. 

Global cloud industry is not doing so bad itself
As emerging markets such as Australia and New Zealand embrace cloud computing, the global industry for this technology will only become stronger. A Market Research Media report predicted the worldwide cloud industry will achieve a CAGR of 30 percent between 2015 and 2020, reaching $270 billion by the end of the period.

The research firm noted that high-performance computing, in-memory clouds and mobile clouds are all major factors behind the market's growth rate.

As organizations on a global scale look to adopt cloud computing in some capacity, the demand for assistance from managed service providers will likely increase at the same time. These vendors are helpful for a variety of reasons, but specifically in terms of achieving efficient and secure migrations.

With so many cloud products available, companies can find it difficult to select the best service for their respective needs. An MSP that uses cloud migration tools is able to test different cloud suites prior to launch, determining how customers' networks, applications, servers and data centers will function in the cloud.

The planning process is what sets MSPs apart from one another and, while vendors can help clients get from point A to point B, not all have the insight to map out the strategy like companies can do with migration solutions. This capability will help organizations transition to the cloud without unexpected challenges that could prolong their migrations and cause downtime that could negatively harm customers' brand image.