More New Zealand businesses take to the cloud


A recent study by Frost and Sullivan has revealed that a growing number of New Zealand businesses are embracing cloud technology.

As organisations in this country increasingly recognise the multiple advantages of cloud solutions beyond just cost savings, more are allocating a greater portion of their IT budget to cloud solutions, the global growth consultancy said.

According to its State of Cloud Computing New Zealand 2013 research report, almost a third – 32 per cent – of businesses currently using cloud computing spend more than 20 per cent of their total IT budget on cloud services and software.

Phil Harpur, senior research manager of Australia and New Zealand ICT practice at Frost and Sullivan, said the increased uptake of cloud solutions was across the board.

“There is a marked increase from 2012’s figures, indicating a growing shift to the cloud,” he explained in a December 5 statement.

“Though larger organisations generally spend more on cloud computing services, smaller and medium sized enterprises investing significant amounts of their IT budget have also increased.”

He revealed that 63 per cent of New Zealand businesses currently using the cloud plan to increase their cloud budget over 2014 – a rise from the 57 per cent reported last year.

“All these reflect a market very much in a growth phase,” Mr Harpur added.

It’s not surprising that businesses of all sizes are adopting solutions such as cloud-based business strategy software, when the benefits of such applications are becoming so well-known. According to Frost and Sullivan, these include enhanced “agility, flexibility and collaboration” in addition to reduced IT costs.

Cloud software can help any business significantly reduce costs and improve their operational efficiency in a range of areas, such as strategic planning.