NZ businesses spend on cloud without properly tracking it: IDC
- 23 July, 2014 12:01
IDC New Zealand's Asia Pacific cloud survey has found around 53 per cent of NZ businesses are just using more of the cloud without properly tracking it.
The survey found 100 per cent New Zealand organisations have a cloud budget forecast between now and 2016, and 79 per cent believe that they are using two to five cloud services already.
Key findings of the survey included a more than 10 per cent forecasted growth for off-premise cloud adoption, across infrastructure and business applications alike. In contract, on-premises cloud technology displayed no growth.
The survey found that barries to the cloud were found to be coming down, even as information security remained the number one concern for businesses (36 per cent), followed by technical constraints of legacy architecture (16 per cent).
"Cloud is bringing the competitive landscape of NZ businesses closer than ever before. All business sizes and industries are adopting to the opportunity of leveraging compute services provided from outside of their premises to create go to market and business operations opportunities.
"The challenge to all is how you untangle your legacy infrastructure and align your organisation - with people and processes - to adopt cloud appropriately", said Adam Dodds, research manager at IDC New Zealand.
According to IDC, in order to move to a more optimised cloud model, organisations need to be clear on the value of its business information and where it should sit.
"CFOs appear to be the last to the table in the new world of Cloud services. Only 32 per cent of businesses feel that their financial governance is set up to managed, optimise and track the flexible consumptions models of cloud.
"The concern is that the CFO views the adoption of technology as a cost-out exercise and as such all processes are orientated towards a supply chain / procurement approach rather than one of enablement, differentiation and business agility."
When it comes to cloud maturity, however, NZ was one of the top four countries in the survey.
Budgets for IT are also shifting across the business with 56 per cent of NZ organisations surveyed showing that the IT budget is now shared.
"New Zealand has reacted well to the need to be more strategic in its adoption of technology as a business differentiator. The challenge now is to find the right CIO to realise the opportunity and elevate them to the Executive table. At the same time, there is a growing role of the CMO and lines of business.
"If I was looking for guidance regarding the adoption of cloud I would be seeking out a service provider that can demonstrate great success in taking customers to the cloud. Research has clearly shown that using a service provider has a higher opportunity to be successful than taking a DIY approach," Dodds added.
"Organisations don’t go to the cloud to be cheaper. They go to the cloud to become more responsive to the market and more agile"