The drive for growth is a common aspiration across the corporate landscape, and New Zealand businesses are no exception. In its fifth Annual Cloud Report, Datacom has revealed that growth remains the primary priority for New Zealand companies for the second consecutive year. 

This emphasis on expansion not only shapes strategic decisions but also influences technology investments. The report, conducted in collaboration with research partner Tech Research Asia, surveyed over 700 organizations across Australia and New Zealand, providing valuable insights into the current state of business priorities and technological advancements in the region.

According to the report, growth is not just a vague goal but a tangible focus that drives New Zealand companies' decision-making processes. More than 40% of organizations are planning to increase their expenditure on cloud computing in the forthcoming year, a significant uptick from the previous year. This shift reflects a broader intention to allocate substantial portions of IT budgets to cloud computing, artificial intelligence (AI), and cybersecurity developments. As businesses navigate the complexities of the modern digital landscape, investing in these areas is seen as vital for facilitating growth and enhancing operational efficiency.

The survey highlights that around 25% of businesses regard re-platforming as a key strategy for modernisation. This statistic indicates a growing recognition of the need for technological upgrades and infrastructure enhancements to keep pace with industry standards. As companies seek to refine their IT platforms, they are positioning themselves to leverage new opportunities within the tech sector in New Zealand.

Overcoming challenges in the growth journey

While growth is the goal, it does not come without its challenges. The report identifies budget constraints, security challenges, and difficulties in recruiting and retaining skilled staff as the primary obstacles currently faced by New Zealand businesses. These issues can stymie growth efforts, making it essential for organizations to develop strategies to navigate them effectively.

One of the notable trends emerging from the report is the increasing significance of automation and DevOps in the business landscape. For the first time, these elements have entered the top five business challenges, underscoring a shift in organizational focus. Companies are beginning to understand that leveraging automation and implementing DevOps methodologies can help streamline processes, enhance productivity, and ultimately drive growth.

The rise of hybrid cloud strategies

In response to the changing landscape, there is a noticeable trend towards adopting a hybrid cloud strategy among New Zealand organizations. This approach allows businesses to manage application workloads on a situational basis, striking a balance between performance, efficiency, and cost-effectiveness. However, despite the strategic advantages that hybrid cloud solutions offer, only 35% of New Zealand organizations report having a formal hybrid cloud strategy in place. This indicates a significant gap between aspiration and execution.

Key areas identified for improvement include enhancing skills and training, improving governance over cloud utilization, and implementing appropriate cloud structures. As businesses recognize that cloud is a new mode of operation rather than merely a destination, it becomes imperative to get platforms and cloud strategies right. Mike Walls, Director of Cloud at Datacom, notes, "If organizations get their platforms and cloud strategy right, the foundation is there for every other aspect of their business, including better security and future growth."

Addressing privacy and security concerns

In addition to the emphasis on growth and hybrid cloud strategies, the findings reveal a shift towards private cloud solutions to support AI initiatives. This trend is driven by increasing privacy and security concerns, which can impede AI adoption if not addressed. Justin Gray, Managing Director of Datacom New Zealand, emphasizes the importance of tackling these issues head-on. "There is a need to tackle privacy and security concerns to ensure they do not become barriers for AI implementation," he states.

As businesses begin to harness the power of AI, ensuring that security and privacy measures are in place will be crucial. Organizations must adopt robust governance frameworks and implement stringent security protocols to protect sensitive data and maintain customer trust.

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Practical steps for growth

For New Zealand firms seeking to emulate this growth trajectory, several practical steps can be taken:

Invest in Cloud Computing: Allocate a significant portion of your IT budget to cloud computing solutions. With over 40% of businesses planning to increase spending in this area, investing in cloud infrastructure can enhance operational efficiency and scalability.

Adopt a Hybrid Cloud Strategy: If you haven't already, consider adopting a hybrid cloud approach to manage application workloads effectively. This strategy allows for flexibility and can help strike a balance between performance and cost-effectiveness.

Focus on Automation and DevOps: Integrate automation and DevOps methodologies into your operations. Streamlining processes through automation can enhance productivity and improve overall performance.

Enhance Skills and Training: Invest in employee training and development to enhance skills related to cloud technologies and AI. A well-trained workforce is essential for successfully navigating the complexities of modern technology.

Address Security Concerns: Implement robust security measures and governance frameworks to protect sensitive data. Ensure that privacy and security concerns are addressed proactively to facilitate the adoption of new technologies.

Leverage AI for Growth: Explore opportunities to incorporate AI into your business processes. While concerns around AI adoption exist, the potential for increased efficiency and productivity is substantial.

Engage with Industry Trends: Stay informed about industry trends and emerging technologies. Engaging with the broader tech ecosystem can provide valuable insights and opportunities for collaboration.

As New Zealand firms prioritize growth, embracing technology and addressing challenges head-on will be crucial for long-term success. The findings from Datacom's Annual Cloud Report highlight the evolving landscape of IT priorities, emphasizing the importance of cloud computing, AI, and security in driving growth. By adopting a proactive approach and implementing strategic investments, businesses can position themselves for success in an increasingly competitive environment.