Menu
Channel leaps into the data centre as NZ organisations become more “digitally aware”

Channel leaps into the data centre as NZ organisations become more “digitally aware”

Adam Dodds, Research Manager for IT Services, IDC New Zealand provides a comprehensive overview of the software-defined market across the country, at Westcon’s LEAP into the Data Centre event in Auckland.

Equally, when examining the current state of the C-suite in New Zealand, Dodds examines the new relationships that have started to form between all of the collectives parties in terms of how they adopt technology.

And of importance to the channel, how do you have the right conversations about what the right investments look like and crucially, what do the correct timings of such investments look like?

For Dodds, the old model of providing a business case that is balance sheet orientated, encouraging the discussion of the pros and cons of the proposal before embarking on a 12-14 month process is in reality, “dead and buried.”

“Everybody realises that now,” he claims. “In the new world, the average project timeframe is reducing considerably.”

Recent IDC New Zealand findings report that at present, NZ$300,000 is the average cost size of a project today from a technology investment perspective.

“So, think about your infrastructure and think about your approach, your costs and think about $300,000 - it’s a tough market,” Dodds acknowledges.

“This increases the pace of conversation within businesses but it also increases the number of issues that people encounter around the prioritisation of technology.”

Just think, asks Dodds, if everyone in the business is coming to the C-Suite with an opportunity to invest, what does that ultimately mean?

“Quite simply,” he answers, “from a CEO perspective it means a significant fear about the escalating costs of operations.”

Kiwi service providers

For service providers in New Zealand, Dodds predicts that this is commonplace, working off the belief that it’s easier to sell efficiency based IT which is largely about making costs cheaper.

“But it’s really hard to move into that effectiveness space which is actually how you can help organisations become more customer centric in their own way,” he adds.

“And the real challenge is how do you stay across of all of that and how do you help the CIO and how do you help the business move forward?”

When painting a picture of the new-look service provider in New Zealand, and indeed the world, Dodds believes such a provider looks like “somebody who is deeply immersed in business that they serve.”

“While you can take a cost-centric approach, ultimately the challenge to service providers is to walk into boardrooms and say ‘I know your business, I know your industry so let’s go’. Not, let’s respond really well to their RFP,” he adds.

“To get clarity to see where businesses are focusing today, they are focusing on everything and from a size perspective there is very little difference.”

In New Zealand, the way the market works from an adoption point of view is that banking, financial services and insurance adopt first, followed by telco and media followed by other organisations, with the Government usually close behind.

Equally, Dodds says enterprise businesses adopt first all the way down to small businesses so when examining the cloud market and its subsequent early adopters, “the moment you see small businesses showing high prioritisation around cloud, it means one thing alone and that is; that cloud is the norm.”

The normalisation of cloud, for the channel market in New Zealand, means that from a mixed perspective nine percent of businesses are moving towards a public cloud environment.

“This is a reasonable number given that money is going overseas and is provided either out of Australia, the Asia-Pacific region or even globally,” Dodds explains.

“From a local perspective, at least for the next two years, 55 percent of the compute workload will be sitting on-premise and the rest of it is the data centre opportunity for local New Zealand based providers.”

According to IDC research, 80 percent of Kiwi businesses, in that first step, want to utilise the local data centre market.

“This is where some fundamental shifts are beginning to happen in the market place,” Dodds claims.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IDCwestconsoftware-defined

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments