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  • IDC: Companies struggling in volatile IT market

    Local public and private sectors are expected to continue to spend significantly on external IT Services according to the latest report from IDC. The report called New Zealand IT Services 2010 - 2014 Forecast and Analysis shows transformation and upgrade projects will still happen as many companies struggle to achieve both cost efficiencies and process improvements. It also states the overall market for IT services spend is forecast to reach NZ$3.3 million in 2014, representing a CAGR of 3.8 percent over the coming five years. Outsourcing represents 47 percent of the IT services spend in 2010. IDC senior services analyst for New Zealand business enablement: IT Services Rasika Versleijen-Pradhan says it won't be easy for companies. “While the New Zealand economy has certainly showed signs of improvement through increased consumer and business confidence, any certainty of a full market rebound in the short-term looks optimistic. Many organisations are still short on capital and struggling with cash-flow issues.” She says organisations need to make decisions about where to invest in IT. “If the business case doesn't yield an immediate ROI, it is hard to sell to the board, it's about linking IT contracts to bottom-line performance." Versleijen-Pradhan says organisations seeking to embark on projects that encompass new technologies will continue to engage with external IT service providers as their own resources will limit the scope. "Who these organisations choose to work with, will very much depend on who will survive the current market shake-up. Organisations will be short-listing those they trust and know are likely to be in for the long-haul, and are no merger and acquisition targets," adds Versleijen-Pradhan. She expects external advice in the key early project stages of cloud strategy development, and transitioning of legacy systems to cloud environments will drive growth of IT consulting services.

  • Cloud to give channel a shake-up: IDC

    IDC says the cloud will have immediate impacts on the channel partner business model, bringing opportunities in public cloud resale, a requirement to build new skills and longer-term returns on partner investment. The analyst firm says reselling public cloud services will require a “fundamental transformation” in partners’ business model because ongoing customer relationships are needed with customers to drive monthly subscription renewals for such services. It says this is a “drastic change” from the transactional approach adopted among value-added resellers currently. Among the skills partners will need to develop to assist customer implementing cloud technology services are strategy consulting, application architectures and migration tools and services. Such a delivery services capability is larger than that required under a simple resale model, it says. IDC says partners will have to invest strategically in the cloud, because annuity revenue will push partners’ return on investment out to two or three years, rather than six to twelve months for traditional ICT products.

  • IDC: Dump old infrastructure to go green

    IDC is urging local companies to reduce carbon emissions by replacing or virtualising old IT infrastructure. Speaking at IDC's Intelligent Green conference in Auckland earlier this month, US-based ICT and sustainability senior vice president of research Vernon Turner said New Zealand could improve on its score of 21 points in the IDC Sustainability Index. The ranking is an indicator of how well a country has the capability to integrate ICT into its economy to manage and reduce carbon emissions.

  • Going green with IDC

    IDC is holding an Intelligent Green conference in Auckland which is free for qualified IT executives. It features international guest speakers Vernon Turner, SVP research: ICT and Sustainability from IDC USA and Professor Rod Tucker, director of the Institute for a Broadband-Enabled Society of the University of Melbourne. They will address the role that ICT can play in terms of fulfilling emission reduction objectives. The conference will be held on Thursday, May 6 at the Hilton. More details are avaliable here.