NZ cloud spend to grow by more than a quarter in 2022: Gartner

In The Spotlight

Samsung's newest Galaxy S smartphones a test of brand power in weak market

IT spending forecast to grow at slower rate this year

Microsoft makes Azure OpenAI Service generally available

PC demand dropped to its ‘lowest level in years’ in 2022

Kiwi companies are forecast to increase their spending on public cloud services this year by 26.3 percent, rocketing to a total of $2.58 billion, according to new numbers from Gartner.

As with overall IT spending, this outpaces the global growth rate, which comes in at 20.4 percent, expected to top US$494 billion (~NZ$735 billion) in total.

In Aotearoa New Zealand, platform-as-a-service (PaaS) is expected to be the fastest growing segment followed by infrastructure as a service (IaaS).

By contrast, PaaS comes in third fastest on the global stage, with IaaS in the lead followed by device-as-a-service (DaaS).

Sydney-based Gartner research VP Michael Warrilow said the acceleration in cloud spending across ANZ seen during the pandemic is expected to continue, as organisations respond to a new business dynamic. 

This year, hyperscale cloud providers have continued to increase their local presence with AWS’s new Auckland local zone and Microsoft’s Azure Auckland-based data centre development underway.

The market research and analysis company also pointed to its 2022 CIO survey, which found that 44 percent of CIOs in Australia and New Zealand earmarked cloud platforms for new or additional funding this year.

Garter research vice president Sid Nag described cloud today as “the powerhouse that drives today’s digital organisations”. 

“CIOs are beyond the era of irrational exuberance of procuring cloud services and are being thoughtful in their choice of public cloud providers to drive specific, desired business and technology outcomes in their digital transformation journey,” he said.

“Cloud native capabilities such as containerisation, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditised compute such as IaaS or network-as-a-service,” said Nag. “As a result, they are generally more expensive which is fuelling spending growth.”

Worldwide public cloud services end-user spending forecast (millions of US dollars)