Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IDC says Cloud-Related Projects Helps the IT Market Grow

New Zealand IT services revenue grew 1.9% year-on-year (YoY), reaching $3.43 billion in 2018, according to IDC Australia/New Zealand's IT services tracker.

Managed services revenue makes up the largest portion of total IT services revenue. However, the project oriented market achieved the highest YoY revenue growth. The largest revenue shares in the project oriented market in 2018 are: system integration (SI) project revenue followed by custom application development (CAD) services.

Chayse Gorton, A/NZ market analyst for IT services, says "instead of developing new applications from scratch, many organisations are utilising service providers' SI skills to integrate SaaS applications or their CAD skills to modernise existing applications."


As organisations transition from on-premise software deployments towards cloud-based SaaS models, the need for systems integration services tends to become imperative. Gorton confirms, "organisations that implement SaaS solutions often have investments in on-premise software, hence it is imperative that cloud data can integrate with these on-premise applications."

Additionally, many New Zealand organisations have taken a lift and shift approach to cloud software deployments. This method can provide benefits associated with reducing on-premise infrastructure costs but without rearchitecting the application the full cost benefits of the cloud may not be realised, or performance issues associated with the application may arise. Hence, one of the critical priorities for organisations who have taken a lift and shift approach is to engage with vendors for custom application development services to modernise shifted applications.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

IDC believes that the trend of modernising existing applications will continue throughout 2019. However, when an existing application comes to the end of its life, organisations will, in many cases, be inclined to shift to a SaaS model.

Online https://www.idc.com/getdoc.jsp?containerId=prAP45088819&utm_medium=rss_feed&utm_source=Alert&utm_campaign=rss_syndication

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.