NZ cloud computing market to grow by 20% as businesses adapt to new normal - Salesforce
The size of the New Zealand cloud computing market could more than double in the next four years, according to new research from Salesforce.
The research was conducted by IDC, says Salesforce and its ecosystem could create 37,500 jobs in New Zealand among partners and customers over the same period.
The Salesforce Economy in New Zealand: 37,500 Jobs, $2.3 Billion in New Business Revenue from 2018 to 2024 report, with forecasts updated to factor in the impact of the COVID-19 virus, estimates spending on public cloud software will increase to almost US$1.3 billion in 2024, up from a predicted $675 million in 2020. IDC predicts that cloud computing will account for 16.4% of all technology spending in New Zealand by 2024.
The report found that local industry growth will mean up until 2024, Salesforce and its ecosystem are expected to enable the creation of 37,500 direct jobs in New Zealand amongst Salesforce customers.
“The COVID-19 pandemic has meant more things need to be done digitally as customers shift more of their activity online and employees do more of their work from home," says Craig Skinner, managing director at Salesforce New Zealand.
"Companies need to be equipped with the cloud tools that let teams collaborate from anywhere, sell from anywhere and service customers from anywhere.” he says.
The Salesforce Economy in New Zealand: 37,500 Jobs, $2.3 Billion in New Business Revenue from 2018 to 2024 report found that up until 2024, Salesforce and its ecosystem are expected to enable the creation of 37,500 direct jobs among Salesforce customers in the country.
Over the same period, the use of cloud computing by Salesforce customers will add a net US$2.3 billion in new business revenue to the local economy.
Because organisations that spend on cloud computing subscriptions also spend on ancillary products and services, the Salesforce ecosystem in New Zealand in 2019 was 4.5 times larger than Salesforce itself. By 2024, it will be 6.6x as big.
The Salesforce Economic Impact Model is an extension to IDC's IT Economic Impact Model. It estimates Salesforce's current and future share of the benefits to the general economy generated by cloud computing, and it also estimates the size of the ecosystem supporting Salesforce using IDC's market research on the ratio of spending on professional services to cloud subscriptions; the ratio of sales of hardware, software, and networking to spending on public and private cloud computing; and the ratio of spending on application development tools to applications developed.