Cloud adoption in New Zealand is accelerating, with public cloud spending expected to reach NZ$5.1B by 2026. IT managers and architects are facing new challenges in multi-cloud management, cost control, security and compliance, sustainability, and automation. Staying ahead of these trends is critical for Kiwi organisations looking to optimise cloud performance, reduce costs, and ensure data sovereignty.
1. Multi-Cloud and Hybrid Cloud Become the Norm
Most enterprises now operate in a multi-cloud environment, leveraging Azure, AWS, Google Cloud, and private clouds to avoid vendor lock-in and improve flexibility. However, managing multiple platforms increases complexity. IT leaders must invest in cross-cloud management solutions that streamline interoperability, governance, and security.
To stay competitive, businesses need a single-pane-of-glass management approach for visibility, performance monitoring, and cost optimisation across hybrid environments. Open-source tools like Kubernetes and Terraform remain critical for standardising deployments, while seamless workload mobility—moving between clouds without vendor restrictions—will be a key focus in 2025
2. Cost Control & Cloud Optimisation Take Priority
Cloud cost management has overtaken security as the number one challenge for IT leaders. With 30%–35% of cloud spend wasted on idle resources and misallocated workloads, organisations must take decisive action to rein in costs. Key cost-saving strategies include:
- Rightsizing & Auto-Scaling: Eliminating over-provisioned VMs and storage.
- Reserved Instances & Savings Plans: Locking in lower prices for long-term workloads.
- Multi-Cloud Cost Visibility: Comparing costs across providers for better optimisation.
- Automated Cost Governance: Leveraging AI-driven insights to track usage and eliminate unnecessary spend.
Cloud cost predictability is now a business survival issue—unexpected cloud expenses can blow budgets and impact financial stability. IT leaders must demand transparent pricing models and implement robust governance to prevent overspending.
Unexpected cloud costs are one of the biggest challenges facing NZ IT leaders today.
– Lloyd Vickery, Country Manager
3. Security, Compliance & Data Sovereignty Take Center Stage
With data breaches on the rise and stricter regulations around data sovereignty, IT leaders are under pressure to tighten security and compliance while ensuring sensitive data remains onshore.
Key trends shaping this space include:
- Sovereign Cloud Solutions: Microsoft’s upcoming NZ data centre region and sovereign cloud partnerships (e.g., Oracle Alloy) offer local data control
- Zero-Trust Security: Implementing identity-based access controls to minimise risk.
- Compliance Automation: Using pre-configured security policies (NZISM, ISO 27001) to maintain regulatory alignment.
Security is no longer just an IT concern—it is a board-level priority. Organisations that fail to prioritise robust compliance frameworks risk significant reputational and financial damage.
4. Sustainability and Green Cloud Adoption Accelerate
Sustainability is now a C-level priority. With carbon reduction mandates from the NZ government, organisations are seeking carbon-neutral cloud solutions. Cloud data cenSustainability is now a C-level priority. With carbon reduction mandates from the NZ government, organisations are actively seeking carbon-neutral cloud solutions. Cloud data centres are up to 93% more energy efficient than traditional on-premises servers, making cloud migration a sustainability-driven decision.
Key shifts include:
- Cloud providers increasing investments in renewable energy to power data centres.
- Green Cloud Strategies: Auto-scaling down unused workloads to reduce power consumption.
- Carbon Reporting Tools: Businesses tracking emissions from IT infrastructure.
T leaders must align cloud strategy with sustainability goals, ensuring compliance with corporate ESG commitments while reducing environmental impact.
5. Cloud Automation & Self-Service Drive Efficiency
Managing large-scale cloud environments is becoming increasingly complex. To keep up, IT teams are prioritising self-service and automation as part of their cloud strategies.
Key developments include:
- Infrastructure as Code (IaC): Automating cloud provisioning with Terraform and Kubernetes.
- Self-Service Cloud Portals: Empowering teams to deploy resources instantly without manual intervention.
- AI-Driven Cloud Operations (AIOps): Automating anomaly detection, performance tuning, and cost optimisation.
Organisations that fail to embrace automation risk falling behind in agility and efficiency. IT leaders must ensure their teams are equipped with the necessary skills to leverage automation effectively, reducing operational overhead and improving responsiveness.
6. Cloud Talent & Skills Shortages Create Pressure
A critical yet often overlooked challenge for NZ IT leaders is the growing shortage of cloud talent. Many organisations struggle to find skilled cloud engineers, which slows down digital transformation efforts. To address this, businesses must:
- Invest in Upskilling & Certifications: Training internal teams in Kubernetes, Terraform, and cloud security.
- Leverage AI & Automation: Reducing reliance on scarce IT resources by automating routine operations.
- Consider Outsourcing & Managed Services: Engaging external expertise to fill gaps in cloud architecture and security.
Without a proactive talent strategy, organisations will face mounting operational risks and slower cloud adoption.
Final Thoughts: The Leadership Imperative
Cloud is no longer just an IT decision—it is a business strategy. The choices NZ IT leaders make today will determine their organisation’s resilience, cost efficiency, and innovation potential in the years ahead.
The challenge is clear: Will your organisation take a proactive approach to cloud leadership, or risk falling behind?