Cloud Spend To Hit $9.6B By 2028 – But Just A Third Of NZ Businesses Are Cloud-Ready
The comprehensive Spark State of Cloud 2025 report, based on a survey of 400 IT decision-makers highlights a significant capability gap that could hinder digital progress.
The report shows a growing disconnect between the strategic importance of cloud and the readiness of organisations to use it effectively. While 70% of New Zealand businesses acknowledge the critical role of cloud in their future growth, only 34% have the necessary infrastructure, governance, and technical maturity to unlock its full potential.
Despite this gap, investment in cloud technology is accelerating. IDC forecasts indicate that New Zealand's public cloud spend will nearly double from $5 billion in 2024 to $9.6 billion by 2028, generating over $22 billion in new revenue over the next four years. In 2024 alone, public cloud contributed an estimated $24.3 billion to the economy.
Mark Beder, Spark Customer Director for Enterprise and Government, emphasises the importance of governance in enhancing business capability. He urges executive leadership to collaborate with IT departments to strategically approach cloud and AI investments.
'You can't unlock the value of AI, automation, or advanced analytics if you're building on outdated cloud infrastructure. Yet, over half of IT leaders say business decision makers don't fully understand how critical cloud capability is to enabling these technologies,' says Beder.
'If cloud continues to be treated as just an IT issue, New Zealand businesses risk being unable to scale innovation and realise ROI from advanced technologies. It's time to bring cloud into the boardroom and recognise it as the next competitive edge for businesses.
'Spark's purpose is to help all of New Zealand win big in a digital world. Cloud platforms provide agile and scalable solutions for managing IT infrastructure and applications. Spark helps businesses choose the right mix of cloud services and plans tailored to your business goals.
'That's why we're introducing a Cloud Maturity self-assessment tool for businesses, so they can test where they sit. The assessment will help to identify their cloud maturity, identify capability gaps and then Spark can help plan practical solutions.'
The State of Cloud 2025 report also introduces the Spark Cloud Maturity Framework, a five-stage model that enables organisations to benchmark their progress from early adoption to full digital transformation. The data shows that only 14% of businesses have reached the transformational stage, with the majority still navigating the early phases of maturity.
'Security, skills, and cost uncertainty are the top barriers holding businesses back – and they're not just technical challenges, they're strategic ones,' says Beder. 'Only a handful of organisations have reached the transformational stage of cloud maturity, where cloud is enabling transformative business outcomes. That means the vast majority are missing out on the speed, agility, and innovation that strong cloud foundations enable. Businesses who want to compete in the next wave of digital transformation need to get cloud-ready – and they need to start now.
'Spark has cutting-edge technology and strategic guidance to empower your organisation to streamline operations, maximise efficiency and drive meaningful business results.'
By addressing these challenges and fostering a robust cloud infrastructure, New Zealand can enhance its technological capabilities and drive economic growth through innovation and digital transformation.
To download the full report, please visit https://www.spark.co.nz/online/large-business govt/why-choose-spark/why-spark/the-state-of-cloud-2025
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