New Zealand Cloud Computing Market by Service Model, Deployment Model, Subscription Model, Enterprise Size, End User – Industry Analysis, Size and Forecast, 2019-2033

New Zealand Cloud Computing Market Growth and Performance

• In 2024, the New Zealand cloud computing market size achieved a market value of US$ XX.74 billion.
• This market in New Zealand is projected to register a compound annual growth rate (CAGR) of 8.81%, resulting in a forecasted market value of US$ XX.95 billion by the end of 2033.

New Zealand Cloud Computing Market Outlook

The New Zealand cloud computing market is undergoing a transformative phase, driven by increasing digital adoption, strategic infrastructure investments, and a growing focus on sustainability. With the launch of Microsoft’s first hyperscale cloud region in the country, New Zealand has achieved a major milestone in its digital transformation journey. This development underscores the market commitment to leveraging technology for enhanced efficiency, security, and scalability. The New Zealand cloud computing market growth is evident in the expanding contribution of cloud services to the national economy. Public cloud adoption in New Zealand is expected to add NZD 21 billion (approximately US$13.8 billion) to the economy by 2026, creating 134,000 new jobs. In 2022 alone, public cloud services contributed NZD 23.9 billion, accounting for nearly 6% of the country’s GDP. As businesses increasingly transition to cloud platforms, this trend is anticipated to accelerate, positioning New Zealand as a hub for digital transformation in the region.

New Zealand Cloud Computing Market Trends

• Advancements in Broadband Infrastructure: New Zealand’s Ultra-Fast Broadband (UFB) network offers competitive speeds compared to Australia’s National Broadband Network (NBN), with higher upload speeds and fewer service outages. The reliability of the UFB network further facilitates cloud adoption, enabling businesses to operate seamlessly on cloud platforms.
• Strategic Mergers in the Telecommunication Sector: The merger of 2degrees and Vocus NZ has created New Zealand’s third-largest telecom provider, with an annual turnover exceeding US$1 billion. This consolidation enhances competition in the telco space and improves service offerings for cloud-based businesses.
• Expansion of Cloud Talent and Workforce: Datacom plans to hire 400 professionals, while Microsoft aims to train 100,000 New Zealanders in AI and cloud expertise by 2027. These efforts reinforce the country’s cloud capabilities and innovation potential.

Key Impacting Factors Influencing Cloud Growth

Cloud computing outsourcing, especially nearshore and onshore models, is expanding in New Zealand as enterprises demand cost-effective and compliant data hosting solutions. The digital economy’s contribution to GDP is accelerating, with over 900 SaaS startups launched in the country, including players like Cin7, Joyous, and LawVu. Many of these focus on niche sectors such as agriculture, HR tech, and accounting.

Large enterprises are budgeting over US$5 million annually for digital cloud transformation, while SMEs spend between US$100,000–750,000 on hybrid infrastructure, SaaS, and managed services. The accessibility of tailored cloud solutions continues to make technology adoption more scalable and affordable across verticals.

End-User Demographics and Cloud Adoption Trends

Cloud technology adoption in New Zealand is being shaped by industry-specific needs:

• Functional/Workload-Specific Preferences: Financial institutions focus on hybrid models and encrypted storage, while manufacturing leans toward real-time IoT analytics.
• 5G-Enabled Cloud & Edge: Agriculture tech startups are leveraging 5G and edge computing for autonomous systems and smart irrigation.
• Serverless & Modernization: Enterprises are migrating from monolithic legacy applications to microservices and containerized apps.
• SME Adoption Trends: SMEs face budget constraints and integration challenges but increasingly adopt managed cloud services to bridge skills gaps.

The behavior of cloud users in New Zealand is gravitating towards hybrid and multi-cloud models, especially in education and public services. Born-in-the-cloud startups such as Joyous and Hnry exemplify the move towards cloud-native development environments.

Brands, Strategies & Market Developments

Major hyperscalers like AWS, Google Cloud, and Microsoft Azure maintain strong footholds in New Zealand. Local firms such as Catalyst Cloud and Spark NZ differentiate through compliance and data sovereignty.

ISVs and OEM integrators, including Fujitsu and Hewlett Packard Enterprise, are partnering with local firms to deliver verticalized cloud solutions. Umbrellar’s Kubernetes orchestration services launched in April 2024, aim to simplify app scaling for mid-sized digital businesses.

Strategic highlights include:

• Macquarie Cloud Services (Mar 2024): Entered NZ with a cybersecurity-first cloud suite for mid-market firms.
• Spark NZ (Feb 2024): Launched the “Digital Nation” initiative to support SME digital transition.
• Catalyst Cloud (Jan 2024): Rolled out serverless PaaS for universities, aiding academic research.

New Zealand Cloud Computing Market Developments

• In January 2024, Evergreen Services Group acquired Auckland-based Lancom Technology to expand its cloud and development services footprint. Similarly, Accenture’s November 2023 acquisition of Solnet aims to strengthen public sector cloud transformation via its “Cloud First” approach.
• In addition, in November 2023, Accenture entered the New Zealand market with the Solnet acquisition, an IT services provider renowned for its extensive technology consulting expertise, particularly within the New Zealand government and various private sectors. Through this acquisition, the company aims to expand Cloud First's capabilities in Aotearoa, New Zealand.

As multi-cloud strategies, green data centers, and workload diversification gain momentum, New Zealand is expected to remain a leading cloud innovation hub in the Asia-Pacific region.

Author: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

New Zealand Cloud Computing Market Segmentation