Sunny outlook for firms in cloud

Web-based computing is helping increasing numbers of New Zealand companies to build their global presence

The outlook may be cloudy, but Steve Corbett reckons that’s just fine. The founder and CEO of Massey University’s ecentre business incubator has said the shift to cloud-based computing systems is important for New Zealand because for the first time it’s allowing companies to participate in the global technology wave.

“The opportunity for New Zealand in the next decade is strong because of the range of business models that have evolved thanks to cloud computing,” says Corbett. “The internet is allowing New Zealand companies to expand their markets and have a real presence globally.”

Some of the business models he cites include two-sided marketplaces such as Trade Me, media sites, ecommerce and software as a service, which New Zealand firms such as Xero, Vend, GeoOp and Unleashed are using to get overseas sales.

Organisations using cloud services cite the economies of scale they can achieve through the cloud, as well as the global reach of the internet.

Auckland-based driver education firm FleetSafe NZ, for example, has developed an online driver risk assessment tool that the firm’s business manager, Nick Hill, says it wants to take global.

“We have a New Zealand-based client with employees in Dubai, Holland and Singapore. With our online tool, which is set up to work in 72 countries and in multiple languages, we were able to offer an easy solution that would work for their employees both nationally and internationally avoiding their need, or even our need, to contract various providers around the world,” says Hill.

“Having the ability to scale is a great advantage of having our business in the cloud. It enables us to offer immediate services to customers whether they have a vehicle fleet of 10 or 1000.”

There are challenges. Servicing different time zones is one, says Tom Wallace, of Re-Leased, a cloud-based property management software firm with a team of seven in Auckland.

“We have a really

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business good client base in the UK, but we can only communicate with them for two short windows during the day. We get around this by making sure we have great online support documentation and we are about to launch a library of support videos. However, we plan to open an office in the UK within 12 months, which is really exciting,” says Wallace.

Gaining credibility in a market dominated by internationals is another challenge mentioned by Alex Petraska, general manager of First Software, which develops cloudbased enterprise resource planning (ERP) solutions for retailers and distributors who typically have bricksand-mortar operations as well as sell- ing online. The company decided to set up a retail business where it could showcase its software.

“When prospects come in for a demonstration they see a real store and website,” says Petraska. “This shows customers that we can speak their language and understand their issues and opportunities.”

Corbett has three main tips for entrepreneurs hoping for success in