Datasouth › NewsBig move to off-site computing

News

Big move to off-site computing

Monday, 19th April 2010 - Originally published by the Christchurch Press

If the hype of “cloud” computing is to be believed, tech firms like Christchurch's Datasouth will soon be the gatekeeper of all your business information, from the humble email to massive databases.

Datasouth's general manager Craig Gerken said cloud computing, a fancy word for putting digital information and applications normally stored in your hard-drive onto an online server or “cloud”, was over-hyped but businesses were increasingly opting to outsource internal information.

“Everyone is going there,” he said.

Gerken said between 40 to 50 clients had some of their IT services managed by Datasouth through the cloud, with several, including Canterbury Development Corporation, putting all their digital information online.

“It's something quite new for us, we've only been doing a full platform for six to nine months.”

Using the cloud worked well for companies that were geographically fragmented or only needed digital services for part of the year.

It meant digital information was accessible from anywhere and staff thousands of kilometres apart could collaborate in real-time on projects through the cloud.

“If you've got a lot of dispersed people around the globe, you have the question do you actually need anything physically at any given site.”

While previously slower internet speeds had held New Zealand companies back, the rollout of fibre meant sticking everything on online was becoming a more realistic option for many companies.

“If you're going to put things in the cloud, you need to be able to access it. You can't put fat data through a thin pipe.”

Datasouth was founded by Gavin Bennett in 1993 with one employee and focused on technological heavy lifting, physically installing clunky computers and networks for Christchurch businesses.

Seventeen years later, the firm employs 50 staff and while fiddling with cables is still a big part of its business, the focus has shifted to IT consulting, finding companies technology “pain points” and fixing them.

Most of Datasouth's customers were South Island-based with a few from Australia. They included PGG Wrightson, New Zealand Merino and Tourism Australia.

Gerken said Datasouth had continued to grow modestly throughout the recession, losing some business but benefiting from firms looking more closely at technology to cut costs.

“Last year a number of organisations probably put infrastructure projects on hold ... but a lot of organisations said we need to cut cost and become more efficient too.”

The recession has also reinforced the focus on high-end IT consulting with product revenue, about 40 per cent of the business, increasingly hit by heavy discounting.

“If your turnover was based on product sales, it would be dropping rapidly.”

Gerken said while most companies were becoming more IT-savvy, there remained underlying problems that could hold them back.

An organisation could spend thousands installing a more efficient IT system, but if staff weren't taught how to use it, the system would fail.

“We come in after the fact where a lot of technology has failed because the company hasn't put in place a plan to implement it.”

Datasouth specialises in the provision of technology solutions that assists organisations in enhancing their business by improved information flow and productivity. As an organisation that has been providing advice to government and corporate clients for over fifteen years, we can advise, design and implement solutions that truly provide a competitive edge and reduced cost structures.

To better understand how we may help you to drive your business forward, please contact Datasouth to discuss your specific requirements.