Cloud-based software contributes billions in export receipts today and will grow faster than New Zealand’s traditional export industries, according to a report by KiwiSaaS , which draws on independent research. But the report’s release today is a bittersweet moment for the organisation, with Technology Minister Judith Collins confirming KiwiSaaS will be defunded as of June 30 – a year earlier than budgeted by the previous Government, which chipped in an $11 million, four-year allocation. “My contract has been terminated,” KiwiSaaS chief executive Bruce Jarvis said earlier this week, when the Herald asked about his status.
The same went for his half-dozen staff. All will finish up at the end of the month. Cloud or “software-as-a-service” (SaaS) software runs over the internet.
New Zealand’s Xero was an SaaS pioneer. The sector has had 15 per cent compound annual growth since 2016 and earned $3.6 billion in revenue in 2023 – most of it from export receipts.
It’s on track to hit $9.7b by 2030, with export-led added value surpassing New Zealand’s top three primary sectors, creating an additional 50,000 high-paying, productivity-boosting jobs, according to research by Sense Partners. KiwiSaaS has built a knowledge base, staged real-life events and facilitated networking.
Jarvis emphasises that as a “weightless” export, software overcomes New Zealand’s tyranny of distance. It also means cloud software start-ups can be based in the regions, boosting provi.