We’ve been watching what happening with IT prices due recent dollar drops, and even more so today on the back of the Reserve Bank cut announced this morning.
If you are buying SaaS (software as a service) directly yourself and its’s priced in overseas currency, you will already have noticed how the exchange rate means the NZ$ cost you pay has gone up. And with the Government considering and very likely to add GST at the border for online services, it may change the value proposition for some.
Likewise, hardware imported to NZ will be costing more NZ$, the only question is how much and when it will take effect. We’re not seeing any real price rises yet, but margins in the industry are very slim, and so they will come through sometime soon.
We prefer software priced in NZ$ and this should, of course, remain at the same levels, at least in the short term.