Published on the 15/04/2025 | Written by Heather Wright

$1b+ for ERP, and a tech accelerator for Kiwi tech…

The New Zealand Defence Force is gearing up for a spending spree as global tensions increase, with significant tech spend on the cards, including a $1 billion+ ERP system, $200-$300m of drones and a $100m-$300m ‘technology accelerator’ to help Kiwi tech providers develop advanced platforms and systems.

The spend comes as New Zealand looks to nearly double defence spending – ploughing in a $9 billion in new spend over the next four years to develop a ‘modern, combat-capable’ defence force and taking spend from just over one percent of GDP to around two percent over the next eight years. Australia, in comparison, is already moving beyond the two percent of GDP mark, and will spend around $62 billion in the next financial year.

“A technology accelerator enable New Zealand’s high tech sector to quickly develop advanced platforms and systems and help transition from prototype to ‘service ready’.”

Prime Minister Christopher Luxon says New Zealand’s current defence spending is ‘simply too low’ with global tensions increasing rapidly.

The Defence Capability plan, notes a strong digital capability is ‘critical’ to NZDF operations, with a need to utilise data and digital technologies to enhance operations, improve decision making, operate with allies and streamline processes.

“In line with the Digital Strategy for Aotearoa, potential government-wide opportunities for cost-saving or ways to leverage shared investments across government will be investigated to ensure value for money.”

Digital modernisation, at an indicative cost of $100-$300 million is flagged to consolidate and integrate data and digital technologies across the services and platforms and provide interoperability with Five Eyes partners.

A further $100-$300m is focused on information management to enable ‘accurate, timely and trustworthy data’ for decision making, interoperability with Australia and partners and working in real time across multiple domains, networks and countries.

The Defence Capability Plan includes plans to invest in up to $50 million in research and development between now and 2028.

The plans for the technology accelerator also fall into the ‘near term indicative investment bucket’ which runs out to 2028.

Short on specifics at this point, the plan says the accelerator will be established to help the high tech sector develop advanced platforms and systems specifically focused on New Zealand defence problems and help transition technology from prototype to ‘service ready’ capabilities that could be readily acquired by the NZDF ‘at limited scale’. Funding for projects and people to investigate new ways of delivering military effects is included in the indicative cost of $100-$300 million.

“The accelerator will improve industry’s understanding of NZDF requirements, which will allow for rapid technology adoption by facilitating technology transfer and integration across classification,” the plan says.

The funding is ‘indicative’ only, with individual business cases and Budget funding required.

The ‘information domain’ of the plan which includes intelligence activities, information operations, electronic warfare and cyberspace operations, also includes extensive tech investment, with new hardware and software planned.

Key among those is an increase in cyber security capabilities – to the tune of $100-$300 million – and the $1 billion-plus plans for enterprise resource planning software to integrate workforce management and payroll, logistics, supply and asset management finance and engineering and create a single source of trusted data.

“This is a significant contributor to be able to competitively operate in a combat situation as well as maintain interoperability with Australia,” the plan notes.

“Investments will allow NZDF to optimise its existing and future enterprise resource management system.”

Intelligence functions will also be enhanced, with more intelligence collected and shared ‘when relevant’ with other government agencies, and the systems that deliver classified digital services will be updated – again at an indicative cost of $100-$300 million – to ensure intelligence is protected and can be communicated securely.

The NZDF will also be looking at drones in the near term.

The plan outlines how there will be a greater focus on uncrewed technology in the short and medium terms, including for providing long-range maritime and land surveillance, and surface and subsurface vessels to monitor and protect New Zealand’s exclusive economic zone.

The uncrewed autonomous vessels for surface surveillance are expected to come with a price tag of $50-$100 million in the near term, with additional spend flagged for future years.

On the flip side, an indicative cost of up to $50 million is tabled for systems to counter drones – or uncrewed aerial systems – enabling the NZDF to detect, track, identify and, if required, ‘defeat’ UAS.

Funding for a workforce strategy to ensure staff can operate the equipment is also flagged

 The plan will be reviewed every two years to enable new technologies to be adopted earlier in their lifecycle.