Sunday, February 14, 2010

Japan Software-as-a-Service Market Overview 2010

The SaaS market in Japan has reached a major milestone, surpassing US$1 billion in 2009 as adoption of on-demand solutions spreads across all major industries, according to IT industry analysts at Springboard Research. The Springboard Research report, "Japan Software-as-a-Service Market Overview 2010", revealed that at US$1 billion, Japan’s SaaS market is larger than the rest of Asia combined. Springboard also predicts the Japan’s SaaS market will grow at a CAGR (compound annual growth rate) of 24% from 2009 to 2013, making it one of the fastest growing segments in the Japanese IT industry. "The recent market growth is generated by large enterprise users adopting SaaS provided by global players, with and Google being the most noted among them," said Masami Kashiwagi, Japan Research Manager at Springboard Research. "The remarkable market evolution and growth is reflected in the strong demand amongst organizations in traditionally conservative industries, such as government and the financial sector, that have started to deploy CRM systems via the SaaS model. Huge deals, such as Japan Post, have significantly increased market awareness and customer trust. The increased hype around Cloud Computing is also driving the growth of SaaS applications in Japan," Ms. Kashiwagi added. More Reasons for SaaS adoption other than Cost Savings Given the challenging economic environment in Japan, cost savings remain the primary driver for organization considering SaaS solutions, including the benefits of subscription-based pricing. Springboard also observed that speed of deployment is another key driver among early adopters, particularly for organizations with tight project timelines, where SaaS often represents the only viable option. Finally, lower "exit costs" were also cited frequently as a key benefit and justficiation for SaaS-related spending. However, Springboard Research notes that customization requirements and higher SLA (service level agreement) preferences among Japanese companies may not bring significantly lower TCO as compared to on-premise alternatives. "Some providers are playing the role of an aggregator selling their own SaaS solution as well as reselling global players’ offerings," noted Ms. Kashiwagi. "It is critical to understand the vendor and channel landscape for successful SaaS distribution in a unique market like Japan," Ms. Kashiwagi continued. About this Report The Springboard Research report - "Japan Software-as-a-Service Maket Overview 2010" - focuses on the key trends and dynamics in the Japan’s Software as a Service (SaaS) market. It offers data on the SaaS market and growth forecasts for 2009-2013 and outlines the demand drivers as well as inhibitors among Japanese organizations. The insights in this document are gained from extensive secondary research and interviews with leading SaaS providers in the market. About Springboard Research With visionaries others purse, methods others neglect and ideas others don’t even consider, Springboard Research not only seeks to lead an industry – we seek to transform it. Leveraging our pioneering research model together with renowned analysts and thought leaders, Springboard provides greater insight, analysis, and innovation specific to global emerging markets. Working with leading technology vendors, IT professionals, and local channels, Springboard helps our clients lead, rather than follow, market trends. Springboard has a global presence with research centers in Australia, China, India, Japan, Malaysia, Pakistan, the UAE, and the US. We have been acknowledged as an emerging leader and for the last three years been named a "Rising Star" in the global IT market research industry by Outsell,



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