In New Delhi: The SaaS market in Japan has surpassed US$1 billion in 2009 as adoption of on-demand solutions spreads across all major industries, says the latest report "Japan Software-as-a-Service Market Overview 2010" from Springboard Research.
The report revealed that at US$1 billion, Japans SaaS market is larger than the rest of Asia combined.
It further projects that the Japans 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 Salesforce.com and Google being the most noted among them," Masami Kashiwagi, Japan Research Manager at Springboard Research said.
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 customisation requirements and higher SLA (service level agreement) preferences among Japanese companies may not bring significantly lower TCO as compared to on-premise alternatives.
Add new comment