Tokyo, June 21, 2010 – Springboard Research, a leading innovator in the IT Market Research industry, forecasts the Japan Software-as-a-Service market to grow to US$2.5 billion in 2014 from US$534 million in 2009, representing a CAGR (Compound Annual Growth Rate) of 36.9%. This figure has been revised downward from our previous estimate of US$850 million in 2008 after thorough examination of the recent primary research results. Quick and easy deployment was the top reason for choosing Software-as-a-Service or on-demand applications among Japanese companies, says the latest report “Japan Software-as-a-Service Market Forecast and Update, 2009-2014”.
Large enterprises driving SaaS adoption
The SaaS adoption rate in the Japan market was 13.6%, according to Springboard’s recent user survey of 3,578 respondents. The larger the company, the higher its SaaS adoption rate – companies with 10,000 employees or above revealed the highest SaaS penetration rate (42.3%). On the other hand, smaller companies have less familiarity with SaaS and a lower SaaS adoption rate (7.0%).
“The majority of SaaS users have considered on-premise alternatives and the benefit of quick deployment generally adds the greatest value for large enterprises“, said Masami Kashiwagi, Japan Research Manager at Springboard Research. “Vendors must communicate with Small and Medium Enterprises (SMEs) about SaaS offerings and the benefits in order to expand overall market opportunities”, added Ms. Kashiwagi.
Customization preference remains high
Although an increasing number of customers have begun to understand the benefits as well as the limitations of multi-tenant models, Japanese customers’ interest in SaaS with customized features is still high. The emergence of platform-based offerings, such as Force.com by Salesforce.com, has opened up a flexible option for companies to choose subscription-based services that satisfy their customization requirements.
Japan’s IT market has historically been driven by large System Integration (SI) deals that typically required multiple years of implementation time. Under the pressures of the fast-changing global economy, companies are beginning to move away from traditional SI models. “An increasing number of IT service providers and local integrators are starting to look for integration/aggregation opportunities around SaaS offerings”, Ms. Kashiwagi continued.
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About this Report
The Springboard Research report - “Japan SaaS Market Forecast and Update, 2009-2014” - 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 2009-2014 by application and primary user survey results including SaaS adoption trends by industry/company size, reasons for adopting SaaS/not adopting SaaS, and SaaS channel preferences among Japanese organizations. The insights in this document are gained from primary user survey as well as interviews with leading SaaS providers in the market.
About Springboard Research
With visionaries others pursue, 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, the leading research and advisory firm for the information industry. For more information and access to Springboard’s research, please visit www.springboardresearch.com
Media Contacts
Masami Kashiwagi, Japan Research Manager
Springboard Research
81-3-3493-2410
mkashiwagi@springboardresearch.com
Jonita Dhani, Marketing Executive
91-11-4051-8252
[email protected]