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SaaS: Robust growth of SaaS market in Asia SME market
Springboard Research has published a report showing that SaaS in Asia Pacific was US$80 million in 2005 and that it is expected to grow roughly 80% each year through 2008. The report is based on a survey they made of 210 CIOs and IT decision makers at small and medium sized enterprises in Australia, China, India, Korea, Malaysia, the Philippines and Singapore.
CRM makes up 50% of the market. Web Conferencing and Collaboration is at 30%, and back-office applications, like ERP, are at 9%.
Salesforce.com is the SaaS market leader among those surveyed at 21%. WebEx at 11%, RightNow Technologies at 9%, Oracle 6% and NetSuite 4%.
The report has the following findings:
- SaaS is a long-term industry trend
- SaaS vendor winners will be those that offer quality software, more so than other discriminators in selecting vendors in the past. Because solutions are stood up much more quickly, customers have greater opportunity to try multiple options to find the vendor that best meets their needs.
- Like the US, the SaaS-based CRM segment leads in acceptance. The report expects acceptance to spread next to Security and Collaboration.
- Like the US, existing vendors are wary of the SaaS model and how their acceptance of it could canibalize their existing business.
