SaaS continues high growth trajectory in Asia
ConvergenceAsia Staff
24/07/2007

IT market research firm Springboard Research in its latest research on the Software-as-a-Service (SaaS) market in Asia (excluding Japan), forecasts that the SaaS market will reach US$1.16 billion by 2010, with a compound annual growth rate of 66 per cent, to comprise 15 per cent of the enterprise software application market.

Springboard recorded a substantial increase in SaaS awareness among the 385 organisations surveyed, increasing from 41 per cent in 2006 to 75 per cent in 2007. This increase in awareness also led to a rise in adoption, with 46 per cent of those enterprises surveyed replying that they were using some form of SaaS in their organisations, compared to 29 per cent in 2006. The primary reason for adoption shifted from price to other factors that included ease of use, ease of implementation, and lower maintenance, observed Springboard.

The survey also found that although customer relationship management (CRM) remains the largest SaaS application segment by revenue in Asia, representing 45 per cent of total SaaS revenue in 2006, data shows that organisations are aware of and use many different types of SaaS applications.

Springboard also saw that even though the regional SaaS market is still dominated by the top 5 vendors – Salesforce.com, WebEx, RightNow Technologies, Oracle and NetSuite – several other vendors, especially local players, are beginning to make their presence felt in the region.

Vendors like Australia-based Saasu, Aussiepay, Singapore-based JustLogin, China-based 800CRM and India-based Adrenalin eSystems are gaining popularity in the local markets.

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