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APs rising SaaS demand

Jared Heng | April 21, 2008
Less established vendors have captured more than half of the Asia-Pacific SaaS market, as regional demand for SaaS solutions rises.

SINGAPORE, 21 APRIL 2008 -- In 2006 and 2007, local independent software vendors (ISVs) and smaller international vendors have captured an estimated 54 per cent of the Asia-Pacific Software-as-a-Service (SaaS) market, according to Springboard Research. Established SaaS vendors, including and WebEx, account for the remaining market share.

Springboard expects the presence of local ISVs, offering competitive niche solutions, to raise SaaS adoption among Asia-Pacific SMEs. “Riding on the wave of increased internet usage, small software providers with niche applications have tapped local markets and even started expanding beyond national boundaries,” says Balaka Baruah Aggarwal, Springboard Research’s senior manager for emerging software.

SaaS use broadening

The IT market research firm notes that while CRM and collaboration applications are the largest segments by revenue of the Asia-Pacific SaaS market, regional use of other SaaS applications is on the rise.
Aggarwal says that Asian organisations are aware of and using “many different types” of SaaS applications. “Widely used ones include word processing and spreadsheet programs, e-mail, security or compliance applications, and workforce management solutions.”

“Asia will see a few upstart software vendors emerge in the SaaS market, as there is no dearth of developer talent in countries like India and China,” she adds.


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