China SaaS Market to Grow at 49% CAGR till 2016

Software as a service (SaaS) or cloud computing has emerged as a significant software delivery model globally for many business applications. With the huge number of SMB’s, China is anticipated to be a very large potential SaaS market for basic business applications such as HR, security, accounting and manufacturing related applications. SaaS will emerge as an important part of China’s next generation ICT industry within next five years.

According to a recent survey conducted with 478 CIOs and IT Managers of large and SMB enterprises in China by TechSci Research, 55% of SaaS adopters are currently using security and compliance applications. The increasing concerns over security of data amongst Chinese enterprises are boosting the demand for security applications. However, the highest demand within next 12 months will be for CRM applications followed by Web Conferencing/Messaging/Collaboration applications.

The SaaS market size in China has undergone rapid expansion in the past few years. The global economic slowdown helped raise the visibility of the model as the inherent benefits such as lower upfront costs, simplified management and lower TCO resonate strongly in the current climate. In addition to providing a cost-effective means to automate processes and streamline operations, SaaS solutions are helping Chinese enterprises to improve collaboration, both internally and with partners and suppliers. The demand for SaaS will increase exponentially in two to three years and the growth rate will far exceed that of the traditional IT industry, including the on-premise software market. The Chinese SaaS market is expected to grow at a CAGR of around 49% till 2016 according to “China Enterprise SaaS Market Survey Analysis, 2012” report released in January 2012.

“China Enterprise SaaS Market Survey Analysis, 2012” gives an unprejudiced overview on the Chinese software as a service market like market size by region, survey analysis of SaaS adopters and planners, satisfaction, usage and deployment trends followed by local vendor landscape. The report will help readers get familiar with current and expected future demand with respect to the Chinese SaaS market.

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