Market expected to grow to US$460 million by 2010
Singapore – December 7, 2007 – Springboard Research, a leading innovator in the IT Market Research industry, today announced results from its latest research covering the Software-as-a-Service (SaaS) Customer Relationship Management (CRM) market in Asia (excluding Japan). Springboard estimates that the SaaS CRM market will grow at a compound annual growth rate (CAGR) of 61% between 2006 and 2010. Springboard pegged the SaaS CRM market in Asia at US$69 million in 2006, and expects it to reach US$460 million by 2010.
Australia, Singapore, Hong Kong, Korea, India, and China are the key SaaS CRM markets in Asia Pacific. Of these, Australia remains the top market, accounting for 35% of all SaaS CRM sales generated in the region.
“SaaS CRM has gained acceptance in Asia’s business mainstream and the coming year will see higher adoption rates as larger enterprises opt for SaaS CRM,” said Balaka Baruah Aggarwal, Senior Manager for Emerging Software for Springboard Research. “At the same time, the market is set to witness unprecedented growth in the SME sector as a spate of new initiatives by vendors such as SAP, Microsoft, and Oracle promote their CRM offerings,” added Ms. Aggarwal.
Increased adoption among larger enterprises will be the turning point in the uptake of SaaS CRM and will bring the model a legitimacy that it did not have when it was mainly used by small and medium enterprises (SMEs). Already, leading vendors like Salesforce.com, who had traditionally targeted the SME market, are now eyeing larger enterprises. As traditional software players step up their activities by offering proprietary SaaS CRM applications, large enterprises will be lured to the market, creating an entirely new base of customers who had previously been fence sitters. Springboard Research also forecasts that the SaaS CRM market is set for consolidation as the number of players increase and bigger players make serious forays into the marketplace.
Springboard currently estimates that SaaS CRM represents the largest segment of SaaS application expenditures in Asia at 45%, followed by collaboration, ERP/PLM/SCM applications, and human resource applications. Within the SaaS CRM segment in Asia, Salesforce.com has captured a very dominant position in the market. Other prominent vendors in the region include RightNow, Oracle, and Netsuite.
“Springboard Research believes that a substantial portion of the growth in Asia Pacific’s SaaS CRM market will come from the SME segment. We expect SMEs in Asia Pacific to go for simpler CRM solutions that are not too complex,” said Ms. Aggarwal. “This will drive CRM vendors, especially the traditional licensed software companies, to sell stripped-down versions of on-premise offerings or to develop SME-specific applications for distribution via the SaaS model.”
About This Study
Software-as-a-Service (SaaS) is a disruptive innovation that has the potential to transform the software industry. Many new players are entering the SaaS market, while established software companies are scrambling to compete against these new entrants by developing SaaS products themselves.
While SaaS has received a lot of press and hype, detailed information on the size, scale and characteristics of the market is still relatively limited. Springboard Research is helping to change this with its Asia Pacific SaaS Market Canvas, an ongoing research service through which users can access detailed and continuing research focused on SaaS in Asia.
About Springboard Research
Springboard Research’s core values are integrity and insight. Led by a team of dynamic industry experts, Springboard Research provides its customers with high value IT market research that helps them identify new market opportunities, growth engines and innovative ways to go to market. As a result, Springboard’s clients lead rather than follow market trends. Not bound by legacy, Springboard’s cutting-edge research model leverages its offshore research centers, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. Provided as an alternative to traditional IT market research, Springboard’s reports deliver data and knowledge in a more usable and interactive format for our clients. Springboard Research works with the largest IT companies in the world in the software, services, hardware, and telecommunications sectors.
Founded in 2004, Springboard Research serves the needs of its clients globally through offices in the United States, Australia, Singapore and Japan as well as global research centers in India, Pakistan, and Morocco. Springboard has been acknowledged as an emerging leader in the global IT market research industry and was recently named a “Rising Star” by Outsell, the leading research and advisory firm for the information industry.
For more information regarding Springboard Research, please visit www.springboardresearch.com
Media Contacts
Chris Perrine, COO & EVP of Sales & Marketing
Springboard Research
65-6325-9716
cperrine@springboardresearch.com
Balaka Baruah Aggarwal, Senior Manager- Emerging Software
Springboard Research
91-11-40518249
baggarwal@springboardresearch.com
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