software as a service in asia pacific: expanding the reach
TRANSCRIPT
Software as a Service in Asia Pacific: Expanding
the Reach & Appeal of Software
MARKET RESEARCH REPORT
July 23, 2007
Lead Analysts:
Ravi Shekhar, Senior Market Analyst
Dane Anderson, Vice President, Research
EXECUT IVE SUMMARY ................................................................................................................................. 3
TAXONOMY .................................................................................................................................................. 6 What is Software-as-a-Service (SaaS)? ................................................................................................ 6
Who is a SaaS Provider? ........................................................................................................................ 7
RESEARCH METHODOLOGY ........................................................................................................................ 8
Secondary Research.............................................................................................................................. 8
Supply-side Primary Research ............................................................................................................... 8
Demand-side Primary Research ........................................................................................................... 8
OVERV IEW OF THE AS IA PACIF IC SAAS MARKET ................................................................................. 10
SaaS vs. Traditional Enterprise Software Applications Market......................................................... 10
SaaS Application Dynamics ................................................................................................................ 11
Vertical Market Dynamics ................................................................................................................... 13
Adoption Trends by Country ............................................................................................................... 14
Key Adoption Drivers............................................................................................................................ 14
Barriers to Adoption.............................................................................................................................. 15
SAAS: PR IMARY SURVEY RESULTS ........................................................................................................... 16 SaaS Awareness.................................................................................................................................... 16
Adoption Drivers and Inhibitors........................................................................................................... 19
Satisfaction Level with SaaS Applications ......................................................................................... 21
Data Residency .................................................................................................................................... 22
Future SaaS Adoption Plans ................................................................................................................ 23
KEY SAAS DYNAMICS BY APPL ICAT ION ................................................................................................. 24 On-Demand CRM ................................................................................................................................ 24
Web Collaboration............................................................................................................................... 26
ERP and SCM Applications.................................................................................................................. 27
On-Demand HR Applications ............................................................................................................. 28
COUNTRY PROF I L ES ................................................................................................................................... 30 Australia ................................................................................................................................................. 30
China/Hong Kong ................................................................................................................................ 32
India ....................................................................................................................................................... 34
Singapore .............................................................................................................................................. 35
SAAS & AS IA PACIF IC ISVS ................................................................................................................... 42
THE AS IA PACIF IC COMPET I T IVE LANDSCAPE ....................................................................................... 44 Salesforce.com ..................................................................................................................................... 45
WebEx .................................................................................................................................................... 45
RightNow Technologies ....................................................................................................................... 46
Oracle .................................................................................................................................................... 46
NetSuite ................................................................................................................................................. 46
Citrix Online ........................................................................................................................................... 47
IBM .......................................................................................................................................................... 47
Microsoft ................................................................................................................................................ 48
Progress Software ................................................................................................................................. 49
SAP ......................................................................................................................................................... 49
Symantec .............................................................................................................................................. 50
SPR INGBOARD RECOMMENDAT IONS ....................................................................................................... 51
Table of Contents
Figure 1: Asia Pacific SaaS Applications Market Revenue (US$M) and Annual Growth, 2006-
2010................................................................................................................................................. 10
Figure 2: Asia Pacific SaaS Revenue by Application, 2006............................................................. 12
Figure 3: Asia Pacific SaaS Revenue by Country, 2006 ................................................................... 14
Figure 4: SaaS Awareness among Asia Pacific Companies ........................................................... 16
Figure 5: SaaS Awareness among Asian Enterprises, by Country .................................................. 17
Figure 6: SaaS Adoption among Asian Enterprises........................................................................... 18
Figure 7: SaaS Applications Used By Asia Pacific Enterprises ......................................................... 19
Figure 8: Primary Reason for Adopting SaaS..................................................................................... 19
Figure 9: Primary Reason for Not Adopting SaaS ............................................................................. 20
Figure 10: Perceived Savings from Adopting SaaS .......................................................................... 21
Figure 11: SaaS Application Satisfaction............................................................................................ 22
Figure 12: Data Residency & Perceived Performance.................................................................... 22
Figure 13: SaaS Applications Being Considered for Deployment in Next 12 Months ................. 23
Figure 14: On-Demand CRM Market Revenue (US$M) and Annual Growth in Asia Pacific,
2006-2010 ....................................................................................................................................... 24
Figure 15: Web Collaboration Market Revenue (US$M) and Annual Growth, 2006-2010 ......... 26
Figure 16: On-Demand Back-Office Revenue (US$M) and Annual Growth, 2006-2010 ............ 27
Figure 17: On-Demand HR Applications Revenue (US$M) and Annual Growth, 2006-2010 ..... 28
Figure 18: Other* On-Demand Applications Revenue (US$M) and Annual Growth, 2006-2010
......................................................................................................................................................... 29
Figure 19: Australian SaaS Market Revenue (US$M) and Annual Growth, 2006-2010 ................ 30
Figure 20: Primary Reason for Adopting SaaS, Australia ................................................................. 31
Figure 21: Primary Factor Preventing SaaS Adoption, Australia..................................................... 31
Figure 22: China/Hong Kong SaaS Market Revenue (US$M) and Annual Growth, 2006-2010 .32
Figure 23: Primary Reason for Adopting SaaS, China ...................................................................... 32
Figure 24: Primary Factor Preventing SaaS Adoption, China ......................................................... 33
Figure 25: India SaaS Market Revenue (US$M) and Annual Growth, 2006-2010......................... 34
Figure 26: Primary Reason for Adopting SaaS, India........................................................................ 34
Figure 27: Primary Factor Preventing SaaS Adoption, India ........................................................... 35
Figure 28: Singapore SaaS Market Revenue (US$M) and Annual Growth, 2006-2010 ............... 36
Figure 29: Primary Reason for Adopting SaaS, Singapore .............................................................. 36
Figure 30: Primary Factor Preventing SaaS Adoption, Singapore.................................................. 37
Figure 31: Share of Direct Sales in SaaS Business by Application ................................................... 38
List of Figures
Figure 32: Local Resellers: Necessary or Not When Buying SaaS ................................................... 39
Figure 33: Local Resellers: Helpful or Not When Buying SaaS.......................................................... 39
Figure 34: Areas Local Resellers can Add Value To the Procurement & Installation of SaaS
Applications................................................................................................................................... 40
Figure 35: Channel Roles That Can Add Greatest Value................................................................ 40
Figure 36: Asia Pacific SaaS Revenue Vendor Market Share ......................................................... 44
Table 1: Respondent Breakup By Country & Users/Non Users .......................................................... 8
Table 2: Respondent Breakup by Employee Size ............................................................................... 9
Table 3: SaaS Enterprise Applications by Category......................................................................... 12
Table 4: Vertical Specific SaaS Applications..................................................................................... 13
Table 5: Local Vendors Offering SaaS Applications......................................................................... 42
List of Tables
2
INTRODUCTION The appeal of Software as a Service (SaaS) is growing rapidly
in Asia Pacific. Many organizations are deploying SaaS to
meet their key IT needs and overcome challenges posed by
the rising cost of deploying and managing traditional software
systems. Increasingly, SaaS is also creating a new breed of first-
time software users, mostly among small and medium
enterprises. This trend is encouraging many local ISVs to use
the SaaS model to widen their business universe and serve
new markets and customers.
Focusing on these and many other key trends in the Asia
Pacific enterprise SaaS market, this report analyzes the
growing adoption of SaaS in the region. A key focus area of
the report is to provide an array of market data – including
market size and growth forecasts – for key segments of the
enterprise SaaS market in Asia Pacific (excluding Japan).
Through our survey of 385 CIOs and IT decision-makers at large
and SMB enterprises in Australia, China, India, and Singapore,
we have assessed the level of awareness, adoption and
usage in more depth. We have also analyzed trends in the
SaaS business model pursued by local ISVs, in addition to
profiling leading SaaS vendors in the region.
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EXECUTIVE SUMMARY
The appeal and reach of software as a service (SaaS) continues to
grow rapidly among enterprises in Asia Pacific. A substantially increased
awareness of the SaaS concept, coupled with a growing inclination
among enterprises and business users to try web-based applications,
are among the key factors that have contributed to a dynamic
regional SaaS market. The success of vendors like Salesforce.com and
WebEx in reinforcing the credibility, reliability and sustainability of the
SaaS model, definitive announcements by large software vendors like
Microsoft and Symantec who have declared their intention to deliver
software on demand, and the growing interest in SaaS among local
ISVs who have begun to develop SaaS applications, are other factors
that have led to market expansion.
From a numbers perspective, SaaS market momentum picked up in
2005 and continued in 2006, with growth rates close to what we had
projected in our first report on the Asia Pacific SaaS market (The
Software as a Service Market in Asia Pacific, 2005 to 2008: Blazing New
Routes-to-Market (May 2006). Our six key findings from this research
study are provided below:
1. SaaS Market Growth Momentum Will Last for the Long Run: The Asia
Pacific SaaS enterprise applications market amounted to US$154
million in 2006, and generated 93% revenue growth over the
previous year. The market is projected to grow at a CAGR of 66%
from 2006 to 2010. Springboard Research believes that given its
current momentum, SaaS will account for more than 15% of the
enterprise software applications market in Asia Pacific by 2010. We
expect the Asia Pacific SaaS market to reach US$ 1.16 billion at the
end of the period under review.
2. Business Users Emerging as Key Drivers of SaaS Adoption: While the
IT department remains firmly in control of software deployments in
most organizations, especially large ones, business users are
emerging as key influencers of SaaS adoption. In many instances,
SaaS applications are deployed for business applications without
the involvement or knowledge of the IT department, as business
users find it easy to subscribe to and use SaaS themselves. Ease of
use is also one of the key reasons why SaaS applications are
increasingly finding favor with SMBs who do not have IT
departments or who have little exposure to IT applications.
3. CRM is One of Many Applications Used in the Asia Pacific SaaS
Market: Although customer relationship management (CRM)
remains the largest SaaS application segment by revenue,
representing 45% of total Asia Pacific SaaS revenue in 2006,
Springboard Research data shows that organizations are aware of
and use many different types of SaaS applications. The most widely
used include desktop office applications (word processors,
spreadsheets), e-mail, security/compliance applications, and HR-
payroll/workforce management. CRM (mostly salesforce
automation (SFA)), collaboration tools (web conferencing &
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messaging), enterprise resource planning (ERP), accounting, and
supply chain management (SCM) are next in order of usage.
4. SaaS is Encouraging New Entrepreneurship in Asia Pacific: The
success of SaaS is attracting a significant number of local IT
professionals and ISVs to the application software market. SaaS is
offering new market opportunities for small ISVs that could
previously not sell to SMBs without an IT staff. Moreover, partnerships
with leading SaaS providers are helping ISVs reach markets beyond
their local geographies.
5. Large Vendors Now Have More Definitive SaaS Strategies: Vendors
like Microsoft and Symantec have now developed more clear-cut
SaaS market strategies. Springboard Research believes that these
big players’ entry in SaaS will change the competitive landscape of
the market, currently dominated by pure-play SaaS vendors like
Salesforce.com, RightNow Technologies and WebEx, among others.
The entry of the large vendors into the marketplace is also
expected to force mergers and acquisitions, re-alignment of players
and emergence of new alliances, as in the case of the recent
partnership between Salesforce and Google.
6. SaaS Needs Channels to Grow: The majority of the respondents
(71%) Springboard Research interviewed for this report believes the
involvement of a local reseller or agent is necessary when buying
software-as-a-service applications. However, most SaaS application
sales in Asia Pacific are made directly without the involvement of a
channel partner. A number of factors, including lack of experience
and knowledge of application business processes, as well as low
profit margins for SaaS applications are keeping channels away
from selling SaaS.
In addition to these key findings, other prominent study results are
outlined below:
� The primary factors driving enterprise adoption of SaaS applications
are the ease of its use and management, followed by the lower
cost of ownership when compared to traditional software.
Springboard Research considers “ease of use” as the key factor
driving SaaS adoption by both large and SMB enterprises.
� The primary inhibiting factor to SaaS adoption is lack of perceived
business benefit. Many respondents are not deploying SaaS
because they believe traditional licensed software is less expensive,
and they also view SaaS applications as technologically less
mature. Security concerns and a lack of awareness of the concept
also prevented many companies from deploying SaaS.
� Even as leading SaaS vendors like Salesforce.com, WebEx,
RightNow Technologies and NetSuite continue to lead the SaaS
market, local ISVs and some small US vendors are beginning to find
customers in Asia Pacific. According to Springboard Research data,
small vendors accounted for 54% of SaaS market revenue in 2006.
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� Compared to 2006, there has not been much change in SaaS’
geographical spread across Asia Pacific. Australia is still the most
mature market in the region with a 37% share, and China, Korea,
India and Singapore are the other leading markets in the region.
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TAXONOMY
What is Software-as-a-Service (SaaS)?
Springboard Research defines Software-as-a-Service (SaaS) as a
software delivery model in which application software is delivered to
users via a web browser. Users do not buy the license for the software,
but only a right to use it on a subscription basis. A user may subscribe to
all the features/functionalities of the software or just a portion of them.
Springboard Research also defines the SaaS model as on-demand
software and/or on-demand application.
The key characteristics of SaaS are:
� The software application is not owned by the customer, and is only
rented for use.
� The software resides on a central server and not on the customer’s
computer. The user accesses the application via a web browser
and the SaaS provider is responsible for software maintenance and
performance.
� The primary value delivered by SaaS is the continuous and ongoing
support for the application by the service provider. Network-based
access allows maintenance, support and upgrades to the software
from the provider’s data center. The SaaS provider is 100%
responsible for the maintenance and upgrade of the software.
� The architecture, management and pricing of the application
mimic the one-to-many model rather than the one-to-one model.
Enterprise software delivered as SaaS include business applications such
as customer relationship management (CRM), web conferencing and
collaboration applications, HR applications like talent management
and payroll, enterprise resource management (ERM) applications like
ERP, supply chain management (SCM), product lifecycle management
(PLM) and so on.
This report excludes software applications or services aimed mainly at
the consumer market. While online companies like Yahoo and Google
also deliver software as a service, we have excluded them for two
reasons: a) those services are mostly used by consumers, which is a
distinct market with unique characteristics and, b) their revenue is not
exclusively derived from selling software services, but often provided for
free or subsidized by advertising.
We have also excluded the business of application hosting from the
scope of this report since the model does not meet our definition of
SaaS. In the application hosting model, the customer has to pay for the
software license. The customer therefore owns the software application
and is responsible for upgrades and maintenance.
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Who is a SaaS Provider?
A SaaS provider is any company that delivers SaaS over the Internet
and is accountable for the software’s maintenance, upgrades and
associated services. The SaaS provider is responsible for hosting,
deploying, customizing, configuring and delivering the software. In our
view, there are three broad categories of SaaS providers active in the
Asia Pacific region. These are:
1. Net-Native Software-as-a-Service Application Providers: These are
SaaS providers with proprietary multi-tenant software applications
designed for delivery over the web. These companies have their
own data centers that host, manage and deliver SaaS applications.
SaaS vendors like Salesforce.com, RightNow Technologies and
WebEx fall in this category.
2. Hybrid Software-as-a-Service Application Providers: These providers
are traditional enterprise software vendors who primarily deploy on-
premise software delivery models that are diversifying into SaaS
offerings to supplement their on-premise businesses. Vendors such
as Oracle, Microsoft, SAP and Symantec fall into this category.
3. Software-as-a-Service Providers Delivering Third-Party Applications:
These providers primarily play the role of application aggregators
and deliver SaaS applications over the web using their
infrastructure. Application service providers (ASPs), web hosting
companies, telecom and Internet service providers who deliver
third-party multi-tenant software applications via a web browser
form this group of SaaS providers. A prominent example of such a
company in the region is Australia-based Web Central.
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RESEARCH METHODOLOGY
The research conducted for this report was executed from March to
May 2007. The methodology employed included secondary research,
and both supply- and demand-side primary research. Additional details
on each of these research elements are provided below.
Secondary Research
The first research phase involved an extensive secondary research
exercise to review public information sources on the Internet and other
mediums. Key information sources included SaaS vendor websites,
earnings statements and white papers. In addition, reports, articles,
websites, blogs and journals from other research bodies, associations
and government entities were used to create an initial framework of
understanding on the SaaS dynamics both globally and in Asia Pacific.
Supply-side Primary Research
Interviews were then conducted with the heads of Asia Pacific
operations for leading SaaS vendors and large traditional software
providers. Respondents were led through a structured questionnaire to
gather quantitative and qualitative input on their operations,
performance, strategies and views on the overall Asia Pacific SaaS
marketplace. Data from interviews was consolidated, checked for
consistency and accuracy, and then inserted into Springboard’s SaaS
data model.
Demand-side Primary Research
In order to include user perceptions and adoption into the research
methodology, a total of 385 CIOs, IT managers and line of business
managers from both large enterprises and SMBs were interviewed in
Australia, New Zealand, China, India and Singapore. Structured
interviews were conducted over the phone to gather quantitative and
qualitative information regarding SaaS adoption and usage within the
company. A breakdown of survey respondents follows below:
Table 1: Respondent Breakdown by Country & Users/Non-Users
Country SaaS Users Non-SaaS Users Total
Australia 42 40 82
New Zealand 11 10 21
China 50 50 100
India 50 48 98
Singapore 32 52 84
Total 185 200 385
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Table 2: Respondent Breakdown by Employee Size
Verticals SaaS Users Non-SaaS Users Total
1-99 54 71 125
100-299 35 29 64
300-499 24 14 38
500-999 18 19 37
1000 & Above 48 73 121
Total 179 206 385
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OVERVIEW OF THE ASIA PACIFIC SAAS MARKET
The Asia Pacific Software-as-a-Service (SaaS) market continues to grow
at one of the fastest rates in the world. A host of factors, primarily a
significantly increased awareness of the SaaS concept and a
proliferation of new SaaS applications – several of them being
developed by local ISVs – have added to market momentum. In almost
every way, SaaS is more mainstream than it was a year ago. This is
amply reflected in not just the growing reach of the on-demand
applications that are being deployed with ease by both large and SMB
enterprises across verticals, but also the increasing involvement of
business users in influencing SaaS deployment in their organizations.
Local ISVs have also grown increasingly interested in providing
applications via the SaaS model.
Springboard Research estimates show that the Asia Pacific SaaS market
(excluding Japan) has been growing along the lines we had projected
in our earlier report (The Software as a Service Market in Asia Pacific,
2005 to 2008: Blazing New Routes-to-Market (May 2006). Per our
forecast, the SaaS market grew by 93% in 2006 to reach US$154 million.
We expect this market to grow to US$1.16 billion in 2010, registering a
CAGR of 66% from 2006 to 2010 (Figure 1).
Figure 1: Asia Pacific SaaS Applications Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
SaaS vs. Traditional Enterprise Software Applications Market
Springboard Research forecasts that at its current pace of growth, SaaS
will gain share rapidly against the traditional enterprise software
applications market in Asia Pacific over the next several years. It is
noteworthy that while the SaaS applications market, as mentioned
earlier, will grow at a CAGR of 66%, the traditional enterprise software
applications market will only grow at a CAGR of 11-13% to reach during
the same period. We believe that by 2010 SaaS will represent over 15%
of the enterprise applications market in Asia excluding Japan.
0
200
400
600
800
1000
1200
1400
0%
40%
80%
120%
Revenue (US$M) 154 274 501 785 1165
Growth 93% 78% 83% 57% 48%
2006 2007 2008 2009 2010
11
From a global perspective, Springboard Research estimates that Asia
Pacific accounted for around 10% of the global SaaS market in 2006, up
from 8% in the previous year.
Springboard Research forecasts for Asia Pacific’s SaaS market size is
based on the following key assumptions:
• The increased hype surrounding web-based applications,
combined with growing Internet penetration and usage among
businesses, especially the SMBs, will drive many organizations to
adopt web-based applications. We expect most organizations that
use enterprise application software to deploy some sort of SaaS
application in the near future.
• A significant portion of the growth in SaaS adoption will come from
SMBs who have very little or no exposure to IT applications. SMBs
represent a market that is currently not being served or has been
beyond the reach of on-premise enterprise application vendors.
Given cost advantages, ease of use and management, SaaS is now
likely to be among SMB’s top choices for software.
• There will be an increased effort by large application vendors like
Oracle and SAP to tap the SMB market by customizing their existing
applications to meet SMB-specific IT needs. SaaS will be a key part
of their strategy for this market.
• There will be a proliferation of new SaaS applications that are more
easily available, leading many more organizations to use them. The
increase in new SaaS applications will be driven by both local ISVs,
as well as leading licensed application vendors.
SaaS Application Dynamics
As we had indicated in our first study, SaaS is moving beyond CRM. The
proliferation of new SaaS applications (detailed in Table 3) has been
one of the most noticeable trends in the Asia Pacific market. While
many of these new applications have come to the region from US-
based vendors looking to gain a foothold in the Asian market, several
SaaS programs are now being offered by local ISVs. Additional details
on Asia Pacific ISVs and their recent SaaS activities are provided in the
SaaS & Asia Pacific ISVs chapter of this report.
Springboard Research data shows that organizations are aware of and
are using many different types of SaaS applications. The most widely
used include Office applications (word processors, spreadsheets), e-
mail, security/compliance applications, and HR, payroll/workforce
management. CRM, collaboration tools (web conferencing &
messaging), ERP, accounting, and supply chain management are next
in order. It is important to note that not all of these applications
generate revenue. For instance, Google Docs and Spreadsheet – two
applications that are gaining popularity among enterprises – are
basically free software.
CRM remains the largest SaaS application segment by revenue in the
region, representing 45% of total SaaS revenue in 2006. However, its
share in the overall SaaS market is declining. CRM is followed by
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collaboration applications. Our understanding is that among all the
SaaS applications, these two generate the most revenue. As such, even
if more organizations are using other types of SaaS applications, these
two contribute most to regional revenue (Figure 2).
Figure 2: Asia Pacific SaaS Revenue by Application, 2006
Source: Springboard Research, 7/2007
Key SaaS applications are illustrated in greater detail in Table 3. Of note
is that collaboration is emerging as the most dominant form of SaaS
application. That is because even as licensed software applications
dominate the software applications category, collaboration software
applications, like conferencing, messaging, and document
management, are becoming mostly web-based.
Table 3: SaaS Enterprise Applications by Category
Source: Springboard Research, 7/2007
SaaS applications are often being deployed in “islands” within an
enterprise, in contrast to licensed applications that are usually
deployed throughout the enterprise. Despite this, Table 3 shows that
Front Office/BI
Back Office Collaboration Desktop IT Infrastructure
CRM ERP Conferencing Word
processors
IT
infrastructure
management
Web
Analytics SCM
Document
Management Spreadsheets
Remote PC
Access
Billing PLM
Shared
calendars,
contact lists &
tasks
Remote IT
Services
HR/Workforce
Management/Performance
Management
management
Security
Payroll Messaging
Accounting Whiteboards
Budgeting &
Planning/Expense
Management
Desktop sharing
Content Management
Other
7% HR
7%
ERP/PLM/SCM
9%
Collaboration
32%
CRM
45%
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there is an array of SaaS applications that can be deployed in many
different departments across an enterprise.
A key SaaS trend has been the proliferation of vertical-specific SaaS
applications, some which are mentioned in Table 4.
Table 4: Vertical Specific SaaS Applications
Source: Springboard Research, 7/2007
Vertical Market Dynamics
High-tech businesses, financial services, healthcare and business
services (HR, recruiting firms, and legal services), education and the
non-profit sector have been the more enthusiastic adopters of the on-
demand model. Companies in these verticals have a relatively better
understanding of the SaaS model and its benefits. Springboard
Research data shows that SaaS is gaining almost equal traction in both
large and SMB enterprises in many of these vertical industries.
In Australia and Singapore, a significant number of government
organizations also have deployed SaaS. In Singapore especially, the
government has been a significant driver of SaaS adoption. In one
example, the National Council of Social Services, which is the umbrella
organization for all social services in Singapore, has deployed
justlogin.com, an online software service, in all its departments.
Application Vertical Vendor
Policy & claims
administration system for
property & casualty
insurance industry
Insurance BIPT
Educational campus
management solution Education Campus Management
Litigation lifecycle
management Legal Services CaseCentral
Retail Management Retail CORESense
Commerce & fulfillment
solutions for retailers &
direct-to-consumer
initiatives
Retail Vcommerce
Dealer
tracking/management
solution
Automobile DealerTrack
Medical Appointment
Scheduling & Electronic
patient record,
collaboration
Healthcare Medtech
Healthcare operations Healthcare Working Systems
Sales Information System Hi-Tech Manufacturing
(Semiconductor) Platte River Systems
Hotel reservation Hospitality vSplash TechWorks
Derivatives risk
management Financial Services Pyxis Systems
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Adoption Trends by Country
Australia remains the largest market for SaaS applications in the region
and is the closest aligned to North America in terms of adoption trends.
The country has a thriving community of ISVs and other SaaS providers
who have helped build awareness and momentum in the market.
China, India, Korea and Singapore are other key markets in Asia Pacific.
Together with Australia, these countries account for around 77% of the
SaaS market in the region. Additional detail on country dynamics in key
markets is provided in the Country Profiles chapter of this report.
Figure 3: Asia Pacific SaaS Revenue by Country, 2006
Source: Springboard Research, 7/2007
Key Adoption Drivers
The relatively lower cost of SaaS applications as opposed to traditional
software, ease of use, management and implementation are the key
factors that make SaaS attractive. Although cost is important, our
research has shown that factors other than cost are the primary
considerations for the majority of organizations deploying SaaS. Most
organizations find SaaS attractive because it can be deployed quickly
and easily, which is a dynamic observed in both the SMB and large
enterprise market segments.
The growing adoption of the Internet as a business tool (or Web 2.0, as
some call the trend) by regional enterprises is the key external factor
driving SaaS adoption, especially among SMB enterprises. Internet
penetration among Asian enterprises has been growing steadily and is
increasingly pushing them toward using web-based applications. In a
significant number of cases, implementation of web-based applications
is initiated by business users without IT department involvement.
Other
23%
Singapore
7%
Korea
10%
India
11%
China/HK
13%
Australia
36%
15
Moreover, many of the region’s SMBs that could not afford licensed
software applications because they involved capital and operational
expenditures beyond their budget, and also because they did not
have IT manpower to manage them, are adopting SaaS applications to
enhance operational efficiency and boost productivity.
Barriers to Adoption
The primary factor preventing companies from adopting SaaS is lack of
recognition of the business benefit. Many respondents are not
deploying SaaS as they perceive licensed software to be cheaper and
also consider SaaS applications technologically less mature. Concerns
related to security also prevented many companies from deploying
SaaS. All this essentially points toward an inadequate awareness and
understanding of the SaaS concept. As such, Springboard Research
believes this insufficient awareness and understanding is the most
important challenge facing SaaS market growth in the region.
Detailed data on the key drivers of SaaS adoption among organizations
and the inhibiting factors preventing adoption is presented in the next
section of this report.
16
SAAS: PRIMARY SURVEY RESULTS
As highlighted in the methodology section of this report, Springboard
conducted interviews with CIOs and IT managers in 385 large and SMB
enterprises in Australia, New Zealand, China, India and Singapore to
assess the level of SaaS awareness, adoption and perception in the
region. Vertical industries covered in our survey primarily included
banking and financial services, public sector, healthcare, retail,
education, manufacturing, telecommunications and business services.
SaaS Awareness
There has been a substantial increase in SaaS awareness among Asia
Pacific enterprises. From our respondent base comprised of both large
and SMB enterprises, 75% reported awareness of SaaS with only 25%
reporting a lack of awareness (Figure 4). Awareness levels are nearly
equal in large and SMB enterprises. It should be noted that in our first
survey on SaaS awareness and adoption, we had reported a 41% SaaS
awareness rate among the SMB respondents. This dramatic shift clearly
demonstrates the gained awareness SaaS is experiencing in the market
within just 12 months.
Figure 4: SaaS Awareness among Asia Pacific Companies
Q: Are you aware of the concept of Software-as-a-Service or On-Demand Software?
N=385 (2007); 210 (2006)
Source: Springboard Research, 7/2007
Increased marketing by SaaS vendors, hype generated by
announcements from Microsoft and Google, among others, and
growing Internet usage among businesses, have all played a key role in
building SaaS awareness in Asia Pacific.
Furthermore, many respondents, even if unfamiliar with the term “SaaS,”
were fairly aware of the general concept. This increasing awareness of
SaaS is a key contributor to growth in the market. However, it is
59%
25%
41%
75%
0% 20% 40% 60% 80%
2006
2007
Yes
No
17
important to emphasize that awareness does not always equal
understanding. Although respondents may have heard of SaaS, some
might have an incomplete or inaccurate understanding of the
concept, how it works and what benefits it offers (as is reflected in some
of the reasons they have cited for deploying SaaS applications).
Among countries in the region, Australia has the highest awareness
levels while China has the lowest. Nevertheless, SaaS awareness has
increased substantially across the four countries that we surveyed
(Figure 5).
Figure 5: SaaS Awareness among Asian Enterprises, by Country
Q: Are you aware of the concept of Software-as-a-Service or On-Demand Software?
N=385
Source: Springboard Research, 7/2006
As with any new technology or concept, a rise in awareness is a positive
sign and a foundation upon which the market can be built. From that
perspective, the current level of SaaS awareness in Asia Pacific is a very
encouraging trend that can be exploited by SaaS vendors to tap the
growing opportunities in the regional market.
SaaS Adoption Increased awareness and the continuous hype surrounding SaaS have
raised the level of penetration of web-based applications among Asia
Pacific enterprises. As Springboard Research data shows, 46% of
respondents indicated their company had subscribed to SaaS. Once
again, survey results clearly demonstrate the SaaS momentum
generated in the region over the past 12 months, as the share of
adopters in our survey rose from 29% the previous year to the
aforementioned 46% in 2007. (Figure 6)
A majority of the respondent companies have deployed SaaS in
specific departments or for specific business uses. Examples of
enterprise-wide deployment of SaaS are few and far between. This is
largely because of two reasons. One, organizations are still wary of
relying too much on SaaS and prefer to deploy it for non-core functions;
72%
89%
89%
92%
0% 20% 40% 60% 80% 100%
China
Singapore
India
Australia/NZ
18
two, most SaaS applications in the market are function-specific (for
instance, SFA, payroll management, etc.).
Figure 6: SaaS Adoption among Asian Enterprises
Q: Does your organization currently subscribe to any SaaS applications?
N=385 (2007); 210 (2006)
Source: Springboard Research, 7/2007
Although CRM remains the largest SaaS application segment by
revenue in the region, representing 45% of total SaaS revenue in 2006,
Springboard Research data shows that organizations are aware of and
use many different types of SaaS applications. The most widely used
include Office applications (word processors, spreadsheets), e-mail,
security/compliance applications, and HR-payroll/workforce
management. CRM (mostly SFA), collaboration tools (web
conferencing & messaging), ERP, accounting and SCM come next.
(Figure 7)
It is important to highlight that respondents were not asked to follow
very strict definitions of SaaS applications when identifying the
application they use. Although we see high demand for security SaaS
applications, we believe the adoption figures from the survey are
skewed upward by software application upgrades and renewals done
online, which does not fit into our SaaS definition since most of these
applications resides on premises. Nevertheless, with Symantec’s
impending SaaS release – and those of other security vendors – we
expect to see strong adoption of pure security SaaS software
throughout the forecast period.
71%
54%
29%
46%
0% 20% 40% 60% 80%
2006
2007
Yes
No
19
Figure 7: SaaS Applications Used By Asia Pacific Enterprises
Q: What SaaS/On-Demand Software Application are you currently using?
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
Adoption Drivers and Inhibitors
The primary adoption driver cited by the respondents is SaaS’ ease of
use and management (33%). When combined with ease of
implementation and low maintenance, it is clear that the ease with
which SaaS applications can be deployed, used and managed are the
key SaaS drivers in the region. Collectively, these factors represent over
55% of the primary drivers cited by respondents (Figure 8).
Figure 8: Primary Reason for Adopting SaaS
Q: What is the primary reason your company subscribed to SaaS?
N=179 (SaaS Adopters)
8%
10%
18%
20%
22%
27%
30%
33%
39%
0% 10% 20% 30% 40% 50%
Other
Supply Chain Management
ERP
Conferencing / Collaboration
CRM
HR-Payroll Management
Security / Compliance
Desktop Office Applications
Other
9%Scalability
6%
Zero / Low
maintenance
9%
Easy and
quick to
deploy
15%
Business
Benefits
11%
Lower cost of
ownership
18%
Ease of use
and
management
32%
20
The lower cost of ownership associated with SaaS applications remains
a key driver of its adoption in Asia Pacific. Although only 18% of the
SaaS user respondents cited it as the primary factor in adoption, 39%
stated it as the second most important factor in their decision to deploy
a SaaS application. A significant number of these respondents were
first-time users of any enterprise software application.
”Lack of business requirement” is the prime inhibiting factor for 33% of
respondents. Interestingly, vendor support and reliability are not
significant concerns, even though 12% of respondents still consider SaaS
applications less secure. However, when asked if there were any other
reason that prevented them from deploying SaaS, a significant number
of respondents cited factors like lack of technological maturity, security
and difficulty in finding a SaaS vendor.
Springboard Research believes that the lack of business requirement is
the prime inhibitor due to three key reasons. One, respondents find it
difficult to get a SaaS application that meets their business
requirements; two, they have inadequate understanding of how a SaaS
application can meet their business needs; and three they are not
aware if the applications they need even exist.
Figure 9: Primary Reason for Not Adopting SaaS
Q: What is the primary reason your company does not subscribe to SaaS?
N=206 (Non-Adopters)
Source: Springboard Research, 672007 [[
Bandwidth limitations in some Asian countries and user concern with
transitioning mission-critical applications to the SaaS model are the
other factors inhibiting adoption in the region. Bandwidth is particularly
an issue in China and India where organizations still find it difficult to get
quality bandwidth.
On the other hand, an increased awareness and understanding of the
SaaS concept has had a positive impact on cost perceptions. As such,
unlike in 2006, this year has seen a lower number of respondents who
believe that buying SaaS software licenses is less expensive. However,
2%
3%
4%
7%
11%
11%
15%
15%
34%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Vendor support is an issue with SaaS
Reliability is an issue with SaaS
Finding a SaaS vendor is difficult
Centralized decision
Security is an issue with SaaS
Low awareness about the concept
Licensed software is cheaper than SaaS
Technology is not mature
No business requirement
21
since 14% of respondents still consider licensed software cheaper, the
importance of increasing awareness and market education remains
very high despite the fact that not many respondents cite a lack of
awareness as a reason for not deploying SaaS.
A lower TCO and the ability to easily and quickly deploy SaaS have
surely meant significant cost savings for SaaS adopters. Although 40% of
SaaS adopters were unable to quantify the amount of money saved by
deploying SaaS instead of traditional licensed software, they
emphasized SaaS had helped bring down their IT expenses. Overall,
33% of respondents reported a savings of more than 10%, with 23% of
respondents reporting a savings of 11% to 25 % (Figure 10).
It should be noted that respondents were not guided to provide
scientific measurements of savings. Instead, rough estimates were
provided by respondents to provide an estimate of perceived savings.
Figure 10: Perceived Savings from Adopting SaaS
Q: How much (in percentage terms) do you estimate your organization saved by
subscribing to SaaS instead of deploying licensed software?
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
Satisfaction Level with SaaS Applications
On a scale of 1 to 10 (where 10 represents highest satisfaction and 1 the
least), most respondents have rated their experience of using a SaaS
application a 7 or higher (Figure 11). The level of satisfaction was
highest with security/compliance applications, followed by ERP. CRM
and SCM ranked lowest on the satisfaction scale; however, satisfaction
for all applications was high in general and when compared to on-
premise satisfaction.
2%
8%
23%
28%
40%
0% 10% 20% 30% 40% 50%
More than 50%
26% to 50%
11% to 25%
Less than 10%
Not Aware
22
Figure 11: SaaS Application Satisfaction
Q: How would you rate your satisfaction with the performance of the SaaS application(s)
deployed in your organization? (10 =highest level of satisfaction; 1=the lowest)
N: 179 (SaaS Adopters)/Multiple Responses
Source: Springboard Research, 7/2007
Data Residency
The majority of SaaS users (57%) believe that application performance
and reliability is not dependent on data center location. On the other
hand, 39% think SaaS applications perform better and are more reliable
when hosted at a data center close to the user. The fact that the
majority of respondents do not consider data residency as a factor in
application performance and reliability can be seen as a manifestation
of the growing maturity of the SaaS user as well in the Asia Pacific
market. (Figure 12)
Figure 12: Data Residency & Perceived Performance
Q: Which of following two statements is more correct: a) SaaS applications perform
better and are more reliable when hosted in a data center close to the user b) Application performance and reliability is not dependent on data center location c) Don’t Know; N: 179 (SaaS Adopters)
Source: Springboard Research, 7/2007
7.33
7.39
7.46
7.79
7.79
7.81
7.88
7.98
CRM
SCM
HR
Web Conferencing / Collaboration
Desktop Office Apps
ERP
Security / Compliance
4%
39%
57%
Don't know
Performance is better and reliable when
hosted in a data centre close to the user
Performance and reliability is not
dependent on data centre location
23
Future SaaS Adoption Plans
In our interviews with respondents, only a small number (9%) indicated a
definite plan to implement one or more SaaS applications in the next 12
months. However, we do not believe this represents a slowdown in
overall adoption for a number of reasons. First, previous surveys we
have conducted in different areas generally show that Asian enterprises
have very little visibility or conviction of the solutions they will deploy
looking forward within the next 12 months. Second, application
investments are often driven by business needs that arise quickly, and
SaaS has clear time-to-adoption advantages versus traditional software
license sales. Finally, our survey had a larger representation of IT
managers than it did line-of-business (LOB) department heads, and we
have found that many SaaS deployments are being driven from the
lines of business with little or no knowledge from the IT department.
Figure 13 lists the various SaaS applications that enterprises in Asia
Pacific are likely to deploy in the next 12 months. The future adoption
of SaaS applications contains few glaring differences from the adoption
patterns already presented in this document. However, security and
compliance ranks further down the list of planned deployments than it
does when viewing actual deployments. We are uncertain of the key
factors driving this difference, and we believe security SaaS could in
fact be a strong application performer within the next 12-24 months.
Figure 13: SaaS Applications Being Considered for Deployment in Next 12 Months
Q: Which SaaS application are you considering for deployment in the next 12 months?
N=20 (Multiple Response) Note: sample size is low, and data should be viewed as
indicative only
Source: Springboard Research, 7/2007
11%
11%
11%
16%
21%
21%
37%
37%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Others
Security / Compliance
Supply Chain Management
HR-Payroll- Workforce Management
ERP
Web conferencing / messaging
CRM
Desktop office applications
24
KEY SAAS DYNAMICS BY APPLICATION
On-Demand CRM
Even though CRM’s share in the Asia Pacific SaaS applications market
declined in 2006, it continues to be the leading form of SaaS in the
region. CRM not only enjoys the highest mindshare among all SaaS
applications, it also contributes most to the market in terms of revenue.
Within CRM, salesforce automation (SFA) is the most popular
application with business users.
A lower TCO, quick deployment time, and ease of use and
management have been the key factors that are driving the region’s
enterprises to opt for SaaS-based CRM. A large part of the credit for
SaaS market momentum also goes to the on-demand CRM pioneer,
Salesforce.com, which has done a good job of marketing and
delivering its CRM solutions in Asia Pacific.
As Springboard pointed out in its previous report, SaaS CRM
applications continue to outpace growth of the traditional on-premise
CRM applications many times over. According to our data, the on-
demand CRM market will grow at a CAGR of 61% from 2006 to 2010, to
reach US$460 million by 2010 (Figure 14). A large part of this growth will
come from first-time SMB adopters of CRM.
Figure 14: On-Demand CRM Market Revenue (US$M) and Annual Growth in Asia Pacific, 2006-2010
Source: Springboard Research, 7/2007
ON-DEMAND CRM ADOPTION BY VERTICAL INDUSTRY
As Springboard Research indicated in its earlier study, education,
healthcare services, telecommunications, consumer packaged goods,
business services and the technology sector have been the key markets
for on-demand CRM. However, of these, the technology sector,
financial services and business services have emerged as the most
significant adopters of on-demand CRM applications in the region.
The growing use of the Internet as a business tool and the growth in
broadband access has helped on-demand CRM find a significant
0
100
200
300
400
500
0%
10%
20%
30%
40%
50%
60%
70%
80%
Revenue (US$M) 69 116 193 315 460
Growth 68% 67% 63% 46%
2006 2007 2008 2009 2010
25
foothold in the region’s SMB segment. However, the market still remains
a tough challenge for SaaS CRM vendors, as many SMBs still have an
inadequate understanding of how the application can help their
business.
Springboard Research predicts that a substantial portion of the growth
in Asia Pacific’s SaaS CRM market will come from the SMB segment. The
affordability and ease of use that on-demand CRM offers is likely to
encourage many of these businesses to deploy on-demand CRM as an
essential business tool. We expect SMBs in Asia Pacific to go for simpler
CRM solutions that are not overly complex. This trend in turn will drive
CRM vendors, especially the traditional licensed software companies,
to either downgrade their on-premise offerings or adopt the SaaS
distribution model.
ON-DEMAND CRM ADOPTION BY COUNTRY
Australia, Singapore, Hong Kong, Korea, India, China and Thailand 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. A relatively high awareness level, growing use of the Internet
as a business tool among companies, and better broadband
infrastructure, have helped Australia become the top target market for
leading on-demand CRM vendors like Salesforce.com, RightNow
Technologies and NetSuite. Similar trends can be seen in India,
Singapore, Hong Kong and Korea, where on-demand CRM is finding a
growing number of adopters. China shows high-growth market
potential, but is turning out to be a challenging market for SaaS CRM
vendors due to local market and cultural challenges.
ON-DEMAND CRM COMPETITION
Springboard Research has identified 5 key SaaS CRM vendors active in
the region. These are Salesforce.com, RightNow Technologies, Oracle-
Siebel, NetSuite and SugarCRM. Salesforce.com remains the number
one player with close to a 50% share of the market. Our research
showed that Salesforce.com was the most widely available on-demand
CRM vendor in Asia Pacific.
Although competition is beginning to take shape in the market, other
vendors have a long way to go before they can challenge
Salesforce.com’s dominance. Springboard Research believes that two
key factors that are going to define the competitive environment in the
region are the entry of vendors like Microsoft, Oracle and SAP in the on-
demand CRM space, and the emergence of local ISVs who are using
the on-demand model to attract SMBs. Both Microsoft and SAP have
been actively courting the on-demand CRM market for some time.
While Microsoft is launching a SaaS version of Dynamics CRM in the US
by the end of 2007 (specific plans for Asia have not been announced),
SAP is launching its on-demand suite of business applications (A1S),
including CRM, in mid-2008. Oracle has also announced aggressive
plans to pursue the CRM SaaS opportunity, with a product launch in the
US slated for the second half of 2007.
Local vendors including Gate13, Practical Business Systems, Talisma,
Sitek Villagemall Pty., 3i Business Solutions, Aldea Infotech, Xtools,
26
Woznet, 800CRM, and CRM24x7 are also actively targeting Asia
Pacific’s SaaS CRM market.
Web Collaboration
Springboard Research forecasts that web collaboration will soon
emerge as the most dominant and widely-used form of software-as-a-
service in Asia Pacific. As business Internet usage increases and as
organizations are able to access an abundance of quality bandwidth,
a broad spectrum of companies are adopting online collaboration and
conferencing tools. We believe that as collaboration is inherently on-
demand in nature due to the collaborative power of the Internet, SaaS-
based collaboration solutions will emerge as the natural choice for
organizations. The flexibility to buy services like web conferencing “at
will”, and the power of pay-per-use is already encouraging many
organizations to adopt web collaboration SaaS applications.
According to Springboard Research, the web collaboration market will
grow at a CAGR of 68% from 2006 to 2010, to reach US$400 million by
2010 (Figure 15). The market has been growing due to the strong
presence of drivers like an increasing tendency among business users to
buy services on an as-needed basis and growth in cross-company
collaboration.
Figure 15: Web Collaboration Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
WEB COLLABORATION ADOPTION BY COUNTRY
There is strong demand for on-demand collaboration services and tools,
especially web conferencing, in countries like Australia, Korea, India,
China and in ASEAN. While large companies have definitely been early
adopters, there is a growing demand from SMBs in Australia, New
Zealand, India and the ASEAN.
ON-DEMAND COLLABORATION TOOLS ADOPTION BY VERTICAL INDUSTRY
Web-based conferencing and other collaboration applications have
also been gaining traction across verticals. However, high-tech
industries, including IT and BPO companies, financial and banking
services, manufacturing, healthcare, pharmaceutical, government,
0
100
200
300
400
500
0%
20%
40%
60%
80%
100%
120%
Revenue (US$M) 50 89 169 270 400
Growth 108% 78% 90% 60% 48%
2006 2007 2008 2009 2010
27
and education are the more enthusiastic adopters of on-demand
collaboration software.
One recent trend that has been gaining ground is the growing
availability of web services for one-time or occasional users. These
services have helped extend the reach and awareness of web-based
collaboration tools, especially among small and mid-sized companies.
ON-DEMAND COLLABORATION TOOLS COMPETITION
Springboard Research estimates that WebEx has a 33% share of the
Asia Pacific web conferencing market. Microsoft is the second most
important vendor in the region. Other companies with a growing
presence in Asia Pacific include Citrix Online and Interwise.
ERP and SCM Applications
Awareness and understanding of the benefits of SaaS-based ERP and
SCM applications is growing steadily in Asia Pacific. Applications like on-
demand ERP and SCM are finding a foothold in markets in Australia,
China, Hong Kong, South Korea and Taiwan, with a few deployments in
India as well. Manufacturing companies, especially in high-tech
industries that provide semiconductors, flat panel displays and similar
products in China, Korea, Taiwan, Malaysia and Thailand have found
the on-demand ERP model appealing. Many companies have reported
significant savings, ranging from 10% to 50%, as a result of SaaS
application deployment.
Springboard Research estimates that the market for these applications
will grow at a healthy CAGR of 50% to reach US$70 million in 2010, up
from US$14 million in 2006 (Figure 16).
Figure 16: On-Demand Back-Office Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
Despite the healthy estimated growth, these applications will account
for a relatively small portion of the SaaS market. In fact, Springboard
expects ERP and SCM application market share to decline from the
current 9%, to 6% in 2010. This will happen as other SaaS applications like
CRM and web collaboration grow at a quicker rate. We believe that
the market lacks a choice of applications in the ERP/SCM area. Also,
0
20
40
60
80
0%
10%
20%
30%
40%
50%
60%
70%
Revenue (US$M) 14 22 35 50 70
Growth 57% 59% 43% 40%
2006 2007 2008 2009 2010
28
unlike the on-demand CRM or collaboration space where vendors like
Salesforce.com and WebEx have been able to develop and expand
the market based on their pioneering status and innovation, existing on-
demand ERP and SCM companies currently lack the stature and
appeal that can help them develop the market on their own.
Ce2open, GSX, Mitrix and Wesupply, Platte River Systems are some of
the on-demand SCM companies present in APAC. Prominent on-
demand ERP vendors include Intacct and NetSuite. Local ISVs such as
Cosmoshakthi Software Solutions, iWeb Technology Solutions, Octopus
eInternational, Spendvision, Villagemall Pty., HRMantra Software, Aldea
Infotech and Ramco Systems also provide with on-demand ERP
applications.
On-Demand HR Applications
Applications like HR/workforce management/performance
management, payroll management, content management, web
analytics, billing, word processing, spreadsheets, security and
collaboration-based IT infrastructure management are also gaining
acceptance in the Asia Pacific SaaS market. Among these, web-based
HR applications are currently the most popular, especially among
companies in high-tech industries, consumer goods, real estate and
BPO. Springboard Research estimates that the market for on-demand
HR applications will grow at a CAGR of 65% to reach US$75 million in
2010, from US$10 million in 2006.
Figure 17: On-Demand HR Applications Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
We believe that the growing number of HR applications developed for
the SaaS market and the wide choice this availability affords for
organizations will be a key factor in driving the adoption of these
applications. Moreover, as the current economic boom in many Asian
countries, especially China and India, leads companies to expand their
workforce, they will increasingly rely on SaaS-based applications to
manage employees.
0
20
40
60
80
0%
20%
40%
60%
80%
100%
Revenue (US$M) 10 14 25 40 75
Growth 40% 79% 60% 88%
2006 2007 2008 2009 2010
29
In addition, we expect the on-demand model to continue to spread to
other applications as the use of Internet as a business tool increases
and as organizations are able to access a wide variety of applications.
(Figure 18)
Figure 18: Other* On-Demand Applications Revenue (US$M) and Annual Growth, 2006-2010
*Includes messaging and email management, security (anti-virus, anti-spam, IDS), and
compliance management, web analytics, content management, billing, word
processing, spreadsheets, security and collaboration-based IT infrastructure management
Source: Springboard Research, 7/2007
Among other applications, security is likely to emerge as the most
dynamic segment in SaaS. Recent product announcements by leading
security solutions vendors Symantec and Trend Micro are also likely to
add to market momentum. While Symantec is launching Symantec
Protection Network, a software-as-a-service platform designed to
deliver easy-to-use security offerings to small and mid-sized businesses,
Trend Micro has announced its usage-based licensing program
available in North America through leading IT products distributor, Tech
Data.
0
50
100
150
200
0%
40%
80%
120%
160%
200%
240%
Revenue (US$M) 11 33 79 110 160
Growth 200% 139% 39% 45%
2006 2007 2008 2009 2010
30
COUNTRY PROFILES
Australia
Australia remains the biggest Asia Pacific market for SaaS applications.
A high level of awareness combined with superior broadband
infrastructure has driven SaaS adoption in the country. The flurry of SaaS
vendor activity has also contributed to market growth. Australia is the
first important battleground for leading vendors like Salesforce.com,
WebEx, NetSuite, Citrix Online and RightNow Technologies. SaaS is also
finding growing acceptance among companies, especially SMBs, in
neighboring New Zealand.
Australia has a thriving community of local ISVs that offer a range of
SaaS applications. Moreover, the high-profile involvement of the
country’s leading telecom operator, Telstra, and systems integrator,
Melbourne IT (which acquired WebCentral), in SaaS has aided market
growth.
Springboard Research estimates that the Australian SaaS market will
grow at a CAGR of 65% to reach US$405 million in 2010, from US$55
million in 2006 (Figure 19). A large part of this growth will come from on-
demand CRM applications, followed by web conferencing and
collaboration.
Figure 19: Australian SaaS Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
High-tech industries, healthcare and business services (HR, recruiting
firms, legal services, and travel services), retail, education, government
organizations and the non-profit sector have been among the
significant adopters of SaaS in Australia. The relatively low cost involved
in buying and using SaaS applications, the ability to deploy them
quickly, clear business benefits and scalability have been among the
top reasons for SaaS adoption in these verticals (Figure 20).
0
100
200
300
400
500
0%
40%
80%
120%
Revenue (US$M) 55 96 175 290 405
Growth 75% 82% 66% 40%
2006 2007 2008 2009 2010
31
Figure 20: Primary Reason for Adopting SaaS, Australia
Q: What is the primary reason your company subscribed to SaaS?
N=50 (SaaS Adopters/Australia-New Zealand)
Source: Springboard Research, 7/2007
Despite high awareness levels, many Australian companies are still not
interested in SaaS. According to Springboard Research data, this
reluctance to adopt is largely because companies feel that SaaS
applications do not meet their business requirements, are costlier then
licensed on-premise applications and are less secure (Figure 21). This
again underlines the importance to SaaS vendors of providing more
market education to improve awareness and understanding of SaaS.
Figure 21: Primary Factor Preventing SaaS Adoption, Australia
Q: What is the primary reason your company does not subscribe to SaaS?
N=51(Non-Adopters/Australia/New Zealand)
Source: Springboard Research, 7/2007
2%
2%
8%
10%
18%
20%
41%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Finding a SaaS vendor is difficult
Vendor support is an issue with SaaS
Reliability is an issue with SaaS
Technology is not mature
Security is an issue with SaaS
Licensed software is cheaper than SaaS
No business requirement
15%
10%
10%
12%
12%
12%
31%
0% 5% 10% 15% 20% 25% 30% 35%
Others
Ease of use and management
Lower cost of ownership
Scalability
Business Benefits
Easy and quick to deploy
Zero / Low maintenance
32
China/Hong Kong
Despite a host of challenges that include high software piracy levels
and significant user discomfort associated with deploying third-party
hosted business applications (due to security and privacy-related
concerns), SaaS is finding increased acceptance among Chinese
companies. Springboard Research data shows that the Chinese SaaS
market will grow at a CAGR of 72% (2006-2010) to US$175 million in 2010.
In 2006, the market amounted to US$20 million or 13% of the total SaaS
applications market in the region (Figure 22).
Figure 22: China/Hong Kong SaaS Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
Ease of use and management, business benefits, and lower cost of
ownership are among the prime drivers of SaaS adoption in China
(Figure 23).
Figure 23: Primary Reason for Adopting SaaS, China
Q: What is the primary reason your company subscribed to SaaS?
N=50 (SaaS Adopters)
Source: Springboard Research, 7/2007
0
50
100
150
200
0%
40%
80%
120%
160%
Revenue (US$M) 20 43 80 110 175
Growth 115% 86% 38% 59%
2006 2007 2008 2009 2010
6%
2%
8%
14%
18%
24%
28%
0% 5% 10% 15% 20% 25% 30%
Other
Scalability
Zero/Low maintenance
Easy and quick to deploy
Lower cost of ownership
Business benefits
Ease of use and management
33
Increased vendor activity in recent months has helped drive
momentum in the Chinese market. One key development in 2007 was
the launch of the Chinese edition of Salesforce.com’s on-demand CRM
application targeted at small companies. Apart from providing business
analytics, Salesforce.com’s CRM model includes features from its
flagship Salesforce CRM product, such as “Salesforce Marketing,” which
enables companies to capture website leads and to distribute those
leads to sales teams; and “Salesforce Automation,” which helps
businesses manage sales data and processes.
Many Chinese ISVs, large and small, are working to derive gains from
the emerging opportunities in SaaS. For instance, one of China’s
leading software application vendors, Kingdee, has tied up with IBM to
offer SaaS applications. In another example, XToolsCRM, a small
vendor, is trying to push on-demand CRM as the perfect option for
Chinese SMBs. On the other hand, MNC vendors like Microsoft are also
trying to develop the market and are encouraging local ISVs to enter
the SaaS business. The software giant has in fact signed a
memorandum of understanding with Suzhou Software Park for a
software-as-a-service incubator program designed to persuade more
Chinese software companies to build SaaS applications.
Lack of a perceived business requirement, data security concerns (not
many Chinese companies are comfortable with the idea of letting their
data reside in an external data center), lack of awareness and
understanding of SaaS and the perception that on-premise software is
cheaper, are among the reasons that prevent Chinese companies from
SaaS adoption (Figure 24).
Figure 24: Primary Factor Preventing SaaS Adoption, China
Q: What is the primary reason your company does not subscribe to SaaS?
N=51(Non-Adopters)
Source: Springboard Research, 7/2007
The highly localized nature of the Chinese software applications market
is dominated by local ISVs and is proving to be a market inhibiting
factor. Chinese companies appear to be more comfortable with local
2%
4%
6%
8%
8%
10%
10%
16%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Reliability is an issue with SaaS
Vendor support is an issue with SaaS
Finding a SaaS vendor is difficult
Technology not mature
Centralized decision
Licensed software is cheaper than SaaS
Low awareness about the concept
Security is an issue with SaaS
No business requirement
34
vendors – and not many have the ability to deliver software-as-a-
service via a multi-tenancy architecture model. Local ISVs offering SaaS
in China face the challenge of realizing subscription payments, and the
lack of well-established and accepted on-line payment systems has
meant that ISV vendors are not always able to collect payments in
time.
India
India is one of the fastest growing SaaS markets in the region.
Springboard Research estimates that the Indian market will grow at a
CAGR of 77% from 2006 to 2010 to reach US$165 million in 2010, from
US$17 million in 2006 (Figure 25). While web conferencing and other
collaboration tools dominate the SaaS market, on-demand CRM and
HR applications are also gaining traction.
Figure 25: India SaaS Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
Ease of use and management and lower cost of ownership are among
the prime drivers of SaaS adoption by Indian companies (Figure 26).
Figure 26: Primary Reason for Adopting SaaS, India
Q: What is the primary reason your company subscribed to SaaS?
N=50 (SaaS Adopters)
Source: Springboard Research, 7/2007
0
50
100
150
200
0%
40%
80%
120%
Revenue (US$M) 17 27 54 105 165
Growth 59% 100% 94% 57%
2006 2007 2008 2009 2010
6%
2%
2%
4%
19%
23%
44%
0% 10% 20% 30% 40% 50%
Other
Zero/Low maintenance
Business benefits
Scalability
Easy and quick to deploy
Lower cost of ownership
Ease of use and management
35
Springboard Research is of the view that after Australia, India represents
the most significant opportunity for on-demand CRM vendors. Already,
vendors like Salesforce.com are finding a growing number of customers
in India. The growing use of the Internet as a business tool and
improving telecom infrastructure, presence of a large IT community and
the increasing focus of Indian companies on global markets are among
the factors driving growth in the country’s SaaS market. Springboard
Research expects that further availability of affordable and quality
broadband access will provide further impetus to the market.
SaaS is providing a new business opportunity for local ISVs, with many of
them targeting the overseas market by emulating the offshore service
delivery model. Large Indian IT services companies have also shown
growing interest in delivering software-as-a-service, adding to market
momentum. For instance, Infosys is planning to launch its universal
banking solution, Finacle, as a service offering along with its other
products to expand its market reach. At another level, the largest
Indian IT service provider, TCS, has formed a strategic alliance with
Salesforce.com to tap the system integration opportunities offered by
SaaS deployments. Furthermore, leading SaaS vendors like
Salesforce.com and WebEx are increasingly focusing on bringing their
SaaS platforms to Indian ISVs.
In spite of the opportunities, the Indian SaaS market also has a number
of challenges. Despite growing awareness of the SaaS concept, it is not
very well understood and that is one of the key reasons that prevents
many companies from deploying it (Figure 27).
Figure 27: Primary Factor Preventing SaaS Adoption, India
Q: What is the primary reason your company does not subscribe to SaaS?
N=50(Non-Adopters)
Source: Springboard Research, 7/2007
Singapore
The Singapore SaaS market is expected to grow at a CAGR of 64% from
2006 to 2010 to reach US$80 million by 2010 (Figure 28). Financial
services, telecommunications and high-tech companies are early
adopters of SaaS in Singapore. The government and non-profit sector
4%
4%
6%
10%
12%
16%
22%
26%
0% 5% 10% 15% 20% 25% 30%
Reliability is an issue with SaaS
Centralized decision
Security is an issue with SaaS
Licensed software is cheaper than SaaS
Finding a SaaS vendor is difficult
No business requirement
Technology not mature
Low awareness about the concept
36
have also been among the early adopters of SaaS in the country. As
mentioned earlier, Singapore’s government has been a significant
driver of SaaS adoption. Singapore's highly developed telecom
infrastructure, high level of broadband penetration, government efforts
to drive technology adoption in enterprises and the city-state's
dominance as a regional business hub have played key roles in building
the SaaS market.
Figure 28: Singapore SaaS Market Revenue (US$M) and Annual Growth, 2006-2010
Source: Springboard Research, 7/2007
Lower cost of ownership, ease of use and management, and quick
deployment time has led many companies in Singapore to adopt SaaS
(Figure 29).
Figure 29: Primary Reason for Adopting SaaS, Singapore
Q: What is the primary reason your company subscribed to SaaS?
N=29 (SaaS Adopters)
Source: Springboard Research, 7/2007
0
20
40
60
80
100
0%
40%
80%
120%
Revenue (US$M) 11 17 31 50 80
Growth 54% 85% 60% 60%
2006 2007 2008 2009 2010
10%
7%
21%
21%
21%
21%
0% 5% 10% 15% 20% 25%
Other
Scalability
Lower cost of ownership
Easy and quick to deploy
Ease of use and management
Zero/Low maintenance
37
Lack of a perceived business requirement and a perception that SaaS
as a technology is not mature, and also that licensed software is
cheaper are the primary factors preventing non-adopters from going
for SaaS (Figure 30).
Figure 30: Primary Factor Preventing SaaS Adoption, Singapore
Q: What is the primary reason your company does not subscribe to SaaS?
N=50 (Non-Adopters)
Source: Springboard Research, 7/2007
2%
4%
4%
9%
11%
17%
17%
37%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Vendor support is an issue with SaaS
Reliability is an issue with SaaS
Less awareness about the concept
Security is an issue with SaaS
Centralized decision
Licensed software is cheaper than SaaS
Technology not mature
No business requirement
38
SAAS CHANNEL IN ASIA PACIFIC
The SaaS channel in Asia Pacific is in its very early stages of evolution,
and direct sales remain central to most vendors’ go-to-market
strategies. Some vendors have begun building partnerships with local
resellers and distributors primarily for demand generation, while others
have started tapping partners for providing value-added SaaS
implementation, integration and support services.
However, at this point, Springboard Research believes that most SaaS
vendors do not have a well-established SaaS channel in the region, as
most of them appear more comfortable dealing directly with their
customers. Moreover, lack of experience and knowledge of
application business processes, and low margins on SaaS applications is
keeping channels away from SaaS. Given this reality, most users in Asia
Pacific are buying SaaS applications directly from the vendors. Over
70% of SaaS applications are being sold directly by vendors either
through face-to-face interactions with customers or via their websites or
the phone (Figure 31).
Figure 31: Share of Direct Sales in SaaS Business by Application
Q: From which channel did you buy your software-as-a-service application? (% Direct)
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
Of significance is that the need for channel partners (local resellers or
agents) is being strongly felt by SaaS users; so although most SaaS users
are buying directly from the vendors, the majority of them think the
involvement of a local reseller or agent is necessary when buying SaaS
applications (Figure 32).
55%
59%
69%
71%
74%
78%
80%
84%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
SCM
Security/Compliance
HR
Web Conferencing/ Collaboration
Desktop Office Apps
CRM
ERP
39
Figure 32: Local Resellers: Necessary or Not When Buying SaaS
Q: Do you believe the involvement of a local reseller or agent is necessary when buying
software-as-a-service applications?
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
A higher percentage of SaaS-using respondents feel channel
involvement is helpful even if not necessary (Figure 35). This again
indicates that users believe local resellers or agents can help them
overcome associated with choosing and deploying SaaS applications.
Figure 33: Local Resellers: Helpful or Not When Buying SaaS
Q: Do you believe the involvement of a local reseller or agent is helpful when buying
software-as-a-service applications?
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
Yes, 71%
No, 29%
Yes, 79%
No, 21%
40
SaaS users also think that local resellers and agents add value through
training, face-to-face interaction, product explanation, installation and
integration (Figure 34).
Figure 34: Areas Local Resellers can Add Value To the Procurement & Installation of SaaS Applications
Q: In what areas could a local reseller or agent add value to the procurement and
installation of software-as-a-service applications?
N=179 (SaaS Adopters)
Source: Springboard Research, 7/2007
According to a significant number of users interviewed by Springboard
Research, the channel provides the most value through face-to-face
(F2F) interaction/comfort & solution explanation and limited value in
installation and integration (Figure 35). This poses a problem for the
channel (and vendors) because the areas valued most are not
typically profitable for the channel.
Figure 35: Channel Roles That Can Add Greatest Value
Q: Which of these roles do you believe would add the greatest value?
N=179 (SaaS Adopters)
11%
6%
44%
44%
51%
52%
55%
0% 10% 20% 30% 40% 50% 60%
Other
None
Integration
Adding comfort through a F2F interaction
Explanation of the offering
Installation
Training
14%
10%
9%
11%
13%
21%
23%
0% 5% 10% 15% 20% 25%
Others
None
Installation
Integration
Explanation of the offering
Training
Adding comfort through a F2F interaction
41
TYPES OF SAAS CHANNELS IN ASIA PACIFIC
Springboard Research has identified four types of channel partners that
are emerging in the region:
� Traditional local software resellers or distributors mostly engaged in
demand generation
� Companies who are trying to build online marketplaces for
applications (WebCentral/SaaS Central)
� Companies trying to build a pure-play SaaS delivery,
implementation and integration business by aligning with SaaS
application vendors (OnDemand Asia, Thailand/3i Business Solutions,
Singapore/NetReturn & Insightful/Australia)
� Telcos and ISPs who are looking at software as a new source of
revenue (KAZ and Optus/Australia, Korea Telecom/Korea, SingTel
and Starhub/Singapore, Telecom Malaysia/Malaysia, VSNL/India,
PLDT/Philippines).
Springboard Research believes that channels will play a crucial and
very strategic role in the expansion of the SaaS market in the region,
and that the failure of a viable volume channel could prevent the SaaS
market from reaching the next level of scale.
42
SAAS & ASIA PACIFIC ISVS
The software-as-a-service business model is attracting scores of ISVs in
the Asia Pacific region, especially in Australia and India, and to some
extent in Singapore. Although still in the nascent stage, the trend is
gradually picking up in China as well, as a number of local vendors
enter the SaaS business. It is important to note that the majority of the
local ISVs offering SaaS are very small companies that have traditionally
found it challenging to distribute their on-premise software products
beyond a limited market. SaaS has also inspired the birth of several
local net-native software vendors who are using the web-based
software delivery model.
Springboard Research data shows that local ISVs are offering an array
of business applications that address diverse functions within an
organization. These include accounting, business intelligence,
collaboration, security and compliance/governance, CRM, ERP, HR-
employee management, and payroll management (Table 5). A few
ISVs also offer SaaS applications for e-business, document
management, content management, digital rights management,
project management, office productivity, and derivatives risk
management.
Table 5: Local Vendors Offering SaaS Applications
Application ISVs
Accounting eAccounts Global, Netapplica, Practical Business Systems,
Villagemall Pty, Saasu NetAccounts, Zara Technology
Business Intelligence
Aldea Infotech
Collaboration Bluearc, ConferIndia, ConferNet, Cynapse India, JustLogin,
NewLease, PASR Technologies
Compliance/ Governance
AC3
CRM CDC Software, Gate13, Practical Business Systems, Talisma,
Sitek Villagemall Pty, 3i Business Solutions, Aldea Infotech,
Xtools, Woznet, 800CRM, CRM24x7
ERP Cosmoshakthi Software Solutions, iWeb Technology Solutions,
Octopus e International, Spendvision, Villagemall Pty,
HRMantra Software, Aldea Infotech, Ramco Systems
HR-Employee Management
Adrenalin eSystems, Appscale Technologies, CDC Software,
Siti Corporation, SOPRANO, Saasu NetAccounts, HRMantra
software, Employee Connect
Payroll Adrenalin eSystems, Aussiepay, CDC Software, HRMantra
Software
Employee Connect
Security MicroWorld Software Services, NewLease
Other Applications*
AC3, Gen-i, Majitek, vSplash TechWorks, Web Economy
Technology, Indicium Technologies, Zara Technology, eTrack
Data Management Services, Pyxis Systems
Source: Springboard Research, 7/2006
*Other applications include e-business, document management, content management,
digital rights management, project management, office productivity applications, and
derivatives risk management.
43
There is no doubt that SaaS is creating new market opportunities for the
small ISVs that earlier could not sell to SMBs with no IT staff. Moreover,
partnerships with leading SaaS providers are helping these ISVs reach
out to markets beyond their local geographies. And although these
vendors still face technical and marketing, and business model-related
challenges – and have a long way to go before they can compete
with US-based SaaS vendors (Salesforce.com, WebEx or RightNow
Technologies) or with their traditional rivals (Oracle, SAP or Microsoft)
who dominate the regional enterprise applications market, they are
surely making their presence felt in the market, especially in the SMB
segment.
Springboard Research expects local ISVs to emerge as an important
force in the Asia Pacific market and to play a significant role in shaping
the region’s competitive landscape. This will especially be the case in
China and Australia where local vendors account for a very significant
share of the enterprise applications market. These vendors will play a
key role in the adoption of SaaS among SMB enterprises.
44
THE ASIA PACIFIC COMPETITIVE LANDSCAPE
The competitive landscape in Asia Pacific is beginning to change.
Although the regional SaaS market is still dominated by five top 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 (Figure 36). As Springboard Research
estimates show, the five major vendors accounted for 45% of the Asia
Pacific market in 2006, 5% less than their share from the previous year.
We believe that the entry of several US vendors and local ISVs in the
market has played a key role in the expansion of the market. Despite
the challenges these ISVs face in reaching their target customers, many
of them have succeeded in attracting a fair amount of customers to
their SaaS offerings. For instance, vendors like Australia-based Saasu
(accounting applications), Aussiepay (payroll application), Singapore-
based JustLogin (collaboration), China-based 800CRM (CRM on-
demand) and India-based Adrenalin eSystems (payroll/employee
management) are gaining popularity in local markets.
Figure 36: Asia Pacific SaaS Revenue Vendor Market Share
Source: Springboard Research, 7/2007
We expect the competitive landscape in Asia Pacific to become more
dynamic in the next few years. Growing interest from large on-premise
software vendors like SAP, Microsoft and Symantec will have a
significant impact on the SaaS market. Also, as local ISVs mature with
their offerings and build marketing strength, they will find more market
acceptance. In addition, high-profile business developments such as
the Google-Salesforce alliance and Cisco’s acquisition of WebEx, will
impact the market.
Other, 54%
Salesforce,
23%
Webex,
11%
Oracle, 4%
RightNow,
5%
NetSuite,
3%
45
The large vendors entering the market like Microsoft, SAP, Oracle and
Symantec – who have built their business selling licensed software – are
demonstrating their commitment to the SaaS market with definitive
SaaS strategies. This entry of large vendors is also expected to force
mergers and acquisitions, realignment of players and emergence of
new alliances.
The top SaaS vendors in Asia Pacific are profiled below.
Salesforce.com
Salesforce.com is the number one and also the fastest-growing major
SaaS vendor in the Asia Pacific region. Riding high on the popularity of
its salesforce automation (SFA) application, the vendor registered
around 82% growth in its revenue in Asia Pacific in 2006. The vendor
offers salesforce automation, marketing automation (marketing and
sales application), partner relationship management and analytics
applications. The company’s AppExchange, an online marketplace for
on-demand applications, allows ISVs to distribute and share their
applications with Salesforce.com customers. Not only is Salesforce.com
using AppExchange to grow its customer base by offering existing and
new customers additional functionality and applications, it is also using
AppExchange as a platform for encouraging ISVs to develop new
applications that can be used by Salesforce.com customers. The
vendor is also actively tapping developer resources in Asia Pacific. It
introduced Salesforce Platform Edition, which opens its AppExchange
menu of third-party applications to customers that do not have
Salesforce subscriptions. The platform aims to give developers
incentives to write and host software offered through AppExchange
and to get more business customers to use its current applications.
Springboard Research estimates that the region generated around
US$35 million in revenues for the company in 2006 compared to just
over US$19 million in 2005. While Australia is the top market for the
vendor, business is picking up significantly in India, Singapore, Hong
Kong and South Korea. Among others, China is one of the key market
focus areas of the company. The vendor recently launched Salesforce
China Edition in simplified Chinese. Key verticals that have adopted
Saleforce.com applications in the region include financial services,
high-technology and business services. The vast majority of its customers
have gone for SFA solutions.
WebEx
The web collaboration pioneer, which was recently acquired by Cisco,
is the number two SaaS vendor in Asia Pacific and leads the regional
web conferencing and collaboration tools market. Springboard
Research estimates that the vendor grew by around 89% in Asia Pacific
in 2006 and reached revenue of around US$17 million. The vendor has a
strong presence in Australia, China and India.
The vendor is focusing mainly on integrating its web collaboration
services with other business applications through partnerships with other
on-demand vendors and ISVs. Its WebEx Connect initiative is focused
on creating an ecosystem of ISV partners with the objective of
extending its core web collaboration services to deliver a suite of
46
complementary and collaborative business applications. Launched in
September 2006, it has been positioned as an on online marketplace
that ISVs can use to sell their on-demand applications to WebEx
customers. WebEx Connect also includes a middleware that enables
different on-demand or on-premise applications to inter-operate with
each other.
RightNow Technologies
RightNow Technologies is the second largest on-demand CRM vendor
in Asia Pacific. Even though it is mostly present in Australia and New
Zealand, it also has customers in Singapore, Hong Kong, China and
India. Asia Pacific generated around 7% of its revenue in 2006. Australia
accounts for the largest portion of its revenue from the region. Its
customer base includes companies in high-tech, retail, telecom, higher
education, manufacturing, financial services and the public sector.
RightNow has built its presence in the market on the strengths of a
comprehensive CRM offering. Beside marketing, sales and customer
service capabilities, its solutions feature web, interactive voice, e-mail,
chat, telephone, and proactive outbound e-mail communications. All
this makes RightNow’s solutions one of the most prolific CRM solutions
available in the market. Of late, the vendor has been focusing on
launching vertical-specific solutions. It recently launched RightNow
Telecom, an on-demand CRM solution for telecom service providers
and RightNow Retail for retail companies.
Oracle
The world's largest enterprise applications vendor has been active in
the on-demand space for the past few years. Its on-demand delivery
model is not entirely built around the multi-tenancy model that has
been one of the hallmarks of SaaS delivery from vendors like
Salesforce.com and others. For instance, in its latest Release 14 of the
Siebel CRM on Demand, Oracle offers customers the option of going for
a private, physically separated database vs. a logically separated
database offered by the multi-tenant architecture proponents like
Salesforce.com.
Springboard Research believes that while there is no significant
resistance to multi-tenancy in SMB organizations, this strategy might
help Oracle gain large enterprise customers interested in an SaaS
delivery model but very keen on sharing databases with other
companies due to security or compliance-related concerns.
NetSuite
NetSuite, which entered the Asia Pacific region three years ago, offers
an integrated suite of business applications including CRM, ERP and e-
commerce targeting small and medium-sized businesses. The vendor
considers its strength in on-demand accounting software as its biggest
market differentiator.
Springboard Research estimates that the vendor generated revenue of
around US$ 4million from the region, primarily from Australia where it has
a very strong presence. The vendor has a direct presence in Australia
and Singapore, but is also active in other key markets in the region
47
through channel partners. Expansion of the channel partner base has
been one of the key focus areas of the vendor in the region. Currently,
direct sales account for the majority of its sales in the region. However,
the vendor is expecting more sales through the channel once it
succeeds in building its strong network of sales and solutions partners.
With its SuiteFlex, which can be compared to Salesforce.com’s
AppExchange, NetSuite is trying to extend its reach in the market. ISVs,
solution providers and systems integrators can create, customize,
extend, and integrate new functionality using the SuiteFlex platform
that is built into the NetSuite application.
Citrix Online
Citrix Online offers a range of online collaboration solutions including
one built specifically to facilitate collaboration between technical
support professionals. The package is a remote IT service application –
Go2Assist – that forms the core of its business in Asia Pacific. It is being
used both by businesses (for internal helpdesks) and technical support
service providers / large ISPs (who use it to facilitate external customer
support). System integrators and software companies are also among
the customers of Go2Assist. On the other hand, its remote PC access
tool GotoMyPC is also steadily gaining customers in the region. The
vendor is also witnessing significant uptake of its other on demand tools
– Go2Webinar and Go2Meeting. Citrix’s on demand collaboration tools
are finding acceptance among a broad spectrum of companies in
Australia, India and ASEAN.
Springboard Research believes that the depth and breadth of Citrix
Online’s offerings will help it emerge as one of the key players in the
Asia Pacific SaaS landscape. The vendor’s focus on SMBs in Australia
and ASEAN will be a key factor that will drive its growth in the region.
IBM
IBM currently works with more than 100 application providers who
deliver their solutions in the SaaS model. IBM’s software-as-a-service
showcase aims to provide SaaS application vendors with a global
delivery infrastructure and tools and technology that can help an ISV
transform into a SaaS provider, which the company sees benefiting its
hosting business. The showcase currently has application providers
offering SaaS applications for four vertical industries (healthcare,
insurance, manufacturing and retail) in 13 solution areas including CRM,
messaging, collaboration and web conferencing, product lifecycle
management, ERP and compliance management.
The other aspect of IBM's interest in SaaS is linked to its Lotus
collaboration and conferencing tools. Springboard Research believes
that with collaboration and conferencing emerging as one of the key
elements of the SaaS landscape, IBM will have an increasingly
important roll in this space. The other important aspect of IBM's role in
SaaS is going to be SOA. With businesses increasingly looking at building
dynamic business processes and services, SOA will be critical for them
for deploying software-as-a-service within the organization.
48
Microsoft
After doing it in bits and pieces, the world’s largest software company
finally seems to have acknowledged the relevance of the on demand
model and the vendor now has a clearer SaaS strategy. However, for
Microsoft, SaaS is not software-as-a-service but software + service.
Throughout the beginning of 2007, the Redmond headquartered
company has been promoting the software + service tagline in an
apparent effort to convince customers and competition that on-
premise and on-demand will co-exist, but that the former will remain the
dominant mode of software delivery.
As of now, Microsoft’s play in SaaS is more significant in the
collaboration segment. The vendor offers Live Meeting, a web
conferencing and collaboration application and a significant presence
in the Asia Pacific web conferencing and collaboration market.
Microsoft is planning to launch its Dynamics Live CRM service in the first
half of 2008 with initial focus on sales force automation. Even though no
definite plans for its launch in Asia have been announced, the vendor is
likely to bring it to the region’s customers after it is launched in North
America. In line with its software + services strategy, Live CRM will be
the first Microsoft CRM release based on a multi-tenant architecture,
using a single code base to support three types of usage – Live CRM, an
on-premise version of the CRM application and a partner-hosted
release.
Springboard Research believes that Microsoft will continue to enhance
its portfolio of on demand offerings in line with its software + service line
of thought. Moreover, given Microsoft influence in the ISV community,
the vendor will also have a significant role to play in shaping the SaaS
ecosystem. The vendor already provides technology, best practices
and marketing support to hosting service providers and ISVs looking to
develop and deploy SaaS applications through the Microsoft Solution
for Windows-based Hosting for Applications Version 1.0, and other ISV-
targeted programs.
The vendor has also launched a SaaS Enablement Program developed
for ISVs offering SaaS or planning to do so. The vendor also launched
SaaS Incubation and SaaS on-ramp programs in November 2006, to
attract ISVs to SaaS and help them move from the traditional model of
delivering software to the on-demand model. It has signed a
memorandum of understanding with Suzhou Software Park in China for
a SaaS incubator program that is aimed at encouraging Chinese
software companies to develop SaaS applications.
Microsoft also recently launched the Connected Services Sandbox, a
program designed to bring together ISVs, developers, SIs, network
equipment providers and telecommunications service providers to
develop, test and bring new communications services to market. The
Sandbox is aimed at encouraging the creation of “managed network
mash-ups” in which Web services are combined with traditional
telecommunications offerings, and then offered through the SaaS
model and delivered across any type of network or device.
49
The vendor also recently issued a new architectural guidance for
organizations looking to implement a software-as-a-service system. The
Microsoft sample SaaS application is known as LitwareHR, a fictitious
human resources application providing recruitment management
software delivered as a service.
Progress Software
Progress Software’s SaaS partnership program has resulted in the
development of one of the most successful SaaS ecosystems, attracting
more than 200 ISVs. The vendor provides technology, business planning,
marketing, selling and application transformation support for ISVs
delivering or planning to deliver on-demand applications. In addition,
partners can also access Progress’ best practices framework and
access training and workshops. A key feature of the Progress SaaS
ecosystem is that the vendor does not exercise much control over its
partners – many Progress partners arrange their own hosting and the
vendor does not keep track of users served by its partners.
Progress' SaaS enablement program is aimed at helping ISVs in 3 main
areas: business transformation, go-to-market planning and application
transformation. In Asia Pacific, the vendor has a presence in Australia
and a partner in Singapore. Most of its partners are focused on legal,
healthcare, financial services, and manufacturing verticals and offer
applications like CRM, ERP, human capital management, and
claims/patient management. Just about all of its SaaS providers in Asia
Pacific target the SMB market – except for some of the financial
applications firms who are targeting the larger banks – but within
specialty areas.
SAP
Even though the German software giant SAP has not appeared to be
very focused on SaaS in the past, it is beginning to make significant
moves in the market. Springboard Research believes that SAP’s SaaS
strategy, at this point of time, is more about giving its customers who
might be looking for an on demand option, a choice. However, unlike
SaaS vendors like Salesforce.com and RightNow who are proponents of
the multi-tenancy model, SAP remains focused on what it calls the
isolated-tenancy model as it feels its customers might not be
comfortable sharing data with others because of security and
compliance related concerns.
The vendor launched its subscription-based CRM application in
February 2006. In the beginning, its on-demand CRM offered only sales
and marketing functionality. Later in September 2006, the vendor
added sales automation features for product and quotation
management. During the same time, it announced the launch of
Service on-demand solution, with functionalities like service ticket
management, rule-based escalations and service level monitoring.
However, more significant is SAP’s plan to launch SaaS enabled A1S ERP
by mid 2008 as part of its strategy to offer customers the choice of both
on premise and on demand models. A1S will have the entire stack of
ERP, CRM, SCM, and BI in one suite and made available on the SaaS
model. Springboard Research believes, once in the market, A1S is going
50
to be one of the most comprehensive SaaS application sets in the
market.
Symantec
A recent convert to SaaS, Symantec entered the SaaS market with the
announcement of its on-demand Symantec Protection Network, which
is a SaaS platform, designed to deliver easy-to-use security and
targeted at small and mid-sized businesses at a price they can afford.
The vendor is banking on its ecosystem of channel partners to enable
businesses to work with the partner of their choice and take advantage
of customized service offerings to meet business requirements as they
evolve. Businesses also have the option of subscribing to the service
directly with Symantec through the web and can manage and monitor
their service from any Internet connection.
Springboard Research believes that Symantec is likely to emerge as a
key factor in the on demand landscape given its preeminent position
on the security software and solutions market. As such, the vendor’s
progress with the SaaS model will be instrumental in shaping the
dynamics of the on-demand security software and solutions market.
51
SPRINGBOARD RECOMMENDATIONS
Springboard Research recommends that SaaS vendors looking at
opportunities in the Asia Pacific SaaS market focus on four key areas –
educating the customer, gaining an understanding of the customer’s
business processes, localizing their offerings and building a strong brand.
Provide education and then more education: Despite a significant
increase in the awareness of SaaS, organizations in Asia Pacific still have
an inadequate understanding of the on-demand software delivery
model. This insufficient understanding, in many ways, is the key reason
why many organizations are still not considering SaaS. As such, SaaS
vendors who aggressively focus on providing customer education that
demolishes unfavorable perceptions and emphasizes the benefits of
the SaaS model, will outpace the competition. Although several
vendors already offer customer education, Springboard Research
believes that those efforts would be more effective if they directly
addressed the IT and business challenges faced by customers.
Build an understanding of customers’ business processes: As many of
the potential SaaS adopters in the region are likely to be first-time IT
users, for instance – the SMB companies – they are likely to see
immediate or long-term value in deploying a SaaS application only
when vendors show an understanding of their business processes and
challenges. An understanding of the above can help vendors relate
benefits of their applications to the customers’ business goals more
clearly and directly. This process should also include providing the ROI
that customers can expect with the particular SaaS application that is
deployed.
Get close to customers and add more local flavor: Localizing SaaS
offerings, as Salesforce.com and WebEx did in China by launching
Chinese editions of their applications, can be an effective way to build
a strong market presence. Targeting a SaaS application to the local
market is also accomplished through partnerships with strong local ISVs
and SIs. These partners can also be helpful to gaining insight into the
needs of target customers.
Build A Strong Brand: Springboard Research believes that vendors must
focus on building strong brands with trust, reliability, high performance
and assured ROI as key attributes. This brand development would be
key to overcoming customer perceptions that SaaS applications lack
technological maturity, are less secure and reliable.
52
CONCLUSION
Software-as-a-service (SaaS) will continue to go mainstream in the
coming years and Springboard Research expects more users and
organizations to deploy some form of SaaS application in the near
future. Much of this adoption will be driven by business users; however,
IT departments in large and mid-sized companies will increasingly play
an important role in standardizing SaaS procurement, deployment and
usage.
Another factor driving SaaS market growth is the growing adoption of IT
by the SMB segment. In step with this trend, the early part of 2007 saw a
series of SMB-focused product launches by many IT vendors including
IBM, SAP, Oracle and Microsoft. The proliferation of SaaS ecosystems,
like AppExchange and WebEx Connect, that position their platforms as
ways for local ISVs to access customers will also change the complexion
of the SaaS market.
For SaaS applications and vendors, Springboard Research forecasts
that only the fittest will survive the market churn that is on its way. The
current situation of supply outnumbering demand is likely to continue as
the Internet makes it easier to create new applications. We anticipate
a blossoming of SaaS providers and applications over the next 2 years
to boost adoption, but then a winnowing of the players in the market.
Throughout this process, however, SaaS as a software delivery model
will continue to strengthen and increasingly challenge the traditional
software industry.
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APPENDIX: LIST OF SAAS APPLICATION PROVIDERS
Vendor Applications Web Address HQ
24SevenOffice
Accounting, collaboration, CRM,
document management, E-
commerce, ERP, messaging,
project management
www.24sevenoffice.com Norway
37signals Project management www.37signals.com US
3i Business Solutions NetSuite applications www.3ibizsolns.com Singapore
800CRM CRM www2.800crm.com China
AC3
Governance, project
management, document
management
www.ac3.com.au Australia
Adaptive Planning Budgeting, planning and analysis
www.adaptiveplanning.com US
Adrenalin eSystems
Human resources, payroll,
employee and manager self
service, employee work process
automation and analytical
reports
www.adrenalinet.com India
Adventnet multiple applications www.adventnet.com India
Agile Software PLM www.agile.com US
AIE Technologies Microsoft office applications www.Software4Rent.Biz Australia
Aldea Infotech BI, ERP, CRM India
appMail Communication and workforce
collaboration www.appmail.com US
Appscale HR management software www.appscale.com/ India
Appscale Technologies HR management application www.appscale.com India
AppStream Software distribution www.AppStream.com US
Apptix E-mail, messaging www.apptix.com US
Arena Solutions PLM www.arenasolutions.com US
Aria Billing & customer management www.ariasystems.com US
Atlantis Computing Storage, collaboration www.atlantiscomputing.com India
Aussiepay Payroll www.aussiepay.com.au Australia
Authentium Security www.authentium.com US
Avalara Accounting www.avalara.com US
Axentis Governance, risk and
compliance www.axentis.com US
BIPT Policy and claims administration
system for property and casualty
insurance industry
www.bipt.com US
BIW Technologies Collaboration www.biwtech.com UK
Blue Tie E-mail, messaging www.bluetie.com US
Bluearc collaboration www.bluearcgroup.com Australia
BlueRoads Corporation Channel management www.blueroads.com US
BMC Software Infrastructure, application and IT
management www.bmc.com US
Bscaler CRM, ERM www.bscaler.com US
Builder Lynx Channel management www.builderlynx.com Canada
Business Objects Business reports www.businessobjects.com US
Campus Management Educational campus
management solutions www.campusmgmt.com US
Captiva Software Information management www.captivasoftware.com US
CaseCentral Litigation lifecycle management www.casecentral.com US
CDC Software HR/Payroll, CRM www.cdccorporation.net China
Cenzic Security www.cenzic.com US
54
Citrix System Collaboration www.citrixonline.com US
Click Commerce SCM www.clickcommerce.com US
CMC Limited System Integrator www.cmcltd.com India
CollabNet Collaboration www.collab.net US
Compulink SaaS enablement www.compulinkgroup.com India
Concur Technologies Expense management www.concur.com US
ConferIndia Conferencing www.conferindia.com India
ConferNet Conferencing www.confernet.co.kr Korea
Coremetrics Web analytics www.coremetrics.com US
CORESense Retail management www.coresense.com US
Cosmoshakthi Software
Solutions ERP, CRM www.ixprt.com India
Critical Path Messaging www.criticalpath.net US
CRM24x& CRM www.crm24x7.com India
crmOrbit CRM www.crmorbit.com India
CrownPeak Content management www.crownpeak.com US
Cube Route Logistics www.cuberoute.com Canada
Cynapse India Collaboration tools http://cyn.in India
DarwinSuzsoft Import/export custom
application www.darwinsuzsoft.com China
D-BAM Automation management across
the marcom supply chain www.d-bam.com US
DealerTrack Retail solutions for automotive
industry www.dealertrack.com US
Demandware E-commerce www.demandware.com US
Direct Insite Invoice, spend management,
business metrics management www.directinsite.com US
E2Open SCM www.e2open.com US
eAccounts Global Accounting www.eaccountsglobal.com New
Zealand
Emantra Application delivery www.emantra.com.au Australia
eMeta Digital content management www.emeta.com US
Employease HR www.employease.com US
Employee Connect Payroll, HR management www.employeeconnect.com Australia
eProject Project management www.eproject.com US
eTrack Data Management
Services Payables management system www.etrack.co.in India
Everest Software CRM, accounting, payroll www.everestsoftwareinc.com US
Evision B2B integration and EAI as an on-
demand Internet service www.evision.com.au Australia
eVision Messaging solutions www.evision.com.au Australia
e-Zest SaaS enablement http://www.e-zest.net India
FluidViews SaaS integration and
enablement www.fluidviews.com
New
Zealand
Functional Software System management www.fs.com.au Australia
Gate13 CRM www.gate13.com.au Australia
Genesys Conferencing Conferencing & collaboration www.genesys.com France
Gen-i Office applications www.gen-i.co.nz New
Zealand
GXS SCM www.gxs.com US
Halogen Software HR www.halogensoftware.com Canada
Hot Banana Software Web content management www.hotbanana.com Canada
HRMantra HR & payroll software www.hrmantra.com/ India
HRMantra software HR and payroll ERP software www.hrmantra.com India
HyperOffice Collaboration, messaging www.hyperoffice.com US
HyperSites Corporation Web development www.hypersites.com US
IBM System integrator, SaaS delivery www.ibm.com US
iKnowWare CRM www.iknowware.com US
Image Fortress Corporation Digital archiving www.imagefortress.com US
55
Indicium Technologies E-business www.indicium.com.sg Singapore
InfoTronics Workforce management www.infotronics.com US
Insightful SugarCRM www.insightful.com.au Australia
Intacct ERP www.intacct.com US
Interwise Web collaboration &
communications www.interwise.com US
Intuit HR - payroll www.intuit.com US
Invoice Insight Telecom expense management www.invoiceinsight.com US
iqDynamics HR, ERP, CRM www.iqdynamics.com Singapore
iWeb Technology Solutions ERP www.iweb.co.in India
Jamcracker SaaS integration and
enablement www.jamcracker.com US
Janeeva Assurance www.janeeva.com US
JustLogin Collaboration www.justlogin.com Singapore
Kana E-mail, messaging www.kana.com US
Kaspersky Lab Security www.kaspersky.com Russia
Kaz Group E-mail, messaging, collaboration www.kaz-group.com Australia
Kinaxis Response management www.kinaxis.com Canada
Kintera CRM, ERM for non-profits www.kinterainc.com US
Kronos HR - payroll www.kronos.com US
Lawson (Intentia) ERP www.lawson.com US
Lean Logistics Logistics www.leanlogistics.com US
MailStreet Messaging and collaboration www.mailstreet.com USA
Majitek Digital rights management www.majitek.com Australia
MCA Solutions SCM/PLM www.mcasolutions.com US
McAfee AntiVirus plus AntiSpyware www.mcAfee.com US
Medtech
Medical appointment scheduling
and electronic patient records,
collaboration
www.medtech.com.ar Argentina
Microsoft Collaboration & communications www.microsoft.com US
MicroWorld Software Services AntiVirus www.msspl.co.in India
Mitrix SCM www.mitrix.com US
Mitrix SCM www.mitrix.com US
MMP Software (India) SaaS enablement www.mmpsd.co.in India
Navisite SaaS integration and
enablement www.navisite.com US
Netapplica Accounting www.netaccounts.com.au Australia
NetReturn NetSuite applications www.netreturn.com.au Australia
NetSuite CRM, ERP, e-commerce www.netsuite.com UK
NewLease Security, collaboration, e-mail www.newlease.com.au Australia
NexGen ITS SaaS enablement http://nexgen.sg Singapore
Nothacker
SaaS business platform,
intellectual property
management, key performance
indicator management (Dashboard), learning
management system
www.nothacker.com Singapore
nSite Channel, quote and proposal
management www.nsite.com US
Octopus e International ERP www.octopuse.com India
Omniture Web analytics www.omniture.com US
OnDemand-Asia NetSuite applications www.ondemand-asia.com Thailand
OpenAir Professional services automation www.openair.com US
OpSource SaaS integration and
enablement www.opsource.net US
Oracle CRM www.oracle.com US
osCommRes E-commerce www.osCommRes.com Australia
PASR Technologies E-mail, messaging www.pasr.com.sg Singapore
Peopleclick HR, workforce management www.peopleclick.com US
56
Platte River Systems Sales information system for
semiconductor companies www.platteriversystems.com US
Practical Business Systems CRM, accounting www.thebooksonline.com Australia
Procur Procurement www.procur.at Austria
Pyxis Systems Derivatives risk management www.pyxis-it.com India
Qualys Vulnerability management www.qualys.com US
Radical Networks VB.net, MSSQL, ASP.net 2.0 www.radical.co.in India
Ramco Systems ERP www.ramco.com India
Rearden Commerce Employee services www.reardencommerce.co
m US
RedTail Solutions SCM www.redtailsolutions.com US
RightNow Technologies CRM www.rightnow.com US
RightServe SaaS enablement www.rightserve.com.au Australia
SaaS Central Online applications market,
payroll, CRM, anti-spam & web
content filtering
www.saascentral.com Australia
Saasu NetAccounts
Invoices, payments, timesheets,
inventory and process payroll
maintenance
www.saasu.com Australia
Saba HR, collaboration &
communication www.saba.com US
Salesboom CRM, ERP www.salesboom.com US
Salesforce.com CRM www.salesforce.com US
Salesnet CRM www.salesnet.com US
SAP CRM www.sap.com Germany
SecureMyCompany Computer management www.securemycompany.co
m US
Sitek CRM www.sitek.com.au Australia
Siti Corporation HR management application www.siti.com India
Smart Online CRM www.smartonline.com US
SmartCompany CRM www.smartcompany.net US
SMBLive Information management,
collaboration www.smblive.com US
Snap Technologies
Web marketing, web productivity
and web content management
solutions
www.snaptech.ca Canada
Sonata Software SaaS enablement www.sonata-software.com India
SOPRANO HR management application www.soprano.com.au Australia
Spendvision Expense management www.spendvision.com New
Zealand
Starway Service HR www.starwayservice.com US
SuccessFactors Performance management www.successfactors.com US
SugarCRM CRM www.sugarcrm.com US
TakeCharge Technologies Spend management www.takechargetech.com US
Taleo Talent management www.taleo.com US
Talisma CRM www.talisma.com India
TeamPoint Systems Collaboration www.teampointsystems.com US
Tradecard Accounting www.tradecard.com US
Two Step Software
Corporate governance and
entity management
www.twostep.com US
Ultimate Software Workforce management www.ultimatesoftware.com
USA.net E-mail, messaging www.usa.net US
Vaakya Technology Technology platform www.vaakya.com India
Vcommerce
Commerce and fulfillment
solutions for retailers and direct-
to-consumer initiatives
www.vcommerce.com US
Venda E-commerce, CRM www.venda.com US
Verticalnet SCM www.verticalnet.com US
57
VIE Pty Multiple applications www.vie.com.au Australia
Villagemall Pty
CRM, order management,
inventory management, accounting
www.villagemall.com.au Australia
Visible Path Relationship management www.visiblepath.com US
Vocus Corporate communications and
public relations www.vocus.com US
vSplash TechWorks Hotel reservation software http://hotels.vsplash.com India
Watchfire Corp Security www.watchfire.com US
Web Economy Technology Content management, ERP www.web-economy.com Singapore
Web Global Net SCM www.printdm.com US
WebCentral E-mail, messaging, collaboration,
accounting, HR, procurement www.webcentral.com.au Australia
WebEx Web conferencing &
collaboration www.webex.com US
WebSideStory Web analytics www.websidestory.com US
West Corporation Conferencing www.west.com US
WestLake Financial Group HR www.westlakefg.com US
Wesupply SCM www.wesupply.com UK
WhiteHat Security Security www.whitehatsec.com US
Working Systems Applications for healthcare
companies www.ws.com.au Australia
Workscape Workforce management, HR
applications www.workscape.com US
Workstream Workforce management www.workstreaminc.com Canada
Woznet CRM www.woznet.com.au Australia
Wrapped Apps Corporation SaaS Delivery www.wrappedapps.com Canada
Xactly Sales compensation
management www.xactlycorp.com US
XChange Network Messaging, collaboration www.xcnetwork.com US
Xinnet.com E-mail www.xinnet.com China
Xtools CRM www.xtools.cn China
ZANTAZ E-mail archiving, storage www.zantaz.com US
Zara Technology
Web mail, document library,
product catalog management,
content management, business
processes and accounting
www.zaratechnology.com Singapore
Zimbra Messaging, collaboration www.zimbra.com US
Zycus Spend Data
Management Spend management www.zycus.com US
58
45 Club Street
Singapore 049561
Tel: (65) 6325-9716
Fax: (65) 6222-5785
5201 Great America Parkway
Suite 320
Santa Clara, CA 95054
U.S.
Tel: (408) 730-2680
Fax: (408) 562-5745
www.springboardresearch.com