Indian SaaS Market to be Worth $352 Million by 2012
Date: Monday , February 01, 2010
The concept of zero or low maintenance, followed by ease of use associated with the software-as-a-service model is a huge turn-on for India’s corporate world. The country is the fastest growing SaaS market in Asia Pacific, and is estimated to register a growth of 60 percent CAGR from 2008 to 2012 to touch $352 million, a surge from the current $105 million market.
“Given the pent-up demand for SaaS applications among enterprises, the momentum generated by vendor activity, participation by telecom companies as partners, and the hype around cloud computing, SaaS will proliferate rapidly in the next 18-24 months, not only in top-tier towns and cities but even to secondary places,” says Balaka Baruah Aggarwal, Senior Research Manager for Emerging Software at Springboard Research. The latest bulletin ‘Software-as-a-Service (SaaS) in India 2009/2010’ from Springboard Research says that the growing appeal of SaaS in India is also evident from the high SaaS familiarity levels in India (74 percent), much higher than in the Asia Pacific region as a whole (60 percent). Among SaaS vendors, Salesforce.com, Citrix Online, and CiscoWebEx have a strong hold over the market, as they have been in the market relatively longer than most other players. The growing satisfaction from SaaS is witnessed from the fact that it scored an average of eight on a ten, with sub-segments like applications and email scoring higher than ERP.
The bulletin observed that SaaS has been adopted by enterprises in high growth sectors like power, infrastructure, contact centers, banking, and technology. Michael Barnes, Vice President of Software Research at Springboard Research says, “The recessionary economic conditions represent a significant opportunity for vendors to market the low TCO associated with SaaS, as they attempt to migrate users from on-premise software applications as well as sell to first time IT users.”