Growth Indicators

Increasing Inclination Towards the Deployment of Cloud Technologies

According to the Asia Cloud Computing Association (ACCA), Japan was ranked fourth in the Cloud Readiness Index (CRI) during the year 2018. Additionally, the study report also ranked Japan as the top country for SME cloud investments.

There is a surge in the adoption of cloud services by small and medium enterprises (SMEs) in Japan. Growing investments by the government in ICT infrastructure is helping the SMEs invest more towards the adoption of cloud services. Many multinational companies are increasingly expanding their network in the nation owing to favorable support from the government and excellent ICT infrastructure, which is anticipated to raise the demand for the deployment of cloud services. Moreover, it is anticipated that the country will lose tremendous amount of work force, thereby inducing companies to shift towards automated processes controlled via the cloud on a remote server and reduce labor intensive work approaches. All such factors are anticipated to contribute significantly towards the growth of the Japan SaaS market during the forecast period.

Growing Need for Reducing Operational Expenditure in Organizations

SaaS solution offers a cost-effective process to access data in real-time. With the power of operations being provided in the hand of subscribers of SaaS solutions, companies can outsource their IT infrastructure operations to third-party vendor, which helps to improve efficiency, productivity and provide easy access for business operations. Moreover, SaaS offers businesses the power to access their data in the cloud server from any device and at any time, at their convenience in real-time. The rising need amongst companies to reduce their operational costs and increase employee efficiency, along with the numerous benefits provided by the SaaS model to companies is anticipated to drive the growth of the Japan SaaS market over the forecast period.

Barriers

Growing occurrences of cyberthreats, data theft and other illegal activities somewhere restrict companies to adopt SaaS solutions. Moreover, internet infrastructure is the backbone of SaaS model. Any downtime in the internet can cost the companies a huge loss during that period. Additionally, other associated technical failures, such as lack of browser-based applications, computer hardware failure, and others, are also anticipated to restrict the growth of the Japan SaaS market during the forecast period.