Abstract
This IDC study provides an overview of the current status of the China SaaS application market and a forecast for the next five years. It also includes the competitive landscape and end users feedback and buying behavior.
SaaS delivery facilitates the way for SMBs' IT adoption. We can see more opportunities of SaaS application in the China SMB market. However, there is still potential for improvement because this market is still at the initial stage.
"Feedback from both existing and potential SaaS users indicates that China SMBs have recognized the principal characteristics of SaaS. Between the two groups, concerns are roughly equal on the top 3 factors while largely differing from the rest. Due to better focus for the top 3 factors combined with a growing buying attitude, we anticipate that online software is getting closer to meeting SMBs' generic demands on informationalization. Concerns regarding the big gap between the two groups shows that without applying real online software, SMBs cannot easily remove their worries", notes Vivian Yu, senior service analyst, IDC China.
" We find that SMBs do not have high satisfaction with the TCO of SaaS applications. That will run counter to SMBs' initial desires. However, with the pressure for profits, it is hard to let SaaS vendors reduce products prices ceaselessly. To SaaS vendors, there will be more challenges in the balance of increasing profits and customers' satisfaction. Furthermore, the methods that offer more value-add service products and increase customer adherence rate for the novice can be taken into consideration", says Emily Bian, software analyst, IDC China.
Table of Contents
- Table of Contents
- IDC Opinion
- In This Study
- Methodology
- Situation Overview
- Market Overview
- Small and Medium-Sized Business Market Overview
- China Small and Medium-Sized Business Market
- Buying Behavior of China Small and Medium-Sized Businesses
- Software as a Service Market Overview
- What Is "Software as a Service"?
- Why Software as a Service?
- Small and Medium-Sized Business Market Overview
- Software as a Service Application in China Market
- Figure: Software as a Service Adoption Rate By Country in Asia/Pacific Region
- China Software as a Service Market Size, 2007
- Figure: China Software as a Service Market by Geography, 2007
- China Software as a Service Market Competitive Landscape
- Overall Competitive Analysis
- Traditional IT Service Providers
- Traditional Independent Software Vendors
- Traditional Application Service Providers
- Overall Competitive Analysis
- Software as a Service Application in China' s Small and Medium-Sized Business Market
- Software as a Service Suitable for China' s Small and Medium-Sized Business Market?
- Software as a Service Status in China' s Small and Medium-Sized Business Market
- Figure: Comparison Between China Small and Medium-Sized Businesses' Informationalization Adoption Rate in 2006 and 2007
- Software as a Service Functions Adopted by China Small and Medium-Sized Businesses
- Figure: Major Software as a Service Functions Adopted by China Small and Medium-Sized Businesses
- Software as a Service Adoption Rate in Different Industries
- Figure: Current Software as a Software Adoption Rate in Each Industry
- Figure: Software as a Service Functions Adopted by Three Major Industries
- Major Functions in Different Sized Enterprises
- Figure: Current Software as a Service Adoption Rate by Customer Size
- Figure: Major Functions in Different Sized Enterprises
- Software as a Service Functions Adopted by China Small and Medium-Sized Businesses
- Buying Behavior of China' s Small and Medium-Sized Businesses on Software as a Service
- Payment Preference of China Small and Medium-Sized Businesses
- Figure: Payment Preference of China Small and Medium-Sized Businesses
- Acceptable Price on Software as a Service of China Small and Medium-Sized Businesses
- Figure: Acceptable Unit Price on Software as a Service of China Small and Medium-Sized Businesses
- Figure: Acceptable Total Cost on Software as a Service of China Small and Medium-Sized Businesses
- Cost Proportion on Software as a Service within Small and Medium-Sized Businesses' IT Investment
- Figure: Cost Proportion on Software as a Service within Small and Medium-Sized Businesses' IT Investment
- Major Concerns on Software as a Service
- Major Concerns on Online Software
- Figure: Major Concerns With Software as a Service Solutions
- Major Concerns on Software as a Service Vendors
- Figure: Major Concerns With Software as a Service Vendors
- Feedback from Software as a Service Users
- Expectation and Satisfaction
- Figure: Expectations of Software as a Service and Satisfaction With Software as a Service
- Dissatisfaction Reasons
- Figure: Dissatisfaction Reasons With Software as a Service
- Facility Quantification
- Figure: Facility Qualification Will Drive Software as a Service Adoption
- Market Overview
- Future Outlook
- Overall Market Forecast
- Figure: China Software as a Service Revenue Forecast, 2007-2012
- Developing Trends
- Solutions Trends
- Planned Solutions on Software as a Service
- Figure: Solution Adoption Trends of Software as a Service Model in Next One to Two Years
- Unplanned Solution on Software as a Service
- Figure: Unplanned Solutions on Software as a Service in Next One to Two Years
- Industry Trends
- Figure: Planned Software as a Service Adoption Status by Industry
- Figure: Software as a Service Solution Adoption Trends by Industry
- Company Size Trends
- Figure: Planned Software as a Service Adoption Rate by Customer Size
- Figure: Software as a Service Solution Adoption Trends by Customer Size
- Solutions Trends
- Opportunities in China' s Small and Medium-Sized Business Software as a Service Market
- Challenges in China' s Small and Medium-Sized Business Software as a Service Market
- Vendor Profiles
- eAbax
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- MainOne
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- Kingdee
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- SAP
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- 800APP
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- Xtools
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- Ufida
- Overall Software as a Service Strategy
- Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- Alisoft
- Overall Software as a Service Strategy
- Price Strategy
- Channel and Alliance Strategy
- eAbax
- Essential Guidance
- IDC Recommendations for Software as a Service Providers
- IDC Recommendations for China Small and Medium-Sized Businesses
- learn More
- Related Research
- Definitions
- Solution definitions
- China Regions
- Table: China Regional Markets, 2007
- Synopsis

