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.
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