The market in Asia Pacific for SaaS-based ERP solutions is forecast to grow by a whopping US$158 million over the next four years, with China currently showing the highest levels of SaaS ERP adoption within the region’s manufacturing sector.
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In its latest report, Springboard Research says the Asia Pacific market (excluding Japan) for SaaS-based ERP solutions is estimated to grow from US$35 million last year to US$193 million by 2012.
Springboard says the market for SaaS-based ERP applications (together with SCM and PLM) already contributes seven percent to the total SaaS market in the region.
Springboard’s Michael Barnes, so far, SaaS ERP has been less popular in part because the SaaS mode does not allow much flexibility for customisation,” and, he adds “as vendors continue to improve the customisation capabilities of their products, they have the opportunity to improve adoption, especially with organisations implementing ERP for the first time.”
According to Springboard, growth in the SaaS ERP market is also constrained by the limited presence of large, well-established SaaS ERP vendors in Asia and the “lack of robust and mature solutions that cater to the specific needs of the market.”
Barnes says Netsuite is the only SaaS ERP provider with a region-wide footprint, with a strong presence in Australia and in the ASEAN region and an ongoing expansion in high growth markets like India.
“Other leading on-demand ERP providers are more country focused with players like Ramco leading the market in India. In China, local ERP player Kingdee has started offering specific modules like accounting and supply chain in the on-demand mode, and will eventually be offering a full-fledged SaaS-based ERP suite. Many US-based SaaS ERP providers are currently exploring the potential within the Asia Pacific market, but in contrast to other SaaS applications, we are seeing more leadership coming from the local players.”
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BY Peter Dinham
Source：iWire
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