

This IDC study (which is a translation of the Japanese report IDC #J9350101) describes our definition of software as a service (SaaS), and provides an overview of the trends in the Japan SaaS market. Additionally, it analyzes market trends such as cloud computing, cloud services, x as a service (XaaS), on-demand services, and more.
IDC' s 2008 definition of SaaS has no significant change from the 2007 version. Although the market is expected to grow steadfastly, there is a shift towards highly flexible services like cloud computing/XaaS, because they make up for customization and availability shortfalls in the SaaS application. "The paradigm shift in the IT market from ownership to usage has become a major trend involving diverse related parties. SaaS vendors will be required to reform their business models through income model reforms, and development of a partner ecosystem," analyzes Satoshi Matsumoto, research manager, IT Services, IDC Japan.