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SaaS Begins to Cannibalize On-Premise Software in India, Says Springboard Research
CRM, Collaboration, and ERP applications dominate the market
New Delhi, January 19, 2010 – Traditional software applications are slowly beginning to yield ground to SaaS applications, with 32% of SaaS adopters replacing an on-premise application, says the latest bulletin “Software-as-a-Service in India 2009/2010” from Springboard Research, a leading innovator in the IT Market Research industry. The bulletin also revealed that 22% of those already using an on-premise application have later chosen to adopt the SaaS version of the same application in another geography or department within the organization. The Springboard bulletin disclosed that India is the fastest growing SaaS market in Asia Pacific, and is estimated to register a growth of 60% CAGR from 2008 to 2012. The India SaaS market, which was US$105 million in 2009, is estimated to be worth US$352 million by 2012. The growing appeal of SaaS in India is also evident from the fact that SaaS familiarity levels in India are much higher than in the Asia Pacific region as a whole, where only 60% of respondents reported being ‘very familiar with SaaS’, as compared to 74% in India. “The SaaS market in India is poised for continued strong growth, with the availability of a plethora of SaaS applications and related services ,” said Balaka Baruah Aggarwal, Senior Research Manager for Emerging Software at Springboard Research. “Given the pent-up demand for SaaS applications among enterprises, the momentum generated by vendor activity, participation by telecom companies as partners, and the hype around Cloud Computing, SaaS will proliferate rapidly in the next 18-24 months, not only in top-tier towns and cities but even to secondary places,” Ms. Aggarwal added.

Cost and Convenience: The Top Reasons for SaaS Adoption
According to Springboard Research, ‘zero or low maintenance’ is the leading reason for SaaS adoption in India, , followed by ‘ease of use’.. Among SaaS vendors,, Citrix Online and CiscoWebEx have a strong hold over the market, as they have been in the market relatively longer than most other players. In terms of satisfaction, SaaS scored an average of 8 on a 10 point scale (where 10 is the highest score and 1 is the lowest). Among applications, e-mail scored the highest with 9.5 while ERP generated a comparatively low level of satisfaction at 7.6. Springboard noted that despite an overall focus on cost savings, very few organizations have quantified the savings accrued from using SaaS applications. Among the respondents who did quantify SaaSrelated savings, e-mail had an astonishing 127% return on investment. The Springboard bulletin observed that SaaS has been adopted by enterprises that are in high growth sectors like power, infrastructure, contact centers, banking, and technology.

and Balaka Baruah Aggarwal. It offers data on the enterprise SaaS market and growth forecasts and outlines the demand drivers as well as inhibitors among Indian organizations.“Software-as-a-Service in India 2009/2010” .“While the ‘plug and play’ nature of SaaS makes it suitable for rapid adoption. Marketing Executive Springboard Research 91-11-4051-8252 jdhani@springboardresearch. Vice President of Software Research at Springboard Research.springboardresearch.focuses on the key trends and dynamics in the Indian Software as a Service (SaaS) market. Founded in 2004. the methodology leveraged for this report included extensive secondary research and interviews with leading SaaS providers in the market. as they attempt to migrate users from on premise software applications as well as sell to first time IT Media Contacts Chris Perrine. Senior Research Manager . In addition. services.Emerging Software Springboard Research . Singapore and Japan. and hardware sectors. “The recessionary economic conditions represent a significant opportunity for vendors to market the low TCO associated with SaaS. medium and small enterprises in India. Pakistan. Springboard works with the leading IT companies in the world in the software.” advised Michael Barnes. Jonita Dhani. please visit www. About Springboard Research Springboard Research is a next-generation IT market research and advisory firm. The insights in this document are gained from a survey of 121 CIOs and IT managers of large. telecom. COO & EVP of Sales & Marketing Springboard Research 65-6325-9716 cperrine@springboardresearch. Springboard has a worldwide presence with offices in the United States. the leading research and advisory firm for the information industry. Barnes. ideally enterprises should ensure optimal usage in terms of application functionality as well as to smooth integration with enterprise applications or other SaaS applications as required. ### About this report The Springboard Research bulletin . Springboard has been acknowledged as an emerging leader and was recently named “Rising Star” in the global IT market research industry by Outsell. as well as global research centers in India. Springboard leverages its pioneering research model to deliver greater agility and flexibility in IT market research and helps its clients lead rather than follow market trends.” added Mr. For more information.

91-11-40518249 baggarwal@springboardresearch.Software Research Springboard Research mbarnes@springboardresearch. Vice President .com Michael .

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