Japan Software 2013–2017 Forecast Update and 2012 Analysis
This IDC study provides the update on the Japan software market size and vendor share between 2010 and 2012 as well as the market forecast from 2013 to 2017 based on IDC's software market taxonomy. The Japan software market in 2012 faced strong market reaction to the halt in overall enterprise IT spending due to the impact of the Great Eastern Japan earthquake in 2011. As a result, the market size remained the same as seen in 2010 and registered 3.8% YoY growth. While the growth rate will stagnate slightly as server and PC replacement demand is likely to enter into trough in 2014, the market is estimated to grow at 4.0% CAGR during the five-year period until 2017.
Amid the advancing cloud shift in enterprise systems, the demand for new software business such as the need for a robust and flexible collaboration between in-house systems and cloud environment and the need to implement the integration of open source software and packaged software, is emerging. IDC believes that such demand for new software business will translate to opportunity for software vendors that are planning to shift to business model based on the third platform. "Software vendors should seek to change their traditional business model that focuses on marketing the in-house packaged software by proposing new solutions such as integrating existing packaged software and open source software with cloud services and aim to secure its competitive advantage of third platform," says Shimpei Asano, research analyst, Software and Security, IDC Japan.