Japan’s Cloud Computing Services Market to Report Five-fold Growth by 2014

Japan’s Cloud Computing Services Market to Report Five-fold Growth by 2014

Japan’s market for cloud computing services is developing rapidly adding 41.9 percent in a single year, reaching USD 540 million in 2010, a report by IDC Japan showed. Cloud computing services will continue to grow in Japan in the years to come, expanding to USD 1.8 billion in 2014, IDC analysts predicted.

Such a rapid development shows that the market for cloud computing services will grow five-fold in only five years, highlighting a trend analysts cannot ignore, and showing that regardless of cloud services market fragmentation companies are starting to realize the full potential cloud computing offers.

Japan’s vendors are looking at specialization as a way to gain competitive advantage, the report showed, for cloud computing is not a way to sell universal services anymore. Customers managed to realize that a new technology trend could be advantageous but solutions offered are not a panacea regarding specific company needs.  Hence, Japanese providers of cloud computing services started to offer tailor-made products aimed at exacting customers who are ready to accept that existing IT infrastructure and software deployment are insufficient to meet the requirements of a fast-developing enterprise. One of the characteristics of cloud services is self-service, facilitating the users’ access to the service and eliminating the need for complicated procedures, Satoshi Matsumoto, research manager, IT Services, IDC Japan, explained in a press release. Obviously, a growing number of cloud computing service providers are heading this way by offering custom-made solutions to cover market niches that were ignored by “traditional” software and hardware giants.

Bearing in mind that Japan is among the most technologically developed nations in today’s world, we can see a well pictured trend here: a growing market that is eager to reward new market players provided that they have something to offer to companies which are still unsure what technology is more advantageous.

A five-fold growth of Japan’s cloud computing services market in less than five years, as IDC analysts forecast, is an alarming signal. A market of USD 1.8 billion a year is not a market you would ignore in terms of market potential and strength. Additionally, Japan is well known for its ability to adopt new technologies in a very beneficial manner and it is hard to believe that Japanese entrepreneurs and home-grown companies will miss the chance to take advantage of a competitive technology.

Sure, North America tops the ladder of cloud computing service providers and you can bet that other countries will not compete with the United States on equal terms in the foreseeable future (the country still enjoys huge customer-driven capital inflows locally). However, like in any other market, the future is not always bright for those who deployed a technology first – Japanese companies proved they are extremely adaptable and the growing market for cloud computing services is just a sign something is changing in the way companies do business.

Ironically, the day the IDC report was published showed a continuing 3-months drop in stock prices of leading U.S.-based cloud computing mastodons like Amazon, Google, Microsoft, and Salesforce. Rackspace was an exception to the rule, with shares gaining in value, but trading signals are mixed, too. Stock market forecasting is a tricky one, though. However, fundamentals are rarely misleading and Japan’s cloud computing services market is showing great growth potential.

By Kiril Kirilov

3 Responses to Japan’s Cloud Computing Services Market to Report Five-fold Growth by 2014

  1. Hi,

    Its really great article guys and you have given really big and very useful information about that Japan’s Cloud Computing Services Market to Report Five-fold Growth by 2014.

    Nice work guys.

    Thanks

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

2014 Future Of Cloud Computing Survey Results

2014 Future Of Cloud Computing Survey Results

Engine Yard Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil 2014 Future of Cloud Computing Survey Results SAN FRANCISCO, CA–(Marketwired – Jun 25, 2014) – Engine Yard, the leading cloud application management platform, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey,…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Q&A With Brendan O’Brien, Co-Founder of Aria Systems (Part 1) Monetization of the internet of things (IoT) is one of the most exciting and challenging issues facing the industry today, so we spoke with Brendan O’Brien to learn more. Brendan is the Co-Founder of Aria Systems, who are one of the leading innovators in recurring…

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues Nowadays, many companies are changing their overall information technology strategies to embrace cloud computing in order to open up business opportunities.  There are numerous definitions of cloud computing. Simply speaking, the term “cloud computing” comes from network diagrams in which cloud shapes are  used to describe certain types of networks. All…

Are Cloud Servers The Right Choice For Your Business?

Are Cloud Servers The Right Choice For Your Business?

Cloud servers offer power, flexibility, reliability, and client friendly hosting for small and medium businesses that have outgrown shared hosting. New business hosting clients are bombarded with an incredible diversity of different choices for their site’s hosting. It can be a challenge to negotiate the range of platforms and the marketing hype that many hosting…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

2015 Advertising Opportunities - Find Out More!

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter