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

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

Sorry, comments are closed for this post.

Comic
Cloud Computing – The Good and the Bad

Cloud Computing – The Good and the Bad

The Cloud Movement Like it or not, cloud computing permeates many aspects of our lives, and it’s going to be a big part of our future in both business and personal spheres. The current and future possibilities of global access to files and data, remote working opportunities, improved storage structures, and greater solution distribution have…

The FTC, Data Privacy and Facebook

The FTC, Data Privacy and Facebook

Data Protection Facebook is in deep water over their recent decision to start harvesting phone numbers from one of the apps they own, called WhatsApp. WhatsApp is a mobile phone app that allows people to place long distance phone calls and send SMS messages for free. A complaint was filed with the Federal Trade Commission…

Three Tips To Simplify Governance, Risk And Compliance

Three Tips To Simplify Governance, Risk And Compliance

Governance, Risk and Compliance Businesses are under pressure to deliver against a backdrop of evolving regulations and security threats. In the face of such challenges they strive to perform better, be leaner, cut costs and be more efficient. Effective governance, risk and compliance (GRC) can help preserve the business’ corporate integrity and protect the brand,…

The Annual Compliance & Ethics Institute:  Hot Topics – Cyber Security, Big Data, Privacy Breach Response

The Annual Compliance & Ethics Institute: Hot Topics – Cyber Security, Big Data, Privacy Breach Response

Cyber Security, Big Data, Privacy Breach Response MINNEAPOLIS, Aug. 30, 2016 /PRNewswire-USNewswire/ — Cyber security, social media, modern slavery, anti-corruption, export controls and sanctions, and privacy top the list of “Hot Issues” compliance and ethics professionals face each day. These and many other compliance and ethics concerns will be addressed at the 2016 Compliance & Ethics…

Top 5 Digital Health Trends

Top 5 Digital Health Trends

Digital Health Trends It is very important to keep up with the changing technology. However, it is also just as important to advance the consumer experience, care delivery methods and create opportunities for career development for the healthcare workforce. Five trends that are proven to be effective in winning in the digital age have been…

Don’t Be Intimidated By Data Governance

Don’t Be Intimidated By Data Governance

Data Governance Data governance, the understanding of the raw data of an organization is an area IT departments have historically viewed as a lose-lose proposition. Not doing anything means organizations run the risk of data loss, data breaches and data anarchy – no control, no oversight – the Wild West with IT is just hoping…

What You Need To Know About Choosing A Cloud Services Provider

What You Need To Know About Choosing A Cloud Services Provider

Selecting The Right Cloud Services Provider How to find the right partner for cloud adoption on an enterprise scale The cloud is capable of delivering many benefits, enabling greater collaboration, business agility, and speed to market. Cloud adoption in the enterprise has been growing fast. Worldwide spending on public cloud services will grow at a…

Choosing IaaS or a Cloud-Enabled Managed Hosting Provider?

Choosing IaaS or a Cloud-Enabled Managed Hosting Provider?

There is a Difference – So Stop Comparing We are all familiar with the old saying “That’s like comparing apples to oranges” and though we learned this lesson during our early years we somehow seem to discount this idiom when discussing the Cloud. Specifically, IT buyers often feel justified when comparing the cost of a…

The Rise Of BI Data And How To Use It Effectively

The Rise Of BI Data And How To Use It Effectively

The Rise of BI Data Every few years, a new concept or technological development is introduced that drastically improves the business world as a whole. In 1983, the first commercially handheld mobile phone debuted and provided workers with an unprecedented amount of availability, leading to more productivity and profits. More recently, the Cloud has taken…

The Security Gap: What Is Your Core Strength?

The Security Gap: What Is Your Core Strength?

The Security Gap You’re out of your mind if you think blocking access to file sharing services is filling a security gap. You’re out of your mind if you think making people jump through hoops like Citrix and VPNs to get at content is secure. You’re out of your mind if you think putting your…

Cloud Computing – The Game Changer

Cloud Computing – The Game Changer

Global Cloud Index In October, Cisco released its Global Cloud Index (GCI) report for 2014-2019, projecting a near 3-fold growth of global data center traffic, with predictions that this traffic will reach 8.6 zettabytes (cloud data center traffic) and 10.4 zettabytes (total data center traffic) per year in 2019 and 80% of it will come…

The Cloud Above Our Home

The Cloud Above Our Home

Our Home – Moving All Things Into The Cloud The promise of a smart home had excited the imagination of the movie makers long ago. If you have seen any TV shows in the nineties or before, the interpretation presented itself to us as a computerized personal assistant or a robot housekeeper. It was smart,…

Teach Yourself The Cloud: Cloud Computing Knowledge In 5 Easy Steps

Teach Yourself The Cloud: Cloud Computing Knowledge In 5 Easy Steps

Teach Yourself The Cloud Learn how to get to grips with cloud computing in business  Struggling to get your head around the Cloud? Here are five easy ways you can improve your cloud knowledge and perhaps even introduce cloud systems into your business.  Any new technology can appear daunting, and cloud computing is no exception.…

Cloud Infographic: The Explosive Growth Of The Cloud

Cloud Infographic: The Explosive Growth Of The Cloud

The Explosive Growth Of The Cloud We’ve been covering cloud computing extensively over the past number of years on CloudTweaks and have truly enjoyed watching the adoption and growth of it. Many novices are still trying to wrap their mind around what the cloud it is and what it does, while others such as thought…

4 Different Types of Attacks – Understanding the “Insider Threat”

4 Different Types of Attacks – Understanding the “Insider Threat”

Understanding the “Insider Threat”  The revelations that last month’s Sony hack was likely caused by a disgruntled former employee have put a renewed spotlight on the insider threat. The insider threat first received attention after Edward Snowden began to release all sorts of confidential information regarding national security. While many called him a hero, what…

Why Small Businesses Need A Business Intelligence Dashboard

Why Small Businesses Need A Business Intelligence Dashboard

The Business Intelligence Dashboard As a small business owner you would certainly know the importance of collecting and analyzing data pertaining to your business and transactions. Business Intelligence dashboards allow not only experts but you also to access information generated by analysis of data through a convenient display. Anyone in the company can have access…