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September 2016

Why Asean SMBs increasingly opt for SaaS

Faced with the choice of on-premise or cloud-based enterprise resource planning (ERP) systems, more and more organisations in the Asean region are heading for the cloud. Online supermarket RedMart, bike retailer Treknology Bikes and e-commerce fashion retailer Zalora are among the small and medium-sized businesses (SMBs) that have opted for ERP or software-as-a-service (SaaS) in the cloud, driven by lower costs, greater flexibility and easier maintenance. In Asean and the Asia-Pacific region, the high demand for cloud ERP is being driven by these SMBs, said Sreenath Kandarpah, research manager, IT services group at IDC Asia-Pacific. “The demand for cloud-based enterprise resource management (ERM) applications, notably in human capital management (HCM) and procurement applications, is driving this growth,” said Kandarpah. IDC expects cloud ERP adoption to outstrip that of on-premise software, with 18.6% annual growth reported from 2015 to 2020. Within Asean, adoption rates in Singapore, Thailand, the Philippines and Vietnam are ...

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