Local players

Springboard identified that growth in the region's SaaS ERP market is also constrained by the limited presence of large, well-established SaaS ERP vendors and the lack of mature solutions that cater to the region's specific needs.

So far, Netsuite is the only SaaS ERP provider with a region-wide footprint, said Springboard. It has a strong presence in Australia and Southeast Asia, as well as an ongoing expansion in high growth markets such as India.

Other leading on-demand ERP providers are more country-focused with players such as Ramco leading the market in India. In China, local ERP player Kingdee has started offering specific modules such as accounting and supply chain in the on-demand mode, and will eventually provide a full-fledged SaaS-based ERP suite.

Many US-based SaaS ERP providers are currently exploring the potential within the Asia Pacific market, but in contrast to other SaaS applications, Springboard is expecting more leadership coming from the local players.