The International Data Corporation (IDC), a research and analysis company focusing on the telecommunications and information technology (IT) industries, recently completed a study highlighting the growth of spending on public IT cloud services in Japan. With data showing a market growth of 45% on year, reaching a value of 90 billion yen (approx. US$919.5 million) in 2012, IDC predicts the Japanese market to reach 300 billion yen (US$3.06 billion) in the year 2017, with an average growth rate of 28% per year.
IDC’s research highlights the trend in recent years of more Japanese companies turning to public IT cloud services, notably following the Great East Japan Earthquake disasters in March 2011, in order to develop more reliable systems and quickly recover from service failures. User companies are clearly attracted to the fact that public IT cloud services are seen as cheap, fast, and extensible, and as noted with the earthquake and tsunami, have been proven to be invaluable in the case of disaster recovery. But what they are also dawning on are advanced functions like mobile device support, automated backup archiving, and connecting with popular social networks in their applications.
One of the key reasons Japan’s public IT cloud services market will continue its sharp upward trend over the next four years is that more and more user companies are turning to the cloud first for IT solutions, as opposed to just looking for efficiency. Specifically, the most growth for cloud first have been in the areas of collaborative applications, disaster recovery, and large traffic web systems. Satoshi Matsumoto, an IT Services research manager at IDC Japan, believes that the most vital aspect for solution offerings is that they encourage innovation among users within their respective industries.