Greater China's nascent market for online subscription-based business management automation software could soon heat up, as NetSuite launches its service in Hong Kong this week ahead of a planned move into the mainland.
Demand in this segment, known in the industry as software-as-a-service (SaaS), will continue to be driven by small firms and business users inside the departments of large companies, according to NetSuite chief executive Zach Nelson.
The opening of a Hong Kong office by the US-based firm follows its introduction of new flagship product OneWorld in Australia, New Zealand and Singapore earlier this month. 'Asia has been great for us, and we see huge potential for our offering in Greater China,' Mr Nelson said.
Sales from international markets, of which Asia-Pacific has the fastest-growing rates of adoption, comprised 20 per cent of NetSuite's total revenue of US$36.6 million in the second quarter.
He said the company would launch its service on the mainland next year, by first establishing ties with strategic local partners to ensure profitable operations in key cities.
A recent survey by Forrester Research found that 61 per cent of Hong Kong and mainland firms plan to adopt SaaS within the next year. NetSuite will also introduce OneWorld in Hong Kong this week for subscription over the internet at HK$18,000 a month.
OneWorld allows companies to manage their multinational and subsidiary business operations in real-time globally. It integrates the key business management functions, including customer relationship management, enterprise resource planning and e-commerce.
