Cloud Computing Market

Introduction of the Japan Cloud Computing Market Report

Cloud computing is the on-demand availability of various computer system resources such as computing power and data storage among the users. It helps in reducing the expenses related to hardware and software as well as setting the cost of on-site data centers. The Japan cloud computing market covers various deployment models such as public cloud, private cloud, and hybrid cloud.

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Market Dynamic

Key Drivers and Emerging Trends

Japan is one of the leading cloud computing markets in the Asia-Pacific region as it is widely opting for solutions such as SaaS and IaaS. In addition to this, the increasing penetration of smartphones and the internet is further driving the market growth over the coming years. The country has a high rate of internet access, with more than 90% of the households having internet facility through mobile or PC. The increasing adoption of the Internet of Things (IoT), cloud computing, 5G, and other technologies is further growing the adoption of cloud technologies in the country, therefore surging the growth of the cloud market size.

The Ministry of Internal Affairs and Communications introduced the ICT strategy known as the “u-Japan” policy, which aims to use the ICT to upgrade the environment. Moreover, the government is also emphasizing on the value-creation oriented society where ICT penetrates the lives of individuals. In addition to this, the gaming companies in the country are migrating core applications onto the cloud to meet their specific requirements for reaching and serving the global audience. In 2021, DeNA, one of the gaming companies that operate mobile and online services such as games, e-commerce, and entertainment content distribution, announced to move its applications to the public cloud. The aim of this step is to leverage the public cloud-based machine learning to enhance the onboarding experience of the new gamers of its game “Gyakuten Othellonia”. The government of Japan has also introduced the “Society 5.0” to create a new social contract and economic model by incorporating the technological innovations of the fourth industrial revolution. Thus, this is further propelling the growth of the cloud market share in terms of revenue.

Restraints in the Japan Cloud Computing Market

One of the major factors that is hampering the growth of the cloud market in Japan includes the increased risk related to cyber-attacks in the country.

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There has been an increase in the utilization of public clouds, particularly among financial institutions, which is another factor that is responsible for the cloud market growth. It is becoming important for the banks to use the public cloud for different functions such as big data analysis, risk modeling, fraud detection, customer-facing services, among other functions. Moreover, cloud-based solutions are increasingly opted in the retail sector to improve profitability. In 2017, FamilyMart, one of the Tokyo-based convenience store chains, began using cloud solutions to increase the productivity in its stores at the global level.  The company has around 24,000 stores across the globe, and it is using cloud-based productivity tools to facilitate collaboration culture and increase operational efficiency.

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Top Market Players

Some of the leading players operating in the market include IBM, Microsoft Corporation, SAP SE, Oracle, Salesforce.com, Inc., Amazon Web Services, Inc., Google LLC, Alibaba Cloud, VMware, Inc., Fujitsu, among others.

Key Developments:

• • In 2021, Amazon Web Services, Inc., launched its second full region, the AWS Asia Pacific (Osaka region) in Japan. The developers, enterprises, start-ups, educational institutions, and non-profit organizations will leverage this to run their applications with lower latency and access to the broadest and deepest suite of services available in the cloud.
  • In 2020, IBM announced to enter a partnership with the Japanese industry to increase advances in quantum computing to strengthen ties between the U.S. and Japan. The new member of the group, including Toshiba Corp. and Hitachi Ltd., will have cloud-based access to IBM’s quantum computers.
  • In 2019, Microsoft Japan entered a partnership with ISL Online and SB C&S to provide their secure remote desktop and remote access services. These easy-to-use solutions are affordable and technologically easy to deploy.
  • In 2019, Oracle launched its Cloud infrastructure data center region in Tokyo. This helped the company to address the requirements for high performance, security, resiliency, and local data residency, which is needed the Japanese businesses to increase cloud adoption.

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Key questions answered in this research report:

• • At what pace is Japan cloud computing market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Japan cloud computing market? What will be the impact of drivers and restraints in the future?
  • What are the various areas of Japan cloud computing market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?