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SAS eyes profit in software market
(China Daily)
Updated: 2005-06-09 09:11

SHANGHAI: The world's leading provider of business intelligence (BI) solutions SAS says it will greatly increase its presence in China amid bullish expectations for the domestic BI software market.

The company, the top BI software provider in the world but nevertheless low-profile in China, will expand its office and increase R&D investment for the Chinese market, said Don Cooper-Williams, marketing director of SAS Asia Pacific.

The company plans to increase the firm's national research headcount from 40 to more than 100 in a short space of time.

"We are low-key in China because we have not put enough investment into the market. Now we are looking around here, to determine the next investment steps and increase our presence in the prospering market," he said.

He believes the BI software market in China, though still in its infancy, will not be far behind more developed locations, and companies will start to adopt the technology as quickly as Western companies.

"I believe the development of the BI market in China will not have sequential process as the developed countries experienced in the last two decades, but take big leaps forward," he said.

These BI tools, which allow companies to analyze patterns and trends culled from data sources such as customer relationship management and ERP systems, are fast becoming investment priorities for Chinese companies, which are eager to improve their competitiveness.

According to research, company data doubles every three years, meaning there is an urgent need to use sophisticated software to manage archives.

According to an investigation by IDC, the total software authorization fee for China's BI market reached US$30 million in 2004, rising by 30 per cent.

The market value of BI solutions is US$438 million with a growth rate of 41 per cent, which is three times the global average.

SAS executives said previously this year is critical for the company as it strives to penetrate the market more deeply.

Banking, finance, telecoms and manufacturing will be priorities, according to Cooper-Williams.

Globally, the financial services sector is SAS's strongest field, accounting for 40 per cent of revenue. Government and telecommunications business account for 20 per cent each, while manufacturing makes up 18 per cent.

SAS boasted revenue of US$1.53 billion in 2004, a 15 per cent growth across the world, with that in Asia Pacific rising by 20 per cent. The entire Asia Pacific has huge potential for growth and demand for business intelligence, but SAS will focus on China, which has recently experienced exponential growth.

SAS solutions are used at more than 40,000 sites - including 96 of the top 100 companies in the FORTUNE Global 500. Its key clients in China include the Industrial and Commercial Bank of China, China Construction Bank, Shanghai Baosteel, the General Administration of Customs and the National Bureau of Statistics.

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