Medium businesses (100 to 999 employees) in Japan are showing latent potential to drive usage of open source software, particularly on the server database scene, according to a survey conducted by AMI-Partners. Open source software has been gradually gaining ground in Japan, driven mainly by the needs for cost-effective middleware for large corporations to enhance the operation of complex and extensive systems. Mid-sized businesses are the next frontier.

Japan MBs are more interested in deploying open-source software than their U.S. counterparts, but are under-served.

According to AMI-Partners' latest Japan Medium Business Survey, Japan MBs have are ready to embark on the deployment of open-source server databases. The course for adopting open-source software starts with an operating system such as Linux, then advances to mission-critical applications such as middleware and server database. Linux and open-source middleware is used by 18% and 12%, respectively, of Japan-based MBs. Such figures are comparable with their U.S. counterparts and higher than MBs in France and the U.K. However, in terms of the usage of the open-source server database such as My SQL, Japanese MBs are lowest in the developed world, at 5%, as compared to an adoption rate of between 13% and 40% among advanced markets in the US, Europe and the Asia-Pacific region outside of Japan.

Why are Japan MBs lagging behind in the adoption of open-source server database? “One inhibitor is their low usage of external services for software support,” says Yuki Uehara, Research Analyst at AMI-Partners. “Open-source software is a cost-saving alternative to proprietary software. However, open source requires extensive support and maintenance for reliable operations. This can be an issue with MBs, especially in Japan, as there is a persistent shortage of qualified support staff.”

Compared to Japan, German MBs are the highest in overall deployment of open-source software in the developed economies, and the highest in the usage of external software support service. That’s because open-source software deployment and software support service usage have a strong correlation.

The other inhibitor is a widespread concern about performance and functionality of open-source software. Systems integrators in Japan are less willing to recommend and implement open-source applications because they are often required to guarantee system performance after installation. “Any compatibility issues and performance failure will result in SIs carrying the burden,” Ms. Uehara says. “That’s why SIs take the safer option and recommend applications such as Microsoft and Oracle. The cost for deploying such solutions, however, is quite high for cost-sensitive MBs in Japan.”

Open-source software has the potential to be a powerful driver not only for software adoption among Japanese MBs among which overall server database adoption is lagging behind from other developed countries, but also serve as a business opportunity for IT service providers to create a stable revenue stream from support and performance management services. There is a growing trend in Japan to offer extensive support services to maintain the performance of open-source software. Yet, the service is too expensive for MBs. It would be best if service providers cooperate with open-source communities to improve overall efficiency of maintenance and thus help make inroads into Japan’s MB market.

About this study

Contact AMI-Partners for more information on the report, "Japan Medium Business Survey".

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