This IDC study is a translation of the Japanese document IDC #JPJ41779117 that provides IT spending trends and forecasts by company size based on annual sales. Annual sales are categorized into four segments based on revenue in FY15 (accounting year): less than 10 billion yen, 10 billion to less than 30 billion yen, 30 billion to less than 100 billion yen, and 100 billion yen or more. This IDC study describes the performance of the Japanese enterprise IT market in 2016 and presents market forecasts for 2017–2021 by company size (based on annual sales), product, and industry, based on the latest economic situation and on product information gathered from vendor surveys up until March 2017. Although IDC forecasts that IT spending by enterprises with annual sales of less than 30 billion yen — including most SMBs — will see positive growth until 2019, this market is driven mainly by upgrades for existing systems, so the overall market is expected to struggle, as a result of the impact of medium- to long-term factors such as falling hardware prices and the shift to the cloud.
"In order to expand the market in the medium to long term, IT suppliers will need to actively promote solutions that directly resolve operational issues faced by the user companies that are necessary for growth in new market sectors," said Hitoshi Ichimura, research manager, IT Spending, IDC Japan.