Transcript The Economic Impact of IT, Software, and the Microsoft Ecosystem

Aid to Recovery:
The Economic Impact of IT, Software,
and the Microsoft Ecosystem
Worldwide
Prepared for Microsoft Corporation
October 2009
Copyright 2009 IDC
Agenda
Key Findings
Study Background
Impact of IT
Impact of the Microsoft Ecosystem
Growth through Innovation
Appendix: Methodology
Copyright 2009 IDC
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Project Background
 Global study built on 7 years
of IDC economic impact and
Microsoft Footprint studies
 Coverage: 52 countries, 98%
of IT spend
 Built from IDC market data
on IT spending by platform
and third party economic
data
 Economic impact covers
from 2008 through 2013;
Microsoft footprint in 2009
Copyright 2009 IDC
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52 Countries Covered
North
America
Western
Latin America Europe
Canada
United States
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Venezuela
Central and
Eastern
Europe
Austria
Bulgaria
Belgium
Croatia
Denmark
Czech republic
Finland
Greece
France
Hungary
Germany
Poland
Ireland
Romania
Italy
Russia
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
Middle East &
Africa
Asia-Pacific
Egypt
Israel
Saudi Arabia
South Africa
Turkey
UAE
Australia
China
Hong Kong
India
Indonesia
Japan
Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
Vietnam
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Software Powers Much of IT
Total* IT Spending,
2009
Total* IT
Employment, 2009
Software
Vendors
Software
21%
Channel &
Services
Firms
Software
Workers
51%
$1.4 Trillion
Copyright 2009 IDC
 Between now and the
end of 2013, spending
on software will grow
4.8% a year, total IT
3.3% Hardware

Ve
n d
o rs
During
Cha
n2009,
n el & total IT
Service
s dropped,
employment
Firm
s
while software-related
on
N
employment
o ftwaregrew 4%
S
o rkers
W
 While software related
jobs account
50% for 51% of
total IT employment,
they account for 65% of
IT-related taxes
35.6 Million
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
7
Emerging* vs. Mature Economies
Emerging* Country Share of GDP and IT Spending
80%
70%
* Excludes Australia, Canada,
Japan, New Zealand, United
States, and Western Europe
60%
50%
40%
30%
20%
10%
0%
Percent of
World GDP,
2009
Copyright 2009 IDC
Percent of
NEW GDP
Growth,
2009-2013
Percent of IT
Spending,
2009
Percent of
NEW IT
Spending,
2009-2013
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
8
Emerging vs. Mature Economies
Percentage Job Growth Expected from 2009-2013
35%
30%
25%
20%
15%
10%
5%
0%
US & Canada
Copyright 2009 IDC
EU
Central &
Eastern
Europe
Middle East & Latin America Asia Pacific
Africa
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
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The Microsoft Ecosystem, 2009
Nearly 700,000 companies are selling hardware,
software, services based on Microsoft software
44% of hardware (by dollar) sold in 2009 will run
on Windows, 56% of software
42% of IT employment will be Microsoft related,
or 14.9 million people
For every dollar Microsoft makes, the ecosystem
should make $8.70
Copyright 2009 IDC
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Microsoft-Related Employment, 2009
35.6
14.9
IT
Professionals
59%
Hardware &
Software Cos.
19%
Total IT
Employment
(M)
Services &
Channels
Firms 22%
MicrosoftRelated IT
Employment
(M)
14.9 Million IT Jobs
Copyright 2009 IDC
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
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Investment by the Ecosystem, 2009
Includes spending on R&D, test and development, sales and marketing,
administration, and training
Channels
13%
Services
19%
Hardware
31%
Software
37%
$179 Billion
Copyright 2009 IDC
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
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Impact on the Local Economy
For every $1.00 of Microsoft revenue in 2009, IDC expects $8.70 to be
generated in revenues by other companies in the Microsoft ecosystem
$4.27
$2.44
$1.99
$1.00
Microsoft
Copyright 2009 IDC
Hardware
Software
Services
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
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Growth Through Innovation
$800 Billion Net New Business
Revenue from Cloud
Millio n
Computing*
 Long term transition to
use of Internet-based
services and intelligent
clients
$400,000
$350,000
$300,000
 About 1% of IT
spending in 2009, but
fast growth
* Micro so ft calls it
o ftware + Service
S
s
$250,000
 Lowers percentage of IT
spending on
maintenance of legacy
systems and allows new
projects and initiatives
$200,000
$150,000
$100,000
$50,000
$0
2010
Copyright 2009 IDC
2011
2012
2013
 Resultant innovation
leads to new business
revenues
Source: IDC Economic Impact Study, 2009; aggregate of 52 countries studied
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Copyright 2009 IDC
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Methodology Steps
Collect IDC IT spending for each country; adjust for
exports and imports
Develop a model of employment based on IT
production and revenue metrics per employee and
company; validate with other known information
Estimate Microsoft revenues per country in 2009 from
IDC forecasts
Use IDC research on IT products (hardware and
software) by OS to forecast value of products expected
to run on Microsoft OS; apply services and channels
tie ratios
Copyright 2009 IDC
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Study Inputs
IT Spending
Statistics by State &
Country
Standard
Definitions
Validation by
Cross Checks
IT Economic
Impact Model
Import/Export
Factors
Macroeconomic
Data
Labor Rates,
Exchange Rates
Internal Review, Quality Control
Copyright 2009 IDC
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EIM and Footprint Methodology
Local IT
Production
•Domestic Spending
•Export
•Distribution
Hardware
Software
Economic Impact
Model
Non SoftwareRelated
Services
•Software
•SW-rel IT Services
•SW-rel Channels
Channels
IT Spending
IDC 2009 EIM
Microsoft Related
MS%
•Domestic Spending
•Jobs
Software-Related
•Domestic Spending
•Jobs
IDC CIS and Tracker
Research
MS$
Pro Forma or Local
Estimates
Copyright 2009 IDC
Microsoft
Footprint
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