Transcript Title of Presentation 32 point Arial Subtitle if needed 24

Aid to Recovery:
The Economic Impact of IT, Software,
and the Microsoft Ecosystem in
Portugal
Prepared for Microsoft Corporation
October 2009
Copyright 2009 IDC
Portugal: Highlights
 2009 IT spending: 3.8 billion EUR ($5.5
billion)
 2008-2013 IT spending growth: 2.8%;
GDP growth: -0.2%
 2009 software spending: 533 million
EUR ($780 million); services spending:
1.2 billion EUR ($1.8 billion)
 2008-2013 software spending growth:
4.4%; services: 2.9%
 2009 IT employment: 99,000
 2009 Microsoft-related IT employment:
44,000
Copyright 2009 IDC
2
Portugal: Key Findings
 From the end of 2009 through 2013, the IT sector will generate
7,500 high skilled jobs and account for the creation of nearly
400 new companies.
 In the same period, the IT sector will generate 320 million EUR
($469 million) in new tax revenues and contribute new revenues
of 950 million EUR ($1.4 billion) to GDP.
 Spending on software in 2009 should account for 14% of total IT
spending – but 50% of IT employment.
 The Microsoft ecosystem and IT professionals in IT departments
should constitute 45% of IT-related employment in 2009, 49% of
IT related tax revenues.
 For every EUR of Microsoft revenue in 2009, the ecosystem
beyond Microsoft should reap 10.53 EUR.
 The Microsoft ecosystem is expected to invest nearly 526 million
EUR ($770 million) in the local economies in 2009.
Copyright 2009 IDC
3
Portugal: IT’s Economic Impact
Growth Expected from Year End 2008 through 2013
5%
4%
3%
2%
1%
0%
GDP
IT Spending
-1%
Copyright 2009 IDC
Source: IDC Economic Impact Study, 2009
Total
Workforce
IT Workforce
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Portugal: IT Employment, 2009
Microsoft-related IT employment in 2009 is
projected at 45% of total IT employment
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Hardware
Copyright 2009 IDC
Software
Source: IDC Economic Impact Study, 2009
Services &
Channels
IT Professionals
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Portugal: Impact of the Ecosystem
Ratio of Ecosystem Revenue in 2009 to Microsoft Revenue
Total =
10.53 EUR
7.36
1.96
1.00
Microsoft
Copyright 2009 IDC
1.21
Hardware
Source: IDC Economic Impact Study, 2009
Software
Services
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Portugal: Growth Through
Innovation
2.4 billion EUR Net New Business  Long term transition to
Revenue from Cloud Computing*
use of Internet-based
Billion EUR
services and intelligent
clients
1,400
1,200
 About 1% of IT spending
in 2009, but fast growth
*Microsoft calls this
Software plus Services
 Lowers percentage of IT
spending on maintenance
of legacy systems and
allows new projects and
initiatives
1,000
800
600
400
 Resultant innovation
leads to new business
revenues
200
0
2010
Copyright 2009 IDC
2011
2012
Source: IDC Economic Impact Study, 2009
2013
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