Microsoft Partners earn $8.70 for every $1.00 Microsoft earns – IDC study released

For decades, Microsoft has built its business strategy around having and building a healthy, strong, vibrant Partner community around the world that sells, installs, supports, develops on, teaches, and more the technologies that Microsoft produces.  Recently, IDC released a new study talking about the IT industry, trends, spending, and more today and into the future.  Here are just a few key points included in the findings of this study that Microsoft Partners may be very interested to learn:

  • IT and software spending expected to continue to grow at a pace roughly three times that of the rest of the economy between now and 2013
  • Between now and 2013, IT and software spending in 52 counties surveyed will help create nearly 5.8 million new jobs and 75,000 new IT companies
    • Of these 75,000 new companies, one-third are expected to be small, locally owned companies
  • For every single dollar that Microsoft earns in 2009, Microsoft Partners will earn $8.70.  This is up from $7.79 per dollar in 2007.
  • Microsoft Partners are predicted to generate $537 billion in revenues for themselves in 2009 alone

There is much more information included inside the IDC study, and they have also published their studies for the 52 countries that they did their study in.  You can access all of these publications on the Microsoft Economic Growth page.  In addition, you can read more about this study in the Microsoft PressPass release from today.

Thank you and have a wonderful day,

Eric LigmanFollow me on TWITTER clip_image001and RSS clip_image002
Global Partner Experience Lead
Microsoft Worldwide Partner Group
This posting is provided "AS IS" with no warranties, and confers no rights

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Comments (2)

  1. mssmallbiz says:

    Testing comment submission based on input from Partners.

  2. Jeff Shuey says:

    I agree with this. I have worked in the partner ecosystem for 20 years and have developed a model specifically with Microsoft in mind. This model was developed prior to  the 5 years I worked for Microsoft as a partner manager and refined and tweaked since then. It’s a simple formula that I call the “1:3:5 Ratio” and it conservatively states that partners make ~$8 dollars for every $1 Microsoft generates.

    I have blogged about this several times.

    Microsoft Partner Ecosystem and the 1:3:5 Ratio

    It’s great to see industry analysts confirming my model. As my blog posts show I took it a step further and broke the model down into partner types – ISV’s and SI’s. Of course, there are other partners that complete the partner ecosystem, but the primary revenue generation (and also a significant segment of the innovation) comes from ISV’s first and SI’s second.

    Thanks for posting this information. It’s great to see the Microsoft partner ecosystem getting some much deserved attention.

    Jeff Shuey

    Twitter: @jshuey