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If Microsoft Falls, the World Will Follow, Because Microsoft Owns 40% of the World

The IT world that is...

By Marius Oiaga, Technology News Editor

18th of October 2007, 13:54 GMT

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Microsoft owns no less than 40% of the world, the IT world that is. The Redmond based software maker is no longer limited to the Washington state in the U.S. and has grown to the point where its global presence can easily impact the international IT market. Microsoft's oscillations have the potential to reverberate and influence the IT market at a global level. This because the Redmond company, together with the ecosystem of partners built around its business have a massive footprint on no less than 82 countries around the world.

According to an independent study performed by IDC and
commissioned by Microsoft, the Redmond company and its ecosystem account for no less than 14.7 million jobs worldwide. Now Microsoft itself has approximately 80,000 employees, and in this context, the rest of the workforce is connected to its partners. At this point, it is important to understand that the Microsoft ecosystem is composed of all companies that build, sell or distribute solutions designed to integrate with the software maker's platforms.

"Today technology is a key factor for economic, social and technological progress, and for the sustainability of economies all over the world," said John Gantz, chief research officer at IDC. "The IDC research underscores what we've always known to be true: that software provides a disproportionate contribution to a vibrant IT economy. It also shows the significant contribution made by the Microsoft ecosystem, especially in the creation of local businesses and local jobs."

"IDC's research quantifies the enormous power of software to create local jobs and grow economies around the world, in both developed and developing markets," said Craig Mundie, chief research and strategy officer at Microsoft. "Millions of people are employed globally in Microsoft-related activities, generating more than a half-trillion dollars in taxes in 2007 for governments worldwide. Microsoft's business model creates average revenues of more than $7 for other companies for every $1 Microsoft takes in. Countries such as China, India and Russia see earnings in excess of $16 to $1."

To put things into perspective, Microsoft and its ecosystem account for 42% of all IT employment in 2007, which means 35.2 million people, returning a total of $514 billion in tax revenue at a global level. But in addition to the tax dollars, the Redmond company and the companies orbiting around it will invest an estimated $100 billion by the end of this year.

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Microsoft | IDC | ecosystem
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