Microsoft ecosystem generated sales of $US580 billion in 2010

By Rick Whiting on Mar 28, 2011 8:39 AM
Filed under Software

Partners with technology competencies were more successful.

The worldwide Microsoft partner ecosystem generated product and service revenue of $US580 billion in 2010, up 8 percent from $US537 billion in 2009, according to an IDC study commissioned by Microsoft.

The study also found an increasing amount of partner-to-partner activity among solution providers within the Microsoft universe, and that partners who invested in becoming certified in Microsoft product "competencies" scored bigger deals and generated more revenue per employee.

The report's findings "validate the substantial opportunities and benefits available through the Microsoft Partner Network," Microsoft said in a statement.

Microsoft has overhauled its partner program during the last two years and now categorises partners according to the specific Microsoft technology competencies in which they have developed specific skills through training and certification. That’s part of an effort by Microsoft to encourage partners to add more value through services.

The IDC study estimated that for every $US1 of revenue made by Microsoft in 2009, members of the partner ecosystem generated $US8.70 for themselves. (The report did not provide similar numbers for 2010.) The report also said that partners who invested in becoming certified in more difficult or a greater number of competencies enjoyed 68 percent larger deals and 28 percent more revenue per employee.

IDC also studied the International Association of Microsoft Channel Partners organisation and found an increased level of partner-to-partner activity. The study found that the value of such activities increased more than 48 percent to $US10.1 billion in 2009 from $US6.8 billion in 2007.

"As business models continue to change, the Microsoft Partner Network allows partners to quickly and easily identify other partners with the right skill sets to meet their business needs, so Microsoft partners are set up to compete and drive profits now and in the future," said Jon Roskill, corporate vice president of Microsoft's Worldwide Partner Group, in a statement.

The $US580 billion figure for the value of the Microsoft ecosystem represents a 22 percent gain from the $US475 billion the ecosystem generated in 2007.

This article originally appeared at crn.com

 
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Copyright © 2011 United Business Media LLC. All rights reserved.

Microsoft ecosystem generated sales of $US580 billion in 2010
"@negarsalek - no, the headline doesn't seem to have been updated."
 
 
 
 
Comments: 3
emja
Mar 28, 2011 10:32 AM
A very misleading headline. The $580b is an order of magnitude higher than the $60b they actually reached.

The $580b includes associated services and sales which those VARs etc would have made with competing products had Microsoft's not existed.
negarsalek
Mar 28, 2011 11:06 AM
@emja - headline updated.
gnome
Mar 28, 2011 5:50 PM

@negarsalek - no, the headline doesn't seem to have been updated.
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