The IDC has once again delivered another jaw dropping Salesforce Economy Forecast. The report “forecasts the economic contribution of Salesforce and its ecosystem*…to local economies in terms of jobs and business revenue” (IDC). This post will cover the what: what growth figures to expect, in what industries and what countries, by running through business revenue, job creation, GDP contributions and a deeper dive into the Partner Ecosystem makeup.
*NB: from here onwards, reference to ‘Salesforce ecosystem’ emcompasses Salesforce themselves, Salesforce partners, and Salesforce customers.
Worldwide, $859 bil of new business will be induced as a result of the Salesforce ecosystem. This is part of the growing power of public and private IT cloud services, estimated to contribute business revenue of $1.2 tril in 2017, IDC claims. The significant beneficiaries are Finance ($163 bil in business rev.) and Manufacturing ($159 bil in business rev., $5.7 in revenue for every Salesforce dollar), both traditionally cloud-adverse industries. Salesforce, partly due to its verticalised strategy, has cracked both of those hard nuts. Geographically, the US supplies an overwhelming proportion of the Business Revenue created by Salesforce, at $411 bil – almost half (47.8%)! Although this proves the continued stronghold of Salesforce’s motherland, other, perhaps surprising, contributors are Japan ($108 bil) and the UK ($66 bil).
The same is observed in terms of job creation. Direct jobs to be created in the period until 2022 are likely to total 3.3 mil worldwide. Again, the US comes out top (408 k), with other front runners, including India, Brazil, Japan, UK and Mexico. When considering industries, Manufacturing leads the pack again.
Every direct job created will generate one or two indirect job opportunities. The multiplier effect of direct-to-indirect jobs is why we can expect 4.9 mil new indirect jobs – more than the population of Ireland. Indirect jobs include those related to the supply and distribution chains that serve the Salesforce ecosystem, and even ecosystem employee income spend within their local economies having a positive impact on employment rates.
The Partner Ecosystem, its ancillary products and services, will be the real fuel in Salesforce’s growth. These contributions to the overall Ecosystem have outpaced Salesforce themselves for many years, and now will boom at an exponential rate, because customer implementations become “more complex and mission critical” (IDC). Currently, for every $1 Salesforce makes, the ecosystem makes over $3.5 – by 2022, this will reach over $5 for every Salesforce dollar!
Personal picked highlights:
- Business revenue: $859 bil total projected, with the top 3 countries spread across the globe.
- Industry-specific: Manufacturing shines out for the industry’s business revenue gain ($159 bil), and $5.7 revenue for every Salesforce dollar spent – the highest of all industries!
- No. indirect jobs, India: 724 k, blowing all other countries out of the water.
- Ecosystem revenue relative to Salesforce: $5.2 for every $1 Salesforce makes in 2022, a 35% increase from proportion in 2016.
The IDC’s 3rd Salesforce Economy Forecast paves the way for an exciting time ahead in the Salesforce industry on the road to 2022. Cloud computing propagates society. In this post, I ran through a selection of the best statistics: business revenue, direct/indirect jobs and partner ecosystem revenue, which illustrate the influence cloud computing corporates, like Salesforce, can have worldwide. This post covers the what; the IDC, themselves, cover the how and why, therefore, the report is certainly worth a read. Click here to get your copy.