State of the Salesforce Economy: $1.2 Trillion of New Business Revenues Projected by 2024 [2019 Edition]

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New figures published forecast exciting Salesforce ecosystem growth over the next 5 years. Three headline statistics announce $1.2 trillion of new business revenues, 4.2 million new jobs, and ecosystem revenues predicted to grow almost 6 times larger than Salesforce itself by 2024.

As Salesforce professionals contributing to the Salesforce Economy, knowing the impact our ecosystem is having globally is key – which is why I was thrilled to write this post. Without any further delay, we will dive into each category these headline figures cover, calling out surprising statistics in the process. Continue reading beyond for more information on how the IDC define the Salesforce Economy.

 

Source: IDC, 2019
Note: graph shows annual revenue and jobs created above and beyond the 2018 levels.

New Business Revenues

There will be $1.2 trillion of new business revenues from now until 2024. This has jumped from the $859 billion that was projected for the 5 year outlook in the 2017 edition.

Leading regions:

  • North America ($534 bil)
  • United States ($514 bil)
  • Western Europe ($242.5 bil)

What counts? ‘New business revenues’ counts what Salesforce customers will to their local economies through the adoption of cloud computing.
 

Jobs Created

Salesforce and its ecosystem of partners will create 4.2 million new jobs – and that’s solely direct jobs. Indirect jobs, those “created in the supply and distribution chains serving those
Salesforce customers and from new company employees spending money in the general economy”, will exceed 6.5 million.

Leading regions (direct jobs):

  • North America (900k)
  • United States (circa 870k)
  • India (548k)
  • Brazil (491k) ← a rising Salesforce superpower!

In terms of indirect job creation, India blows other regions out of the water (1.36 mil).

Ecosystem-to-Salesforce Revenue Ratio

The Salesforce Ecosystem is made up of vendors selling additional products and services. Aside from simply more organisations buying into the Salesforce platform, another fuel for Ecosystem growth is this the increasing complexity of implementations and their “mission critical” status.

The ecosystem will continue to grow exponentially faster than Salesforce. By 2024, the ecosystem revenues are predicted to grow almost 6 times larger than Salesforce itself – in crude numbers, the ecosystem will earn $5.80 for every dollar Salesforce makes; currently, the ecosystem earnings in 2019 are just over four times larger than Salesforce’s ($4.29 per $1 Salesforce earns).

Attention Consulting Partners! 64% of Ecosystem earnings are sourced from professional services. Although the IDC doesn’t disclose how this may change over the next 5 years, it’s an interesting statistic nevertheless.

Source: IDC, 2019

Spotlight Industries

Salesforce’s product and go-to-market strategy revolve heavily around CRM solutions that are developed to meet the needs of industry-specific processes.

What is interesting from the report, is the extent to which Finance and Manufacturing benefit, capturing over a third of the total economic benefit from using Salesforce cloud services.

Source: IDC, 2019

The partner ecosystem serving the Manufacturing vertical are also striking upon gold; in 2024, ecosystem earnings specific to Manufacturing will reach $6.4 (per $1 Salesforce earns). Coming in rapidly is ‘Government’, which share the same ecosystem earnings of $6.4 (per $1 Salesforce earns).

Defining the Salesforce Economy

This research from the IDC is a Salesforce staple; the report, now in its 4th year, is one that is quoted time after time, offering figures that quantify the Salesforce Ecosystem. Here, the Salesforce Economy includes vendors that add products and services on top of Salesforce subscriptions:

  • Salesforce consulting partners
  • Salesforce ISV partners
  • Third-party providers brought in by those partners or the customers themselves

The Salesforce industry is so powerful, that it could be described as an economy in its own right; a huge enterprise with unstoppable innovation, with a sprawling partner network and specialised end-users (that enable the technology to permeate further). Of course, it’s no simple task to calculate these figures. The IDC can publish these figures with a degree of confidence by utilising not just Salesforce current and projected revenue, but also the extent to which organisations will continue to adopt cloud computing.

Summary

As Salesforce professionals contributing to the Salesforce Economy, knowing the impact our ecosystem is having globally is key. This post has covered each category from the headline figures – new business revenues, jobs created, Ecosystem-to-Salesforce Revenue Ratio – and more!

I recommend you take a further look at the projected growth in your local economy, and own industry. Read the full report here.

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