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IDC: Salesforce to add $272bn to local economies

IDC and Salesforce claim that the cloud provider and its channel will create more than 1 million jobs and contribute $272bn to local economies over the next four years

Salesforce and its ecosystem will create 53,968 direct jobs and 94,685 indirect jobs in the UK by the end of 2018, according to a new report.

The research, conducted by IDC and Salesforce, claimed that Salesforce and its ecosystem of partners and customers would create more than 1 million direct jobs globally and contribute $272bn (£178bn) to local economies over the next four years.

The analyst firm claimed that a further 1.5 million indirect or ‘induced jobs’ could also be expected due to increased customer revenue driving additional employment in supply and distribution chains.

“One of the reasons cloud computing is growing seven times faster than the overall IT industry is because of the quick return on investment it can offer,” the paper said.

“Respondents to the survey conducted for this whitepaper told us that the average payback for a Salesforce cloud investment was approximately 13 months. And the IDC Salesforce Economic Impact model shows that over a four-year period, the return from those investments can be 4-5 times the original investment.”

Beyond Salesforce’s bread and butter offerings, the study also highlighted the wider channel benefits surrounding professional services and other value adds.

“There is also a significant amount of business and IT consulting, which speaks to the halo effect across Salesforce's partner ecosystem, as cloud computing users change internal operating models or integrate cloud services with legacy systems,” the report said.

IDC pointed to its recent global CloudView Survey, which found that professional services revenue often accounts for more than the subscription service for cloud implementations.

"IDC’s new report is a testament that companies, and partners alike, are deeply embracing Salesforce as the customer engagement platform to grow their business,” said Eric Berridge, CEO of Bluewolf, a premier partner of Salesforce. “The best companies are focused on integration of Salesforce products and other complementary cloud solutions to drive business outcomes and the company’s bottom line.”

The study comes as each of the major legacy vendors are attempting to grab as much of the cloud pie as possible. At Oracle OpenWorld this week, the tech giant added a series of new services to its cloud infrastructure.

At the same time, Microsoft rejigged its financial reporting structure to highlight its cloudy endeavours.

Salesforce continues to strike fear into its larger competitors with its lightning fast growth. The cloud CRM provider reported its Q2 financials back in August, posting revenue of $1.63bn or 19 cents per share. CEO Marc Benioff said at the time that Salesforce hoped to be the fastest company ever to reach $10bn in revenue. 

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