The Impact of the Microsoft Ecosystem in the Portuguese ...€¦ · Web view1.3. Contribution of the IC&T sectors to GDP in the Portuguese Economy. 9. 1.4. Contribution of the IC&T

The Impact of the Microsoft Ecosystem in the Portuguese

Economy

Fernando Alexandre, João Cerejeira and Miguel Portela

(NIPE – Universidade do Minho)

to Microsoft Portugal

September 2013

Escola de Economia e Gestão

The Impact of the Microsoft Ecosystem in the Portuguese Economy

Contents

Sumário.................................................................................................................2Summary...............................................................................................................40. Introduction......................................................................................................51. The Portuguese Economy: recent trends and prospects..................................6

1.1. Macroeconomic outlook..............................................................................61.2. From a low to a medium-high technology economy...................................81.3. Contribution of the IC&T sectors to GDP in the Portuguese Economy......91.4. Contribution of the IC&T sectors to employment in the Portuguese Economy...........................................................................................................101.5. IC&T Demand in the Portuguese Economy..............................................11

2. IC&T sectors, Software and Microsoft in the Portuguese economy...............142.1. Aggregate IC&T........................................................................................142.2. Business and productivity software and licensing services......................16

3. Microsoft Ecosystem in the Portuguese Economy..........................................203.1. Description and analysis of the Microsoft Ecosystem..............................203.2. Measuring the impact of the Portuguese Microsoft ecosystem................22

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Sumário

1. O ecossistema da Microsoft em Portugal é composto por 3250 empresas e inclui todos os parceiros Microsoft localizados em Portugal. De forma a avaliar o seu impacto na economia portuguesa, a presente análise utilizou dados da rede de parceiros da Microsoft em Portugal, a informação disponível na base de dados internacional Amadeus1, bem como dados resultantes de um inquérito conduzido junto de uma amostra de empresas da rede de parceiros, e realizado entre março e julho de 2013.

2. Estima-se que em 2010 o valor do volume de vendas do ecossistema tenha rondado os 5383 milhões de euros, o que representou 26,2% das vendas do setor das Tecnologias de Informação e Comunicação (TIC) na economia portuguesa. O contributo do ecossistema da Microsoft em Portugal para o PIB português foi de 1,42%. As empresas do ecossistema empregavam cerca de 45.000 trabalhadores, e pagaram 85 milhões de euros em impostos diretos (IRC).

Tabela 1– O ecossistema da Microsoft em Portugal em números: estimação do ecossistema

Vendas (milhões €)

Valor acrescentado(milhões €)

Emprega-dos

Impostos(milhões €)

Total do ecossistema (2010) 5383 2156 45412 85 (+26,5%) (+41,8%) (+45,3%) (+99,2%)Total das TIC (2010) 20549 5925 131682 (+6,3%) (1,1%) (+32,7%)% Ecossistema nas TIC (2010) 26,2% 36,4% 34,5%

% Ecossistema nas TIC (2006) 22,0% 25,9% 31,5%

Contas Nacionais (2010) 151413 4350423 (IRC) 4592% Ecossistema nas Contas Nacionais (2010) 1,42% 1,04% (IRC) 1,85%

3. Entre 2006 e 2010, o ecossistema da Microsoft em Portugal registou um aumento das vendas em 26,5%, do valor acrescentado em 41,8%, do emprego em 45,3%, e quase duplicou o valor dos impostos directos (+ 99,2%). Esta evolução é mais favorável do que a que se registou para o setor das TIC em Portugal para o mesmo período. Os valores comparáveis nas TIC ao nível das vendas, valor acrescentado e número de empregados foram de 6,3%, 1,1% e 32,7%, respetivamente.

1 Trata-se de uma base de dados internacional com informação financeira harmonizada para as empresas públicas e privadas para a Europa disponibilizada pela empresa Bureau van Dijk - Company Information and Business Intelligence (amadeus.bvdinfo.com).

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4. De forma a avaliar qual a componente do negócio do ecossistema da Microsoft em Portugal que está diretamente relacionada com produtos, serviços e plataformas Microsoft, implementou-se um inquérito entre março e julho de 2013. Este inquérito visou a recolha de informação sobre a quota das vendas, valor acrescentado, emprego e impostos, diretamente relacionados com a Microsoft. As vendas associadas de forma direta à Microsoft representam 1280 milhões de euros, o que corresponde a 23,8% das vendas do ecossistema. O valor acrescentado gerado e directamente relacionado com a Microsoft foi de 600 milhões de euros. Já o número de empregados centrados nessas tecnologias foi de 12.000, enquanto o valor de impostos sobre lucros foi de quase 25 milhões de euros.

Tabela 2 – Atividades do ecossistema da Microsoft em Portugal diretamente relacionadas com os produtos, serviços e plataformas da Microsoft

Vendas (milhões de €)

Valor Acrescentado (milhões

de €)

Empregados

Impostos (milhões de

€)

1280,073 582,328 11952 24,780

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Summary1. The Portuguese Microsoft Ecosystem includes all Microsoft partners located in

Portugal and encompasses 3,250 firms. In order to evaluate the economic impact of that Microsoft Ecosystem in the Portuguese Economy, the analysis used data from the Microsoft Portugal partners network, the information available on Amadeus international database2 and data from a survey conducted among those companies from March to July 2013.

2. In 2010, total sales of the Portuguese Microsoft ecosystem is estimated to be about 5,383 million euros, representing 26.2% of total sales of the IC&T sector in the Portuguese economy. The contribution of this ecosystem to GDP is 1.42%. Firms belonging to the ecosystem employ more than 45,000 workers, and paid 85 million euros in direct taxes (IRC).

Table 1– Microsoft Portugal Ecosystem in numbers: estimation of the ecosystem

Sales (million €)

Added value(million €) Employees Taxes

(million €)Total Ecosystem (2010) 5,383 2,156 45,412 85 (+26.5%) (+41.8%) (+45.3%) (+99.2%)Total IC&T (2010) 20,549 5,925 131,682 (+6.3%) (1.1%) (+32.7%)% Ecosystem in IC&T (2010) 26.2% 36.4% 34.5%

% Ecosystem in IC&T (2006) 22.0% 25.9% 31.5%

National accounts (2010) 151.413 4.350.423 (IRC) 4.592% Ecosystem in National accounts (2010) 1.42% 1.04% (IRC) 1.85%

3. Between 2006 and 2010, the Portuguese Microsoft ecosystem grew sales by 26.5%, added value by 41.8%, employment by 45.3% and almost doubled tax contributions (+99.2%). The evolution is more favorable for the firms belonging to the ecosystem compared to the IC&T sector. The corresponding variation for the whole IC&T sector in sales, added value and employment is +6.3%, +1.1% and +32.7%, respectively.

4. In order to evaluate which part of the business of the Portuguese Microsoft ecosystem was directly related to Microsoft’s products, services and platforms, a survey was carried out from March to July 2013. The survey intended to obtain information on the share of sales, added value, employees and taxes directly related to Microsoft. Microsoft-related sales represent about 1,280 million euros, 23.8% of the ecosystem’s total sales. Added value directly generated by Microsoft products and services is close to 600 million euros; the number of employees focused on those technologies is close to 12,000 and the amount of direct taxes generated is almost 25 million euros.

Table 2 – Activities of the Portuguese Microsoft ecosystem directly related to Microsoft products, services and platforms

Sales (million €) Added value Employees Taxes (million €)

2 A database of comparable financial information for public and private companies across Europe which is provided by Bureau van Dijk - Company information and business intelligence (amadeus.bvdinfo.com).

4


(million €)1,280.073 582.328 11,952 24.780

0. Introduction

This report evaluates the economic impact of the Microsoft Ecosystem in the Portuguese Economy. The Microsoft Ecosystem includes all partners located in Portugal and encompasses 3,250 firms.

The international financial crisis, the sovereign debt crisis in the euro area and the over-indebtedness of Portuguese Government, firms and households, has given way to the Economic and Financial Assistance Programme agreed with the European Union, the International Monetary Fund and the European Central Bank in May 2011. The austerity measures imposed by the memorandum of understanding on the Government fiscal policy and credit constraints induced very pessimistic expectations of households and firms and, therefore, a strong contraction of domestic demand and a decrease in real GDP. Exports increased in communication, telecommunications and computer services, showing the structural change of the Portuguese economy towards a medium-high technology economy. Nevertheless, the contribution of the IC&T sectors to the total economy added value remains smaller than EU average.

In order to evaluate the economic impact of the Portuguese Microsoft Ecosystem in the Portuguese Economy the following analysis used data from the Microsoft Portugal partners network, the information available on Amadeus international database3 and data from a survey conducted those companies, which was carried out from March to July 2013. The survey intended to obtain information on the share of sales, added value, employees and taxes directly related to Microsoft

In 2010, total sales of the Microsoft Portugal ecosystem is estimated to be about 5,400 million euros, representing 26.2% of total sales of the IC&T sector in the Portuguese economy. The contribution of this ecosystem to GDP is 1.42%. Firms belonging to the ecosystem employ more than 45,000 workers, and paid 85 million euros in IRC. Microsoft related sales within the ecosystem are 1,280 million euros, 23.8% of the ecosystem’s total sales. The added value4

is 582 million euros and related employment is 12,000.

3 A database of comparable financial information for public and private companies across Europe which is provided by Bureau van Dijk - Company information and business intelligence (amadeus.bvdinfo.com).4 Added value (contribution to GDP) = Taxation + Profit/Loss for period [=Net income] + Costs of employees + Depreciation & Amortization + Interest paid.

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1. The Portuguese Economy: recent trends and prospects1.1. Macroeconomic outlook

This section provides an overview of the recent and prospective behavior of the Portuguese economy, emphasizing its structural changes from a low to a medium-high technology economy.

Portugal joined the European Union in 1986 and the euro in 1999. This period was characterized by a strong economic growth and a convergence to income levels of European Union’s richer members. In 2000, GDP per capita was over 70% of the EU and Portugal had gone through significant modernization and structural change, becoming a service-based economy. In 2009, services accounted for 74.4% and 62.4% of total gross added value and employment, respectively.5

After joining the euro area a stagnation period followed, which resulted in an increase in real GDP per capita of 2.2% between 2000 and 2010. The international financial crisis, the sovereign debt crisis in the euro area and the over-indebtedness of Portuguese households, firms and Government (their sum currently surpasses 300% of GDP) has given way to the Economic and Financial Assistance Programme agreed with the European Union, the International Monetary Fund and the European Central Bank in May 2011. The austerity measures imposed by the memorandum of understanding on the Government fiscal policy, implied wage cuts and tax increases, inducing very pessimistic expectations of households and firms and, therefore, a strong contraction of domestic demand (over 7% in 2012) that was only partially compensated by an increase in exports (4% in 2012). In 2012, real GDP level was 5.5% lower than in 2007. In 2013 the GDP growth rate is predicted to be around -2% (in the first quarter of 2013 Statistics Portugal revealed a GDP decrease of 3.9%). Unemployment rate is expected to keep its upward trend in the near future and is now 17.7%.

Households’ consumption (-5.5%) and business fixed investment spending (-14.4%) were the main contributors to the strong contraction of domestic demand in 2012. In what concerns private consumption, the reduction in the consumption of durable goods should be stressed (-18.7% in 2011), namely the acquisition of motor vehicles, caused by credit constraints and a deterioration of consumer confidence.

5 All data in this section is from Instituto Nacional de Estatística (INE) – Statistics Portugal.

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The strong decline of business fixed investment spending in 2012 strengthened the trend observed in the last decade – its growth rate has been negative since 2008.

However, the strong reduction in the consumption of durables had a very positive effect on the reduction of imports (-6.9% in 2012). On the other hand, the export sector has had a very good performance (+4.1% in 2012). As a result of those changes, there was a very positive adjustment in the external imbalances, which resulted in a balanced current account and in a historical surplus in the trade balance.

Figure 1 – Balance of trade (2012 prices)

Source: Banco de Portugal (Bank of Portugal).

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1.2. From a low to a medium-high technology economy

The structural change of the Portuguese economy towards a medium-high technology economy can be assessed by foreign trade in technological services. Exports in communication, telecommunications and computer services increased 18% from 2010 to 2012 in real terms while imports decreased 6% in real terms.

The Portuguese technological balance of payments, which accounts for all economic transactions concerning the transfer and trade of technology and related activities, observed its largest surplus in 2012, with 300 million Euros.

Figure 2 – International trade selected services (2012 prices)

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Source: Banco de Portugal.

Figure 3 - Technological balance of payments (2012 prices)

Source: Banco de Portugal.

1.3. Contribution of the IC&T sectors to GDP in the Portuguese Economy

This section analyses the weight of the Information, Communication and Technology (IC&T) sectors in the Portuguese economy, in terms of its contribution to GDP, using data from Eurostat. Data for the added value for services and manufacturing, in 2009, show that IC&T sectors contribute with 3.37% of total added value in services and with 0.11% of total added value in manufacturing – see Figure 4. These weights are similar to the ones observed in Spain, but are significantly lower than the ones observed in Germany and France. The contribution of IC&T sectors to the added value of United Kingdom services and manufacturing – 5.7% and 0.34%, respectively - is the highest in the group of countries considered.

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Figure 4 - Percentage of the IC&T sector added value in added value of all branches, 2009

Source: Eurostat, European Commission.

1.4. Contribution of the IC&T sectors to employment in the Portuguese Economy

Data for employment shows that IC&T sectors represent 1.45% of total employment in the Portuguese economy – see Figure 5. This weight is slightly smaller than the one observed in Spain (1.94%) and in Germany (1.97%), but is significantly lower than the weight in total employment observed in France (2.6%) and in the United Kingdom (3.6%). The contribution of IC&T sectors to total employment is higher in services (1.28%) than in manufacturing (0.18%).

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Figure 5 - Percentage of the IC&T personal on total employment, 2008-2009


1.5. IC&T Demand in the Portuguese Economy

This section uses the percentage of households with internet access as an indicator of IC&T demand in the Portuguese economy. Figure 6 shows that, in 2012, the percentage of households with internet access increased from 31% in 2005 to 61%. This evolution represented a convergence to the internet access levels observed in the European Union. A survey by the European Commission suggests that the lack of skills is the main cause for the low levels of internet access.

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Figure 6 - Percentage of households with internet access


Data for broadband access show that more than 90% of firms have access to the internet. These results are similar to the ones observed in the European Union. Data for mobile connectivity show that Portuguese firms have lower rates of connectivity than European Union.

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Table 1 - Broadband and Connectivity - All enterprises, without financial sector (10 persons employed or more)

Enterprises with broadband access (fixed or mobile)

Enterprises with persons employed

provided with a portable device with at least 3G technology for accessing the Internet

Enterprises giving devices for a mobile connection to the

Internet to more than 10% of their employees

Provide to the persons

employed portable

devices that allow a mobile connection to the Internet

EU - 27 92 44 22 48Germany 91 45 22 52Spain 96 43 25 45France 98 53 23 44Portugal 91 36 16 35United Kingdom 93 51 34 56


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2. IC&T sectors, Software and Microsoft in the Portuguese economy

In this section we use Amadeus database to analyse the evolution of the number of employees, sales and added value in IC&T sectors in the Portuguese economy between 2006 and 2011. We use the OECD classification of IC&T industries.6 Then we focus the analysis in the sector ‘Business and Productivity Sofware and Licensing Services’ (5820), where the activities of ‘MSFT – Software para Microcomputadores, Lda.’ belong.

2.1. Aggregate IC&T

Aggregate data for IC&T sectors show that, in 2010, the total number of employees and sales reached a maximum of approximately 132,000 and 21,000 million euros, respectively. In 2011, total sales and employment in IC&T sectors decreased by 23% and 14%, respectively. The added value reached a maximum of 6,400 million euros in 2008, and decreased steadily to 5,500 million euros in 2011 – that is, a reduction of about 14%.

Figure 7 - Number of employees: IC&T

Source: Amadeus database.6 OECD, 2009, Guide to measuring the information society 2009, Paris: http://www.oecd.org/science/sci-tech/43281062.pdf.

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http://www.oecd.org/science/sci-tech/43281062.pdf

http://www.oecd.org/science/sci-tech/43281062.pdf


Figure 8 - Sales (Million €): IC&T

Source: Amadeus database.

Figure 9 - Added value (Million €)7: IC&T


7 Added value = Taxation + Profit/Loss for period [=Net income] + Costs of employees + Depreciation & Amortization + Interest paid.

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2.2. Business and productivity software and licensing services8

Data for the ‘Business and Productivity Software and Licensing Services’ sector shows that employment, sales and added value achieved a maximum around 2009 and decreased markedly in 2010. The reduction in employment, sales and added value in 2010 was, respectively, 20%, 25% and 7% - see Figures 10, 11 and 12. These decreases are stronger than the ones that occurred at the IC&T sectors as a whole, inducing a reduction in the share of this specific sector. For example, the share of the ‘Business and Productivity Software and Licensing Services’ sector sales in total sales of IC&T sectors, between 2009 and 2010, was reduced by 36% - see Figure 14. For employment the decrease in its share was around 27% - see Figure 13.

Figure 10 - Number of employees: IC&T (582)


8 Given that data for MSFT is not available for the year 2011, in this section the analysis concerns the period 2006-2010.

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Figure 11 – Sales (Million €): IC&T (582)


Figure 12: Added value (Million €): IC&T (582)


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Figure 13 - Number of employees: share IC&T (582) in IC&T


Figure 14 - Sales: share IC&T (582) in IC&T


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Figure 15 – Added value: share IC&T (582) in IC&T


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3. Microsoft Ecosystem in the Portuguese Economy

According to the Microsoft Partner Network Guide:

“The Microsoft Partner Network is designed for businesses whose primary function is to sell, service, support, or build solutions on the Microsoft platform, or to provide solutions based on Microsoft products and technologies to independent third-party customers. Qualifying businesses must sell more than 75 percent of their IT solutions and services to customers outside of their own company.”

These partners form the Microsoft ecosystem, which includes very diverse companies with very diverse activities. Among others, the ecosystem comprehends companies that sell hardware – PCs, servers, etc. – running Microsoft software, software vendors; resellers; and services firms that install and manage Microsoft products. The Portuguese Microsoft ecosystem includes multinational firms, national level firms and very small local firms. In 2013, the Portuguese Microsoft ecosystem encompasses 3,250 firms divided in six categories – see Table 2.

Table 2 – Portuguese Microsoft ecosystem in numbers (2012): number of partners

Partner type Number of companies

Distributors 3ISV (Independent software vendors) 370LAR 6OEM (Original equipment manufacturers) 80Resellers 1.777Services 1.014Total 3.250

Source: Own computations.

3.1. Description and analysis of the Microsoft Ecosystem

The following analysis is based on a sample of the Portuguese Microsoft ecosystem. Table 3 presents the number of observations of the sample for the different variables and by type of partner. The maximum of observations concerns sales, which encompasses 1,316 firms. Data is collected from AMADEUS database.

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Table 3 – Portuguese Microsoft ecosystem in numbers (2010): number of observations9

Partners Sales Added value

Employees Taxes

Distributors 3 3 3 3ISV 115 84 113 110LAR 4 3 4 4OEM 26 22 26 24Resellers 726 488 707 612Services 442 318 433 398Total 1316 918 1286 1151

Source: Own computations.

Table 4 – Portuguese Microsoft ecosystem sample in numbers (2010)

Partners Sales(euros)

Added value

(euros)

Employees Taxes(euros)

Distributors 756,012,338

32,147,926 505 4,026,558

ISV 128,245,980

78,539,850 1,690 1,840,578

LAR 191,787,454

15,085,039 453 1,128,279

OEM 42,310,193 7,275,065 297 225,358Resellers 969,103,00

0237,968,565 7,966 6,864,116

Services 621,053,381

267,917,839 7,583 20,570,804

Total 2,708,512,346

638,934,284

18,494 34,655,693

Source: Own computations and Amadeus database.

Table 4 presents data for sales, added value, employees and taxes for the different type of partners for 2010. We use these data to estimate the size of the Portuguese Microsoft ecosystem.

Next, we present data for the geographical distribution of firms belonging to the Portuguese Microsoft ecosystem, firms’ size, sales and capital nationality, for most recent data on AMADEUS database.

Table 5 presents the geographical distribution of the firms belonging to the Portuguese Microsoft ecosystem. As expected, more than 90% of the firms are based on the regions of Centro, Lisboa and Norte.

9 Number of companies identified in AMADEUS database.

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Table 5 - Geographical distribution of the Portuguese Microsoft ecosystem

NUTs IIFirms

Distribution (%)

Alentejo 54 3.59Algarve 32 2.13Centro 289 19.23Lisboa 592 39.39Norte 486 32.34Madeira 27 1.80Açores 23 1.53


In Table 6 we present data for the distribution of firms according to the number of workers. The data show that 73% of the firms have less than 10 workers and that 5% have more than 50 workers.

Table 6 - Firms’ size (per number of workers)

Number of workers Firms % of Firms[1-10[ 1047 73.32[10-50[ 308 21.57[50-250[ 62 4.34[250,…[ 11 0.77


In what concerns sales, we have an average of 1,9 million euros, with a median value of 239,000 euros. 5% percent of the firms show sales bellow 18,000 euros, while 5% sell above 4,7 million euros (1% sell above 25 million). Finally, 50% of the firms sell between 92,000 and 700, 000 euros.

In what concerns the nationality of firms’ ownership data show that 90% are controlled by Portuguese capital.

3.2. Measuring the impact of the Portuguese Microsoft ecosystem

The sample presented in the previous section was used to compute the values of the whole Portuguese Microsoft ecosystem. The estimated results for sales, added value, employees and taxes are presented in Table 7.

In 2010, total sales of the Portuguese Microsoft ecosystem is estimated to be almost 5,400 million euros. These sales represent around represent 26.2% of

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total sales of the IC&T sectors of the Portuguese economy – see Figure 8 in section 2.1. In what concerns the weight of Portuguese Microsoft ecosystem in total employment of the IC&T sectors, the estimates suggest that it represents 34.5%. For the added value, estimated results show that the Portuguese Microsoft ecosystem represents 36.4% of the IC&T sectors. According to these estimates, the contribution of the Microsoft Portugal ecosystem to GDP (at factor cost) is 1.42%. Direct taxes on profits paid by companies belonging to the Portuguese Microsoft ecosystem are estimated to account for 1.85% of total corporate taxes.

Table 7– Microsoft Portugal Ecosystem in numbers: estimation of the ecosystem (2010)

Partners Sales(euros)

Added value(euros)

Employees

Taxes(euros)

Distributor 756,012,338 32,147,926 505 4,026,558

ISV 412,617,501 345,949,339 5,534 6,191,035

LAR 287,681,181 30,170,078 680 1,692,419

OEM 130,185,209 26,454,782 914 751,193

Reseller 2,372,033,101 866,537,172 20,022 19,930,611

Services 1,424,769,521 854,304,053 17,758 52,409,033

Total 5,383,298,851 2,155,563,350 45,412 85,000,850

Confidence interval (confidence level 95%)

[3,867,475,598; 6,899,122,103]

[1,290,117,725; 3,021,008,9759]

[34,847; 55,977]

[28,649,195; 141,352,504]

National accounts 151.413.479.000

4.350.423

(IRC) 4.591.600.00

0Share National accounts 1.42% 1.04% (IRC) 1.85%Share IC&T (2010) 26.2% 36.4% 34.5% Share IC&T (2006) 22.0% 25.9% 31.5%


The share of Microsoft Ecosystem in IC&T sectors increased in all variables, from 2006 to 2010. For sales the share increased by 4.2 pp, for added value the increase was 10.5 pp and for employment the share of Microsoft Ecosystem increased by 3 pp.

Table 8 shows the growth rates for the variables considered in this analysis and for different type of partners between 2006 and 2010. For the ecosystem as a whole we should stress the growth rates of taxes that have increased by almost

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100%. Taking into account the performance of the Portuguese economy in this period, added value and employees have also increased at a very strong pace with growth rates of 42% and 45%, respectively. In the period 2006-2010, the Portuguese Microsoft ecosystem sales increased by 26.5%, which compares with a growth rate of sales for the IC&T sectors in the same period of about 6.3% - see section 2.1.

Table 8 – Microsoft Portugal Ecosystem: variation 2006-2010

Partners Sales Added value Employees Taxes

Distributor+210,032,20

1+38.5

%+15,366,6

01+91.6

% +124 +32.5% +2,886,082 +253.1%

ISV+167,458,12

9+68.3

%+147,112,

330+74.0

%+1,99

4 +56.3% +2,732,413 +79.0%

LAR+110,651,62

1+62.5

% +701,424 +2.4% +113 +19.8% +1,160,148 +218.0%

OEM +14,178,646 +12.2%

+12,458,756

+89.0% +462 +102.0

% +81,710 +12.2%

Reseller+233,602,64

5+10.9

%+156,256,

733+22.0

%+5,16

0 +34.7% -5,369,955 -21.2%

Services+391,240,36

5+37.9

%+303,606,

778+55.1

%+6,30

9 +55.1% +40,849,054 +353.4%

Total+1,127,163,

608+26.5

%+635,502,

623+41.8

%+14,1

61 +45.3% +42,339,452 +99.2%


Table 9 – Estimates using survey data

Number of

answers

% Microsoft

(weighted average by the square root of

sales)

Sales(euros)

Added value

(euros)

Employees

Taxes(euros)

Distributor 3 7.06% 53,396,600 2,270,585 36 284,393

ISV24

34.71%[16.39%;53.0

4%] 143,224,403120,083,09

8 1,921 2,148,981

LAR3

60.96%[51.87%;70.0

5%] 175,376,288 18,392,292 414 1,031,733

OEM 1117.08%

[0%;35.18%] 22,237,248 4,518,805 156 128,313

Reseller53

16.93%[9.46%;24.40

%] 401,602,045146,710,89

6 3,390 3,374,394

Services47

33.99%[21.87%;46.1

1%] 484,236,275290,352,23

3 6,035 17,812,253Total 141 1,280,072,8 582,327,90 11,952 24,780,06

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59 8 7Source: Own computations and Amadeus database.Note: Confidence level at 95% in square brackets.

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In order to evaluate which part of the business of the Portuguese Microsoft ecosystem was directly related to Microsoft’s products, services and platforms, a survey was carried out from March to July 2013. The survey intended to obtain information on the share of sales, added value, employees and taxes directly related to Microsoft. We got 141 valid answers by firms belonging to the Portuguese Microsoft ecosystem with data available in AMADEUS database and information on the share of Microsoft related revenues in products, services and platforms. Table 9 presents the results for sales, added value, employees and taxes given by the product of the share of Microsoft related revenues (weighted by the square root of sales within partner type) and the values for those variables presented in Table 7. Microsoft related sales represent about 23.8% (=1,280,072,859/5,383,298,851) of the ecosystem total sales. Added value directly generated by Microsoft products and services is close to 600 million euros; the number of employees is close to 12000 and the direct amount of taxes is almost 25 million euros.

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Documents

The Impact of the Microsoft Ecosystem in the Portuguese ...€¦ · Web view1.3. Contribution of the IC&T sectors to GDP in the Portuguese Economy. 9. 1.4. Contribution of the IC&T