Salesforce Economy to bring $859 billion in New Revenues Worldwide by 2022
With Dreamforce starting in about a week, Salesforce has released its third Salesforce Economy report. The report is compiled by IDC and it looks at how Salesforce’s ecosystem contributes to economies across the world. For Salesforce, a lot of the times it isn’t necessarily about the technology, but more about what that technology can empower.
According to the report, there are going to be 3.3 million new jobs and more than $859 billion in new business revenue by 2022 worldwide. That number has been upped considerably from last year’s IDC prediction of 1.9 million jobs and $389 billion in new revenues by 2020.
The report found that the business sector most likely to benefit from the Salesforce ecosystem will be financial services. It’s anticipated that 584,995 new jobs and $164 billion in new business revenues will result by 2022 in this area. A close second is the manufacturing industry where it’s estimated that there will be $159 billion in new revenues and 638,296 new jobs. Retail comes next, with 401,355 new jobs and $92.6 billion in new revenues and the lowest numbers can be found in the public sector with $50.9 billion in new revenues and 221,640 new jobs.
When it comes to global markets- the US is anticipated to benefit the most with 408,760 new jobs and $411 billion in new revenue. Japan comes in second, with $108.4 billion in new revenue and 153,387 new jobs.
The European market is currently being heavily targeted for expansion by Salesforce. The IDC anticipated that France will see $24.3 billion in new business and 37,115 new jobs and that Germany will see $17 billion and 26,291 new jobs.
In terms of the UK, the IDC predicts $65.6 billion in new revenue and 114,545 new jobs, however, that might all change once the UK and the EU decide on Brexit terms.
The IDC report also found that currently the Salesforce ecosystem is almost four times larger than Salesforce itself and it predicts that by 2022 it’ll be more than five times larger. It also estimates that for every dollar made by Salesforce in 2017, partners make $3.67 and that number will grow to $5.18 by 2022.
Benefits of the Salesforce Ecosystem
The specific benefits of being part of the Salesforce ecosystem according to findings based on a survey of 75 partners in 2016 by the IDC include:
- Cutting the cost of quality assurance by 45% and decrease time to market by 39%
- Using Salesforce AppExchange allows for increased market reach by 13% and sales closing rate improved by 39%
- Development times cut by 40% thanks to the Salesforce platform development tools compared to traditional development methods
The IDC concludes overall that cloud computing is empowering companies in their digital transformation strategies, stating:
The breadth and variety of cloud applications and development platforms available today mean that most of an organization’s business processes and workflows can be migrated to the cloud. Legacy systems — the large enterprise applications installed in past decades — can become part of the digital transformation.
IDC’s forecasts show a significant payback from investments in cloud computing out to 2022. But even by then, spending on public cloud computing will be less than 13% of spending on IT. We are still on the ground floor of cloud computing, with lots of headroom for more payback.