Vista could create 50,000 EU jobs

Vista could create 50,000 EU jobs

Summary: Analysis: The next version of Windows will create a cascade of benefits for local European economies, according to a Microsoft-sponsored study

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The IDC white paper outlines the immense local ecosystem that Windows has allowed to flourish in Europe.

Within the six countries, more than 20 percent of all IT employment will be Windows Vista-related in the first 12 months of deployment, a figure that will grow substantially in 2008, when IDC expects Vista to account for 80 percent of Microsoft client operating systems shipped to enterprises. Thirty million computers in the six countries will run Vista in its first 12 months, and 105 million worldwide.

Moreover, for every euro of revenue that Microsoft makes, companies within the IT ecosystem will, on average, make more than 13 euros, IDC found. In the UK, hardware companies are expected to see 7.24 euros of revenue, software companies 3.64 euros and services companies 2.74 euros per euro of Microsoft's Vista revenue, for a total of 13.62 euros.

According to Microsoft, that's not a bad payback for an investment that's such a modest part of companies' overall IT budgets - 1 percent of the 214bn euros the region will spend on IT in 2007 and roughly 5 percent of the packaged software spend.

"The economic opportunity Windows Vista creates for small and large companies across the region is clearly much more significant," stated Jean-Philippe Courtois, president of Microsoft International.

European companies may not be directly involved in developing Vista, but they are participants nonetheless, IDC said.

"Windows Vista is not just a product of Microsoft. In the marketplace, it will be a constellation of solutions and services delivered by an entire ecosystem," wrote Gantz, Gillen and Warmerdam. "The launch of Windows Vista will precipitate cascading economic benefits, from increased employment in the region and increased taxes to a stronger economic base for those 150,000+ local firms that will be selling and servicing products that run on Windows Vista."

Such benefits may help explain why Microsoft has only faced antitrust actions relatively recently. "Microsoft does create economic opportunities, and that's probably why they didn't get slapped around by the Department of Justice sooner - it wasn't taking all the money for itself," said RedMonk principal analyst James Governor.

In 2000 the Department of Justice found that Windows was an illegal monopoly, and originally intended to break up the company. The European Commission in 2004 found that Microsoft had illegally used its Windows client monopoly to expand its market share in servers. Microsoft has not yet complied with all antitrust remedies, according to the Commission.

Critics of Microsoft say that looking at jobs and economic growth doesn't tell the full story. For instance, a monopoly may create jobs, but can harm innovation, according to antitrust authorities. "If you want to foster a local product-based economy, there is certainly an argument that says it may not be beneficial if there are companies with aggressive policies that try to limit local companies' ability to grow and innovate," Governor said.

Open source advocates, particularly in poorer countries, argue that dependence on Microsoft and other overseas-based, proprietary software companies may not allow the development of high-level IT skills in the local economy. That was the argument made in a famous open letter written to Microsoft by Peruvian congressman Dr. Edgar Villanueva in 2002.

"In respect of the jobs generated by proprietary software in countries like ours, these mainly concern technical tasks of little aggregate value," Villanueva wrote. In September 2005 Peru approved a Villanueva-sponsored bill promoting the use of open source software by the government, despite criticism from Microsoft.

Topic: Operating Systems

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  • Correct political statement. Now do add some reaility.

    Thing is that if the goal is to create jobs in the EU then the first order of business would be to ban Vista from EU markets and adopt Open Source instead. That in itself would create countless of jobs (need creates demand) and would set up the EU as a well established and experienced partner to growing markets like in Asia.

    Let's see. Satisfying 7% of the world population (US) that's only open to its own self satisfaction versus the other 93% (non US) that's open minded to anything that works for them. Hmmm. Wow, only a lobbied for politician would make the wrong decision.

    Do make sure that you vote for a politician that has your best interest in mind next time. One more thing, waiting for your politician to come up with some bright idea is a sure way to get annoyed. Best thing is to make him/her aware of your concerns. So send an e-mail out this week.
    anonymous
  • This is a survey sponsored by Microsoft so we know that it is completely unbiased then! Sounds a bit like the survey of Tory voters that said 95% would vote Conservative at the next election.
    anonymous
  • So in other words Vista is going to create a lot more work and cost a lot more money?
    anonymous
  • 50,000? Is MS Vista that difficult to install and maintain? Linux, OS X or BSD sound like a better deal.
    anonymous
  • Simon & Olavi are correct. I downloaded the RC-1 version, just to check it out. It took 45 minutes to setup. Then you have to add your
    3rd party software and hope it will work with vista. If not, you have to buy more, or update as soon as it's available. RC-! failed to find my Linksys
    NIC card and my SB sound board. Two major players not supported yet. Going to be a lot of companies that will have to replace older hardware to run vista. So, yes it will take more people to install and maintain vista, not to mention the security team trying to keep hackers out. I will stick to Linux, stable, AND secure.
    anonymous
  • So Vista could creat 50,000? Doing what? Teaching us how to use Vista no doubt. Will the EU versions not have media player, and will the English version of Office 2007 have a proper English dictionary and grammar?

    Just think of all the money that MS is hoping to make!

    Linux sounds a better bet.
    anonymous
  • Another bullshit story from a bullshit company
    anonymous
  • Another version of bribing us with our own money. These people have jobs now. Many of them would be capable of doing something moer useufl and interesting than any new impositions with newly incompatible versions of Windows.
    anonymous
  • 50,000 tech support needed so it works? thar's nice - Guess we can fire those sales and production people to fund the downside of having to wipe every drive clean and reinstalling for weeks on end.

    Only Ms would be proud to mention their app needs 50,000 people to get it to run.
    anonymous
  • Microsoft's idea of fair comp ?.
    Jobs will be lost when Vista hits the fan, smb will need to let people go to off-set the upgrade costs of going Vista !.
    anonymous