September 2016, IDC #US41691316
White Paper
The Salesforce Economy: Enabling 1.9 Million New Jobs and
$389 Billion in New Revenue Over the Next Five Years
Sponsored by: Salesforce
John F. Gantz
Pam Miller
September 2016
IN THIS WHITE PAPER
This White Paper forecasts the economic contribution of Salesforce and its ecosystem of partners and
customers to local economies in terms of jobs and gross domestic product (GDP) impact.
The study relies on IDC's forecasts of job creation from organizational use of cloud computing, IDC's
understanding of Salesforce's market share, IDC's published research on the number of ancillary
products and services that accompany cloud computing implementations, IDC's understanding of how
Salesforce partners and developers are building applications and services on top of the Salesforce
platform, surveys of cloud computing customers, and a custom economic model that estimates the
size of the Salesforce ecosystem.
EXECUTIVE SUMMARY
 Worldwide, Salesforce and its ecosystem will enable the creation of 1.9 million jobs within the
Salesforce customer base from the use of cloud computing between the end of 2015 and the
end of 2020.
 During this same time frame, Salesforce and its ecosystem will enable the creation of more
than 2.8 million indirect jobs, or those jobs created in the supply and distribution chains
serving Salesforce customers, as well as from new company employees spending money in
the general economy.
 Over the same period, the benefits of cloud computing accruing to Salesforce customers will
add $389 billion in new business revenue, or GDP impact, to their local economies.
 Cloud computing generates these benefits primarily by permitting an increase in IT innovation,
which in turn supports business innovation that leads to accelerated development schedules,
faster project completion, shorter time to market for new products, and lower operational costs.
 The Salesforce ecosystem revenue is three to four times bigger than Salesforce itself because
organizations that spend on cloud computing subscriptions also spend on ancillary products
and services, from additional cloud subscription and professional services to additional
software applications, hardware, and managed services. IDC predicts that by 2020, for every
dollar Salesforce makes, the company's ecosystem will achieve $4.14.

If Salesforce merely grows at the rate of cloud computing adoption, that means that the ecosystem
as a whole will pull in more than $100 billion in new revenue from 2015 through 2020. The United
States, because of its large share of cloud computing implementations and of Salesforce's global
revenue, will generate about two-thirds of the world's financial gain from the Salesforce customer
set, but about two-thirds of the jobs will be created in emerging markets where labor costs are low.
©2016 IDC
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
In an IDC survey of 1,142 cloud-using organizations in eight countries conducted in 2015,
Salesforce customers said, on average, they have experienced payback from their Salesforce
technology investments in 13 months or less. Over four years, aggregate worldwide
investments by Salesforce customers in cloud computing should yield three to five times the
financial benefits compared with costs.
ECONOMIC BENEFIT SUMMARY
Table 1 shows the summary of the impact of Salesforce as well as its ecosystem of partners and its
customers in the regions studied. Detailed definitions are provided in the Appendix.
TABLE 1
Local Economic Benefits Summary
Country
Business
Revenue
Created ($M),
YE2015–
YE2020
Direct Jobs
Created,
YE2015–
YE2020
Indirect/
Induced Jobs
Created,
YE2015–
YE2020
Ecosystem
Revenue/
Salesforce
Revenue, 2015
Ecosystem
Revenue/
Salesforce
Revenue, 2020
United Kingdom
35,857
86,210
149,284
2.42
3.89
France
6,480
26,177
74,943
3.23
4.57
Germany
5,032
18,181
27,923
2.57
4.06
Netherlands
1,477
7,322
11,133
2.61
4.11
Rest of Western Europe
10,390
34,444
52,891
2.57
4.08
Western Europe total
59,235
172,334
316,174
2.56
4.03
United States
269,318
323,194
426,784
2.90
4.16
Canada
1,640
18,344
28,445
2.76
4.35
Australia
6,990
16,015
31,905
2.66
4.06
Japan
20,443
109,710
130,678
2.67
4.12
Singapore
1,778
2,863
5,323
2.88
4.22
Worldwide
389,026
1,871,275
2,856,109
2.82
4.14
Source: IDC's Salesforce Economic Impact Model, 2016

©2016 IDC
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CLOUD COMPUTING: A SOFTWARE ENGINE FOR IT GROWTH
When Salesforce released its first product in 2000, cloud computing was in its infancy, an unproven
computing technique. In fact, cloud computing didn't surpass 1% of IT spending until 2009. Even today,
public cloud computing accounts for less than 5% of spending on IT and 15% of spending on software.
But despite its small share of the $2 trillion IT market, cloud computing has been a major contributor to
growth in IT spending, growing at 4.5 times the rate of IT spending since 2009 and expected to grow at
better than 6 times the rate of IT spending from 2015 through 2020 (see Figure 1).
FIGURE 1
The Rapid Growth of Cloud Computing, 2015–2020

Source: IDC, 2016

The services offered through cloud computing are traditionally split into the following types:
 Software as a service (SaaS) — applications, which support collaboration, enterprise resource
management, and customer relationship management (Salesforce's cloud solutions fit into this
category, including sales cloud, service cloud, and marketing cloud.)
 SaaS — system infrastructure, which provides systems management, security, and other
background software operations or system infrastructure software such as security or systems
management
 Platform as a service (PaaS), which delivers application development tools and development
platforms (The Salesforce App Cloud falls into this category.)

Infrastructure as a service (IaaS), which is the delivery of information storage, processing,
bandwidth, or other utility computing services (IaaS typically replaces on-premises hardware.)
While Figures 1 and 2 relate to "public" cloud computing, there are also "private" cloud solutions that
offer shared solutions within a company. These can be provided by internal IT organizations or
managed or hosted by third parties. For the purpose of this White Paper, IDC considered all forms of
cloud computing in the analysis and forecasts of economic impact.
$67
$82
$99
$117
$138
$162
2015
2016
2017
2018
2019
2020
Woldwide Spending on Public Cloud Computing, 2015–2020 ($B)
Average Compound Growth Rate, YE2015–YE2020, 19%
IT Spending Average Compound Growth Rate,
YE2015–YE2020, 3%
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FIGURE 2
Software Services Drive Cloud Computing, 2015 and 2020

Source: IDC, 2016

HOW SALESFORCE CLOUD OFFERINGS DRIVE BENEFITS
IDC has been tracking and predicting the impact of cloud computing on local economies since 2009.
That research, along with research by other academics, shows that cloud computing's economic
impact is much larger than just the efficiencies it can bring to an IT organization.
The leverage from cloud computing comes from the fact that so much of traditional IT is tied up with
maintenance of legacy systems and routine upgrades — in fact, 71% of IT spending in a survey
conducted by IDC in 2015.
By moving routine tasks and even traditional on-premises applications to the cloud, organizations can
shift budget and personnel to innovation to support new business opportunities, which in turn drives
new business revenue.1 In fact, IDC estimates that for 2015, cloud computing accounted for more than
half a trillion dollars of business revenue — in a global economy of $175 trillion in revenue.

1 For a deeper discussion, see the 2015 study on the Salesforce economy at
www.salesforce.com/assets/pdf/misc/The-Salesforce-Economy-White-Paper.pdf.
SaaS: Apps
(61.0%)
SaaS:
System Infras.
(12.0%)
PaaS
(11.0%)
IaaS
(16.0%)
2015
$67B
Worldwide Spending on Public Cloud Computing by Type ($B)
SaaS: Apps
(54.0%)
SaaS:
System Infras.
(8.0%)
PaaS
(17.0%)
IaaS
(21.0%)
2020
$162B
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Because Salesforce represents nearly 10% of the aggregate public cloud services market, and
its ecosystem a multiple of even more, a substantial share of all that revenue will accrue to
Salesforce customers.
In fact, IDC estimates that from the end of 2015 to the end of 2020, the use of cloud computing will add
$389 billion in revenue to Salesforce customers' ongoing revenue streams — nearly $80 billion a year
(see Figure 3).
That revenue, in turn, generates employment — people to design, market, sell, produce, and service
the products and services driving that revenue.
IDC estimates a net increase of 1.9 million jobs produced in this "Salesforce economy" between the
end of 2015 and the end of 2020 (see Figure 4).
There are also additional jobs created in the supply and distribution chains serving those Salesforce
customers, as well as from new company employees spending money in the general economy.
IDC estimates that 2.9 million of these jobs, called indirect or induced jobs, will be created by the
1.9 million jobs depicted in Figure 4. (Refer back to Table 1 for the indirect/induced job figures.)
FIGURE 3
$389 Billion in Net-New* Global Revenue from Cloud Computing by Salesforce
Customers, 2015–2020

Note: Total does not equal $389 billion because of rounding.
Source: IDC's Salesforce Economic Impact Model, 2016

$0
$20
$43
$72
$106
$149
2015
2016
2017
2018
2019
2020
Cloud-Related Revenue in 2015 = $82B
* Difference from Cloud-Related Revenue in 2015
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FIGURE 4
1.9 Million in Net-New* Jobs from Cloud Computing by Salesforce Customers,
2015–2020

Source: IDC's Salesforce Economic Impact Model, 2016
WHERE SALESFORCE CLOUD OFFERINGS DRIVE BENEFITS
Respondents to the 2015 survey conducted by IDC reported that their average payback for a Salesforce
cloud investment was 13 months or less. And the IDC Salesforce Economic Impact Model (EIM) shows that
over a four-year period, the return from those investments can be four to five times the original investment.
Figure 5 shows the various benefit vectors that IDC expects will be achieved by Salesforce customers over
the next four years. It also shows that, although most benefits come from internally facing projects, such as
operational productivity improvements, more benefits come in the form of increased revenue than lower costs.
FIGURE 5
Where Cloud Computing Delivers Its Returns

n = 1,142
Source: IDC's Cloud Economic Impact Survey, 2015
0
174,379
445,615
807,822
1,295,029
1,871,275
2015
2016
2017
2018
2019
2020
* Difference from Cloud-Related Jobs in 2015
Cloud-Related Jobs in 2015 = 1,092,100
Customer
facing
(15.0%)
Operational
improvement
(39.7%)
Innovation
(18.7%)
Employee
productivity
(26.6%)
Total = 100
Benefits by Project Type, Salesforce Customers
14%
26%
60%
Increased productivity
Lower costs
Increased revenue
Benefits by Type, Salesforce Customers
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By region, the benefits of cloud computing — at least in revenue generation — generally match the
distribution of spending on cloud computing, which in turn is more or less similar to the distribution of
Salesforce revenue.
Table 2 compares the regional breakdown of spending on public cloud computing with that for the
business revenue IDC estimates was created in 2015 from the Salesforce economy.
TABLE 2
Salesforce Customers' Business Revenue Using Cloud Computing Versus
Spending on Cloud Computing, 2015 (%)

United States
Western Europe
Japan
ROW
Business revenue
65
11
6
18
Spending on cloud computing
62
17
4
18
Source: IDC's Salesforce Economic Impact Model, 2016

THE SALESFORCE ECOSYSTEM
IDC's research shows that, for the most part, every cloud subscription sold is accompanied by other
products and services. These can include additional cloud-based subscriptions (say for storage or
security), additional applications to increase productivity, (say for digital signature or administration), or
even hardware or networking.
In the 2015 survey referenced previously, IDC found all manner of additional services and products
accompanying cloud subscriptions, including:
 Additional cloud subscriptions, such as storage, security, or other applications
 Additional cloud applications, such as digital signature, cloud-based ERP, integrated voice,
and analytics
 Business consulting, such as planning, vendor management, and needs assessment

IT consulting to support migration, integration, and data preparation
 On-premises hardware or software, such as additional servers, upgraded end-user computers,
and new or upgraded mobile devices
 Additional bandwidth, VPN upgrades, and remote access services
 End-user or IT training
 Other
Figure 6 shows the prevalence of these additional expenditures as reported by the respondents to
IDC's Cloud Economic Impact Survey, 2015.
While Figure 6 shows the percentage of respondents spending on additional products and services to
make their implementations complete, it doesn't show the actual expenditures.
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However, using market research on ratios of software to services spending and to hardware and
networking, including spending on the basic Salesforce subscription, IDC estimates that in 2015, the
ecosystem generated $18 billion in revenue worldwide.
Based on IDC's forecasts on spending on cloud computing, and assuming that Salesforce can grow at
least at the same rate as spending on cloud computing, by 2020, that revenue figure is expected to be
$73 billion.
Figure 7 shows the source of that revenue by product or service category.
FIGURE 6
Additional Respondent Spending Beyond Original Cloud Subscription

n = 1,142
Source: IDC's Cloud Economic Impact Survey, 2015

3%
32%
35%
38%
41%
42%
43%
0
10
20
30
40
50
None
Bandwidth
Business consulting
End-user or IT training
IT consulting
On-premises hardware/software
Additional cloud services
(% of Respondents Saying Additional Spending Required for a
Fully Functional Implementation)
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FIGURE 7
The Salesforce Ecosystem Size and Makeup, 2015 and 2020

Source: IDC's Salesforce Economic Impact Model, 2016

As a result of these additional products and services, the ecosystem that surrounds Salesforce
implementations is larger than Salesforce itself — in fact, in 2015, for every dollar Salesforce made, the
ecosystem made $2.82. And by 2020, for every dollar Salesforce makes, the ecosystem is projected to
make $4.14.
IDC predicts that this ecosystem will grow even faster than Salesforce in the coming years — a function
of the expected growth of the Salesforce ecosystem and the expected growth of ancillary products and
services needed by customers as their implementations become more complex and mission critical.


SaaS: Apps
(61.0%)
SaaS:
System Infras.
(12.0%)
PaaS
(11.0%)
IaaS
(16.0%)
2015
$18B
SaaS: Apps
(54.0%)
SaaS:
System Infras.
(8.0%)
PaaS
(17.0%)
IaaS
(21.0%)
2020
$73B
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Table 3 shows the ratio of Salesforce revenue to the revenue of its ecosystem from 2015 to 2020.
TABLE 3
The Growing Salesforce Ecosystem, 2015–2020

2015
2016
2017
2018
2019
2020
Ecosystem
2.82
3.07
3.32
3.59
3.86
4.14
Source: IDC's Salesforce Economic Impact Model, 2016

This growing ratio and the growth of Salesforce itself mean that ecosystem revenue will grow
handsomely, from under $20 billion in 2015 to more than $70 billion in 2020.
Note that the Salesforce ecosystem includes all companies that provide the products and services that
surround a Salesforce implementation. Many, but not all, of these companies will be recognized
Salesforce partners, such as Salesforce Consulting Partners or ISV Partners, with apps listed on the
Salesforce AppExchange. The others may be brought into the project by partners or by the end-user
organizations themselves. And any single Salesforce partner could well make a higher multiple of
Salesforce than the aggregate ecosystem average.
What drives the partners? In addition to the chance to grow double their revenue over the next five
years, 75 partners polled for this study reported significant returns from working with Salesforce:
 Using the Salesforce App Cloud development tools cut the Salesforce partners' development
time by 31% compared with traditional development methods.
 Using the Salesforce App Cloud allowed the Salesforce partners to cut the cost of quality
assurance by 34% and decreased time to market by 32%.
 Using the Salesforce AppExchange allowed the Salesforce partners to improve their sales
closing rate by 15%.
Since joining the Salesforce partner program, the average partner respondent reported an annual
revenue growth of 38%, and for the next three years, they expected annual revenue growth of 45%.
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CONCLUSION
Even though cloud
computing still represents a
relatively small percentage of
overall IT spending, it is
growing at a much faster
pace than IT as a whole.
Further, because of the
leveraged nature of cloud
computing — freeing up IT
resources to support
business innovation —
investments in cloud
computing yield broad
benefits for local economies,
not to mention customers,
partners, and cloud
providers.
The key takeaways in this
study for organizations
utilizing, or interested in,
cloud computing are the
following:
 The payoff to the
larger organization is
much greater than
just the impact on the IT organization. Cloud computing often underpins larger digital
transformation projects at many enterprises.
 Successful implementations require concerted efforts on the part of customers,
cloud providers, and providers of ancillary services and products. Salesforce, as a recognized
market leader, helps bring all three to the table. The maturity model for cloud computing
entails migration from ad hoc projects to a "cloud" approach. Organizations on this journey
need suppliers that can support them all the way.
 The breadth and variety of cloud applications available today mean that the majority of key
business processes and workflows — whether ERP, CRM, HCM, or other systems — can now
be migrated to the cloud and integrated with existing cloud platforms.
IDC's forecasts show a significant payback from investments in cloud computing out to 2020. But even
by then, spending on cloud computing will be little more than 15% of spending on IT. We are still on
the ground floor of cloud computing, with lots of headroom for ever more success. Salesforce and its
ecosystem are well positioned to take advantage of that headroom.
The Impact of Brexit
The data and surveys used in the model for this White Paper were
generated prior to the vote on July 23 by the citizens of the United
Kingdom to leave the European Union (aka "Brexit"). This change in the
status of the United Kingdom in the European market is expected to
affect both the economy of the United Kingdom and that of other
European countries. In fact, the Economist Intelligence Unit has already
dropped its forecast for real GDP growth in the United Kingdom from an
average of 1.8% to 0.6% per year from 2016 through 2020.
In August 2016, IDC updated its forecast for software spending in the
United Kingdom and Western Europe — incorporating Brexit and
related factors — which dropped the average compound growth rate
from 6.2% to 5.0% for 2016–2020. For Western Europe, the number fell
from 5.1% to 4.7%. IDC has not yet updated its forecast for spending
on cloud computing related to Brexit, but it is possible that a slower
economy could actually accelerate the migration to cloud computing
as enterprises seek to lower up-front capital costs. Regardless, IDC
advises readers that the data in this White Paper most likely
represents the upper bound of forecasts for the United Kingdom and
Western Europe at this time.
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APPENDIX: DETAILED BENEFITS DATA
United States
Table 4 contains IDC's estimates of the impact of the Salesforce economy in the United States.
TABLE 4
Job Creation and Business Revenue for the Use of Cloud Computing and
Salesforce Ecosystem Ratio — United States, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
53,097
7,016
9,156
11,876
14,799
18,744
Direct jobs
174,631
48,842
62,771
80,097
98,404
122,366
Indirect/induced jobs
231,658
89,025
111,813
144,074
184,708
212,024
Ecosystem-to-Salesforce revenue ratio
2.90
3.14
3.38
3.65
3.90
4.16
Source: IDC's Salesforce Economic Impact Model, 2016

Canada
Table 5 contains IDC's estimates of the impact of the Salesforce economy in Canada.
TABLE 5
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Canada, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
1,476
1,490
1,656
1,864
1,944
2,068
Direct jobs
13,568
15,711
18,660
22,666
26,259
31,912
Indirect/induced jobs
20,696
24,976
29,141
35,802
43,103
49,141
Ecosystem-to-Salesforce revenue ratio
2.76
3.05
3.34
3.68
4.00
4.35
Source: IDC's Salesforce Economic Impact Model, 2016

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France
Table 6 contains IDC's estimates of the impact of the Salesforce economy in France.
TABLE 6
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — France, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
919
1,075
1,400
1,725
3,310
3,563
Direct jobs
9,160
11,996
15,310
19,430
28,460
35,337
Indirect/induced jobs
15,175
20,748
25,902
33,187
79,320
90,118
Ecosystem-to-Salesforce revenue ratio
3.23
3.49
3.75
4.03
4.29
4.57
Source: IDC's Salesforce Economic Impact Model, 2016

Germany
Table 7 contains IDC's estimates of the impact of the Salesforce economy in Germany.
TABLE 7
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Germany, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
910
1,094
1,417
1,741
2,374
2,959
Direct jobs
7,742
10,046
12,875
16,384
20,759
25,923
Indirect/induced jobs
12,004
16,224
20,342
26,112
34,356
39,927
Ecosystem-to-Salesforce revenue ratio
2.57
2.84
3.11
3.41
3.72
4.06
Source: IDC's Salesforce Economic Impact Model, 2016

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Netherlands
Table 8 contains IDC's estimates of the impact of the Salesforce economy in the Netherlands.
TABLE 8
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Netherlands, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
359
360
478
597
793
1,042
Direct jobs
3,179
4,124
5,313
6,781
8,391
10,501
Indirect/induced jobs
4,871
6,565
8,291
10,666
13,674
16,004
Ecosystem-to-Salesforce revenue ratio
2.61
2.88
3.15
3.45
3.77
4.11
Source: IDC's Salesforce Economic Impact Model, 2016

United Kingdom
Table 9 contains IDC's estimates of the impact of the Salesforce economy in the United Kingdom.
TABLE 9
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — United Kingdom, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
5,147
7,016
9,156
11,876
14,799
18,744
Direct jobs
36,156
48,842
62,771
80,097
98,404
122,366
Indirect/induced jobs
62,740
89,025
111,813
144,074
184,708
212,024
Ecosystem-to-Salesforce revenue ratio
2.42
2.69
2.96
3.26
3.56
3.89
Source: IDC's Salesforce Economic Impact Model, 2016

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Rest of Western Europe
Table 10 contains IDC's estimates of the impact of the Salesforce economy in the rest of Western
Europe.
TABLE 10
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Rest of Western Europe, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
2,013
2,471
3,243
4,071
4,485
6,184
Direct jobs
2,013
2,471
3,243
4,071
4,485
6,184
Indirect/induced jobs
30,290
37,634
44,851
55,305
69,196
83,181
Ecosystem-to-Salesforce revenue ratio
2.57
2.84
3.12
3.42
3.74
4.08
Source: IDC's Salesforce Economic Impact Model, 2016

Australia
Table 11 contains IDC's estimates of the impact of the Salesforce economy in Australia.
TABLE 11
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Australia, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
1,453
1,828
2,256
2,781
3,351
4,041
Direct jobs
9,894
11,906
14,520
17,783
21,392
25,909
Indirect/induced jobs
19,561
24,948
29,652
36,803
46,558
51,466
Ecosystem-to-Salesforce revenue ratio
2.7
2.9
3.2
3.5
3.8
4.1
Source: IDC's Salesforce Economic Impact Model, 2016

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Japan
Table 12 contains IDC's estimates of the impact of the Salesforce economy in Japan.
TABLE 12
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Japan, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
4,510
5,836
7,132
8,438
9,824
11,762
Direct jobs
57,638
74,402
91,185
111,737
133,423
167,348
Indirect/induced jobs
68,925
92,020
110,883
136,817
168,303
199,603
Ecosystem-to-Salesforce revenue ratio
2.7
2.9
3.2
3.5
3.8
4.1
Source: IDC's Salesforce Economic Impact Model, 2016

Singapore
Table 13 contains IDC's estimates of the impact of the Salesforce economy in Singapore.
TABLE 13
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Singapore, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
545
637
739
869
1,028
1,233
Direct jobs
2,270
2,652
3,076
3,617
4,278
5,133
Indirect/induced jobs
4,170
5,145
5,821
6,941
8,632
9,493
Ecosystem-to-Salesforce revenue ratio
2.9
3.1
3.4
3.7
3.9
4.2
Source: IDC's Salesforce Economic Impact Model, 2016

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Worldwide
Table 14 contains IDC's estimates of the impact of the Salesforce economy worldwide.
TABLE 14
Job Creation and Business Revenue from the Use of Cloud Computing and
Salesforce Ecosystem Ratio — Worldwide, 2015–2020

2015
2016
2017
2018
2019
2020
Business revenue ($M)
81,663
101,181
124,670
153,396
187,555
230,538
Direct jobs
1,091,979
1,266,358
1,537,594
1,899,801
2,387,008
2,963,254
Indirect/induced jobs
1,663,805
2,007,155
2,382,572
2,970,170
3,915,811
4,519,914
Ecosystem-to-Salesforce revenue ratio
2.8
3.1
3.3
3.6
3.9
4.1
Source: IDC's Salesforce Economic Impact Model, 2016

APPENDIX: METHODOLOGY
The Benefits of Cloud Computing
Since 2002, IDC has maintained an internal tool called the IDC Salesforce Economic Impact Model,
which takes inputs from IDC's market research on IT spending, exchange rates, and vendor market
share, along with public inputs such as GDP, tax rates, and overall labor force from other sources. The
output of the EIM is IT company and employee counts by geographic region.
In 2009, IDC added inputs for spending on cloud computing, percentage of IT resources available for
innovation (the rest used on legacy system support and upgrades), and business revenue as a
multiple of GDP per country.
Using research-driven algorithms that compare total IT spending with spending on cloud computing
and IT budgets with business revenue; the degree to which IT innovation drives business innovation;
and estimates of business benefits from accelerated development schedules, faster project
completion, and shorter time to market for new products, the model generates job head counts and
business revenue in the general economy because of the use of cloud computing to free up IT
resources.
In short, increased IT innovation leads to increased business innovation, which leads to increased
revenue, which creates new jobs. Outputs from the cloud-infused EIM have been published in various
IDC research projects and are a critical input to the European Union's Digital Agenda for Europe.
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The Salesforce Economy
As a major vendor of cloud services, Salesforce accounts for a significant share of the benefits to the
general economy from cloud computing. That share is enhanced by other contributions to the economy
by companies that sell cloud services in concert with Salesforce cloud services, by professional
services firms that help organizations migrate to cloud computing, and by companies that sell
hardware, software, services, and networking to organizations to support cloud computing.
The Salesforce Economic Impact Model is an extension to IDC's IT Economic Impact Model. It
estimates Salesforce's current and future share of the benefits to the general economy generated by
cloud computing, and it also estimates the size of the ecosystem supporting Salesforce using IDC's
market research on the ratio of spending on professional services to cloud subscriptions; the ratio of
sales of hardware, software, and networking to spending on public and private cloud computing; and
the ratio of spending on application development tools to applications developed.
Note that the ecosystem may include companies that are not formal business partners of Salesforce
but that nevertheless sell products or services associated with the Salesforce implementations.
Key Definitions in Support of Tables and Figures
The following contains definitions of terms used in tables and figures throughout this White Paper:
 Direct jobs are those created in the Salesforce and Salesforce ecosystem customer bases
from the use of cloud computing.

Indirect/induced jobs are those created by spending in the general economy by people filling
the direct jobs.
 Net gain in jobs is the difference from year-end 2015 to year-end 2020. For revenue, it is the
aggregate difference from each year to 2015.
 Contribution to GDP is business revenue created in the Salesforce and Salesforce ecosystem
customer bases from the use of cloud computing.
 The Salesforce revenue forecast is based on Wall Street forecasts and internal IDC estimates.
It is not for publication.
 The Salesforce ecosystem includes those selling the following in conjunction with Salesforce
implementations:
 Additional cloud subscriptions (e.g., storage and security)
 Professional services and/or business consulting supporting implementation, integration,
and training
 Additional hardware, software, or networking in support of implementations, including
integration with private clouds
 Many, but not all, Salesforce ecosystem companies are registered partners with Salesforce.
 Ecosystem revenue grows as a ratio to Salesforce revenue from growth of the partner base
and growth in selected product/service categories.
 Benefit vectors show financial benefits by project type and benefit type and are based on
survey results and the IDC Salesforce Economic Impact Model.


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Supporting Surveys
To support the analysis of the Salesforce economy in a study published in 2015, IDC conducted a
survey in April 2015 of 1,142 respondents across eight countries. This survey focused on both
Salesforce customers and noncustomers (Salesforce customers were limited to 25% of the sample by
design) and asked questions about investment levels and returns by type of cloud project. The output
helped finalize algorithms in the economic models as well as develop a clearer view of exactly how
benefits from cloud computing are derived.
In the summer of 2016, IDC also conducted a survey of 75 Salesforce partners across
English-speaking countries and a half dozen in-depth interviews. The interviews explored partner
investments in various aspects of supporting Salesforce implementations, the revenue growth of
partners, and the attitudes and opinions of partners regarding their relationship with Salesforce.


About IDC
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