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California’s IT industry is expected to experience a significant financial impact as a result of the launch of the Windows Vista operating system. According to a research study recently completed by IDC and commissioned by Microsoft, within the first year of the Windows Vista shipment, California’s IT industry will begin seeing considerable increases in new jobs and revenue. The study’s findings indicate that Windows Vista will provide a foundation for the IT market, with more than 60 percent of total IT employment being related to Windows Vista. In addition, total Windows®-related employment in California is expected to jump by nearly 16,000 jobs.
Windows Vista, together with the 2007 Microsoft Office system, was made available on Nov. 30 to Volume Licensing customers and will be broadly available on Jan. 30.
“Windows Vista will create additional revenues for Microsoft in California, but will also create even bigger economic ripples throughout the ecosystem that sells products and services in California that run on or work with it,” said John Gantz, chief research officer and senior vice president of IDC. “Windows Vista’s footprint in the state will be wide, as original equipment manufacturers sell PCs that run on it, software companies sell applications that run it, and services and distribution firms deliver, install, support and train on it. We expect that in the first year of Windows Vista shipments, this ecosystem will sell more than $10 billion of Windows Vista-related products and services in California.”
Microsoft partners — companies that sell hardware, write software, provide IT services or serve as IT distribution channels — will also feel the impact of Windows Vista because it will drive substantial revenue and growth for Microsoft-centric companies. According to the study, the release of Windows Vista will help strengthen the more than 30,000 California IT companies that will produce, sell or distribute products and services running on Windows Vista. The study also forecasts that each dollar of Windows Vista-related revenue earned by Microsoft in 2007 will generate more than $19 in revenue for the ecosystem beyond Microsoft.
“Microsoft is proud to bring products to market that help infuse economic growth here in California,” said Sandi Thomas, Southern California District general manager at Microsoft. “This launch is generating economic opportunities in California and across the nation by creating jobs, enabling organizational efficiencies and helping solve business challenges for our customers, partners and the IT industry as a whole.”
Microsoft’s ecosystem is making a sizable investment to prepare for and roll out Windows Vista worldwide, according to the IDC study. Between now and the end of 2007, IDC expects Microsoft partners to invest approximately $1.4 billion in Windows Vista-related products and services.