| By Udayan Banerjee | Article Rating: |
|
| July 22, 2011 12:45 AM EDT | Reads: |
2,915 |
This is true not only in absolute dollar term but also true as a percentage of revenue. In fact, Microsoft spends more on R&D among all the IT and software companies – in both absolute dollar terms as well as percentage of revenue.
Have a look at the data below. I have picked it up from a post in Infoworld by Ted Samson.
|
Revenue in billion US$ |
R&D Budget in billion US$ |
R&D Budget as % of Revenue |
|
| Microsoft |
62.5 |
8.7 |
13.92% |
| Oracle |
35.6 |
4.5 |
12.64% |
|
29.3 |
3.7 |
12.63% |
|
| IBM |
99.9 |
6.0 |
6.01% |
| Apple |
65.2 |
1.8 |
2.76% |
| HP |
126.0 |
3.0 |
2.38% |
It was a surprise to see Oracle so high up in the list but I guess it may be a legacy from Sun. However, what is more surprising is to see Apple and HP spending so less on R&D.
I poked around a little to cross check the validity of the data – it appears indicatively accurate. In fact Microsoft R&D spending may be little understated. (See Microsoft R&D Spending, Comparative R&D Spending and Oracle R&D Spending).
Here is another chart from Business Insider which is based on 2009 data.
So, it would be foolish to write-off Microsoft in mobile. They have a habit of bouncing back and taking the lead after late start. Let us wait and watch where Microsoft will it be in ten years?
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Published July 22, 2011 Reads 2,915
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More Stories By Udayan Banerjee
Udayan Banerjee is CTO at NIIT Technologies Ltd, an IT industry veteran with more than 30 years' experience. He blogs at http://setandbma.wordpress.com.
The blog focuses on emerging technologies like cloud computing, mobile computing, social media aka web 2.0 etc. It also contains stuff about agile methodology and trends in architecture. It is a world view seen through the lens of a software service provider based out of Bangalore and serving clients across the world.
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