Microsoft spends more on R&D than Google
[Update September, 2012 - R&D spend data from Dan Lyons's post (figures are R&D spend as a % of revenue
Google - 14%, Microsoft - 14%, Samsung - 6%, Apple - 2%]
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 surprised 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?
Udayan Banerjee on Google+
Comments
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I agree…. Microsoft will bounce back in the mobile market.. It is easy for them to target corporate customers… They can easily defeat blackberry, Android and iOS in corporate users
Microsoft will bounce back a small amount, only because RIM is failing. Saying they can “easily” defeat Android/iOS seems to speak directly from internal MS marketing.
If you want to see where Microsoft is in ten years, look at the rest of the market in 7 years.
I think only revenue cannot be a comparison for this, how long these companies are there in business, and what is there reserve from profits( which will also determines there ability to take risks).
Looking this way the number does not surprise much.
Microsoft and oracle were mostly profitable.
IBM and Apple-just rebounded
HP also had troubles.
Is not Google new comer- compare to these guys?- In that sense Google is doing a lot.
What is the percantage efficiency in R&D conversion? Does G see better conversion? Now that would be a more interesting detail.