Software Economics
An engineer costs about $150K/year
R&D gets [5%Ö15%] of budget
Need [$3 millionÖ $1 million] revenue per engineer
Microsoft: $9 billion
R&D
16%
SG&A
34%
Product and Service
13%
Tax
13%
Profit
24%
Intel: $16 billion
R&D
8%
SG&A
11%
P&S
47%
Tax
12%
Profit
22%
P&S
59%
Profit
6%
IBM: $72 billion
R&D
9%
SG&A
43%
Tax
7%
Profit
15%
P&S
26%
Oracle: $3 billion
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