Microsoft Takes Manhattan

By LARRY O'CONNOR

February 27, 2006 -- Microsoft Corp. is planning to add close to 140 jobs and almost double the size of its Manhattan office space by fall

The Redmond, Wash.-based company is already hiring more sales and software specialists to cater to its 400 largest corporate clients in the New York area, according to a story in today's Crain's New York Business. Microsoft's New York operations expect to generate about $500 million this fiscal year in sales to its so-called enterprise business customers. New York area enterprise sales have risen about 12 percent a year since 2004.

Overall, about 25 percent of Microsoft's $39 billion in annual revenue comes from such sales, and the New York region is the single biggest driver of those sales within the company. The enterprise group consists of sales teams focused on corporations in such industries as financial services, health care and retail.

"Over the next 18 months, a wave of new products will come to market," said Michael Robinson, general manager of Microsoft's New York and New Jersey district.

Microsoft's presence in New York dates back to 1990. The software giant has occupied 100,380 square feet at 1290 Sixth Ave., between 51st and 52nd streets, since 2003. "We are negotiating to expand by 70,000 square feet," Robinson said.

The expansion will allow Microsoft to build a 15,000-square-foot technology center, which its enterprise business sales staff will use to demonstrate how corporations can employ Microsoft software in a work environment. The Manhattan sales force currently brings existing clients and prospective customers to Microsoft tech centers in Reston, Va., and Boston.

"There was huge customer demand for a center here," said Robinson. "It builds credibility." The company has found that the tech centers help salespeople lift revenue and close deals faster, he said. In addition to the enterprise group, the Sixth Avenue office houses a unit that markets to small and midsize businesses, as well as staffers for MSN, Microsoft's consumer Web services and search engine unit