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22 May 2018

IDC Canada Releases 7 New Forecasts for Canadian ICT Market: Many Markets Exceed Expectations in 2017, as the Canadian Economy and the Race Toward Digital Transformation Encourage ICT Spending

TORONTO, ON., May 22, 2018 — International Data Corporation (IDC) Canada announced today the release of 7 new forecast reports for the Canadian information and communications technology (ICT) market from multiple research subscription services. Key findings from the forecast reports include:

  • Canadian Telecom Services Forecast, 2018-2022: Telecom Inside Out (IDC#CA42532118). This IDC study presents IDC Canada's five-year forecasts for communications services spending by customer segment, company size, industry sector, and region for 2018–2022. The Canadian telecom services sector showed some improvement over a year earlier and single-digit growth in 2017, with spending of C$48.9 billion — a gain of C$1 billion, or 2.1 per cent, from C$47.9 billion a year earlier (excluding video service revenue). "The imperative of investing in next-generation network technologies provides many compelling benefits for CSPs to undertake this journey now and has taken on a new urgency as preparations begin for the looming rollout of next-generation 5G wireless networks," says study co-author Lawrence Surtees, vice president and principal analyst in the Communications Practice at IDC Canada Ltd.
  • Canadian IT Professional Services Forecast, 2018-2022 (IDC#CA42524518). This IDC study provides the spring 2018 market size and forecasts for the Canadian IT professional services market. At the end of 2017, spending on IT professional services was estimated to have reached C$8.1 billion, an increase of 2.8% year over year. "2017 was the type of year to encourage Canadian businesses to invest discretionary capital on IT projects. Organizations that have delayed or selectively undertaken DX initiatives were more active in 2017, and these investments will continue throughout the forecast period in step with market risks and macroeconomic growth expectations," says Jim Westcott, research manager, Digital Transformation and Application Services.
  • Canadian Infrastructure Outsourcing Forecast, 2018-2022 (IDC#CA42528818). This IDC study provides a forecast for the Canadian infrastructure outsourcing services market for 2018–2022. It is an update of the previous forecast: Canadian Infrastructure Outsourcing Forecast, 2017–2021 (IDC #CA41973017, May 2017). IDC anticipates that the Canadian infrastructure outsourcing services market will grow by 2.9%, or C$280 million, and will surpass C$10 billion in spending for the first time by the end of 2018. "Infrastructure outsourcing is not going away, but it is changing. The decline in 1st and 2nd Platform technologies is leading to slow outsourcing spending on these areas, while the growth in 3rd Platform technologies, like cloud, mobility management, IoT, and security, is leading to infrastructure outsourcing and managed services of those areas," says Jason Bremner, research vice president, Industry and Business Solutions.
  • Canadian Server Forecast, 2018-2022 (IDC#CA42531418). This IDC study details the performance of the Canadian server market during 2017 and presents a forecast for the market for 2018–2022. The Canadian server market showed spending of US$1.2 billion in 2017, representing growth of 20.1% over 2016, but the market is forecast to decline by 8.1% in 2018. "Server revenue in Canada saw an unexpected bump in 2017 owing to the mainframe-related refresh, but we don't expect that trend to continue for 2018," says Tarun Bhasin, research director, Infrastructure Solutions, at IDC Canada. "Server revenue is expected to decline, and to be successful in this market, vendors need to realign their go-to-market strategies to make the most of the shift in purchasing, ownership, and operating models that are impacting the IT infrastructure market."
  • Canadian Enterprise Storage Systems Forecast, 2018-2022 (IDC#CA42531318). This IDC study provides a forecast for spending in the Canadian enterprise storage systems market through 2022. IDC estimates that total enterprise storage systems revenue will grow at a CAGR of 0.2% through 2022. "After a strong 2017 in the Canadian storage market, we can expect a certain amount of reversion to the mean as the forces of media pricing, cloud adoption, and the movement toward server-based storage provide pressure against the traditional array market. The storage ecosystem as a whole remains extremely strong, however, as capacity demand and digital transformation (DX) continues to make both data growth and data services areas of interest to Canadian buyers," says Dave Pearson, research manager, Enterprise Storage and Networking.
  • Canadian Network Equipment Forecast, 2018-2022 (IDC#CA42531218). This IDC study is the follow-up to Canadian Networking Equipment Forecast, 2017–2021 (IDC #CA41251717, May 2017). The networking equipment market in Canada is forecast to reach $2.8 billion in revenue in 2022, resulting in a five-year CAGR of 1.8%. Kevin Lonergan, research manager, Networking Equipment and Security, IDC Canada, says, "The network equipment market is in a state of transition as traditional deployment models are challenged by cloud, software-defined solutions, and SaaS. Routing and IP PBX systems were hit the hardest in 2017, but ongoing refresh cycles of datacentre and edge networks will drive investment in switching, wireless LAN, and security appliances over the forecast period."
  • Canadian Consumer Wireless, Internet, and Wireline Voice Services Forecast, 2018–2022 (IDC#CA42528118). This IDC study examines consumer wireless voice and data, residential dial-up and high-speed internet, and residential wireline voice services markets in Canada. It provides forecasts for both subscriptions and revenue as well as the key drivers and inhibitors behind the forecast. Overall, IDC Canada expects the consumer service markets profiled in this document to increase at a five-year CAGR of 4.2%, increasing from a total market revenue of C$26.1 billion in 2017 to C$32,1 billion in 2022. "As the competition (from potential new service providers and aggressive price plans) for consumer spend toward wireless services in a highly saturated market increases and revenue from legacy residential wireline voice phone services continues to decline, Canadian communications service providers look to recuperate their large investment made toward technological upgrades of 'cornerstone' residential internet services," say authors Manish Nargas, analyst for Consumer Services and Mobility, and Emily Taylor, senior analyst for Consumer Services and Mobility. "These significant residential internet rate increases raise the bar for consumer expectations and allow incumbent Canadian communications service providers to set themselves up for success for next-generation communications technologies such as 5G and for the proliferation of next-generation data-intensive services and devices."

IDC develops detailed forecasting reports and analysis for major technology markets in Canada, which are published annually during the month of May. IDC's Forecast Scenario Assumptions for the Canadian ICT Market, 2018 and Beyond (IDC# CA43727718, April 2018) supports the underlying macroeconomic assumptions for each of the ICT market forecast reports.

For more information about the market forecast reports, the subscription services in which they are published, or to arrange a one on one interview with any of the report authors, please contact Cristina Santander at askidc@idccanada.com.



About IDC Market Forecasts

IDC's Market Forecast reports provide analysis on the future of a single market or a group of related markets. It presents a new or updated market forecast, including key drivers and assumptions used in the forecast.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data, and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com or follow on Twitter at @IDC and LinkedIn. To learn more about IDC Canada, please visit www.idc.com/ca or follow on Twitter at @ idccanada and LinkedIn.

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For more information, contact:

Cristina Santander
csantander@idc.com
416-673-2235

AskIDC
askidc@idccanada.com
416-673-2204

Tony Olvet
tolvet@idccanada.com
416-673-2249