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Kyndryl FY 4Q23 Earnings: Above Target Performance in Alliances, Advanced Delivery, and Account Initiatives Builds Optimism for Fiscal 2024 and Beyond

May-23 DOC # lcUS50689123 IDC Link

Authors:

• Jason Bremner

On May 17, 2023, Kyndryl held a quarterly earnings call and disclosed its FY 4Q23 and full year 2023 results. The earnings call was led by Martin Schroeter, Kyndryl's chairman and chief executive officer, and David Wyshner, Kyndryl's chief financial officer. Kyndryl reported revenue of $4.3 billion, representing a y/y decline of 4% as reported (i.e., current currency) and a y/y increase of 1% in constant currency. FY 4Q23 revenue growth was better than the full year. For fiscal 2023, Kyndryl reported revenue of $17.0 billion, representing a y/y decline of 7% as reported and 0% growth in constant growth. Adjusted EBITDA for FY 4Q23 was $476 million and FY23 was just under $2.0 billion. Kyndryl has a net loss of $737 million in the fourth quarter and almost $1.4 billion for full year 2023. This document analyzes and reports on revenue growth in constant currency for the remainder of this document unless otherwise noted.

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EllisDon's Digital Transformation Journey: Charting the Path for the Construction Industry

May-23 DOC # CA49330423 Insight

Authors:

• Jim Westcott
• Megha Kumar
• Jason Bremner

This IDC Perspective examines the transformation of EllisDon, one of Canada's leading construction and services firms. In response to the shifting priorities of sustainable and responsible business practices, EllisDon has become a leader in the digital business paradigm by transforming its guiding principle as a business that operates in a market that consumes large quantities of natural resources and is responsible for an overly large proportion of greenhouse gas emissions.

"At a fundamental level, the digital business paradigm is about the evolution of business and business operations. As a country, Canada is often associated with a conservative nature that disproportionately favors followers rather than market leaders. EllisDon is an example of a Canadian company that is using the principles of digital transformation and the IDC Digital Business Model and science-backed, data-driven insights to be a market leader in the construction and services industry," says Jim Westcott, research manager, Application Solutions at IDC Canada.

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ICT and Canadian Provincial and Municipal Governments, 2023

May-23 DOC # CA50648923 Presentation

Authors:

• Mark Schrutt
• Nigel Wallis

This IDC Tech Buyer Presentation provides a detailed review of the Canadian Provincial and Municipal Governments ICT market. Background and insight are provided on the market size, structure (provincial ministries and shared service, etc.), and trends.

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Wipro FullStride Cloud Realignment of the Portfolio to Enable Customers' Full Stack and Hybrid Multicloud Ambitions

May-23 DOC # US50598723 Insight

Authors:

• Jason Bremner
• David Tapper
• Leslie Rosenberg

This IDC Market Note focuses on the implications of the Wipro FullStride Cloud GBL. Wipro announced a realignment of its two main global business lines into four global business lines to more closely align with customer priorities. The reorganization became effective as of April 1, 2023. Wipro has reorganized into four GBLs to fuel its revenue growth after seeing its revenue grow 45% over the past 10 quarters.

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ICT and the Canadian Federal Government, 2023

May-23 DOC # CA50601623 Presentation

Authors:

• Mark Schrutt
• Nigel Wallis

This IDC Market Presentation provides a detailed review of the Canadian federal government ICT market. Background and insight are provided on the market size, structure (e.g., departments, ministries, Crown corporations), and trends.

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SAS Analyst Conference March 28–31, 2023 — Trusted Innovations in AI, Cloud, and Open Source

Apr-23 DOC # US50581023 Insight

Authors:

• Alison Brooks, Ph.D.
• Ruthbea Yesner
• Adelaide O'Brien

This IDC Market Note discusses SAS' annual analyst conference that returned in person, after a three-year pandemic-driven hiatus, to showcase several pivotal market and technology developments of interest to government.

"In several key software business lines (decisioning intelligence, advanced analytics, and AI), SAS has arguably been ahead of the market, in effect waiting for the broader market to catch up; in others (cloud, open IT, interoperability, and usability), SAS has been trailing and has been focused on regaining ground," said Alison Brooks, research vice president, IDC Government Insights. "The three-year gap afforded by the pandemic provided some perspective on SAS' progress; SAS is indeed both taking its competitive threats seriously and leveraging its core expertise and differentiators."

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Canadian Financial Services Landscape and Digital Infrastructure, 2023

Mar-23 DOC # CA50525223 Presentation

Authors:

• Mark Schrutt
• Nigel Wallis

This IDC Market Presentation uses a curated selection of IDC Canada's survey data of Canadian IT and line-of-business decision makers to investigate the Canadian financial services sector's current approach of digital infrastructure, ranging from cloud computing to datacenters to application modernization. The financial services sector, which includes banking, financial markets and financial retail, and life and property and casualty insurance, is a growing and critical component of the Canadian economy.

The IDC Market Presentation also provides insights to the enterprise ICT infrastructure vendor ecosystem — manufacturers, value-added resellers, and channel partners — to make decisions around sales, marketing, communications, and go-to-market investments in targeting the Canadian financial services sector.

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ICT and Financial Services Sector, 2023

Mar-23 DOC # CA50525323 Presentation

Authors:

• Mark Schrutt
• Nigel Wallis

This IDC Market Presentation provides a detailed review of the Canadian financial services market. Background and insight is provided on the market size, structure (banking, financial markets, life and P&C carriers, etc.), and trends.

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U.S. Government Digital Sovereignty: Self-Determination

Mar-23 DOC # US50307523 Insight

Authors:

• Adelaide O'Brien

This IDC Perspective presents the U.S. federal government requirements, laws, and presidential executive orders relating to digital sovereignty as it relates to data, technical requirements of cloud and cybersecurity, operational requirements, and assured workloads and resiliency. Digital sovereignty is a relatively new concept driven by data privacy laws, regulatory needs, and sustainability requirements. This document is the first of three U.S. federal government research documents on digital sovereignty and covers digital sovereignty — self-determination. Additional research reports will cover digital sovereignty — self-sufficiency and digital sovereignty — survivability.

"Digital sovereignty is a journey, not a destination — and requires continuous monitoring, auditing, reporting, and upgrades to stay abreast of the latest requirements, says Adelaide O'Brien, research vice president, IDC Government Insights. "Cloud providers and systems integrators are key in helping agencies meet these challenges," she adds.

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Early 2023 Services Budget Outlook: Aligning European IT Services Spending With Business Conditions

Mar-23 DOC # EUR150499823 Presentation

Authors:

• Matthew Wilkins
• Jason Bremner

This IDC Survey explores the economic outlook and 2023 budget expectations for professional and managed services and compares European and Worldwide survey results. Results are based on IDC's Future Enterprise Resilience and Spending Survey, conducted in January 2023.

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Salesforce Vendor Profile: Addressing Holistic Human Services Through Composable Case Management

Mar-23 DOC # US50307623 Insight

Authors:

• Adelaide O'Brien

This IDC Vendor Profile provides an overview of how Salesforce is delivering a 360-degree view of constituents through secure, open data sharing across multiple sources. And by embedding real-time decision support into the benefits and services processes through the composable case management capabilities of Public Sector Solutions, Salesforce enables real-time case team and cross-agency collaboration to create empathetic and holistic pathways for successful outcomes.

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The Biden–Harris Administration's Bold National Cybersecurity Strategy Is Poised to Reshape the Future Digital Ecosystem

Mar-23 DOC # US50469623 Insight

Authors:

• Alison Brooks, Ph.D.
• Matthew Leger
• Nikola Ristivojevich
• Ruthbea Yesner
• Sandeep Mukunda
• Adelaide O'Brien
• Aaron Walker

This IDC Perspective looks at the Biden–Harris administration's release of its National Cybersecurity Strategy (NCS) on March 2, 2023, which seeks to address profound shifts in the cybersecurity landscape, specifically growing threats to critical infrastructure, such as those seen in the SolarWinds and Colonial Pipelines ransomware attacks. "As clearly laid out in the NCS, cybersecurity fortification is indeed a precursor to the digital economy," says Alison Brooks, Research VP, IDC Government Insights.

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Staffing and Labor Shortages Top Government's 2023 Concerns

Mar-23 DOC # US50500823 Presentation

Authors:

• Adelaide O'Brien

This IDC Survey Spotlight examines a recent IDC survey on the impact of inflation on global government organizations. The top impact selected by responders is the impact on staffing and labor shortages, selected by 19% of responders. Managing demand for cloud subscriptions in line with budgets is also a top concern. This IDC Survey Spotlight examines these impacts and offers some interpretations. "Government agencies have witnessed staffing and labor shortages for some time," says Adelaide O'Brien, research vice president with IDC Government Insights. "Agencies should take advantage of tech company layoffs of skilled workers with highly transferrable skills as this presents an opportunity for government to hire skills long in demand," she adds.

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A Deep Dive Analysis of Trends in AI Adoption in U.S. Federal Government

Mar-23 DOC # US50478923 Presentation

Authors:

• Adelaide O'Brien

This IDC Market Presentation provides the current state of AI adoption in U.S. Federal Government. 43% of agencies surveyed are using AI to develop new products/services, reduce risk, and increase employee productivity and customer experience. Agencies are deploying AI for several key use cases and primarily outsource AI capabilities, developing capabilities/solutions using a third-party software or services provider. Federal agencies ensure ROI from AI by prioritizing key use cases, deploy high-quality data training, and leverage domain expertise.

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Early 2023 Services Budget Outlook: Aligning Canadian IT Services Spending with Business Conditions

Mar-23 DOC # CA50464423 Presentation

Authors:

• Jason Bremner

This IDC Survey examines the 2023 IT services budget outlook. IDC's Global Technology Thought Leadership group conducts a monthly survey (IDC's Future Enterprise Resiliency and Spending Survey) to understand how IT and business leaders in enterprises around the world are assessing risks and addressing cost management for their growing portfolio of technology resources. In January 2023, we reached out to IT decision makers as they were making 2023 technology budget decisions in the face of continued concerns about inflation, recession, and skills shortage. We wanted to get early measurement of how investment plans in key technologies and IT service categories were evolving. In total, 1,032 IT executives from North America, Europe, and Asia/Pacific were surveyed, including 100 from Canada.

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Early 2023 Services Budget Outlook: Aligning Worldwide IT Services Spending with Business Conditions

Mar-23 DOC # US50464523 Presentation

Authors:

• Jason Bremner

This IDC Survey examines the 2023 IT services budget outlook. IDC's Global Technology Thought Leadership group conducts a monthly survey (IDC's Future Enterprise Resiliency and Spending Survey) to understand how IT and business leaders in enterprises around the world are assessing risks and addressing cost management for their growing portfolio of technology resources. In January 2023, we reached out to IT decision makers as they were making 2023 technology budget decisions in the face of continued concerns about inflation, recession, and skills shortage. We wanted to get early measurement of how investment plans in key technologies and IT service categories were evolving. In total, 1,032 IT executives from North America, Europe, and Asia/Pacific were surveyed.

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IDC PeerScape: Datacenter Hosting and Colocation Practices to Raise Satisfaction and Value in Canada

Feb-23 DOC # CA49332023 IDC DecisionScape

Authors:

• Jason Bremner

This IDC PeerScape offers advice for IT executives, sourcing executives, and other business executives to employ when procuring remote datacenter hosting services and, specifically, colocation and interconnection services.

"Canadian organizations have been sourcing datacenter operations and management services from providers for many years. The market has evolved from full-scope datacenter outsourcing to managed services using colocation and managed hosting and, increasingly, cloud-hosted services. IDC advises organizations consider implementing the practices listed in this study to increase the value and satisfaction they receive from these services," says Jason Bremner, research vice president of Industry and Business Solutions, IDC Canada.

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Kyndryl FY 3Q23: Revenue and Margin Growth from Alliances, Advanced Delivery and Account Initiatives

Feb-23 DOC # lcUS50379623 IDC Link

Authors:

• Jason Bremner

On February 8, 2023, Kyndryl held a quarterly earnings call and disclosed its FY 3Q23 results. Kyndryl reported revenue of $4.3 billion, representing a year-over-year (y/y) decline of 6% as reported and a y/y increase of 3% in constant currency. After factoring in post IBM separation adjustments, pro forma revenue growth was 2% in constant currency. Through the first nine months of FY23, Kyndryl reported revenue of $12.8 billion, a decline of 8% but flat 0% growth in constant currency (1% growth in constant currency pro forma revenue). This document analyzes and reports on growth in constant currency pro forma unless otherwise noted. The earnings call was led by Martin Schroeter, Kyndryl's chairman and chief executive officer, and David Wyshner, Kyndryl's chief financial officer.

In summarizing the financial results of the quarter, Wyshner stated, "In short, if it weren't for currency movements this quarter, we'd be reporting year-over-year revenue growth and positive pretax margins." Here are several key quarterly financial details that IDC noted:

• Kyndryl reported sequential revenue growth of 3% (q/q) after four quarters of decline (six quarters without forma adjustments).
• Kyndryl had revenue growth in three of four geographic segments, led by the United States with 7%, Japan with 2%, principal markets (Australia/New Zealand, Canada, France, Germany, India, Italy, Spain/Portugal, and the United Kingdom) with 0%, and strategic markets (other geographies) with 2%.
• Kyndryl includes $3.2 billion in contract signings for the quarter and total signings for FY23 year-to-date signings reaching $8.6 billion.
• Kyndryl Consult accounted for 12% of total revenue in the quarter (approximately $516 million), which represents y/y increase of 19%.
• Kyndryl Consult signings for the quarter were more than $600 million; FY23 year-to-date signings for Kyndryl Consult increased 32% from the prior year period.
• Adjusted EBITDA was $580 million in the quarter, a y/y decline of 1% primarily due to negative currency impacts and partially offset by higher revenue and cost savings from strategic initiatives.
• Kyndryl's signings in the company's Cloud, Security and Resiliency, Network and Edge, Applications, Data and AI, and Digital Workplace service practices accounted for 73% of signings in the quarter.

For FY23, Kyndryl raised its revenue growth by 0.5 percentage points and is projecting FY23 revenue of $16.8 billion to $17.0 billion in constant currency, up $500 million from the previous guidance. And Kyndryl reaffirmed its margin outlook with adjusted EBITDA margin in the range of 12.5% to 13.5% and adjusted pretax margin in the range of -0.5% to 0.5%.

Progress on Kyndryl's"Three As" Initiatives

Both Schroeter and Wyshner commented on Kyndryl's progress on executing the company's "three As" initiatives of alliances, advanced delivery, and accounts. As noted in Monitoring Kyndryl's Performance in 2023 (IDC #US50191523, February 2023), we are watching Kyndryl's progress on the "three As" because of their importance on the company's revenue growth and improved profitability objectives it wants to reach by 2025. Here are some of the key highlights we noted on the "three As" initiatives:

• Alliances. Kyndryl has achieved $750 million in hyperscaler signings, putting it on target to reach its goal of $1 billion in hyperscaler signings in FY23. It is also embedding hyperscaler services and technologies into its install base with the number of customer contracts with hyperscaler-related components up 300% since the beginning of FY23. And Kyndryl's efforts to reskill employees in new capabilities is also paying off, with nearly 32,000 hyperscaler certifications today, up 98% from a year ago, and almost 6,000 hyperscaler certifications added in the quarter.
• Advanced delivery.Kyndryl's initiative to transform service delivery through upskilling and automation made progress in the quarter. More than 4,500 delivery resources have been redeployed to address new revenue areas or backfill resources lost to attrition, up 1,500 resources from the previous quarter. Kyndryl is generating more than $225 million in annualized cost savings from service delivery automation, ahead of its fiscal 2023 objective. Nearly 500 customer accounts are now onboarded to the AIOps component at the core of Kyndryl Bridge, after the company launched the platform in September.
• Accounts. Kyndryl is making progress in accounts initiative, and it is realizing $130 million per year in annualized pretax benefits. It is optimizing its cost base through service delivery standardization and automation. And it is expanding scope of work in some accounts. Kyndryl is expanding margins by "a point or two" in its profitable blueprint accounts. And it is improving margins in some unprofitable focus accounts upon renewal and midcontract, resulting in average gross margins in the "low- to mid-20s" percentage range. Kyndryl anticipates it will take up to four years to remediate profitability in all its focus accounts.

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Managed Network Services Clusters in Canada, 2023

Feb-23 DOC # CA50240223 Presentation

Authors:

• Jason Bremner
• Anu Mehta

This IDC Survey presents the results of a cluster analysis of Canadian companies' use of managed network services. The objective of this document is to identify clusters of companies, with respect to their use of managed network services, to allow service providers to specific go-to-market campaigns to address the unique needs of each cluster. Five clusters were identified, and common characteristics and attitudes of the clusters are highlighted in the document. The document is based on IDC Canada's IT Advisory Panel n7, 2021 (fielded in December 2021), in which 301 medium-sized and large Canadian companies were interviewed. This IDC Survey compares the results from a similar analysis in Managed Network Services Clusters in Canada, IDC #CA45677820, February 2020.

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ICT and Canadian Healthcare, 2023

Feb-23 DOC # CA50203423 Presentation

Authors:

• Mark Schrutt
• Nigel Wallis

This IDC Tech Buyer Presentation provides a detailed review of the Canadian healthcare market. Background and insights are provided on the market size, structure (e.g., provincial, private, senior care), and trends.

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Monitoring Kyndryl's Performance in 2023

Feb-23 DOC # US50191523 Insight

Authors:

• Jason Bremner

This IDC Market Note monitors Kyndryl's performance. In 2023, IDC is initiating ongoing coverage of Kyndryl with respect to financial performance as the company has an outsized presence in the markets it competes and partners in. Kyndryl identified several strategic objectives to address its position in the market coming out of its November 2021 spin-off. IDC will provide specific commentary periodically throughout 2023 on how we see its progress against these considerations.

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IDC FutureScape: Worldwide National Government 2023 Predictions — Asia/Pacific (Excluding Japan) Implications

Jan-23 DOC # AP48644822 Presentation

Authors:

• Jezamin Abdul Razak
• Adelaide O'Brien
• Massimiliano Claps
• Calvin Lau

The top 10 predictions for the IDC FutureScape: Worldwide National Government 2023 Predictions — Asia/Pacific (Excluding Japan) Implications illustrate how the next four years will be revolutionary for operations as governments adapt to the changing needs of citizens and find more efficient ways to serve them. A successful delivery of innovative government services requires an in-depth understanding of citizen needs and the ability to anticipate those needs. Technology is vital in government to facilitate better coordination and cooperation between various government agencies.

To ensure inclusivity and to reap the benefits of digitalization, countries with large populations that have low coverage of internet access should prioritize early investments in digital infrastructure, such as broadband technology. It is important that governments on all levels allocate financial resources to the promotion of digital inclusion to provide citizens with the opportunity to profit from the advantages of the internet and the services available online.

"With the use of advance digital technologies, governments would have the opportunities to explore new models and approaches in providing new or improved services, manage resources effectively, deliver relevant services that are required by the citizens, improve accountability, and as a result gain citizens' trust," says Jezamin Abdul Razak, head of Government Insight, IDC ASEAN.

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Canadian ICT Forecast, 2022–2026

Jan-23 DOC # CA48464022 Study

Authors:

• Jason Bremner
• Anu Mehta
• Manish Nargas

This IDC study outlines IDC Canada's forecast for the Canadian information and communication technology (ICT) market for the 2022–2026 period. It updates our previous forecast published in Canadian ICT Forecast, 2021–2025 (IDC #CA47050121, November 2021).

"The Canadian ICT market grew 3.5% in 2021, despite the COVID-19 pandemic. The growth was more than predicted in our previous forecast, led by strong spending on software services by Canadian companies that quickly responded to the challenges that the pandemic brought. The Canadian ICT market is expected to grow through 2026. By 2026, at the end of our current forecast period, ICT spending will reach C$142.6 billion. Inflation, IT supply chain issues, skills shortage, and a probable recession will alter cost assumptions but IT leaders around the world are still more optimistic about increasing ICT budgets rather than delaying technology investments," says Anu Mehta, senior research analyst, IT Markets at IDC Canada.

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Market Analysis Perspective: Canadian Hosting Services and Colocation, 2023

Jan-23 DOC # CA49969022 Presentation

Authors:

• Jason Bremner
• Anu Mehta

This IDC Market Analysis Perspective (MAP) provides detailed information on Canadian customer adoption and spending on hosting infrastructure services. It provides insights into trends affecting the adoption of these services, the competitive landscape servicing customers, and customer needs. This MAP provides guidance for providers of hosting infrastructure services to address customer needs and compete against other vendors.

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IDC Canada Predictions 2023: Slicing Through the Storms of Disruption

Jan-23 DOC # CA47669122 Presentation

Authors:

• Jason Bremner
• Jean Phillippe Bouchard
• Dave Pearson
• Nigel Wallis
• Evan Hardie
• Praveen Datta
• Lars Goransson

This IDC Market Presentation explores IDC Canada's predictions for the Canada market in 2023 and was originally presented as a Web Conference on December 14, 2022. The winds of change affecting the ICT market in 2021 and 2022 have increased into storms of industry, health, social, and economic disruption as we enter the digital business era. Navigating what's ahead will be critical for organizations that want to advance their digital strategies. IDC Canada research leaders unveiled 10 key trends during IDC Canada's annual technology industry predictions webcast, examining the leading priorities of the future enterprise for 2023 and beyond. Speaker notes are included for each slide.

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Google Government Summit 2022

Dec-22 DOC # US49916522 Insight

Authors:

• Adelaide O'Brien
• Aaron Walker

This IDC Market Note examines the first Google Government Summit hosted by Google Public Sector on November 15, 2022, in Washington, D.C. The recently launched government-specific subsidiary of Google Cloud aimed to showcase its existing relationships with government agencies of all sizes, demonstrate a commitment to the public sector, and share success stories and use cases of its technology being utilized by government. The event featured keynote speeches, hands-on seminars, and sessions led by both Google and government executives, touching on topics such as cloud, cybersecurity, data management/decisioning, climate resilience, and AI.

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Microsoft Cloud for Sovereignty Aims to Make Digital Sovereignty Easy

Dec-22 DOC # EUR149607422 Insight

Authors:

• Massimiliano Claps
• Adelaide O'Brien

This IDC Market Note analyzes Microsoft's announcement of Microsoft Cloud for Sovereignty. Microsoft Cloud for Sovereignty is a new solution that aims to enable public sector customers to build and digitally transform workloads in the Microsoft Cloud while meeting their compliance, security, and policy requirements.

"Microsoft Cloud for Sovereignty is a compelling response to announcements made in the past year by many global cloud providers that are trying to align with the digital sovereignty requirements of many enterprises, particularly public sector organizations and especially in Europe," said Massimiliano Claps, research director, IDC Government Insights.

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PwC Analyst Day 2022

Dec-22 DOC # US49883622 Insight

Authors:

• Gard Little
• Jason Bremner
• Jennifer Hamel
• Douglas Hayward
• Erin Hichman
• Bill Latshaw
• David Tapper
• Dan Versace
• Brian Wood

This IDC Market Perspective describes the key takeaways from the recently held PwC 2022 Analyst Day event. PwC held its 2022 Analyst Day in New York City, November 8, 2022, and presented a wide range of updates across key areas of its business, as well as numerous clients discussed their work with the firm. This document describes the top impressions of several services analysts who participated in the event, rather than being a comprehensive account of everything PwC is doing, in the hope that readers will want to engage with the analysts to dig deeper.

"Trust is at the foundation of everything PwC does, not just its cybersecurity and risk business," said Gard Little, research vice president, Global Services Markets and Trends at IDC, "and reading the impressions of the analysts who participated in the event and contributed to this document underscores that point."

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IDC FutureScape: Worldwide Healthcare Industry 2023 Predictions — Canada Implications

Nov-22 DOC # CA49856022 Presentation

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Tech Buyer Presentation discusses the Canadian regionalization of IDC FutureScape: Worldwide Healthcare Industry 2023 Predictions (IDC #US48587222, October 2022). It provides a detailed perspective on the forces shaping business and the Canadian healthcare market over the next several years. Each prediction is presented based on the timeline projection, complexity assessment, and organizational impact on the "mainstream" market.

Technological advances are moving faster than the Canadian healthcare system's ability to use them. Canadian healthcare organizations are struggling with issues centered on the workforce, capacity, and wait times. There is also an overarching need for health equity. Over the past decade, and particularly since COVID-19, the system has begun to show signs of breaking down," says Mark Schrutt, strategic advisor, Public Sector and Innovation research, IDC Canada.

The technologies highlighted in this presentation can be part of the solution:

• Integrated care and access to services, including those delivered remotely
• Hybrid work environment, although there is a need to complement care with local and at-home support
• AI, robotics, and data-driven command centres

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IDC MarketScape: Canadian Datacenter Colocation and Interconnection Services 2022 Vendor Assessment

Nov-22 DOC # CA49811122 IDC DecisionScape

Authors:

• Jason Bremner

This IDC study represents a vendor assessment of the Canadian datacenter colocation and interconnection services market through the IDC MarketScape model. It covers a variety of vendors including global and Canada-based firms. The research is a quantitative and qualitative assessment of many characteristics that buyers consider when selecting a datacenter colocation provider. This evaluation is based on a comprehensive set of parameters important to meeting the customer's current and future needs for digital infrastructure involving datacenter colocation. This IDC MarketScape covers 11 vendors participating in the Canadian datacenter colocation and interconnection services market.

"Many Canadian organizations continue to expand their use and spending on colocation and interconnection services as datacenters have evolved to become critical elements of digital infrastructure," according to Jason Bremner, research vice president, Industry and Business Solutions at IDC. "The cost to maintain and expand a high-quality datacenter to meet the needs of today's digital business operations continues to grow. As such, we see organizations weighing buy versus build decisions more. Factors shaping those decisions are changing and buyers should carefully consider which provider best fits their needs."

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What to Expect in Canadian Government, 2023

Nov-22 DOC # CA49803322 Insight

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Perspective highlights what we believe will shape the IT marketplace in Canadian government in 2023. What to Expect is an annual review of the market, key trends, and recommendations for buyers and technology providers. This IDC document also captures some of the more significant studies published in the past year, including Canadian Federal Government: 2022 Analysis of Department and Ministry Expenditures (IDC #CA47675722, May 2022) and IDC FutureScape: Worldwide Government 2022 Predictions — Canada Implications (IDC #CA48427522, January 2022).

"The need for talent runs throughout our projection highlighted in this document. Our predictions around data, analytics, and digital identification promise to drive efficiency and optimize the workforce, but it will take people to implement these technologies," said Mark Schrutt, strategic advisor, Innovation at IDC.

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IDC FutureScape: Worldwide Cloud 2023 Predictions

Oct-22 DOC # US48602322 IDC DecisionScape

Authors:

• Dave McCarthy
• Lara Greden
• Jason Bremner
• Brad Casemore
• Jennifer Cooke
• Stephen Elliot
• Al Gillen
• Phil Goodwin
• Ashish Nadkarni
• Adelaide O'Brien
• Peter Rutten
• Bjoern Stengel
• Rick Villars
• Natalya Yezhkova
• Jevin Jensen
• Mary Johnston Turner

This IDC study provides IDC's top 10 predictions for cloud for 2023 and beyond.

"Cloud is no longer considered a location but rather an operating model for future innovation," said Dave McCarthy, research vice president, Cloud and Edge Infrastructure Services at IDC. "The agility provided by cloud methodologies enables organizations to quickly deliver at scale on rapidly changing requirements from internal and external stakeholders."

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IDC FutureScape: Worldwide National Government 2023 Predictions

Oct-22 DOC # US48645622 IDC DecisionScape

Authors:

• Adelaide O'Brien
• Jezamin Abdul Razak
• Alison Brooks, Ph.D.
• Remi Letemple
• Massimiliano Claps
• Aaron Walker

This IDC study provides 10 predictions for the worldwide national government market.

"From shifting to a digital business, attracting and retaining critical skills, selecting IT suppliers based on ESG value, and protecting agency data and personally identifiable information (PII) from nation-state attacks to reassertion of digital sovereignty, national governments face interconnected imperatives," says Adelaide O'Brien, research vice president, IDC Government Insights. "IDC's national government predictions address these imperatives with actionable advice for IT and agency leadership," she adds.

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Canadian Channel in Transition 2022

Oct-22 DOC # CA49763522 Study

Authors:

• Heli Shah
• Dave Pearson
• Jason Bremner

This IDC study details how the Canadian IT distribution channel ecosystem is undergoing a transition in 2022 to increase its value and relevance to Canadian end-user organizations as well as vendors. The ecosystem is growing its offerings, especially in terms of anything-as-a-service and cloud offerings, and is increasing its revenue from a variety of business models and go-to-market strategies while also narrowing its focus with vertical and functional specializations. Digital transformation is more important than ever to Canadian organizations and thus requires greater investment and focus from the channel. The channel ecosystem is growing in complexity, with a great deal of overlap between channel networks.

"Simplifying and de-risking not only IT decision making but also the sales and implementation process is critical to channel partners' success," says Jason Bremner, research vice president of Industry and Business Solutions, IDC Canada. "Doing so while providing industry knowledge and deep technical expertise is key to increasing deal sizes and recurring revenue, customer loyalty and engagement, and ultimately profitability and business value."

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Workday Rising Aligns with Federal Agency Focus on Workforce

Oct-22 DOC # US49740722 Insight

Authors:

• Adelaide O'Brien

This IDC Market Note covers Workday's annual customer meeting, Workday Rising, held in Orlando, Florida, and virtually on September 12–15, 2022. Workday has achieved FedRAMP authority to operate at the moderate level for Workday Government Cloud, a multitenant cloud-based offering for U.S. federal, state, and local government customers as well as U.S. government contractors and Federally Funded Research and Development Centers (FFRDCs) delivered via Amazon Web Services (AWS). Workday is simplifying application development and has the capability to help agencies understand employee sentiment and maximize employee engagement, satisfaction, and productivity using real-time insights. Workday's solutions line up nicely with the just released President's Management Agenda (PMA) Learning Agenda with suggested areas for agencies to explore strategies to improve retention, engagement, inclusion, belonging, and well-being among federal employees while reducing burnout and attrition.

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The Future of Digital ID in Canada, 2022

Oct-22 DOC # CA49727122 Insight

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Market Perspective discusses the future of digital ID in Canada in 2022.There is a convergence of societal and technological movements that makes digital ID a game changer. There is also no time like the present to address some of the lessons learned over the past 25 years. First is the progress in verification technologies, particularly biometrics and. combined with advances in cybersecurity and the ubiquitous use of smartphones, make today's digital ID is secure, convenient, and practical. Access to digital ID holds the promise of inclusion and servicing vulnerable and disenfranchised parts of society.

"We also recognize the genuine desire by governments in Canada to be citizen centric: designing and delivering services for the benefit of individuals and businesses," said Mark Schrutt, strategic advisor, Innovation and Public Sector Research at IDC.

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IDC Survey Spotlight: What Is the "Next Most Likely" Managed Network Service That Canadian Customers Will Adopt?

Sep-22 DOC # CA48464522 Presentation

Authors:

• Anu Mehta
• Jason Bremner

This IDC Survey Spotlight provides insights into Canadian organizations' use and adoption of Managed Network Services in groupings. As network demands become increasingly complex, many Canadian enterprises are outsourcing their managed network services to third-party providers. Using correlation analysis of managed network service groupings, one can identify the 'next most likely' service that customers will adopt.

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Selling More with Data! The Framework for Data-Driven Marketing and Sales

Sep-22 DOC # CA49633222 Insight

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Perspective discusses how the B2B market is in a transition period. The changes we have witnessed to this point are permanent. B2B sales and marketing is set for additional transformation: innovation that reduces complexities and inefficiencies, competition focused on engagement, and more leverage for customers. IT vendors need a flexible, adaptive approach and increased investment in sales and marketing technologies, and they need to lean into a data-driven culture.

The B2B vendors that IDC talked to for this research are working on developing new strategies to attract customers. Many smaller firms and new entrants have been successful in selling products with just the swipe of a credit card but eventually will learn the hard truth that not every relationship can be automated. Larger firms that already have established sales teams have the opposite challenge, yet the goal is the same — balancing intuition and data and optimizing the combination of technology and people along the customer journey.

"IDC loves data and analytics, but we also know that old school methods still work," said Mark Schrutt, strategic advisor, Innovation and Public Sector Research at IDC. "You need to meet with the customer, ask questions, and use intuition to build relationships. Yet fully relying on old-school methods will make the inevitable change much harder. There is not only a place for data. It can also be the foundation for success in a customer-focused, always-on, omni-channel market."

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IDC's Industry CloudPath Survey Analysis: U.S. Federal Government, 2022

Sep-22 DOC # US49660622 Presentation

Authors:

• Adelaide O'Brien

This IDC Market Presentation highlights key findings from federal government decision makers' responses to IDC's 2022 Worldwide Industry CloudPath Survey. The presentation takes a deep-dive look at the progress agencies are making, the deployment plans for selected customer experience workloads and back-office apps, and employee engagement, as well as the most important technologies required from cloud providers.

"Federal agencies have seen data growth exceed their capacity and need cloud-based functionality to keep up with LOB demands and thus require cloud providers with a breadth of services," says Adelaide O'Brien, research vice president, IDC Government Insights. "Security continues to be a concern, but as more FedRAMP-authorized solutions are available from industry innovators and cloud platform leaders, agencies have access to additional cybersecurity tools, reducing their risk profile," she adds.

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IDC TechBrief: Leveraging Ecosystems for a Holistic Human Services Approach to Advance Equity

Sep-22 DOC # US49595521 Insight

Authors:

• Adelaide O'Brien

This IDC TechBrief discusses the need for a cloud-based agile-architected platform that puts data at the core, scales rapidly from a single user to the organization, accommodates ecosystem users (such as NGOs, educational institutions, utilities, and other public sector entities), and enables innovation. A cloud-based platform can integrate programs that traditionally exist in silos and can securely extend key beneficiary information throughout the ecosystem to address the social determinates of health and provide holistic services.

"Success depends on leveraging an ecosystem of organizations that can provide holistic services within a system that encourages healthy behavior," says Adelaide O'Brien, research vice president, IDC Government Insights.

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Innovation 2022: Canadian-Funded Innovation and Research Centres

Sep-22 DOC # CA49633122 Presentation

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Market Presentation reviews the government-funded research and innovation centres established in 2022. Details including location, funding amount, and focus are provided.

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Managed Network Services Provider Preferences in Canada, 2022

Sep-22 DOC # CA47670222 Presentation

Authors:

• Anu Mehta
• Jason Bremner

This IDC Survey examines the different types of service providers that the organizations are currently using and plan to use for their managed network services. The objective of this IDC Survey is to determine if future users of managed network services will prefer provider types that existing customers use today. This survey draws responses from 402 IT executives of large and medium-sized organizations who were surveyed as part of IDC Canada's IT Advisory Panel n7 Survey, which was fielded in December 2021.

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Digital Sovereignty: Rethinking IT Strategies and Operations for Self-Determination

Sep-22 DOC # EUR149591322 Presentation

Authors:

• Rahiel Nasir
• Massimiliano Claps
• Adelaide O'Brien
• Dave McCarthy
• Manoj Vallikkat
• Ralf Helkenberg
• Rick Villars
• Shilpi Handa
• Shweta Baidya
• Simon Piff
• Yesim Arac Ozturk

This IDC Presentation provides a global analysis of digital sovereignty trends. It defines digital sovereignty attributes and how these are impacting enterprise IT strategies and assesses what's driving the need for sovereign solutions. The presentation includes regional perspectives and market insights, and it also offers essential advice to buyers and providers of digital sovereignty products and services.

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State of the Market: Inflation Impact on IT Spending and the Cloud by Major Industry

Aug-22 DOC # US49593822 Presentation

Authors:

• Robert Parker
• Lynne Dunbrack
• Simon Ellis
• Travis Eide
• Leslie Hand
• Alex Holtz
• Andrew Meyers
• Courtney Munroe
• Daryl Schoolar
• Jerry Silva
• John Villali
• Rick Villars
• Ruthbea Yesner
• Adelaide O'Brien

This IDC Tech Buyer Presentation provides IDC Insights analysts' assessment of the impact of inflation on technology spending and adoption across 11 industries including education, energy, financial services, government, health and life sciences, hospitality, manufacturing, media and entertainment, retail, telecommunications, and transportation and logistics. Our analysis also offers IDC's outlook on IT spending and global economic sentiments gleaned from IDC's Future of Enterprise Resiliency and Spending (FERS) Survey. Future research from IDC Insights teams will delve deeper into the impact of inflation on their respective industries and subsectors.

"Across all industries, organizations are focusing their attention on navigating the storms of disruption brought about by inflationary pressures, supply chain constraints, labor and skills shortages, and geopolitical threats. Technology will play an important role to address these disruptions and blunt the impact of inflation faced by industries worldwide. Inflation is leading industries to prioritize investments in cloud, AI/ML, automation, and advanced data management and analytics." — Bob Parker, senior vice president and general manager, Industry Insights, Software, and Services at IDC

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SAIC Leverages Experience and Automation to Speed Federal Migration to the Cloud

Aug-22 DOC # US49582322 Insight

Authors:

• Adelaide O'Brien

This IDC Vendor Profile highlights SAIC's CloudScend suite of services. CloudScend is designed to help federal customers strategically migrate to cloud while reducing time and costs as well as gain greater insight into the performance, security, and longer-term variable operating costs of cloud operations.

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Worldwide Managed Cloud Services Forecast, 2022–2026: An Extraction View of Technology Outsourcing Services Markets

Aug-22 DOC # US48525422 Study

Authors:

• David Tapper
• Peter Marston
• Courtney Munroe
• Jason Bremner
• Waldemar Schuster
• Daniel Povis
• Francesca Ciarletta
• Ewa Zborowska
• Pushkaraksh Shanbhag
• Satoshi Matsumoto
• Takuya Uemura
• Seiichiro Yoshii
• Jonathan Tullett

This IDC study provides IDC's forecast and spending for the worldwide managed cloud services (MCS) market across eight major regions for the 2022–2026 forecast period. IDC views managed cloud services as an extraction view of IDC's technology outsourcing services markets involving application management (AM), hosted application management (HAM), hosting infrastructure services (HIS), IT outsourcing (ITO), and network and endpoint outsourcing services (NEOS). For details on the definitions of managed cloud services, see the Market Definition section as well as IDC's Worldwide Managed Cloud Services Taxonomy, 2022 (IDC #US48523822, June 2022). This study also includes advice for providers of IT services, an analysis of key market and industry trends by key managed cloud services markets and regions, key market drivers and inhibitors, and significant market developments.

"Managed SPs, which are competing in the managed cloud services market, are facing an array of significant challenges spanning intensified competition; commoditization of IT, particularly infrastructure; the need to generate business value; and replacement of labor with automation," says David Tapper, program VP, Outsourcing and Managed Cloud Services at IDC. "Ensuring success in the managed cloud services market will require that managed SPs meet business outcomes, embed FinOps as part of multicloud management, position as a general contractor, enable new operating models, create a holistic governance structure, embed value-added professional services as part of managed cloud services, incorporate platforms, prepare for increased competition, and invest in data sovereignty capabilities."

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Canadian Healthcare Spend and National Pharmacare, 2022

Aug-22 DOC # CA47675822 Presentation

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Tech Buyer Presentation provides a detailed review of the healthcare spending by Canadian governments. Of particular note are hospital operations, administration, and COVID-19 related budgetary figures. This presentation also provides an update on the national pharmacare plan.

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IDC's Worldwide Digital Transformation Use Case Taxonomy, 2022: National Civilian Government

Aug-22 DOC # US48645822 Study

Authors:

• Adelaide O'Brien
• Jezamin Abdul Razak
• Alison Brooks, Ph.D.
• Massimiliano Claps
• Sandeep Mukunda

This IDC study discusses digital transformation (DX) in national governments and its influence on prioritizing use cases for investment as well as the mission and strategic priorities that are driving technology spending.

"As national governments invest in digital resiliency, areas of focus will include investments in cloud to extend the reach and reliability of digital services, business intelligence, and AI/ML to better leverage data and improve decision making; modernizing the work environment for employees; and greater investments in technologies that ensure sustainability and assure trust, including cybersecurity." — Adelaide O'Brien, research director, IDC Government Insights

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IDC MarketScape: U.S. Federal Government Business Intelligence and Analytics Platforms 2022 Vendor Assessment

Aug-22 DOC # US48061222 IDC DecisionScape

Authors:

• Adelaide O'Brien

This IDC study includes vendors that provide to U.S. federal agencies a standalone, packaged business intelligence and analytics (BIA) software that is used primarily for data exploration and analysis by business or data analysts via a no-code user interface. BIA technologies will lead to an evidence-based culture and high data literacy within agencies and lay the foundation for developing capabilities around the capacity to learn and acquire information, the ability to understand the information required to learn, and the ability to apply the resulting knowledge pervasively across the organization at scale.

"Consider solutions capable of storytelling, those that deploy natural language processing and are augmented by advanced analytics," says Adelaide O'Brien, research director, IDC Government Insights. "And for cloud applications, consider software solutions that are secure and have FedRAMP authorization and/or DoD Impact Level authorization," she adds.

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Why Do Customers Switch Managed Cloud Service Providers in Canada?

Aug-22 DOC # CA49550422 Presentation

Authors:

• Anu Mehta
• Jason Bremner

This IDC Survey Spotlight provides insights into organizations' top considerations when switching managed cloud services providers in Canada. It also provides insights to help vendors understand the market segment better and promote their offerings in a more suitable manner. Vendors should showcase their expertise around cost flexibility, service offerings, deep technological and industry expertise, reputation/awards around customer service, new cloud capabilities, and the ability to meet project timelines.

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Canadian Managed Cloud Services Adoption, 2022

Jul-22 DOC # CA48464822 Presentation

Authors:

• Anu Mehta
• Jason Bremner

This IDC Survey examines the growing adoption of managed cloud services in Canada and which vendors organizations are using as their cloud service providers. The survey also highlights the primary challenges in managing multiple cloud service providers and the reasons for switching to a new managed cloud service vendor. This survey draws responses from 402 IT executives from large, medium-sized, and small organizations who were surveyed as part of IDC Canada's IT Advisory Panel n7, which was fielded in December 2021.

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Government Buyer Intelligence Survey: Analysis of Health and Human Services Agencies Trends in Digital Services Technology

Jul-22 DOC # US49519222 Presentation

Authors:

• Adelaide O'Brien

This IDC Market Presentation covers digital services responses from 101 U.S. Health and Human Services agencies at the federal, state, and local level. This Market Presentation is designed to help technology suppliers, government technology buyers, decision makers, procurement officers, and policymakers devise strategies and policies that maximize technology benefits, enable government to protect and service the public, and support sound investment decisions.

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Canadian Provincial Budgets and Expenditures, 2022

Jul-22 DOC # CA49432422 Presentation

Authors:

• Mark Schrutt
• Jason Bremner

This IDC Market Presentation provides an overview of each provincial budget with a particular focus on technology-based announcements. Direct (funding to be invested by the governments in government systems) and indirect (programs to help employers or transition to new technologies) are highlighted. Finally, certain IT expenditures are listed for particular provinces.

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The Criticality of Zero Trust for the Federal Government

Jul-22 DOC # US49270022 Insight

Authors:

• Adelaide O'Brien

This IDC Perspective addresses federal requirements for zero trust and presents survey responses from 329 federal agency decision makers. Topics include top reasons for investing in cybersecurity, agency progress in deploying cybersecurity solutions in several areas, and a summary of the Defense Information Systems Agency (DISA) zero trust security model, Thunderdome.

"We are seeing the shift from relying on perimeter security to more adaptive approaches like zero trust that offer more multifaceted and pervasive defenses," says Adelaide O'Brien, research director, IDC Government Insights.

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Punching Above Their Weight: The Value of Business Analysis in the Digital World

Jun-22 DOC # CA49258622 Insight

Authors:

• Mark Schrutt
• Jason Bremner

In this IDC Perspective, we are approaching head-on the debate about the role of the business analyst in today's digital world. We talked to several organizations that participated in IIBA's 2021 study on analytics and businesses' ability to respond to change.

Business analysts are not a prerequisite in the digital age. There is a case for other roles being of greater importance. Good technical architects who design an IT platform for growth and speed are worth their weight in gold. So are great UX designers to better engage customers. Subject matter experts from the business are also a must-have.

"What is more important than the role, or what title it has, is the business analyst skill set," said Mark Schrutt, strategic advisor, Innovation and Public Sector Research at IDC Canada. "Companies won't get very far in the digital world without the soft skills of critical thinking, problem solving, and stakeholder engagement. These capabilities, which BAs have crafted over time, are the most critical in the digital age."