22 May 2019

IDC Canada Releases 7 New Forecasts to Help Vendors Understand the Unique Nuances of the Canadian ICT Market

TORONTO, ON., May 22, 2019 — International Data Corporation (IDC) Canada announced today the release of seven new forecast reports for the Canadian information and communications technology (ICT) market from multiple research subscription services. IDC Market Forecasts help technology suppliers identify market drivers and size, measure current performance, analyze leading market indicators, as well as plan for future opportunities and growth. Key findings from the seven forecast reports are listed below.

Canadian Communications Services Forecast, 2019-2023: Telecom Inside Out (IDC#CA43809119). This IDC study presents IDC Canada's five-year forecasts for communications services spending by customer segment, company size, industry sector, and region for 2019–2023 based on the annual update of IDC Canada's custom Communications Market Model. Communication SPs continue to face twin challenges of market erosion by new and established entrants in their core markets, coupled with increased wireless substitution, which will further exacerbate revenue erosion in traditional communications market segments over the five-year forecast period. "The need to invest in next-generation network (NGN) infrastructure technologies is an urgent imperative beyond preparing for 5G wireless," says study coauthor Lawrence Surtees, vice president of Communications Research and principal analyst at IDC Canada. "NGN infrastructure is the future of the provider franchise and is both a competitive necessity for survival and a strategic enabler of new revenue sources."

Canadian IT Professional Services Forecast, 2019-2023 (IDC#CA43783219). This IDC study provides the spring 2019 market size and forecasts for the Canadian IT professional services market. The professional services market is made up of four submarkets: Custom application development, IS consulting, Network consulting & integration, and Systems integration. "Professional services providers are benefitting from the increased focus on digital transformation and the solution accelerators (IoT, AI, etc.), and this will power the market for a number of years. Increased opportunities will bring increased competition, but this will further push the market to create new and innovative products and services," says Jim Westcott, research manager, IDC Canada.

Canadian Infrastructure Outsourcing Forecast, 2019-2023 (IDC#CA43804019). This study provides IDC's forecast for the Canadian infrastructure outsourcing services market for 2019–2023. "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, 2019-2023 (IDC#CA43772519). This IDC study details the performance of the Canadian server market during 2018 and presents a forecast for the market for the 2019–2023 period. Detailed forecasts and the underlying assumptions and rationale used to develop the forecasts are provided. "2018 server revenue in Canada was boosted due to growth in unit shipments as well as strong growth in the average selling value of servers. While we expect the shipment growth to continue in 2019, the revenue is expected to decline by over 10% due to a decline in average selling values," says Tarun Bhasin, research director, Infrastructure Solutions, at IDC Canada. "As organizations grapple with the challenges of digital transformation and adopting next-generation workloads, to be successful, vendors should focus on selling solutions that will help customers overcome these emerging challenges."

Canadian Enterprise Storage Systems Forecast, 2019-2023 (IDC#CA43772619). This IDC study provides a forecast for spending in the Canadian disk storage systems market through 2023. Reviewing the underlying technological and market forces that shape this environment, IDC provides guidance to storage system vendors to assist in targeting growth areas of the market and abating the effects of the current global economic situation. Total disk storage systems revenue is expected to grow at a CAGR of 1.0% through 2023. "Infrastructure hardware remains a low-growth market across Canada," says Dave Pearson, director, Infrastructure Solutions. "However, demand is high for both compute and storage capacity, as well as associated software and services. The stark reality of nearly 30% capacity demand growth tips the scales against lower per-capacity costs and the continued push to drive down costs through cloud adoption and storage efficiency technologies."

Canadian Network Equipment Forecast, 2019-2023 (IDC#CA43772719). The networking equipment market in Canada is forecast to reach $2.93 billion in revenue in 2023, resulting in a five-year CAGR of 1.2%. Kevin Lonergan, research manager, Networking Equipment and Security, IDC Canada, says, "2018 was a strong year for network equipment, but growth trends are expected to return to low single digits over the forecast period. Cloud is transforming the network equipment market, reducing the need for datacentre infrastructure, while at the same time increasing demand for bandwidth and low latencies at the edge."

Canadian Consumer Wireless, Internet, and Wireline Voice Services Forecast, 2019–2023 (IDC#CA43806919). This IDC study examines consumer wireless voice and data, residential dial-up and high-speed internet, and residential wireline voice services and addresses the current state of these markets in Canada. It provides forecasts for both subscriptions and revenue as well as the key drivers and inhibitors behind the forecast. "As the willingness of Canadian consumers to spend on 'cornerstone' services such as residential internet, for which value proposition is clear, continues to grow on account of their data-intensive habits and needs, consumers will expect that level of access and bandwidth to the internet to become simply ubiquitous and less limiting," says coauthor Manish Nargas, senior analyst for Consumer Services and Mobility. "With 5G networks on the horizon, communication service providers (SPs) can potentially offer that level of ubiquity. However, those communication SPs that showcase the strength of the ubiquity by not talking about its complexity will benefit rather than those touting only its next-generation specifications."

"The market for technology is vast and increasingly competitive in Canada. IT vendors and communications SPs can better plan their marketing and sales strategies, first by understanding market spending forecasts, and second, by exploring the segments with the greatest opportunities. At IDC Canada, we assist vendors to succeed by helping them understand the unique attributes and nuances of the Canadian market," says Tony Olvet, group vice president, research at IDC Canada.

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, 2019 and Beyond (IDC#CA45007619, 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. The IDC Market Forecast helps technology suppliers identify market drivers and size, measure current performance by benchmarking against growth, identify, analyze and track leading market indicators, as well as plan for future opportunities and growth.

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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