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IDC PREDICTS AREAS OF GROWTH FOR CANADIAN IT MARKET

Source: CanadaIT.com

Posted on May 13, 2002

      IDC has delivered market intelligence to Canadian customers since 1984, and worldwide since 1964. This new series of forecasts contains some key information that helps IDC Canada's customers target the right market with the right strategy. Behind each one of these forecasts are Canadian based analysts who provide more in-depth knowledge, analysis and predictions than any other IT market research firm in Canada. The following are some of the highlights of the most recent forecasts.

      Canadian ecommerce is expected to grow over 700% from 2001 to 2006, with business-to-business transactions, accounting for 83% of this total through to 2006. As significant driver of overall ecommerce in Canada, unique Internet users will grow to 43.8 million, up from 26 million in 2001.

      In the hardware space new technologies will create new opportunities. Specifically, the new server form factor - server blades - is forecasted to capture 17% of all server shipment by 2006, representing tremendous growth from the standing start of last year. The server hardware market as a whole will see growth in 2002, up from a 2001 market plateau.

      The Canadian software market continues to experience growth in most areas, led by growth in the applications and infrastructure markets. In addition, IDC Canada predicts that the Windows operating environment will continue to show growth and by the end of the forecast period it will be the dominant operating environment with close to 50% of all Canadian software spending in the Windows environment.

      Resellers still account for 30-40% of all sales, continuing to reinforce that value-added partners are still critical to manufacturers success as they continue to drive reseller sales while increasing focus on services and solutions sales. In the area of support services, despite a decline in hardware support revenue, there is still strong growth in the areas of software, storage and network support.

      At the forefront of the services growth markets is outsourcing and managed services. This market is expected to grow at a relatively high rate of 14% (CAGR). This is a complex and large market comprised of multiple go-to-market strategies ranging from custom one-of-a-kind outsourcing opportunities, to utility-type xSP computing to all encompassing business process outsourcing market opportunities (BPO). As an example, in the BPO market the Customer Care segment is predicted to grow at over 19%.

      In the telecom arena, wireless will continue to be a major driver of the market, with double-digit cumulative growth, almost twice that of the overall market throughout the forecast period, reaching $C$10.3 billion by 2006. Spending on wireless services is expected to total C$7.1 billion this year -- a 13 per cent increase from 2001. The number of wireless data users in Canada is expected to grow from 180,000 to 685,000 in 2006.

      These findings, and many more insightful and strategic conclusions, have recently been published in more than twenty market forecast and analysis documents now available from IDC Canada.

Canadian Markets Covered by IDC's Forecasts

      Internet-Related Markets: including detailed forecasts for the Internet Commerce market in Canada, as well as the Internet Commerce Market Model - forecasting ecommerce including 'business to consumer', 'business to business' and mCommerce.

      Hardware Market: including detailed forecasts for the Server market

      Software Market: including detailed forecasts for Applications Development and Deployment, ERM, and CRM, markets.

      Services Market: including detailed forecasts for markets for eSolution services, Consulting and Integration services, Application Provider services, Application Management services, Systems Infrastructure services, Network and Desktop Outsourcing services, Business Service Provider, Information Systems Outsourcing services and Processing services markets.

      Telecommunications Market: including detailed forecasts for VoIP, handheld devices, wireless data, wireless voice, and broadband, markets.

      When asked how this market intelligence can benefit the growth of Canada's IT community, Vito Mabrucco, Group Vice President of IDC Canada, explained, "Canadian IT businesses, and new entrants to this market, who are planning to grow their business Canada seek to better understand in detail the Canadian IT industry and it's related opportunities. For 18 years IDC Canada has been assisting both the IT vendor community and large corporate organizations obtain detailed and insightful analysis, forecasts and guidance that will help them understand the Canadian landscape as well as target the right markets with the right strategy."

      In addition to local depth of understanding IDC also provides global perspective. For example within each of the 42 countries that we operate in can provide local understanding similar to what we provide in Canada. As Mr. Mabrucco explains, "for Canadian IT companies looking to expand beyond our borders, IDC provides the global perspective and local depth they need to understand where and what the opportunities are around the world. This will help indigenous Canadian IT companies to be highly targeted and knowledgeable about opportunities around the world to ensure success with their global strategies".

      Additional information can be found at www.idc.com and www.idc.ca.




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