Toronto, ON (Dec. 18, 2015) – International Data Corporation (IDC) Canada just released its top information and communication technology predictions for 2016. 2016 Canadian ICT Predictions and Forecast: Digital Transformation and Disruption (IDC#CA13ICT15) was presented during IDC’s annual Canadian ICT Predictions webcast on December 3rd, and provides business decision makers and technology vendors with insight and perspective on the top developments that will affect the Canadian market in the year to come.
Drawing on IDC’s industry-defining research and insights, the predictions explore the user trends and vendor strategies that will redefine the ICT market, redistribute market share in Canada and help leaders capitalize on emerging market opportunities and plan for future growth.
Specifically, the predictions are as follows:
2016 Canadian ICT Predictions
- Digital Transformation Becomes Boardroom Topic As C-Suite Drive for Competitive Advantage in 2016: more than 2/3s of enterprises are in the early stages of the Digital Transformation (DX) journey, few organizations are ‘advanced’.
- Different Industries, Regions and the 3rd Platform Drive Growth: IT services and Software will contribute strongly to growth in 2016, driven largely by aaS offerings and Telecom.
- Spending on hybrid cloud will surpass C$1B in 2016 and will become the dominant cloud operating model in Canadian enterprise in 2-3 Years: in Canada new workloads around Big Data/analytics, IoT, and mobile business applications will drive demand for hybrid cloud solutions.
- Internet of Things – 2016 will be the Year of the Developer: IDC expects that globally over the next five years there will be more than 250,000 unique IoT applications created. Embracing the developer is one positive way to advance Canada’s innovation agenda.
- Canadians Experiment with Cognitive Computing in 2016 but Mainstream Adoption Lags to 2020: IDC forecasts that cognitive software platform worldwide spending will be over US$1 billion this year.
- Security spending will surpass C$2B in 2016 but Canadian businesses will still not be investing in all the right places: organizations must take a holistic approach to designing a security strategy, and ensure that end-user security training is prioritized and implemented.
- Vendor and partner ecosystem disruption – realignment of preferred vendor relationships begins in 2016: by 2020 30% of Vendors will not exist as we know them today.
- Mobile business apps take off: by 2018, 60% of new applications will be “Mobile First”, but Canadian businesses must move forward now to develop and deploy mobile apps quickly, securely, cost effectively to become more competitive globally.
- Connected Life: Canadian consumers to spend more on tech and services than clothing in 2016: connected consumer entertainment, fitness, personal health, connected cars, home automation, security and tracking are areas of new spending growth in Canada.
- On the Horizon – Innovation Accelerators Drive Pervasive Change: By 2020, 70% of drone deployments are expected to be driven by industry automation such as pipeline management, surveillance, farming, and offshore drilling.
“IDC Canada’s 2016 predictions focuses heavily on the notion of Digital Transformation (DX) across industries, which is now widespread and contagious in the Canadian marketplace,” says Tony Olvet, Group Vice President of Research at IDC Canada. “Almost every multinational is talking about industry disruption and the importance of becoming more digital. We hear CEOs from global giants shifting their business models, appointing ‘chief digital officers’ and ‘chief innovation officers’. This is not just for multinationals. In fact we’d argue that small and medium-sized Canadian companies need to get on top of this more swiftly than even large firms.”
“2016 is expected to be an exciting but disruptive year on a number of fronts in the Canadian ICT sector”, says Lars Goransson, General Manager and Group Vice President at IDC Canada. “Canadian organizations need to put in place strong executive leadership through the critical DX ramp-up stage to achieve a balance between encouraging rapid, distributed innovation, and the growing need for governance and integration of DX initiatives. CIOs need to recalibrate IT organizations’ fundamental priorities (e.g., critical skills, strategic technologies, insource/outsource decisions) as IT infiltrates more of the enterprises’ products and services, instead of simply supporting the delivery of those offerings.
IT suppliers should map demand for their offerings to the widening variety of digital transformation initiatives, to better optimize their offerings, identify the best routes to market, and align with the appropriate buyers.”
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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 subsidiary of IDG, the world’s leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com.
Source: International Data Corporation (IDC)