Canadian IT spending is expected to reach US$45.2bn in 2012, up 1%, with BMI downwardly revising its forecast due to expectations of a macroeconomic cooling in H212. Canada’s Information Technology market to remain in overall positive growth territory, although much will depend on the business environment. Government spending will continue to be constrained by a focus on cutting costs.

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US$ 1175 (Single User License). The report got published in Oct 2012 and contains 54 Pages.
BMI View: Canadian IT spending is expected to reach US$45.2bn in 2012, up 1%, with BMI downwardly
revising its forecast due to expectations of a macroeconomic cooling in H212. BMI expects Canada’s IT
market to remain in overall positive growth territory, although much will depend on the business environment.
Government spending will continue to be constrained by a focus on cutting costs, with cost reviews being
conducted by Toronto and Ontario, but there have been a spate of large tenders, highlighting continued
opportunities within the sector. Meanwhile, there will be opportunities as the government seeks to foster the
development of a marketplace for cloud services.
Canada Information Technology Headline Expenditure Projections
Computer Hardware Sales: US$15.3bn in 2011 to US$15.3bn in 2012, +0% in US dollar terms. Forecast in
US dollar terms downwardly revised due to macroeconomic factors, after Canadian PC sales reported
positive growth in 2011.
Software Sales: US$8.8bn in 2011 to US$9.0bn in 2012, +2% in US dollar terms. Forecast in US dollar terms
downwardly revised due to analyst modification and, given the large public sector deficits, vendors will need
to provide clients with ways to reduce costs by increasing efficiency.
IT Services Sales: US$20.6bn in 2011 to US$20.9bn in 2012, +2% in US dollar terms. Forecast in US dollar
terms downwardly revised due to analyst modification, with the market shaped by a continued move towards
distributed computing and service-oriented architectures.
Risk/Reward Ratings: Canada’s score was 70.7 out of 100.0. Canada ranks second in our latest RRR table,
behind the US, but still ahead of Latin American leaders such as Brazil and Mexico. The country ranked third
for its industry rewards score, but its overall rating was boosted by a relatively high country rewards score of
90.
Canada Information Technology Market Key Trends & Developments.
- The federal government has stepped up its efforts to expand its use of cloud-based services. Government
entities at all levels are expected to be a growing market for cloud computing services as small towns and
cities strive to cut costs and raise efficiency. In 2012, the government has launched a new brokerage system,
designed to create an open marketplace where government agencies can procure cloud services. As of mid-
2012, two of Ottawa’s highest profile departments – Service Canada, which supervises federal benefits
including Social Insurance, and the Canada Revenue Agency – are using cloud services.
- Fiscal constraints faced by the Ontario government in particular represent a challenging environment for
vendors. Meanwhile, Toronto authorities have also launched a Core Spending Review targeted, which could
have negative implications for IT spending. However, a focus, by Ontario and other authorities, on deficit
reduction through public services delivery reforms should also potentially represent an opportunity for IT

2. vendors.
- Growing interest in cloud computing is expected, with Canada currently lagging the US and some other
advanced markets. The market in Canada remains fairly small. A 2011 survey commissioned by Microsoft
Canada found that nearly 73% of Canadian small and mediumsized enterprises (SMEs) understood that
cloud-based services were a cost-effective delivery model, but that just 30% were investing in such services.
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Table of Contents
Executive Summary . 5
SWOT Analysis .... 7
Canada IT Sector SWOT ... 7
Canada Political SWOT .... 8
Canada Economic SWOT . 8
Americas Risk/Reward Ratings ... 9
Table: Americas Risk/Reward Ratings, Q412 .... 11
Americas IT Market Overview .... 12
IT Penetration .. 12
Sectors And Verticals . 17
Market Overview 21
Hardware .... 22
Software . 25
Services .. 28
Industry Developments ... 29
Industry Forecast ... 31
Table: Canada IT Sector - Historical Data & Forecasts (US$mn Unless Otherwise Stated), 2009-2016 .... 34
Industry Forecast Internet 35
Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2009-2016 .... 35
Macroeconomic Forecast . 37
Table: Canada - GDP By Expenditure, Real Growth %, 2008-2016 39
Competitive Landscape ... 40
Hardware .... 40
Software . 41
Services .. 43
Country Snapshot .. 46
Table: Canada's Population By Age Group, 1990-2020 ('000) .... 47
Table: Canada's Population By Age Group, 1990-2020 (% of total) 48
Table: Canada's Key Population Ratios, 1990-2020 ... 49
Table: Canada's Rural And Urban Population, 1990-2020 ... 49
BMI Methodology ... 50
How We Generate Our Industry Forecasts ... 50
IT Industry .. 50
IT Ratings - Methodology .... 51
Table: IT Business Environment Indicators .. 52
Weighting .... 53
Table: Weighting Of Components .. 53
Sources .. 53Table: Americas Risk/Reward Ratings, Q
Table: Canada IT Sector - Historical Data & Forecasts (US$mn Unless Otherwise Stated), -

3. Table: Telecoms Sector - Internet - Historical Data & Forecasts, -
Table: Canada - GDP By Expenditure, Real Growth %, -
Table: Canada's Population By Age Group, - (')
Table: Canada's Population By Age Group, - (% of total)
Table: Canada's Key Population Ratios, -
Table: Canada's Rural And Urban Population, -
Table: IT Business Environment Indicators
Table: Weighting Of Components
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