This report presents the findings from a survey of 90 Canadian enterprises regarding their Information & Communication Technology (ICT) budgets and staff allocation. The survey investigates how Canadian enterprises currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.
Introduction and Landscape
Why was the report written? In order to provide a depth of insight into ICT vendors’ and service providers’ potential customers
What is the current market landscape and what is changing? Despite the drive to cut costs across government, many public sector organizations are still spending steadily and expect to promote successful innovations through IT investments.
What are the key drivers behind recent market changes? Spending on IT will mostly follow an upward trend due to recovery from the macroeconomic debt crisis and gradual improvement in the US economy.
What makes this report unique and essential to read? Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Budgets. Very few IT analyst houses will have interviewed 90+ ICT decision makers in the Canadian market in H2 2012.
Key Features and Benefits
Understand how ICT budgets are set to change in 2013 in terms of their overall size.
Appreciate how IT budgets are allocated across the core elements of IT spend, including hardware, software, services, communications and consulting.
Learn how IT dollars are being spent in areas such as the data centre, applications, IT management and the network.
Establish how IT staff are typically allocated within Canadian organizations.
Gain insight into with whom Canadian enterprises plan to spend their ICT dollars.
Key Market Issues
IT expenditure on the service desk, communications, and IT management is expected to remain relatively low in 2012, as compared to other functions, perhaps reflecting the reluctance of organizations to invest in their business expansion in the current economic climate.
A large proportion (about X%), on average, of Canadian enterprises’ total IT budgets is being allocated to internal development and maintenance.
The rising demand for multiple communication devices, such as smartphones and tablets, along with the gradual adoption of Bring Your Own Device (BYOD) programs, mostly by large businesses, have made client computing a necessary choice for enterprises.
Enterprise customers of all sizes are opting for an on-demand software delivery model in which software and its associated data are centrally hosted on the cloud.
Demand for application development and integration services has strengthened, as organizations have increased their focus on enterprise applications, rapidly emerging mobile & web applications, and security software.
Kable’s survey reveals that in 2012 enterprises have primarily focused on their core IT systems, where on average, respondents have been investing X% of their external IT budgets on hardware, software and services combined.
Majority (X%) of Canadian enterprises (both SMBs and large businesses) are investing in their data centres, followed by spending on end-user computing and their networks.
The proportion of staff members allocated to IT Infrastructure (X%) closely follows that allocated to applications (Y%), primarily driven by the need to support increasingly distributed networks, particularly in light of the demand for cloud computing solutions.
Kable’s shows that software spending is currently focused on application lifecycle management and enterprise applications, each with an average allocation of X% of the total software budget.
Canadian enterprises are focused on fixed and mobile voice with average budget allocation of X% and Y%, possibly due to their excessive dependence on legacy fixed-line infrastructure and mobile voice solutions.