Canadian ICT Competitive Activity Update: 1Q16
This IDC update provides Canadian ICT executives with a review of notable corporate announcements, recent market entrants, new alliances, and new service offerings from the recent research period and discusses implications that may affect the Canadian ICT industry moving forward.Highlights from this update include:Corporate announcements. The seventh-largest infrastructure hosting firm in Canada has grown by close to 800% over the past three years, and its market capitalization is larger than the combined value of the other top 10 vendors. Yet, until the past year, the firm had no employees or physical datacentre presence in Canada. Amazon Web Services' (AWS) arrival in 2016 cannot help but make waves … though maybe not as big as one might expect.Organizational changes. The strategic transformation of the hardcopy industry from a hardware-centric model to a solutions- and services-driven approach took another blow as Xerox announced its intention to split into two companies — one focused on services and one focused on technology. In IDC's view, Xerox's approach does offer the opportunity for greater agility, flexibility, and a more focused approach than its current situation.Acquisition and partnership activity. Dell's acquisition plans for EMC dominated the news in 4Q15, and in part to fund that acquisition, Dell has done it again with the announcement that it is ditching its 2009 acquisition of Perot Systems. While there will be challenges, IDC believes that Dell Services will complement NTT DATA Inc.'s capabilities, while NTT DATA will provide the former Perot organization with a more culturally similar home.Solution offerings. While not a sizable player in the Canadian market, Verizon's official exit from the hyperscale IaaS market provides yet another clear signal that taking on AWS means that challengers need to go big or go home.IDC compiles the Canadian ICT Competitive Activity Update from daily press releases, financial reports, publications, and professional insight. Items covered in this update do not represent an endorsement of any product, service, or provider. All figures in this update are in Canadian dollars (C$) unless otherwise specified.
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