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Canadian ICT Competitive Activity Update: 2Q16

Canadian ICT Competitive Activity Update: 2Q16

  • September 2016
  • 14 pages
  • ID: 4193237
  • Format: PDF
  • By IDC

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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. Despite announcing a relatively high 7%+ YoY revenue growth rate and a 3%+ net income expansion in 1Q16, Intel's statement of the company's imminent restructuring captured the market's attention this quarter -- even though such a change was both clearly necessary and highly predictable.Organizational changes. Globally, the Hewlett Packard Enterprise (HPE) and CSC merger announcement was all about maximizing shareholders' return through economies of scale in areas of IT outsourcing, systems integration, and IT consulting. However, in Canada, the benefits will need to be played out differently because of the different local nature of these two entities, if the benefits truly add up to more than the sum of their Canadian parts.New acquisitions and partnerships. The second quarter of the year was filled with a number of very interesting acquisition announcements that are bound to have direct impacts on the composition of the Canadian IT landscape, including Microsoft and LinkedIn, BCE and Manitoba Telecom Services (MTS), and Mitel Networks and Polycom Inc. It is Dell's divestiture of the Dell Software Group, however, that is bound to have a profound ripple effect across the software, services, and channel landscape over the longer, if not immediate, term and deserves deeper analysis.New solution offerings. While many vendors offered up new and expanded solutions in this quarter, it was OpenText Corp.'s continued inorganic expansion strategy -- this time through the purchase of HP Inc.'s customer engagement software assets -- that was of particular interest this quarter.IDC compiles the Canadian ICT Competitive Activity Update from daily press releases, financial reports, publications, and professional insight. Additional input can be sent to CompetitiveInsight@idccanada.com. 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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