CANADIAN ICT INDUSTRY GROWTH DRIVES STRATEGIC BUSINESS ADVANTAGE, ACCORDING TO IDC CANADA

June 2, 2006

TORONTO, Canada, June 2, 2006 – The information, communications and technology (ICT) market grew 4.4% in 2005, generating almost $72 billion with an annual growth rate of 3.9% or additional $3 billion per year until 2010, according to IDC Canada.

"More than $400 billion will be spent on ICT in Canada over next 5 years and it will continue to be a strong contributor to economic growth and prosperity," says Vito Mabrucco, IDC Canada's Managing Director.

"With Canada's positive economic environment, now is the right time for organizations of all sizes to invest in ICT for the future. Organizations are realizing that technology aligned effectively with their business priorities will truly drive strategic business advantage," says Mabrucco.

Among areas of significant growth:

• IT Security remains a priority for Canadian organizations as the market for IT security hardware, software and services grew 16.6% between 2004 and 2005. IDC indicates that spending is currently at $949 million and with a CAGR of 14.2% it is expect to reach $1.8 billion by 2010.
• System infrastructure software (SIS) continues to be the engine of growth for the overall Canadian software market. The security market - led by identity and access management and secure content management - is outpacing all other software markets, over the forecast period, at a 10.5% CAGR.
• The Canadian Small and Medium Business Markets, which account for 25% of the total IT market in Canada will experience significant growth moving to 2010. IDC predicts the small market will grow to almost $4.6 billion driven by spending increases across hardware, software and services. The medium market is predicted to eclipse $6.5 billion by 2010, driven by an increase in software consumption.
• The Canadian telecommunications services sector achieved revenues of $34.4 billion in 2005, growth of 3.6%. IDC Canada predicts an annual growth rate of 3.9% until 2010 with spending of $41.7 billion, driven not just by wireless but also non-voice (data) services playing a key role.
• IDC believes that spending on hosted application management grew by approximately C$10 million in 2005 reaching C$101 million, which reflects an annual growth rate of 11%. IDC Canada projections indicate that spending will increase at a five-year average rate of 9.0% between 2005 and 2010.

"IDC fully expects that moving forward, in order to remain globally competitive, Canada will have to continue to invest in and leverage technology for the benefit of individuals, organizations and the nation," says Mr. Mabrucco.

IDC Canada recently completed a series of forecasts looking at 16 key segments of the Canadian ICT market. The forecasts size each market in 2005 and provide a 2006-2010 forecast as well as insights into key trends and developments. The results of this forecast and analysis are based on 14,000 surveys and interviews with Canadian executives and consumers. IDC continues to make significant investments in primary research, subject matter experts, and innovative research practices. IDC has over 850 analysts globally and with over 35 Canada. Our team of analysts and consultants provide in depth insight and essential guidance to our clients across a broad set of research areas, including hardware, software, services, communications, vertical markets, small and medium business and consumers.

About IDC Canada
IDC is the foremost global market intelligence and advisory firm in the information technology and telecommunications industries. IDC Canada forecasts and provides keen insight on Canadian, in addition to worldwide, IT markets and technology trends. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice.
More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, eBusiness companies and the financial community. Additional information can be found at www.idc.ca.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

Contact

For more information please contact:

Stephen Symonds
Marketing Communications Coordinator
IDC Canada
(416)673-2260
ssymonds@idccanada.com