SPENDING ON HOSTED APPLICATION MANAGEMENT CLIMBS OVER $100M, SAYS IDC CANADA

June 6, 2006

TORONTO, Canada, June 6, 2006 – Spending on hosted application management grew by approximately C$10 million in 2005 reaching C$101 million, an annual growth rate of 11 per cent, according to IDC Canada.

"This growth is not surprising as hosted application management relieves customers of the costs and time associated with managing the systems upon which their applications are running," says Nigel Wallis, Research Manager of Applications Services with IDC Canada.

"The major difference between hosted application management and the traditional form is that a customers applications are run out of the vendor's datacenter, aspects of the datacenter are operated in a one-to-many model, and the vendor does not assume responsibility for existing customer hardware assets," says Mr. Wallis.

Projections indicate that spending on hosted application management will increase at a five-year average rate of 9.0 per cent between 2005 and 2010.

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 recent surveys and interviews with Canadian executives. IDC continues to make significant investments in primary research, analysts and survey instruments. IDC boasts over 850 analysts globally and in Canada, a team of analysts and consultants that provide essential guidance to customers across 16 distinct research areas, spanning hardware, software, services, vertical markets and communications.

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