Canadian Tech Market poised for Growth

Toronto-based IDC Canada reported last week that despite the slowing economy in the US, Canada’s technology industry is still poised for substantial growth this year. According to IDC’s report, end-users are expected to spend no less than $81.5 Billion in technology products and related services this year pushing growth in the Canadian IT sector above that of the national GDP and the US economy.

Vito Mabrucco, senior vice-president of worldwide consulting and managing director at IDC Canada, stressed that opportunities are growing areas in such as Web 2.0, unified communications and wireless mobile technology.  With regards to prospects in the Web 2.0 space, Nestor Arellano of IT Business.ca summed up Mabrucco’s thoughts.

The IDC Canada report said companies should keep an eye on developments in the second generation of Internet-based technologies and trends also known as Web 2.0. New online delivery technologies and the growing popularity of Web-based social networking among consumers have pushed Web 2.0 into the mainstream, the analyst firm noted.

“You need to know more about it – how to monetize it or how to use it,” Mabrucco said. He said it’s easy to tell that Web 2.0 has hit the mainstream when companies such as Microsoft, Cisco, Sun, Open Text, IBM and RIM are promoting it. An earlier IDC report had commented on how the IT market is being reshaped by developments in online delivery, community-based software development, solution-oriented packaging of software-as-a-service, free IT funding models and non-traditional entities such as YouTube, Facebook and Google. Unfortunately, Mabrucco said, most businesses are still confused about Web 2.0. “They think it’s something that is packaged and bought.”