Press release

CORRECTING and REPLACING Gartner Says Canadian IT Spending to Grow 1.1% in 2019

Sponsored by Businesswire

In first sentence of release, figure should read $87.8 billion (instead
of $87.8 million).

The corrected release reads:


Analysts Discuss the Outlook for the Canadian IT Market During
Gartner IT Symposium/Xpo 2019, June 3-6, in Toronto

Canadian IT spending is projected to total $87.8 billion in 2019, an
increase of 1.1% year over year, according to the latest forecast by
Gartner, Inc. This is down from 3.5% growth in 2018. Global IT spending
is also forecast to grow 1.1% in 2019, reaching $3.79 trillion.

“Uncertain economic and political environments and trade wars are
slowing growth in IT spending in Canada in 2019,” said John-David
, research vice president at Gartner. “Specifically, steel
and aluminum tariffs, uncertainty around car manufacturing, continuing
problems in the country’s oil industry and indecision around the pending
trade deal to replace the North American Free Trade Agreement (NAFTA)
are some of the impacts affecting IT spending. However, we expect some
of that uncertainty to be resolved by 2020 and IT spending is expected
to pick up.”

Gartner analysts are discussing the emerging trends that are driving
digital transformation and IT spending this week during Gartner
IT Symposium/Xpo
here through Thursday.

Although Canadian organizations are not as far along in their digital
journey as their global counterparts, their use of cloud
is only second to the U.S. “We are seeing an increased
investment in off-premises capabilities and decreased investment in
on-premises capabilities,” said Mr. Lovelock.

This is reflected in the flat growth for data center systems in 2019 and
the strong growth for enterprise software in 2019 and 2020 (see Table
1). The largest cloud
has so far occurred in application software and that segment
is poised for continued strong growth. Gartner also expects increased
growth for the infrastructure software segment over the forecast period.

Table 1. Canadian IT Spending Forecast (Millions of U.S.




Growth (%)




Growth (%)




Growth (%)

Data Center Systems   4,963   7.3   4,966   0.0   4,892   -1.4
Enterprise Software   13,020   15.0   13,867   6.5   15,065   8.6
Devices   11,266   -5.4   11,238   -0.2   10,975   -2.3
IT Services   24,560   4.7   25,019   1.8   26,129   4.4
Communications Services   34,023   1.5   33,704   -0.9   34,177   1.4
Overall IT   87,833   3.5   88,763   1.1   91,238   2.8

Source: Gartner (June 2019)

“The choices CIOs make about technology investments are essential to the
success of digital business. Disruptive emerging technologies, such as artificial
(AI), will reshape business models as well as the
economics of public- and private-sector enterprises. Investment in AI,
for example, has experienced a huge jump from 2018, and AI will have a
major effect on IT spending,” said Mr. Lovelock. “Gartner’s 2019 CIO
Agenda Survey showed that 24% of Canadian CIOs plan to increase
investment in AI, up from 2% in 2018. Additionally, Gartner’s AI
business value forecast
predicts that Canadian organizations will
receive $36 billion worth of benefit from the use of AI this year alone.”

More detailed analysis on the outlook for the IT industry is available
in the complimentary webinar “IT
Spending Forecast, 1Q19 Update: AI — Use it, Build it or Sell it.”

Gartner’s IT spending forecast methodology relies heavily on rigorous
analysis of sales by thousands of vendors across the entire range of IT
products and services. Gartner uses primary research techniques,
complemented by secondary research sources, to build a comprehensive
database of market size data on which to base its forecast.

The Gartner quarterly IT spending forecast delivers a unique perspective
on IT spending across the hardware, software, IT services and
telecommunications segments. These reports help Gartner clients
understand market opportunities and challenges. The most recent IT
spending forecast research is available to Gartner clients in “Gartner
Market Databook, 1Q19 Update.”
This quarterly IT Spending Forecast
page includes links to the latest IT spending reports, webinars, blog
posts and press releases.

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo is the world’s most important gathering of CIOs
and senior IT leaders, uniting a global community of CIOs with the tools
and strategies to help them lead the next generation of IT and achieve
business outcomes. More than 25,000 CIOs, senior business and IT leaders
worldwide will gather for the insights they need to ensure that their IT
initiatives are key contributors to, and drivers of, their enterprise’s

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Upcoming dates and locations for Gartner IT Symposium/Xpo include:
16-18: Cape Town, South Africa

20-24: Orlando

28-31: Gold Coast, Australia

28-31: Sao Paulo, Brazil

3-7: Barcelona

11-14: Goa

12-14: Tokyo

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