Top 250 Canadian Technology Companies | March 31, 2009
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Results by region
The geographical breakdown of this year’s Top 250 ICT companies illustrates a shift in representation among Canada’s provinces. Ontario was the only province that saw a significant increase in 2008 (five per cent), accounting for 58 per cent of those listed in the Top 250. This increase is largely due to the fact that 26 of the 45 companies (58 per cent) that were new to this year’s listing are headquartered in Ontario. While Alberta’s representation (10 per cent) remained relatively static in 2008, B.C. and Quebec fell in their representation by two per cent each, coming in at 14 and 13 per cent, respectively.
Alberta led all provinces with 21 per cent year-over-year revenue growth in 2008, representing three per cent of the list’s total revenues. Companies headquartered in Ontario and B.C. contributed 60 per cent and 12 per cent, respectively, of the Top 250’s total revenues, with both provinces experiencing revenue growth of 11 per cent compared to 2007. Quebec brought in the remaining 20 per cent of the listings’ total revenue this year, realizing seven per cent revenue growth in 2008.
Performance by category
The Top 250 is comprised of the following four major categories: Software (86 companies), IT Professional Services (73 companies), IT Hardware and Infrastructure (57 companies) and xSPs (34 companies). (xSP refers to various types of Service Providers, including Internet, managed, application, storage, etc.) Three of the four categories experienced increased representation in 2008, led by the IT Professional Services category, which saw six additional companies appear on this year’s Top 250.
Two categories propelled the Canadian ICT industry forward in 2008. The IT Hardware and Infrastructure category, representing 48 per cent of the Top 250’s revenues, generated $36.6 billion in 2008, a 32 per cent increase over 2007. The xSP category maintained positive revenue growth despite a four per cent decline compared to 2007, increasing revenue by nine per cent in 2008 to reach $26.86 billion. The big players in both categories were the drivers of growth this year, as they experienced significant combined revenue increases over the course of 2008. The Top 25 IT Hardware and Infrastructure companies exhibited year-over-year growth of 12 per cent in 2008, and 33 per cent growth compared to last year’s category leaders. Further, the Top 10 xSPs generated 98 per cent of the category’s total revenues. The group increased revenues by nine per cent year-over-year and 13 per cent compared to those listed in 2007.
The top performers
Last year’s Top 10 companies dominate the list again this year, solidifying their status as clear leaders in the Canadian ICT industry. In 2008, these companies increased their share of the Top 250’s total revenues, contributing a combined 77 per cent, while the other 240 companies represent the remaining 23 per cent.
For the sixth consecutive year, Nortel Networks held its position as the top ranked company by gross revenue in the Canadian ICT industry. Despite well-documented struggles throughout 2008, which eventually led to its January 2009 bankruptcy protection announcement, Nortel generated $12.7 billion in revenue. Celestica ranked second, maintaining its 2007 position despite experiencing a four per cent decline in revenues in 2008. BCE rounded out the top three for the fifth consecutive year, achieving year-over-year growth of seven per cent in 2008. Research In Motion made the biggest move among the Top 10, experiencing revenue growth of 98 per cent, allowing it to jump three spots to land in this year’s fourth position.
2008 trends, and what to expect in 2009
Major M&A deals took a backseat to acquisition activity in the SMB segment of the Canadian ICT industry in 2008. Companies striving to cut upfront infrastructure investment and manage recurring costs turned to cloud computing and virtualization in 2008, while Software-as-a-Service (SaaS) and Web 2.0 continued to evolve and become more highly adopted technologies. The wireless industry is expected to 
see increased activity in 2009, as the competitive landscape changed following the conclusion of the Advanced Wireless Services spectrum auction. Social networking and green IT remained top of mind in 2008, and will continue to remain so as companies try to manage their brand and limit their environmental impact in 2009 and beyond.
The economic pressures that became apparent in mid-2008 will continue to impact the Canadian ICT industry throughout 2009. Companies will look for new ways to insulate themselves from the economic shock while continuing to innovate and produce goods that will foster spending, all in an effort to survive and emerge successfully from market forces that are not yet fully understood. It is important to note that it was not long ago that the Canadian ICT industry overcame adversity to emerge stronger and more innovative than ever before; 2009 will similarly be a survival of the fittest.
The Next 50 Top Canadian Technology Companies (PDF version - 300KB)
Top 250 Canadian Technology Companies - 2008
Back to Top300 Table of Contents - 2009
