Hi Bublo,
As even Jacalinkup is suggesting, yes, the 17 months are counted from the day your application has been received at the VO, wherever that is. Not the day you send it, but the day it is received because it takes few days for the VO to receive the documents if you are sending it to them by courier.
So, from the time your documents have been received, whether it was in Ottawa or AD, your time to start counting down the months had started. Another note is that at the time you applied, it was not 17 months to process from AD. I believe it was 13 months. If the new timeline has been introduced, from 2016, that will only be for those who submit applications from 2016 onwards.
You are well overdue for a reply. So now is the time you have to get in touch with them. Call them up and ask what is holding up your file, if there is anything further that they require. It clearly says on CIC website that if you have not received a reply by the end of your due date, you are supposed to follow up with them. So please do this as quickly as possible.