STKI summit 2014: Enterprise applications vendors data and positioning
STKI IT market in Israel v2 (downloadable)
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Transcript of STKI IT market in Israel v2 (downloadable)
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• Dr. Schwarzkopf has worked during the last 35 years in all areas of Computer InformationServices:
As an Industry Analyst at META Group (Israeli Research Manager) and was named a META Group Research Fellow.
As an academic researcher in Entrepreneurship Sciences; has published and presented in the Academy of Management andBabson Conferences and Editorial Board Member of the academic journal "International Journal of Opportunity, Growth andValue Creation".
As a consultant in Arthur Andersen Consulting (USA), Booz Allen (USA) and Kesselman & Kesselman. As a systems professional inSCS Computers and the R&D Unit of the Israel Defense Forces.
As a sales and marketing professional in Digital Equipment Corporation.
Teaching in the MIS department / TelAviv Yafo Academic College and the Computer School of the IDF.
Entrepreneur founding three companies in the IT arena: STKI, store and forward mail and office information systems.
• Dr. Schwarzkopf served on the Board of Directors of Ashot Ashkelon Industries, served asPresident of the Gymnazia Herzelia Association, Co-founder of the Mashov PoliticalMovement and was a member of the Central Committee of the Labor Party. Major (Rav-Seren) in the reserves, Israel Defense Forces (where he served in an elite unit and later in theR&D unit). Registered Engineer (IS22881), member of MENSA Israel.
• Dr. Schwarzkopf received BSE and MSE degrees (Systems Engineering) from the University ofCentral Florida. Received a MSIA (Management Information Systems) and ABD (PhDProgram) in Systems Science (received (twice) the William Larimer Mellon Scholarship/Award)from Carnegie Mellon University. His doctorate (DM-Management/ Entrepreneurship) hereceived from Case Western Reserve University.
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STKI’s goal is to help our clients make the right choices in the strategic and financialmanagement of their information technology systems.
Founded in 1992, STKI is the leading market research and strategic analyst firm in Israel,covering the IT infrastructures, IT applications and IT services industry .
Over 22 years of experience in the IT analyst sector and thousands of annual face-to-face interviews with key industry participantshave enabled us to establish solid, long-standing relationships with our customers.
Our customers include major IT organizations (government, financial institutions, telecoms, manufacturing, medical, education, etc.)and IT suppliers/vendors (infrastructure and software suppliers, consulting and professional services firms).
STKI works closely with vendor senior management (strategy, business development, and marketing).Where end users are concerned, STKI meets with IT managers as well as with all levels of IT decision making,
thereby attaining complete information of processes.
STKI's mission is to advise and analyze users of information technology as well as their suppliers while conducting original research andproviding advisory services regarding all parts of the information system puzzle.
Israel's foremost IT companies have come to rely on STKI's market-proven experience and expertise.
Our services include:Face-to-face meetings
STKI Analyst House Calls (for both users and vendors)CIO STKI "Help Desk"
InquiriesSurveys
Strategic Marketing & PositioningRound Tables for users
Vendor Discovery Series (Newsletters and workshops)In-house Workshops
CIO Annual BootcampCTO Annual Bootcamp
Brainstorming WorkshopsSTKI Annual Summit
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STKI Website gives you:
1 2 3 4
5 Newsletters
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STKI website 2
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STKI website 3
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8
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STKI Methodology: equilibrium model
The sum of all IT expenditures (from users) has to be equal toall IT sales (from vendors).
Most research firms are either a
"demand-based"
(market information based on data from users of IT)
or
"supply-based"
(market information based on data from IT vendors).
STKI is one of the only research firms using an equilibrium modeland the only one in Israel.
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› Real revenues of software licenses and maintenance.
› Real revenues of hardware sales.
› Differentiation between new projects and continuing projects. New projects count more.
› We do not include any work/ products for OEMs and military non-IT projects.
› We are learning how to account for cloud usage for IT (Israel) only
› We distinguish between work done by the vendor's employees and work outsourced toanother vendor. The revenue is transferred to the vendor actually doing the work.
› Distinguish revenues from projects done in fixed price, cost plus (SLA defined) and staffaugmentation (non SLA) projects.
› Differentiate value between work done by high level internal professionals in a projectand staff augmentation employees in the clients IT department.
Take into consideration IT department’s view/mindshare ofvendor’s value in projects/products
What our study looks at:
STKI Summit 2014Israeli IT Market
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Israel not worse than USA
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Israel: OECD comparison data in other areas
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Israel: more data
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ISRAEL (out of 185 countries)
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State of the Economy Index
The index is an indicator for examining thedirection in which real economic activity is
moving, in real time.Percent change of the index correlates with
Israeli IT Market Percent Change
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State of the Economy Index 1998-2014
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State of the Economy Index 2014-2014
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Business Tendency Survey
16 months
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In order to make numbers “fit” ……….
STKI Summit 2014Israeli IT Market
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Growth of 10% in enterprises (“legal” entities) paying taxes
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number ofemployees
number ofcompanies
(payingtaxes)
& ofTOTAL
number ofemployees
number ofcompanies
(payingtaxes)
& ofTOTAL
number ofcompanies
(payingtaxes)
& ofTOTAL
21-100 16,305 6.91% 51-100 4,088 1.73% 3,871 1.64%6-20 46,920 19.87% 10-50 33,073 14.01% 31,720 13.43%
up to 5 175,925 74.51% 175,925 up to 9 194,683 82.45% 194,683 196,802 83.35% 196,802
2011
subtotals
235,773ACCORDING TO BITUACH LEUMI 2/2013 ACCORDING TO BITUACH LEUMI 2/2012
2012
subtotals
251+ 1,348 0.57%3,732
101-250 2,384
1,476
2,453
0.63%
1.04%3,929
1.01%
35,591232,393
TOTAL 236,125
231,84437,161
2013
subtotals
251+ 1,493 0.63%4,018
101-250 2,525 1.07%
63,225239,150
TOTAL 243,168ACCORDING TO BITUACH LEUMI 2/2014
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I interviewed over 200 CIOs (about70-75% of total in Israel) about:1. Budgets for 20142. Used “budgets” of 20133. Projects postponed:2015-20174. IT department organization5. Vendor recommendations
*IT “internal” budgets are not equalin all enterprises: manpower, rent,electricity, LOB extra budgets, etc
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industryBudgets
2012
changefrom2012
Budgets2013
changefrom2013
Budgets2014
% totalMarket
size% total industry
governmentsecurity
educationhealth
utilitiestransport
banksinsurancefin othermanufretail
high techIT local vendors
telecommmediaSMB SMB
in M USD in M USD
telecomm/media
IT BUDGETS (opex/capex): includes some internal expenses (mostly: not salaries)
manuf/retail
high tech/ IT
utilities/transport
financial
IT BUDGETS (opex/capex)
public
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In order to get the “IT Market” (what is bought out there) we:
What users bought?From whom?Why?
IT Departments IT Vendors
How much did they sell?To whom?
For how much?Competitors?2013
2014
HARDWARE1,69
4,000
3.61%
1,755,20
0
SOFTWARE
1,350,20
06.72
%1,44
1,000
VALUE ADDED
SERVIC
ES
3,126,00
04.48
%3,26
6,000
TOTAL
6,172,21
34.73
%6,46
4,214
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IT Market in Israel (million USD): 2 phases
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2013 “used budget” and 2014 “forecasted” budget
2013 2014HARDWARE 1,694,000 3.61% 1,755,200SOFTWARE 1,350,200 6.72% 1,441,000
VALUE ADDEDSERVICES
3,126,000 4.48% 3,266,000
TOTAL 6,172,213 4.73% 6,464,214
STKI Summit 2014Israeli IT Market
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The Great Debate: explanations
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Even if thegraphs “look”
different
“not worse”just smaller“boutique”
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The Great Debate: explanations
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Even if thegraphs “look”
different
“not worse”just smaller“boutique”
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VARs or Partners: but NO double bookings
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Value Added Resellers“VAR or Partners”
are incorporated intoSTKI’s “TIERS”.
Both sell into the IsraeliMarket.
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Vendors that sell in Hardware, Software and VAS markets
22BiggestVendors
STKI Summit 2014Israeli IT Market
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Hardware Categories
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Israel: IT Hardware Total Market 2011-2015
HARDWARE
2011$1,714 3.79% $1,779 -4.78% $1,694 3.61% $1,755
2012 2013 2014
2014$1,755 4.38% $1,832 3.93% $1,904 3.68% $1,974
2015 2016 2017
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Vendors that sell in Hardware markets
22Biggest
HARDWAREVendors
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Hardware Categories
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2011 2012 2013 2014
legacy (non-x86) servers 60.0 -8.33% 55.0 -27.27% 40.0 -12.50% 35.0Converged Infrastructures 12.0 108.33% 25.0 20.00% 30.0 6.67% 32.0
totals 375.0 6.67% 400.0 -20.00% 320.0 0.63% 322.0
X86 servers (blades, pizza, etc)255.0-21.88%320.0303.0 5.61% 250.0 2.00%
Israel 2011-17 Market : Server market
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2014 2015 2016 2017
35.0 -20.00% 28.0 -10.71% 25.0 -8.00% 23.0 legacy (non-x86) servers
32.0 9.38% 35.0 2.86% 36.0 5.56% 38.0 Converged Infrastructures
322.0 0.31% 323.0 0.93% 326.0 1.53% 331.0 totals
X86 servers (blades, pizza, etc)260.0 265.0255.0 270.01.89%1.92%1.96%
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Market Players: Servers 2013 (manufacturers)
X86 servers (blades, pizza, etc)
legacy (non-x86) servers
Converged Systems
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Market Players: Servers 2013 (VARs)
X86 servers (blades, pizza, etc)
legacy (non-x86) servers
Converged Systems
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Israel 2011-17 Market : “personal computing” market
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2014 2015 2016 2017115.0 4.35% 120.0 4.17% 125.0 4.00% 130.0 notebooks PC
105.0 -4.76% 100.0 5.00% 105.0 9.52% 115.0 desktop PCs
9.2 8.70% 10.0 20.00% 12.0 25.00% 15.0 thin clients
185.0 13.51% 210.0 4.76% 220.0 2.27% 225.0 mobility /tablets
414.2 6.23% 440.0 5.00% 462.0 4.98% 485.0 totals
2011 2012 2013 2014notebooks PC 130.0 -3.85% 125.0 -4.00% 120.0 -4.17% 115.0desktop PCs 152.0 -13.16% 132.0 -16.67% 110.0 -4.55% 105.0thin clients 7.0 -14.29% 6.0 33.33% 8.0 15.00% 9.2
mobility /tablets 100.0 20.00% 120.0 33.33% 160.0 15.63% 185.0totals 389.0 -1.54% 383.0 3.92% 398.0 4.07% 414.2
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Market Players: Personal Computing (manufacturers) 2013
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Market Players: Personal Computing (VARs) 2013
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Hardware Categories
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Israel 2011-15 Market : “storage” market
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2011 2012 2013 2014disks 165.0 3.03% 170.0 -10.59% 152.0 5.26% 160.0
totals 195.0 6.15% 207.0 -12.08% 182.0 5.49% 192.030.0other backup solutions 32.06.67%30.0 37.023.33% -18.92%
2014 2015 2016 2017160.0 9.38% 175.0 11.43% 195.0 2.56% 200.0 disks
192.0 9.38% 210.0 10.00% 231.0 3.03% 238.0 totals
other backup solutions35.0 36.0 38.02.86% 5.56%32.0 9.38%
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Market Players: “storage” (manufacturers) 2013
otherBackup/Storage
Solutions
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Market Players: “storage” (VARs) 2013
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Israel 2011-17 Market : Networking/call centers/security/DC markets
2014 2015 2016 2017
210.0 1.90% 214.0 1.40% 217.0 3.69% 225.0enterprise networking and
collaboration equipment
95.0 10.53% 105.0 9.52% 115.0 6.09% 122.0 security
60.0 5.00% 63.0 3.17% 65.0 4.62% 68.0 VoIP/call center equipment
365.0 4.66% 382.0 3.93% 397.0 4.53% 415.0 totals
2011 2012 2013 2014enterprise networking and
collaboration equipment 192.0 9.38% 210.0 -0.95% 208.0 0.96% 210.0security 75.0 9.33% 82.0 3.66% 85.0 11.76% 95.0
VoIP/call center equipment 55.0 9.09% 60.0 -3.33% 58.0 3.45% 60.0totals 322.0 9.32% 352.0 -0.28% 351.0 3.99% 365.0
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Market Players: Networking Products 2013
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Market Players: Security Appliances 2013
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Market Players: VoIP & other call center equipment 2013
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Hardware Categories
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Israel 2011-15 Market : DC, POS, ATMs, others markets
2011 2012 2013 2014Printers 119.0 -7.56% 110.0 -13.64% 95.0 -3.16% 92.0
toners/ ink/ reillers 85.0 4.71% 89.0 -15.73% 75.0 -2.67% 73.0Self Service (ATM/Kiosks/other) 60.0 3.33% 62.0 20.97% 75.0 13.33% 85.0
Point of Sale Appliances 30.0 6.67% 32.0 9.38% 35.0 20.00% 42.0Data Center Physical Equipment 70.0 5.71% 74.0 22.97% 91.0 4.40% 95.0other hardware and supplies 69.0 1.45% 70.0 2.86% 72.0 4.17% 75.0
totals 433.0 0.92% 437.0 1.37% 443.0 4.29% 462.0
2014 2015 2016 201792.0 -2.17% 90.0 0.00% 90.0 0.00% 90.0 Printers
73.0 1.37% 74.0 5.41% 78.0 2.56% 80.0 toners/ ink/ reillers
85.0 5.88% 90.0 0.00% 90.0 0.00% 90.0 Self Service (ATM/Kiosks/other)
42.0 7.14% 45.0 6.67% 48.0 4.17% 50.0 Point of Sale Appliances
95.0 3.16% 98.0 2.04% 100.0 10.00% 110.0 Data Center Physical Equipment
75.0 6.67% 80.0 2.50% 82.0 3.66% 85.0 other hardware and supplies
462.0 3.25% 477.0 2.31% 488.0 3.48% 505.0 totals
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Market Players: DC equipment & enterprise printers 2013
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Market Players: POS & Self-Service Systems 2013
POS will changecompletely in 2014
STKI Summit 2014Israeli IT Market
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Israel: IT Software Total Market 2011-2015
SOFTWARE
2011$1,134 8.71% $1,233 9.51% $1,350 6.72% $1,441
2012 2013 2014
2014$1,441 7.08% $1,543 5.31% $1,625 5.59% $1,716
2015 2016 2017
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Vendors that sell in the Software markets
22Biggest
SOFTWAREVendors&VARs
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Software Categories 1
63
2015 2015
2014 2015 2016 2017172.0 4.65% 180.0 2.78% 185.0 2.70% 190.0 system level software (OS, virtualization etc)
52.0 11.54% 58.0 3.45% 60.0 5.00% 63.0Middleware: WEB server, ESB, SOA, BPM,ETL, FTP, Emulation, messeging, BRMS etc.
83.0 2.41% 85.0 2.35% 87.0 3.45% 90.0 Data Management Systems (DBMS,etc)
307.0 5.21% 323.0 2.79% 332.0 3.31% 343.0 totals
changes changes2014 changes 2015
2011 2012 2013 2014system level software (OS, virtualization etc) 143.0 4.90% 150.0 16.67% 175.0 -1.71% 172.0
Middleware: WEB server, ESB, SOA, BPM, ETL,FTP, Emulation, messeging, BRMS etc. 45.0 15.56% 52.0 5.77% 55.0 -5.45% 52.0Data Management Systems (DBMS,etc) 65.0 27.69% 83.0 2.41% 85.0 -2.35% 83.0
totals 253.0 12.65% 285.0 10.53% 315.0 -2.54% 307.0
2011 changes 2012 changes 2013 changes 2014
Israel 2011-17 Market : Infrastructure software market
system level software (OS,virtualization etc)Middleware: WEB server, ESB,
SOA, BPM, ETL, FTP, Emulation,messeging, BRMS etc.Data Management Systems
(DBMS,etc)
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Market Players: system software 2013
system level software(OS, virtualization etc)
VARSsystem level software(OS, virtualization etc)
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Market Players: Middleware Software 2013
Middleware: WEB server, ESB, SOA, BPM, ETL, FTP,Emulation, messaging, Job Scheduling & BRMS etc.
VARsMiddleware: WEB server, ESB,
SOA, BPM, ETL, FTP, Emulation,messaging, Job Scheduling &
BRMS etc.
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Market Players: Data Bases Software 2013
Data Management Systems (DBMS) VARsData Management Systems (DBMS)
67
2014 2015 2016 2017
105.0 4.76% 110.0 1.82% 112.0 2.68% 115.0BSM (Asset Management, Service
Desk, Monitoring etc)
68.0 2.94% 70.0 2.86% 72.0 4.17% 75.0 storage & backup
168.0 2.38% 172.0 1.74% 175.0 5.71% 185.0 Security / Cyber
236.0 2.54% 242.0 2.07% 247.0 5.26% 260.0 totals
Israel 2011-17 Market : Infrastructure Management Tools
2011 2012 2013 2014BSM (Asset Management, Service
Desk, Monitoring etc) 90.0 5.56% 95.0 8.42% 103.0 1.94% 105.0storage & backup 64.0 6.25% 68.0 -4.41% 65.0 4.62% 68.0Security / Cyber 127.0 3.94% 132.0 13.64% 150.0 12.00% 168.0
totals 191.0 4.71% 200.0 7.50% 215.0 9.77% 236.0
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Market Players: BSM Software 2013
BSM(Asset Management, Service Desk,
Monitoring etc.)
VASs for BSM(Asset Management, Service Desk,
Monitoring etc.)
69
Market Players: Storage and Backup Software 2013
storage & backupsoftware VARs
storage & backupsoftware
70
Market Players: Networking Software 2013
networking software VASnetworking software
71
Market Players: Security/ Cyber Software Tier 1 : 2013
72
Market Players: Security/ Cyber Software Tier 2 : 2013
73
Software Categories 3
74
Israel 2011-17 Market : Office of the CIO market
2011 2012 2013 2014Project & Portfolio Management 22.0 18.18% 26.0 3.85% 27.0 11.11% 30.0Governance, Risk & Compliance 21.0 -9.52% 19.0 -10.53% 17.0 5.88% 18.0
totals 43.0 4.65% 45.0 -2.22% 44.0 9.09% 48.0
2014 2015 2016 201730.0 16.67% 35.0 11.43% 39.0 5.13% 41.0 Project & Portfolio Management
18.0 2.78% 18.5 8.11% 20.0 10.00% 22.0 Governance, Risk & Compliance
48.0 11.46% 53.5 10.28% 59.0 6.78% 63.0 totals
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Israel 2011-15 Market : Development Tools market2011 2012 2013 2014
Development and ALM (includestesting tools) 85.0 5.88% 90.0 -4.44% 86.0 2.33% 88.0
Apps (mobile+social) developmenttools 12.0 25.00% 15.0 66.67% 25.0 44.00% 36.0totals 97.0 8.25% 105.0 5.71% 111.0 11.71% 124.0
2014 2015 2016 2017
88.0 4.55% 92.0 4.35% 96.0 2.08% 98.0 Development and ALM (includes
testing tools)
36.0 11.11% 40.0 12.50% 45.0 6.67% 48.0Apps (mobile+social) development
tools
124.0 6.45% 132.0 6.82% 141.0 3.55% 146.0 totals
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Market Players: Project & Portfolio Mgmt. Software 2013
Project & Portfolio Management VARsProject & Portfolio Management
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Market Players: Governance, Risk & Compliance Software 2013
Governance, Risk & Compliance Software
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Market Players: Development & ALM Software 2013
79
Software Categories 2
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Israel 2011-17 Market : Information Mgmt. Tools market
2011 2012 2013 2014Office Productivity (Office, e-mail..) 85.0 2.35% 87.0 3.45% 90.0 2.22% 92.0KM (enterprise "portals & social" tools) 62.0 4.84% 65.0 10.77% 72.0 5.56% 76.0
WCM (Web Content Management) 12.0 25.00% 15.0 33.33% 20.0 25.00% 25.0Analytics and data mngmt tools 100.0 20.00% 120.0 20.83% 145.0 3.45% 150.0Collaboration (IM,Video,Voice) 8.0 25.00% 10.0 -20.00% 8.0 25.00% 10.0
Document mgmt and search tools 35.0 14.29% 40.0 20.00% 48.0 4.17% 50.0Output mgmt (printing) tools 12.0 16.67% 14.0 7.14% 15.0 20.00% 18.0
totals 314.0 11.78% 351.0 13.39% 398.0 5.78% 421.0
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Israel 2011-17 Market 2 : Information Mgmt. Tools market
2014 2015 2016 201792.0 3.26% 95.0 0.00% 95.0 0.00% 95.0 Office Productivity (Office, e-mail..)
76.0 5.26% 80.0 7.50% 86.0 4.65% 90.0 KM (enterprise "portals & social" tools)
25.0 28.00% 32.0 25.00% 40.0 20.00% 48.0 WCM (Web Content Management)
150.0 8.67% 163.0 11.66% 182.0 9.89% 200.0 Analytics and data mngmt tools
10.0 40.00% 14.0 28.57% 18.0 22.22% 22.0 Collaboration (IM,Video,Voice)
50.0 20.00% 60.0 8.33% 65.0 10.77% 72.0 Document mgmt and search tools
18.0 11.11% 20.0 5.00% 21.0 9.52% 23.0 Output mgmt (printing) tools
421.0 10.21% 464.0 9.27% 507.0 8.48% 550.0 totals
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Market Players: KM & WCM Software 2013
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Market Players: Analytics and data mgmt. Software 2013
84
Market Players: Analytics and data mgmt. (VARs) Software 2013
85
Market Players: Output Mgmt & Collaboration Software 2013
86
Market Players: Document mgmt. and search Software 2013
87
Market Players: Mobile Development Software 2013
88
Software Categories 4
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Israel 2011-17 Market : Business Applications market
2011 2012 2013 2014Vertical (core business) 54.0 3.70% 56.0 10.71% 62.0 4.84% 65.0
ERP + Vertical 115.0 2.61% 118.0 5.93% 125.0 16.00% 145.0
CRM + CEM 55.0 5.45% 58.0 6.90% 62.0 20.97% 75.0Talent management/HR 3.0 66.67% 5.0 24.00% 6.2 12.90% 7.0
PLM 9.2 8.70% 10.0 20.00% 12.0 8.33% 13.0totals 236.2 4.57% 247.0 8.18% 267.2 14.15% 305.0
2014 2015 2016 201765.0 6.15% 69.0 4.35% 72.0 8.33% 78.0 Vertical (core business)
145.0 7.59% 156.0 3.85% 162.0 3.70% 168.0 ERP + Vertical
75.0 9.33% 82.0 3.66% 85.0 2.35% 87.0 CRM + CEM
7.0 -7.14% 6.5 -7.69% 6.0 -3.33% 5.8 Talent management/HR
13.0 15.38% 15.0 13.33% 17.0 17.65% 20.0 PLM
305.0 7.70% 328.5 4.11% 342.0 4.91% 358.8 totals
90
Market Players: ERP Software (all sizes) 2013
91
Market Players: CRM & CEM Software 2013
92
Market Players: Vertical Application Software TIER 1 2013
93
Market Players: Vertical Application Software TIER 2 2013
STKI Summit 2014Israeli IT Market
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2011$3,018 3.94% $3,137 -0.35% $3,126 4.48% $3,266
2012 2013 2014
Israel: Value Added Services Market 2011-2015
VALUE ADDED SERVICES
2014$3,266 5.94% $3,460 5.72% $3,658 4.21% $3,812
2015 2016 2017
96
Vendors that sell in the VAS markets
22Biggest
Value-AddedVendors
97
The SIX categories of IT Value Added Services Offered in Israel
2011-201726% growth
98
Value Added Services Offered 2011 2012 2013 2014Infrastructure and DC Project 434.0 5.07% 456.0 -4.17% 437.0 1.14% 442.0
IT Department Management Projects 547.0 0.18% 548.0 -7.85% 505.0 5.35% 532.0Application Implementation Projects 739.0 1.22% 748.0 4.01% 778.0 5.01% 817.0Application Development Projects 286.0 13.29% 324.0 9.57% 355.0 12.96% 401.0
XXX Sourcing Services 854.0 2.81% 878.0 -3.08% 851.0 0.00% 851.0Cloud Services 158.0 15.82% 183.0 9.29% 200.0 11.50% 223.0
TOTALS 3,018.0 3.94% 3,137.0 -0.35% 3,126.0 4.48% 3,266.0
2014 2015 2016 2017 Value Added Services Offered
442.0 8.60% 480.0 4.58% 502.0 4.78% 526.0 Infrastructure and DC Project
532.0 4.51% 556.0 4.32% 580.0 4.14% 604.0 IT Department Management Projects817.0 5.88% 865.0 4.39% 903.0 3.88% 938.0 Application Implementation Projects
401.0 12.97% 453.0 9.05% 494.0 2.63% 507.0 Application Development Projects851.0 0.12% 852.0 4.34% 889.0 3.82% 923.0 XXX Sourcing Services
223.0 13.90% 254.0 14.17% 290.0 8.28% 314.0 Cloud Services
3,266.0 5.94% 3,460.0 5.72% 3,658.0 4.21% 3,812.0 TOTALS
99
IT Projects
100
Israel 2011-17 Market 1 : infrastructure & DC project markets
Infrastructure and DC Projects 2011 2012 2013 2014Hardware Maintenance 100.0 0.00% 100.0 -5.00% 95.0 -5.26% 90.0
Data Center work 32.0 9.38% 35.0 14.29% 40.0 12.50% 45.0
Consolidation/ virtualization /monitoring/BSM/storage/ hardware/ Data Center
Environment/ networking projects 200.0 5.00% 210.0 -7.14% 195.0 -2.56% 190.0software integration, middleware, soa
projects, BPM 52.0 15.38% 60.0 3.33% 62.0 12.90% 70.0
call center integration project 50.0 2.00% 51.0 -11.76% 45.0 4.44% 47.0
Infrastructure and DC Project 434.0 5.07% 456.0 -4.17% 437.0 1.14% 442.0
101
Israel 2011-17 Market 2: infrastructure & DC project markets
2014 2015 2016 2017 Infrastructure and DC Projects
90.0 0.00% 90.0 -5.56% 85.0 0.00% 85.0 Hardware Maintenance
45.0 33.33% 60.0 13.33% 68.0 5.88% 72.0 Data Center work
190.0 5.26% 200.0 5.00% 210.0 2.38% 215.0
Consolidation/ virtualization /monitoring/BSM/storage/ hardware/ Data Center
Environment/ networking projects
70.0 14.29% 80.0 6.25% 85.0 11.76% 95.0software integration, middleware, soa
projects, BPM
47.0 6.38% 50.0 8.00% 54.0 9.26% 59.0 call center integration project
442.0 8.60% 480.0 4.58% 502.0 4.78% 526.0 Infrastructure and DC Project
102
Market Players: Hardware Maintenance Services 2013
103
Market Players: Data Center and DRP projects 2013
104
Market Players: hardware integration projects 2013HWRE INTEGRATION: Consolidation/
virtualization /monitoring/ BSM/storage/collaboration/ networking projects
105
Market Players: software integration projects 2013SWRE INTEGRATION:
middleware, SOA, BPMprojects
106
Market Players: VoIP- Call Center Projects 2013
107
108
Israel 2011-17 Market 1 : IT Department Management Project
IT Department Management Projects 2011 2012 2013 2014 IT Consulting & IT Analysts
45.0 4.44% 47.0 10.64% 52.0 15.38% 60.0
office of the CIO/ PMO projects 25.0 8.00% 27.0 3.70% 28.0 7.14% 30.0
ALM Q/A & Testing 142.0 5.63% 150.0 -32.00% 102.0 -3.92% 98.0Auditing , Governance & Risk
Management projects 65.0 3.08% 67.0 -2.99% 65.0 -3.08% 63.0
security projects (risk assessment/ penetrationtests. Integration:SKADA, MDM,etc) 120.0 4.17% 125.0 12.00% 140.0 12.86% 158.0
IT Training 105.0 -19.05% 85.0 -11.76% 75.0 4.00% 78.0HATMAA projects 45.0 4.44% 47.0 -8.51% 43.0 4.65% 45.0
IT Department Management Projects 547.0 0.18% 548.0 -7.85% 505.0 5.35% 532.0
109
Israel 2011-17 Market 2 : IT Department Management Project
2014 2015 2016 2017 IT Department Management Projects
60.0 5.00% 63.0 7.94% 68.0 5.88% 72.0 IT Consulting & IT Analysts
30.0 13.33% 34.0 5.88% 36.0 8.33% 39.0 office of the CIO/ PMO projects
98.0 -1.02% 97.0 -2.06% 95.0 -3.16% 92.0 ALM Q/A & Testing
63.0 3.17% 65.0 3.08% 67.0 2.99% 69.0Auditing , Governance & Risk
Management projects
158.0 7.59% 170.0 7.06% 182.0 7.14% 195.0security projects (risk assessment/ penetration
tests. Integration:SKADA, MDM,etc)
78.0 2.56% 80.0 2.50% 82.0 3.66% 85.0 IT Training
45.0 4.44% 47.0 6.38% 50.0 4.00% 52.0 HATMAA projects
532.0 4.51% 556.0 4.32% 580.0 4.14% 604.0 IT Department Management Projects
110
Market Players: IT Consulting 2013
111
Market Players: Office of the CIO Projects 2013
112
Market Players: ALM, Q/A & Testing Projects 2013
113
Market Players: Risk & GRC Projects 2013
114
Market Players: Security Projects 2013
115
Market Players: Training Services 2013
116
Market Players: “Hatmaa” Projects 2013
117
Implementation Projects
118
Israel 2011-17 Market 1 : application implementation market
119
Israel 2011-17 Market 2: application implementation market
2014 2015 2016 2017 Application Implementation Projects
208.0 1.92% 212.0 3.77% 220.0 2.27% 225.0 ERP projects
168.0 4.76% 176.0 3.41% 182.0 4.40% 190.0 CRM projects
135.0 11.11% 150.0 5.33% 158.0 4.43% 165.0 core vertical package implementation
180.0 6.67% 192.0 4.69% 201.0 4.48% 210.0 BI/DW/EPM/Data Management projects
104.0 5.77% 110.0 1.82% 112.0 3.57% 116.0knowledge management (ECM, SP, BPM,
Portals) projects
22.0 13.64% 25.0 20.00% 30.0 6.67% 32.0 Printing/output management projects
817.0 5.88% 865.0 4.39% 903.0 3.88% 938.0 Application Implementation Projects
120
Market Players: ERP Projects 2013
121
Market Players: CRM Projects 2013
122
Market Players: Core/ vertical Projects 2013
123
Market Players: Data Analysis Projects 2013
nearlysamesize
124
Market Players: KM Projects 2013
125
Development Projects
126
Israel 2011-17 Market 1 : Application Development Market
Application Development Projects 2011 2012 2013 2014.NET/XRM development Projects 91.0 17.58% 107.0 4.67% 112.0 7.14% 120.0
java & others (non-.NET) development 30.0 3.33% 31.0 3.23% 32.0 18.75% 38.0
mainframe/AS400 projects 32.0 9.38% 35.0 8.57% 38.0 13.16% 43.0
Migrations projects 25.0 8.00% 27.0 7.41% 29.0 6.90% 31.0
Web, Internet, Social projects 65.0 12.31% 73.0 13.70% 83.0 10.84% 92.0
Mobile projects 25.0 24.00% 31.0 16.13% 36.0 25.00% 45.0
UX Design projects 18.0 11.11% 20.0 25.00% 25.0 28.00% 32.0
Application Development Projects 286.0 13.29% 324.0 9.57% 355.0 12.96% 401.0
127
Israel 2011-17 Market 2: Application Development Market
2014 2015 2016 2017 Application Development Projects
120.0 9.17% 131.0 5.34% 138.0 3.62% 143.0 .NET/XRM development Projects
38.0 18.42% 45.0 11.11% 50.0 -54.00% 23.0 java & others (non-.NET) development
43.0 9.30% 47.0 6.38% 50.0 4.00% 52.0 mainframe/AS400 projects
31.0 12.90% 35.0 14.29% 40.0 15.00% 46.0 Migrations projects
92.0 11.96% 103.0 6.80% 110.0 10.00% 121.0 Web, Internet, Social projects
45.0 15.56% 52.0 17.31% 61.0 14.75% 70.0 Mobile projects
32.0 25.00% 40.0 12.50% 45.0 15.56% 52.0 UX Design projects
401.0 12.97% 453.0 9.05% 494.0 2.63% 507.0 Application Development Projects
128
Market Players: .NET/XRM development Projects 2013
129
Market Players: java & others (non-.NET) development 2013
130
Market Players: Legacy & Migration Projects 2013
Migration Projects
mainframe/AS400/ oldersystems applications
131
Market Players: Web, Internet, Social Projects 2013
132
Market Players: Mobility Projects 2013
133
Market Players: UX Design projects 2013
134
Sourcing and Managed Services
135
Operational Deployment Models
136
Israel 2011-17 Market 1 : Sourcing and manage services markets
XXX Sourcing Services 2011 2012 2013 2014"off site" data center - (operational/DRP) 40.0 12.50% 45.0 8.89% 49.0 8.16% 53.0
call centers/help desk outsourcing 60.0 3.33% 62.0 3.23% 64.0 6.25% 68.0application/ complete outsourcing 185.0 4.86% 194.0 -2.06% 190.0 1.05% 192.0
managed infrastructure services (storagemngt, DBA services) 87.0 9.20% 95.0 -8.42% 87.0 6.90% 93.0
Gulgalot / Temps 350.0 -2.86% 340.0 -11.76% 300.0 -8.33% 275.0
Nearshore 100.0 8.00% 108.0 15.74% 125.0 4.00% 130.0
Printing outsourcing 32.0 6.25% 34.0 5.88% 36.0 11.11% 40.0XXX Sourcing Services 854.0 2.81% 878.0 -3.08% 851.0 0.00% 851.0
137
Israel 2011-17 Market 2 : Sourcing and manage services markets
138
Market Players: "off site" data center - (operational/DRP) 2013
139
Market Players: call center/help desk outsourcing 2013
140
Market Players: application/ complete outsourcing 2013
141
Market Players: managed infrastructure services (storage mngt, DBA services) 2013
142
Market Players: “gulgalot” 2013
143
Market Players: nearshore 2013
144
Cloud Services
145
Israel 2011-17 Market 1 : “Cloud” services market
Cloud Services 2011 2012 2013 2014BP as a Service BPaaS (salaries, call
centers, etc) 100.0 2.00% 102.0 1.96% 104.0 1.92% 106.0
Software as a Service SaaS 40.0 37.50% 55.0 9.09% 60.0 13.33% 68.0
Platform as a Service PaaS 4.0 50.00% 6.0 33.33% 8.0 12.50% 9.0
DRP as a service. Provider owns the HW 4.0 100.00% 8.0 25.00% 10.0 50.00% 15.0
Infrastructure as a Service IaaS 10.0 20.00% 12.0 50.00% 18.0 38.89% 25.0Cloud Services 158.0 15.82% 183.0 9.29% 200.0 11.50% 223.0
146
Israel 2011-17 Market 2 : “Cloud” services market
2014 2015 2016 2017 Cloud Services
106.0 0.94% 107.0 2.80% 110.0 1.82% 112.0BP as a Service BPaaS (salaries, call
centers, etc)
68.0 10.29% 75.0 13.33% 85.0 8.24% 92.0 Software as a Service SaaS
9.0 33.33% 12.0 25.00% 15.0 33.33% 20.0 Platform as a Service PaaS
15.0 33.33% 20.0 25.00% 25.0 20.00% 30.0 DRP as a service. Provider owns the HW
25.0 60.00% 40.0 37.50% 55.0 9.09% 60.0 Infrastructure as a Service IaaS
223.0 13.90% 254.0 14.17% 290.0 8.28% 314.0 Cloud Services
147
Computing Deployment Models
148
Market Players: BPaaS Services 2013
149
Market Players: SaaS Services 2013
150
Market Players: PaaS Services 2013
151
Market Players: DRaaS Services 2013
152
Market Players: IaaS Services 2013
153