STKI Israeli Market Study 2023 version 2

STKI IT Knowledge Integrators
Company Confidential
Copyright@STKI_2023 Do not remove source or attribution from any slide, graph or portion of graph 1
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Copyright@STKI_2023 Do not remove source or attribution from any slide, graph or portion of graph
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STKI :
methodology and
how to
“understand”
the results
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Over 31 years of experience in the IT analyst sector and thousands of annual face-to-face
interviews with key industry participants have enabled STKI analysts to establish solid, long-
standing relationships with customers.
STKI customers include major IT organizations (government, defense, 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’s senior management (strategy, business development, and
marketing).
Where end users are concerned, analysts meet with CEOs, CFOs, CMOs, CDOs and CIOs
(as with all levels of IT decision making) thereby attaining complete information of their
technology as well as their business needs in order to service the account with value .
STKI's mission is to advise and analyze users of business technologies as well
as their suppliers while conducting original research and providing advisory
services regarding all parts of the technology puzzle.
Founded in 1992, STKI is the leading business technologies
market research and strategic analyst firm in Israel.
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• Virtual meetings
• Face-to-face meetings
• STKI Analyst House
Calls (for both users
and vendors)
• CIO STKI "Help Desk"
• Inquiries
• Surveys
• Strategic Marketing &
Positioning
• Round Tables for users
• STKI Annual Summit
(Israeli Market)
• Weekly Webinars
• Vendor Discovery
Series (Newsletters
and workshops)
• Vendor Innovation
Workshops
• In-house Workshops
• CIO Annual Bootcamp
• CTO Annual Bootcamp
• Brainstorming
(based on Design
Thinking) Workshops
• STKI Annual Summit
(Trends)
STKI services include
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USER
Strategic Briefings
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STKI Research Results:
1. IT Trends
2. Surveys about organizational issues
3. Round Table Summaries
4. Industry IT Budgets
5. IT Market Forecasts by category
6. Vendor Tiers by category
7. Product Positioning
8. Staffing Ratios
9. Other
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STKI Methodology: equilibrium model
The sum of all IT expenditures (from users)
must be equal to all IT sales (from vendors).
most research firms are either
"demand-based"
(market information based on data from users of IT)
"supply-based"
(market information based on data from IT vendors).
STKI is one of few research firms using an equilibrium model
and the only one in Israel.
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In order to calculate the “IT Market”
(what is bought/sold in Israel)
What users bought?
From whom?
Why?
Technology
Users
Technology
Vendors
how much did they sell?
to whom?
for how much?
competitors?
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Data from 2022 Data from 2022
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› Yearly revenues of hardware sales and hardware maintenance
› Yearly revenues of software subscriptions & licenses, software maintenance
› Differentiation between new projects and continuing projects (New projects count more)
› Distinguish between work done by the vendor's employees and work outsourced to other
vendors. The revenue should be transferred to the vendor actually doing the work.
› Differentiate revenues from projects done in fixed price, cost plus (SLA defined) ,
managed services and those done by staff augmentation (non-SLA) projects.
› Differentiate value of work done by high level internal professionals in a project versus
that done by staff augmentation employees in the clients IT department.
› We do not include any work/ products for OEMs and military non-IT projects.
Our study looks at any vendor value (products/services) sold to
enterprises (also government & security) in Israel; taking into
account the client’s view/mindshare of value delivered
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IT Strategy Consulting
Organizational Transformation Consulting
(organizational models, change mngt, product mng
consulting, agile consulting, methodologies etc.)
Data & Analytics Strategy
Consulting (organizational, methodologies,
architecture, use cases, culture, literacy etc)
IT Infrastructure & Cloud Consulting
Application Projects Consulting
Customer Experience & Digital Consulting
(customer journeys, Customer Experience
consulting, service design, Digital consulting) -
doesn't include UX!
Automation & Process Consulting
Project Management/ OCIO Consulting
Cyber Security Consulting
Software Maintenance (3rd party)
Hardware Maintenance (3rd party)
Consolidation/ Virtualization/ Containers
/Monitoring/ Storage/ Hardware/ Networking
Projects
Software integration of middleware, SOA & BPM
Cyber security product implementations
Unified Communication Projects (IM, Video, Voice)
Consolidation/ Virtualization/ Containers
/Monitoring/ Storage/ Hardware/ Networking
Projects / DEVOPS
FinOps Services
Software integration of middleware,Integration API
IPAAS
Cyber security product implementations
PPM & Project management
ALM & Development & Testing tools implementation
ERP Implementations
HR & Talent Mngt & Payroll Implementations
CRM Implementations
ITSM Implementation
E-Commerce and Marketplace Implementations
Marketing Automation Implementations
Advanced Analytics, Data Science and ML projects
Data management implementation (quality, etl,
catalogs...)
BI implementation / development
Data & Analytics Cloud migration
(help in migrating DW and Data Lakes to the cloud)
General Software Development (except Web &
Mobile)
Web & Mobile Development
UX Design
Finance Industry Core Projects
Transportation
e-payments Projects
Retail Projects
Public (government) modernizations, cloud, etc
OTHERS:
Contact Center and Multi channel engagement
projects
Employee Collaboration, Task Management &
Engagement Tools Implementations
Knowledge Management (ECM, Portals, Search,
Knowledgebases) Implementations
Technological Innovation Projects
Automation tools (RPA, OCR) Implementations
Blockchain projects
IoT Projects
Professional Education,
Coaching & Mentoring
Project testing & QA
Fruition & Implementation (‫)הטמעה‬
Regulation Projects
Auditing, Governance & Risk Management
Complete and/or application outsourcing (Client
owns the HW)
Infrastructure Outsourcing (infrastructure, storage
mngt, DBA services)
Call Centers/Help Desk Outsourcing Services
SIEM as a Service
Printing Outsourcing Services (pay per click)
Business Services as a Service- BSaaS (Salaries,
Payments, BPO, etc.)
Near shore
Off shore
Staff Augmentation (gulgalot)
Location Based Projects
Self-Service Projects
Tele-medicine Projects
Infrastructure & System Software
storage & backup SW
data platforms (SQL, NoSQL dbms)
Cloud data platforms (SQL, NoSQL dbms)
AppWEB Server, Emulation, , BRMS APaaS (container
platforms) Integration Streaming
IT Operations, Asset Management, APM, AIOPS Monitoring,
Workload-Scheduling excluding ITSM, Service Desk
FinOps tools
ITSM - Service Desk
Endpoint related tools
NetworkWeb cloud services (FW, WAF, ddos services , etc.)
data content related tools (DLP, DB FW, DLP Halbana, etc.)
cyber management tools (SIEM tool, Incident responds,
automation)
Zero Trust including identity, access, SDP software defined
perimeter, SASE (secure access service edge) IDM, Access
Other cyber tools (secure development, awareness etc.)
Project & Portfolio Management
Development tools, ALM, Devops for all environments
(including Mobile)
Low Code tools
Governance, Risk & Compliance
Regulation
Office productivity (office calendar, mail etc.), KM (Enterprise
Portals, ECM, Search, Knowledgebases tools)
Digital Output Management/Customer Communication
Management
Employee Collaboration, Task Management & Engagement Tools
BI and Data Discovery Tools
Data Mgmt. Tools (including data catalog, governance, ETL,
quality)
Data Science and ML/AI Tools
AI/ML/DL Tools
ERP
vertical / core applications
CRM
HR/ Talent Mgmt./ LMS
Marketing Automation Software
Contact Center and Multi channel engagement tools (Chatbots,
Virtual IVR, Video, Voice, etc.…)
E-Commerce and Marketplace Platforms
Web Content Management Platforms
PLM Systems
Blockchain platforms
RPA Platforms
BPM Platforms
IOT tools and platforms
other software (GIS, WMS, transportation, etc)
other software (banking, insurance and other financial market
software)
servers X86
Legacy (non-x86)
Data Appliances
HCI appliances
Public Cloud IaaS PaaS (Compute as
a Service )
Window PCs (Notebook & Desktops)
Enterprise only
Non window's PC's
Enterprise only
Enterprise Storage :Disks (HHD and
SSD)
Enterprise Storage Tape Libraries,
VTL Backup and other storage
Appliances
Public Cloud IaaS Storage & Backup
as a Service
Enterprise Networking
Security / Cyber Appliances
VoIP/Call Center Equipment
Call Center as a Service
Data Center Physical Equipment
Off-site Data Center: Co-
Location; Hosting (Client owns the
HW)
POS , Robot , Self Service
(ATM/Kiosks/other)
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More than
450 IT
VENDORS
(4/2023)
in Israel
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Manufacturers/Software Houses, Distributors, VARs
NOdouble bookings for IT Market Size Forecasts
Resellers (VARs) get credit only for their value added unless the
manufacturer/software house is not present in Israel, then they get full credit.
Integrators and other Value-Added Service Providers get credit ONLY for the
“services-work” they CONTRIBUTED TO THE PROJECT.
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DISTRIBUTORS (usually are not shown in our study) are
intermediary reseller entities; between the original
MANUFACTURERS OF HARDWARE PRODUCTS or SOFTWARE
HOUSES and other entities in the distribution channel (VARs
and INTEGRATORS).
VALUE-ADDED RESELLERS (VARs) offer third party software
and hardware to the end user or integrators at a markup,
along with a limited combination of procurement
consulting, configuration, and customization services (shown
in sections INFRASTRUCTURE and/or SOFTWARE)
INTEGRATORS offer professional’s services (consulting,
developing, implementing or sourcing manpower) in order
to deliver enterprise computer services to the organization.
(shown in section VALUE ADDED SERVICES ).
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“Israeli Positioning” for products
NOT a technological or functional positioning and SHOULD NOT be used as
such. This positioning is intendent to reflect ONLY THE DEGREE to which a
product is PRESENT AND SUPPORTED IN ISRAEL
Focused on the enterprise sector (not SMB)
 X axis (Market Presence):
Installed base; New sales; Mindshare
 Y axis (Local ISRAELI Support):
Number and quality of support experts; localization; local R&D
 Vendors to watch: New players that only recently entered the market
and therefore cannot be evaluated against longtime players
 Global leaders: marked according to international analyst firms
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Israeli Product Positioning Slides
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Israel
economy, business
activity and
number of
companies
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THE BUSINESS WORLD IS CHANGING
companies must do more with less (and fast)
Old Business Cycles
New Business Cycles
Frequency
New cycles come faster
Amplitude
New cycles have
greater volatility
Technical Debt
Crisis
Labor Crisis New Technologies CIO’s direct
impact
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Hundreds of thousands of Israelis participated in demonstrations against
Prime Minister Benjamin Netanyahu’s hotly contested proposals to tighten
restrictions on the Supreme Court.
The proposed revision, which would have allowed the government to choose
Supreme Court nominees and allowed parliament to overturn many
decisions, was put on hold after opponents launched some of the largest
street demonstrations ever witnessed in Israel, which are currently in their
18th week.
The revision is required, according to the administration, to rebalance the
relationship between the judiciary and elected lawmakers after activist
judges have been accused of taking over the work of parliament.
News agency Reuters quoted critics of the proposals as saying that it will
eliminate crucial checks and balances that support a democratic state
and give the executive branch unfettered power.
According to a poll aired by Israel’s national television on Friday, 74% of
Israelis believe the government is not functioning well five months into the
term of the far-right coalition.
In a show of resistance against proposals that they view as an existential
danger to Israeli democracy, crowds gathered in the center of Tel Aviv on
Saturdays (more than 18 consecutive weeks)
https://www.firstpost.com/world/israel-thousands-protests-against-judicial-overhaul-
proposed-by-prime-minister-benjamin-netanyahu-12558922.html
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https://edition.cnn.com/2023/03/27/middleeast/gallery/israel-judicial-reform-protests/index.html
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Economic Growth (GDP, annual variation in %) for Israel from 2013 to 2022.
according to focus economics growth is
projected to moderate from a strong 6.3% in 2022 to 2.8% in 2023 and 3.4% in 2024.
according to S&P economic growth is forecasted:
from an increase of 2%, it is now estimated that the Israeli economy will grow by only 1.5% in 2023
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Present changes in tech employment in Israel
Massive layoffs in startups & high-tech and will get worst, very quickly,
(likely sometime mid year afterQ22023 results)
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Consumer Confidence in Israel
expected to be -20.00 points by the end of this quarter. In the long-term, the Israel Consumer
Confidence is projected to trend around -22.00 points in 2024 and -19.00 points in 2025
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How we check our economic forecasts
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changes in the
Composite
Index
alongside the
long-term
growth rate
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4/2021-4/2023
probability of a
slowdown in the
growth rate relative
to the long-term
growth rate
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50
1998-2023
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‫המשק‬ ‫ענפי‬ ‫לכלל‬ ‫הפדיון‬ ‫במדד‬ ‫והשינוי‬ ‫כולל‬ ‫מאזן‬
)
‫קבועים‬ ‫במחירים‬ ‫מקוריים‬ ‫נתונים‬
(
Total Balance and the Change in the Revenue Index for All Industries in the Economy
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The Melnick State of the Israeli
Economy Index unchanged in
July 2023.
The slowdown in the economic
activity of the business sector
continues. In the second
quarter, a significant
slowdown in growth is
evident.
The local slowdown results
from a combination of the
slowdown in economic activity
in the world and the effect of
the attempt to radically
change the legal system in
Israel. .
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PMI summarizes whether
market conditions, as viewed
by purchasing managers, are
expanding, staying the same,
or contracting.
The purpose of the PMI is to
provide information about
current and future business
conditions to company
decision makers, analysts, and
investors.
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Number of Companies (including government) and number of employees
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Trends
2023-2025
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• Hybrid Workspace & Workers
• Crisis Management Services & Tools
• Regularly modified & tested BCP
• Data Literacy Strategies & Self-service Analytics
• Outsourcing
• Staff Augmentation (especially offshore)
• Managed Services
• Full stack development:
• Microservices & Container Development
• Internal Development Platform (IDP )
• Progressive Web Applications (PWA)
• Low code (citizen developers)
• APIs & Composable Software (center office)
• DecSecOps
• Site Reliability Engineering (SRE )
• FinOps (software & managed services)
• IoT (Connected Sensors & Edge Infrastructure)
• Home, & Business Sensors
• Vehicle Sensors
• Health Sensors
• Procurement: Cloud/SaaS/Software/Hardware
• Moving perpetual to subscriptions licenses
• CAPEX to OPEX in IT Budgets
• Uniting NOC & SOC centers
• Four (4) Israeli-Based Hyper-scalers
• Local XaaS marketplaces
• Four (4) undersea cables (1/Q 2024)
• Smartphone capabilities
• Allways-on camera
• Seamless voice control:
• Wi-Fi 6 & 5G connectivity (10Gbps)
• Technical Debt should be paid:
• Old on-prem ERP to cloud
• Lift & shift
• New SaaS core apps
• Closing of on-prem Data Centers
• Co-location services
• Backup as a Service
• IaaS & PaaS services
• Digital in Scale Value Strategies
• Hyper-Personalization & concierge services
• Employee Empowerment & Customer Engagement
• Product-led Enterprise Organizations
• New Team Topologies
• Stream-aligned Teams
• Enabling Teams
• Data Teams
• Platform Teams
• Hybrid-cloud Core Technology Stack
• SaaS Enterprise Solutions as first choice
• Cloud First Development
• Open Industry (banks, insurance, health) Integration (APIs)
• Communication & Knowledge Software
• Cyber Tools
• Zero-trust ,SASE,, Automated Incident Investigation
• Digital Identity Enhanced Privacy
• Password Less Authentication,
• Ransomware Readiness, Multi Cloud Visibility
• Data Science & Intelligent Predictive Analytics
• Data Governance
• AI (GenAI ,Narrow AI))
• AI Literacy Strategies
• ML (Supervised, Unsupervised, Self-supervised)
• DL models ( Interpretability Risks, Compliance)
• Intelligent Automation
• Augmented Intelligence
• Business Process Optimization (theory of constraints)
• AI-enabled Enterprise Applications
• RPA, BPM tools
• Robotics
• Ecosystem Business Model
• Industry-specific Clouds
• Platforms & marketplaces
• Super Apps
• Quantum Computing
• Blockchain
• Cryptocurrencies
• Web 3.0
• AR/XR (augmented reality & extreme reality)) & Metaverse
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Trends and recordings presented on the
webinar of 30/5/2023
https://www.stki.info/our-events
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IT Budgets by
Industry
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TRIFECTA (major budget items for 2023-24)
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Finally paying our “technical debt”?????
Not in 2023-24
Technical Debt Crisis
• Outdated infrastructure (software/ hardware)
• Outdated software (several versions behind
latest vendor version)
• ERP and/or CRM
• Core systems based on outdated technologies
(not in itself broken systems) but are critical to
day-to-day operations
• Outdated data management tools (ETL, DW, BI)
• Inability to integrate applications or processes
(in-house or partners)
• Missing documentation
• Un-commented configuration
• Un-documented code changes
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• CAPEX is a long-term investment, while OPEX is short-term, or operational, expenditure.
• CAPEX is capitalized and depreciated or amortized over the life of the asset, whereas
OPEX is expensed in the accounting period it's incurred.
• CAPEX can improve the company's future earning capacity, while OPEX is necessary for
the daily functioning of the business.
• CAPEX appears on the balance sheet, while OPEX appears on the
income statement.
Both OPEX and CAPEX are crucial for a business's operation and growth, but they serve
different purposes and are treated differently for accounting and tax purposes.
CapEx to OpEx
In Israel there has been a move (last 4 years) from OPEX of 40%-50% to (in some cases) 80%-85%
Are there benefits in Moving IT Expenses????
Understanding the difference between these two types of expenditures can help businesses
make strategic decisions about where and how to allocate their procurement choices
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Financial Metrics
• Profit Margins: An increase in OPEX could lead to a decrease in operating profit margins in the short term because these costs are
expensed when incurred, whereas CAPEX is spread out over several years through depreciation.
• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): This popular financial metric may decrease in the short
term due to the increase in operating expenses.
• Return on Assets (ROA) and Return on Investment (ROI): These metrics could improve because shifting to an OPEX model often
means fewer assets on the balance sheet.
• Cash Flow: Shifting to an OPEX model can lead to smoother and more predictable cash flows, since costs are spread out evenly
over time. However, total cash outflows may increase over the long term.
Tax Liabilities
• Immediate Expense Deduction: OPEX can be fully deducted in the year they're incurred, potentially reducing taxable income and
thus tax liabilities in the short term.
• Depreciation Deductions: With fewer CAPEX, there will be fewer assets to depreciate, which could increase tax liabilities over the
long term.
Stock Performance
• Profitability and Earnings Per Share (EPS): If the shift to OPEX leads to a decrease in profitability or EPS, this could negatively
impact stock price in the short term.
• Long-Term Growth Prospects: Investors may view the shift to OPEX positively if it signals a move towards more flexible, scalable,
and efficient operations, which could enhance long-term growth prospects and thus stock price.
• Market Comparability: If a company's shift from CAPEX to OPEX is more or less pronounced than its peers, this could impact its
comparability and thus how investors value its stock.
the shift from capital expenditures (CAPEX) to operational expenditures (OPEX)
has significant implications:
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Budgeting and Cash Flow: OPEX costs are typically predictable and spread evenly over time, which can aid in budgeting and cash
flow management. When getting software as a subscription, the opportunity to stop paying maintenance doesn’t exist, payments must
continue if the data it produced is needed. No vendor tolerance. The total cost of ownership (TCO) is higher over the long term
compared to perpetual license models.
Flexibility: With subscription models and cloud services, companies can easily scale up or down as their needs change. They can also
experiment with different tools without a significant upfront investment.
Updates and Maintenance: SaaS and cloud providers typically handle updates and maintenance, reducing the burden on a
company's IT department.
Security and Compliance: Cloud services and SaaS platforms often have robust security measures in place, and ensure that these
services comply with all relevant regulations and standards ( companies also have to also install their own cloud security products).
Instead of large, one-time capital expenditures (CAPEX) for software licenses and physical
servers, companies are now incurring ongoing operational expenditures (OPEX)
for subscription fees and cloud services. This shift has several implications:
In response to these trends, companies may need to adjust their financial planning, IT strategy,
and vendor management practices.
They may also need to train their employees on new tools and update their security and
compliance protocols..
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The trend towards software as a service (SaaS) and cloud-based
infrastructure is indeed shifting the way companies manage and
account for their technology spending (CAPEX to OPEX)
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industry
Budgets
2018
change
from
2018
Budgets
2019
change
from
2019
Budgets
2020
change
from
2020
Budgets
2021
change
from
2021
Budgets
2022
change
from 2022
Budgets
2023
change
from 2023
Budgets
2024
industry
government $1,630 5.95% $1,727 -16.04% $1,450 4.14% $1,510
15.89%
$1,750
-1.71%
$1,720
10.47%
$1,900 government
security $525 2.29% $537 2.42% $550 5.45% $580 17.24% $680 2.94% $700 14.29% $800 security
education $292 4.45% $305 14.75% $350 17.14% $410 14.63% $470 8.51% $510 9.80% $560 education
health $350 -2.86% $340 14.71% $390 15.38% $450 6.67% $480 4.17% $500 10.00% $550 health
utilities $215 -2.33% $210 11.90% $235 6.38% $250 4.00% $260 -19.23% $210 9.52% $230 utilities
transport $340 7.35% $365 10.96% $405 11.11% $450 22.22% $550 -7.27% $510 1.96% $520 transport
banks $920 10.87% $1,020 -6.86% $950 -3.16% $920 6.52% $980 2.04% $1,000 7.00% $1,070 banks
insurance $405 3.70% $420 3.57% $435 3.45% $450 7.78% $485 -2.06% $475 5.26% $500 insurance
fin other $310 29.03% $400 12.50% $450 13.33% $510 13.73% $580 3.45% $600 8.33% $650 fin other
manuf $875 -1.71% $860 -2.33% $840 7.14% $900 -2.22% $880 -4.55% $840 7.14% $900 manuf
retail $238 -3.36% $230 8.70% $250 18.00% $295 3.39% $305 21.31% $370 14.86% $425 retail
high tech $842 7.01% $901 38.73% $1,250 32.00% $1,650 9.09% $1,800 -2.78% $1,750 2.86% $1,800 high tech
IT local vendors $165 9.09% $180 -2.78% $175 2.86% $180
1.11%
$182
-5.49%
$172
1.74%
$175 IT local vendors
telecomm $230 13.04% $260 -5.77% $245 -6.12% $230 -6.52% $215 -6.98% $200 10.00% $220 telecomm
media $180 11.11% $200 15.00% $230 8.70% $250 4.00% $260 7.69% $280 7.14% $300 media
SMB/SME $410 -6.10% $385 -11.69% $340 17.65% $400 20.00% $480 6.25% $510 13.73% $580 SMB/SME
in M USD
$7,927 5.21% $8,340 2.46% $8,545 10.42% $9,435 9.77% $10,357 -0.10% $10,347 8.05% $11,180
in M USD
IT BUDGETS (cash-out NOT opex/capex accounting)include some other expenses
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OPPORTUNITIES according to 2023 IT Budgets
industry Budgets 2023
high tech $1,750
government $1,720
banks $1,000
manuf $840
security $700
fin other $600
education $510
transport $510
SMB/SME $510
health $500
insurance $475
retail $370
media $280
utilities $210
telecomm $200
IT local
vendors $172
industry change from 2022
retail
21.31%
education 8.51%
media 7.69%
SMB/SME 6.25%
health 4.17%
fin other 3.45%
security 2.94%
banks 2.04%
government -1.71%
insurance -2.06%
high tech -2.78%
manuf -4.55%
IT local vendors
-5.49%
telecomm -6.98%
transport -7.27%
utilities
-19.23%
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OPPORTUNITIES according to 2024 IT Budgets
industry change from 2023
retail
14.86%
security 14.29%
SMB/SME 13.73%
government 10.47%
health 10.00%
telecomm 10.00%
education 9.80%
utilities 9.52%
fin other 8.33%
manuf 7.14%
media 7.14%
banks 7.00%
insurance
5.26%
high tech 2.86%
transport 1.96%
IT local
vendors
1.74%
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V2
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Israel
IT Market Forecasts
(statistics)
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2018 2019 2020 2021 2022 2023 2024
$7,159.15 $7,904.30 $8,041.00 $8,900.80 $9,470.30 $9,461.50 $10,294.50
10.41% 1.73% 10.69% 6.40% -0.09% 8.80%
74
Values in Million USD
IT Market 2018-2024
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IT Market 2018-2024
Values
in
M
USD
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IT Market 1989-2024
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Israeli IT Market 1989-2024
Inflection points
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Israeli IT Market 2018-2024
Values
in
M
USD
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Israeli IT Market (% change) 2018-2024
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Israel
Infrastructure Product
Markets 2023
”vendor rankings”
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Infrastructure Market 2018-2022
2018 2019 2020 2021 2022 2023 2024
$1,756.15 $1,868.00 $2,065.00 $2,297.00 $2,424.00 $2,459.00 $2,574.00
6.37% 10.55% 11.23% 5.53% 1.44% 4.68%
Page 81

TOP VENDORS: Hardware-Infrastructure Markets
Infrastructure Suppliers Infrastructure VARS
Page 82

Infrastructure Categories (pages)
84 97
94
106 115
Page 83

Servers, Appliances, Public Cloud (IaaS, PaaS, CaaS)
MARKET 2018-2024
Page 84

SERVERS X86
Page 85

SERVERS X86 VARs
Page 86

87
SERVERS X86 VARs
Page 87

Presence & Support in Israel
General Purpose Intel Servers
Page 88

LEGACY (NON-X86)
Page 89

DATA APPLIANCES
Page 90

HCI APPLIANCES
Page 91

ENTERPRISE PUBLIC CLOUD
(IaaS; PaaS, Compute as a Service)
Page 92

ENTERPRISE PUBLIC CLOUD (VARs)
(IaaS; PaaS, Compute as a Service)
Page 93

CLIENTS (enterprises only)
MARKET 2018-2024
Page 94

WINDOWS PCs
(COMMERCIAL ONLY)
Page 95

APPLE (MacBooks & iPads)
(COMMERCIAL ONLY)
Page 96

STORAGE MARKET 2018-2024
Page 97

ENTERPRISE STORAGE DISKS
(HHD & SSD)
Page 98

ENTERPRISE STORAGE DISKS VARs
(HHD & SSD)
Page 99

ENTERPRISE STORAGE DISKS VARs
(HHD & SSD)
Page 100

ENTERPRISE STORAGE TAPE LIBRARIES,
VTL, FC SWITCHES,BACKUP & OTHER STORAGE APPLIANCES
Page 101

general purpose storage
Page 102

High End Storage for Critical Systems
Page 103

Enterprise Backup
Page 104

DRaaS / Storage as a Service
Page 105

NETWORKING, VoIP, SECURITY MARKET 2018-2022
Page 106

ENTERPRISE & DATA CENTER NETWORKING
Page 107

ENTERPRISE & DATA CENTER NETWORKING
Page 108

ENTERPRISE & DATA CENTER NETWORKING VARs
Page 109

Enterprise Networking
Page 110

SECURITY/ CYBER APPLIANCES
Page 111

SECURITY/ CYBER APPLIANCES VARs
Page 112

VoIP / CALL CENTER EQUIPMENT
Page 113

CALL CENTER as a SERVICE
Page 114

SELF-SERVICE & DC EQUIPMENT MARKET
2018-2022
Page 115

DATA CENTER PHYSICAL EQUIPMENT
Page 116

DATA CENTER PHYSICAL EQUIPMENT VARs
Page 117

OFF-SITE DATA CENTER, CO-LOCATION, HOSTING
(client owns the HW)
** under construction
Page 118

POS, Robots (enterprise use only) & other SELF SERVICE
(ATM, KIOSKS, OTHER)
Page 119

12
0
Israel
Software Product
Markets 2023
Page 120

121
Software (on-prem & cloud) Market 2018-2024
2018 2019 2020 2021 2022 2023 2024
$1,804.50 $1,989.20 $1,959.00 $2,089.30 $2,209.30 $2,276.50 $2,413.50
10.24% -1.52% 6.65% 5.74% 3.04% 6.02%
Page 121

122
TOP VENDORS: Software Markets
VARs
Software Companies Software VARS
Page 122

123
SOFTWARE CATEGORIES (pages)
124
132 153 162
173
176 181 196 216
145
Page 123

124
SYSTEM, STORAGE & DATA PLATFORMS
MARKET 2018-2022
Page 124

125
INFRASTRUCTURE & SYSTEM SOFTWARE
Page 125

126
INFRASTRUCTURE & SYSTEM SOFTWARE
VARS (alphabetically)
Page 126

127
STORAGE & BACKUP SOFTWARE
Page 127

128
STORAGE & BACKUP SOFTWARE
VARS
Page 128

129
DATA PLATFORMS (SQL, NoSQL, DBMS)
Page 129

130
Cloud-based
Page 130

131
Cloud-based VARS (alphabetical)
Page 131

132
MIDDLEWARE TOOL
MARKET 2018-2024
Page 132

133
AppWEB Server, Emulation, BRMS, APaaS, container
platforms, Integration, Streaming
Page 133

134
platforms, Integration, Streaming
Page 134

135
platforms, Integration, Streaming,….. VARS
Page 135

136
On-premise (+cloud) Container Platforms
Page 136

137
API Management (with on-premise options)
Page 137

138
Israeli API Management (with on premise option) selected integrators
Open source
Page 138

139
Enterprise Service Bus ESB
Page 139

140
ETL (Extract Transform Load)
Page 140

141
ETL Integrators
Page 141

142
IPaaS
Page 142

143
Application Integration Integrators
Page 143

144
Application Integration / Cont. 2
Page 144

145
IT MANAGEMENT & OPERATIONS
TOOLS MARKET 2018-2022
Page 145

146
Workload-Scheduling (excluding ITSM, Service Desk)
Page 146

147
Workload-Scheduling (excluding ITSM, Service Desk)
Page 147

148
Workload-Scheduling (excluding ITSM, Service Desk) VARs
Page 148

149
Job Scheduling
Page 149

150
Job Scheduling Selected Integrators
Page 150

151
FinOps Tools
Page 151

152
ITSM - Service Desk
Page 152

153
SECURITY (CYBER) TOOLS
MARKET 2018-2024
Page 153

154
Endpoint related tools
Page 154

155
NetworkWeb cloud services
(FW, WAF, DDOS services , etc.)
Page 155

156
NetworkWeb cloud services
(FW, WAF, DDOS services , etc.)
Page 156

157
Data Content Related Tools (DLP, DB FW, DLP (Halbana) etc.)
Page 157

158
CYBER MANAGEMENT TOOLS
(SIEM tools, incident responds, automation)
Page 158

159
Zero Trust including identity, SDP software defined perimeter, SASE
(secure access service edge) IDM, Access
Page 159

160
Enterprise B2B Vaults (replacing CyberArk vaults)
Page 160

161
other cyber tools
(secure development, awareness etc.)
Page 161

162
PROJECT DEVELOPMENT & MANAGEMENT
TOOLS MARKET 2018-2022
Page 162

163
Project & Portfolio Management Tools
Page 163

164
PPM
Page 164

165
PPM Tools & Integrators
Page 165

166
Development, Mobile, ALM & DevOps tools
Page 166

167
Development, Mobile, ALM & DevOps tools
Page 167

168
Development, Mobile, ALM & DevOps tools VARS
Page 168

169
ALM (Application Lifecycle Management)
Page 169

170
Israeli ALM Integrators
Page 170

171
Low Code tools
Page 171

172
Low Code tools VARS
Page 172

173
EGRC & Regulation Tools
MARKET 2018-2024
Page 173

174
Governance, Risk & Compliance Tools
Page 174

175
Governance, Risk & Compliance Tools (VARS)
Page 175

176
KNOWLEDGE & COLLABORATION TOOLS
MARKET 2018-2024
Page 176

177
Office productivity (office calendar, mail etc.),
KM (Enterprise Portals, ECM, Search, Knowledgebases tools)
Page 177

178
Office Productivity and Knowledge Tools 2023
(ECM, Portals, Search, Knowledgebases.. )
Page 178

179
Digital Output Management/Customer Communication Management
Page 179

180
Employee Collaboration & Engagement Tools
Page 180

181
ANALYTICS & DATA MANAGEMENT TOOLS
MARKET 2018-2024
Page 181

182
BI and Data Discovery Tools
Page 182

183
Data & Analytics in the Cloud:
Platforms and Integrators
Page 183

184
Digital Intelligence Integrators
Page 184

185
Business Intelligence
Page 185

186
Business Intelligence (BI) Integrators - Part 1:
Page 186

187
Business Intelligence (BI) Integrators - Part 2:
Page 187

188
Data Mgmt. Tools
(including data catalog, governance, ETL, quality, CDP)
Page 188

189
Data Catalog, Data Governance and Data Preparation Tools
Page 189

190
Data Science and ML/AI Tools
Page 190

191
Data Science Platforms
Page 191

192
Data Science tools:
Page 192

193
Data Science Cloud Platforms:
Page 193

194
Data Fabric solutions in Israel
Data Virtualization Tools
Page 194

195
Messaging Bots Frameworks and Tools:
Page 195

196
ENTERPRISE MANAGEMENT SYSTEMS
MARKET 2018-2024
Page 196

197
ERP PACKAGES
Page 197

198
Enterprise ERP 2023 >10K
Global
Leader
Page 198

199
Mid-Market ERP 2023
Page 199

200
ERP Integrators -Part 1
Page 200

201
ERP Integrators – Part 2
Page 201

202
CRM APPLICATIONS
Page 202

203
CRM Platforms
Page 203

204
CRM Packages in Israel - Part 1:
Page 204

205
CRM Packages in Israel - Part 2:
Page 205

206
Multi Channel Platforms 2023
Page 206

207
Multi Channel Platforms
Page 207

208
HR/ Talent Mgmt./ LMS APPLICATIONS
Page 208

209
HR, Talent Management, Payroll and LMS 2023
Market Presence
Page 209

210
HR, Talent Management, Payroll and LMS 2023
STKI’s work Copyright@2023. Do not remove source or attribution from any slide, graph or portion of
graph
Page 210

211
MARKETING AUTOMATION SOFTWARE
Page 211

212
Marketing Automation Suites
Page 212

213
CM and Marketing Automation Platforms –
Part 1
Page 213

214
CM and Marketing Automation Platforms –
Part 2
Page 214

215
Customer Data Platforms (CDP)
Players in Israel
Page 215

216
BUSINESS APPLICATION SYSTEMS
MARKET 2018-2024
Page 216

217
Contact Center and Multi channel engagement tools
(Chatbots, Virtual IVR, Video, Voice, etc.…)
Page 217

218
E-Commerce & Marketplace Platforms
Page 218

219
eCommerce and Marketplace - 2023
Page 219

220
e-Commerce Integrators in Israel – Part 1
Page 220

221
e-Commerce Integrators in Israel- Part 2
Page 221

222
Web Content Management Platforms
Page 222

223
Blockchain Platforms & VARS
PLATFORMS VARS
Page 223

224
RPA Platforms
UiPath
Page 224

225
RPA
Page 225

226
Global leader
RPA Tools & Integrators
Page 226

227
Process Mining
Page 227

228
Process Mining Tools & Integrators
Page 228

229
BPM Platforms
Page 229

230
IoT Tools and Platforms
Page 230

231
IoT Tools and Platforms VARs
Page 231

232
Industry Specific and Special Purpose
Applications
MARKET 2018-2024
Page 232

23
3
Israel
Value Added Services
Markets 2023
Page 233

VALUE ADDED SERVICES MARKET
2018 2019 2020 2021 2022 2023 2024
$3,598.50 $4,047.10 $4,017.00 $4,514.50 $4,837.00 $4,726.00 $5,307.00
12.47% -0.74% 12.38% 7.14% -2.29% 12.29%
Page 234

Today, time, money and
knowledge is lost because
different vendors do separate
parts.
We “should” have learned to
“either” trust the vendor for
consulting, implementation,
testing and fruition or we hire
a different vendor
2023 should be the year we trust :
“a single” vendor can do the whole project.
Page 235

TOP VENDORS: Value-Added Services Markets
Page 236

VAS CATEGORIES (pages)
238 276
266
259
256
280 287 303
302
296
307 311 317 320
327
Page 237

"ENTERPRISE" CONSULTING MARKET 2018-2024
Page 238

Page 239

Page 240

Page 241

Page 242

"Data & Analytics Strategy Consulting
(organizational, methodologies, architecture, use
cases, culture, literacy etc)"
Page 243

Data Strategy Consulting
Page 244

Page 245

Page 246

Application Projects Consulting
Page 247

Customer & Employee Experience Strategy Consulting
(customer journeys, service design)
Page 248

Customer & Employee Experience Strategy Consulting
Page 249

Page 250

Page 251

Page 252

Page 253

Page 254

Page 255

3rd PARTY MAINTENANCE MARKET 2018-2024
Page 256

Software Maintenance (3rd party)
Page 257

Hardware Maintenance (3rd party)
Page 258

INFRASTRUCTURE PROJECTS (on premise)
MARKET 2018-2024
Page 259

Consolidation/ Virtualization/ Containers /Monitoring/ BSM/
Storage/ Hardware/ Networking Projects
(on premise)
Page 260

Consolidation/ Virtualization/ Containers /Monitoring/ BSM/ Storage/
Hardware/ Networking Projects
(on premise)
Page 261

Software Integration of Middleware, SOA & BPM
(on premise)
Page 262

Cyber Security Product Implementations
(on premise)
Page 263

Cyber Security Product Implementations
(on premise)
Page 264

(on premise)
Page 265

Enterprise CLOUD INFRASTRUCTURE PROJECTS
MARKET 2018-2024
Page 266

Enterprise CLOUD: Consolidation/ Virtualization/ Containers
/Monitoring/ BSM/ Storage/ Hardware/ Networking Projects
Page 267

Enterprise CLOUD: Consolidation/ Virtualization/ Containers
/Monitoring/ BSM/ Storage/ Hardware/ Networking Projects
Page 268

FinOps integrations & services
Page 269

FinOps integrations & services
Page 270

Software Integration of Cloud Middleware, SOA & BPM
Page 271

Cyber Security Cloud Product Implementation
Page 272

Cyber Security Cloud Product Implementation
Page 273

Unified Communication “cloud” Projects
Page 274

Unified Communication “cloud” Projects
Page 275

Implementation of Project Management
& Development tools
MARKET 2018-2024
Page 276

PPM & Project Management Implementation
Page 277

PPM & Project Management Implementation
Page 278

ALM, Development & Testing Tools Implementation
Page 279

ENTERPRISE SOFTWARE IMPLEMENTATIONS
MARKET 2018-2024
Page 280

ERP Implementations
Page 281

HR & Talent Mngt & Payroll
Implementations
Page 282

CRM Implementations
Page 283

ITSM Implementation
Page 284

E-Commerce and Marketplace
Implementations
Page 285

Marketing Automation Implementations
Page 286

DATA, ANALYTICS, AI & BI PROJECTS
MARKET 2018-2024
Page 287

Page 288

Page 289

Data management implementation
(quality, etl, catalogs...)
Page 290

Data management implementation
(quality, etl, catalogs...)
Page 291

BI Implementation / Development
Page 292

BI Implementation / Development
Page 293

Page 294

Page 295

BUSINESS APPLICATIONS DEVELOPMENT & IMPLEMENTATIONS
MARKET 2018-2024
Page 296

General Software Development (except Web & Mobile)
Page 297

Page 298

Page 299

UX Design
Page 300

UX Design
Page 301

INDUSTRY SPECIFIC & SPECIAL PURPOSE
DEVELOPMENT & IMPLEMENTATIONS
MARKET 2018-2024
Page 302

ENGAGEMENT & KNOWLEDGE MANAGEMENT PROJECTS
MARKET 2018-2024
Page 303

Contact Center & Multi Channel Engagement Projects
Page 304

Employee Collaboration & Engagement Projects
Page 305

Knowledge Management Projects
Page 306

INNOVATION PROJECTS & IMPLEMENTATIONS
MARKET 2018-2024
Page 307

Automation Tools (RPA, OCR, others) Consulting & Implementations
Page 308

Blockchain Projects
Page 309

IoT Projects
Page 310

TESTING, TRAINING, Fruition & Implementation (‫)הטמעה‬
PROJECTS MARKET 2018-2024
Page 311

Professional Education, Coaching &
Mentoring
Page 312

Professional Education, Coaching &
Mentoring
Page 313

Project Testing & QA
Page 314

Page 315

Fruition & Implementation (‫הטמעה‬)
Page 316

EGRC & REGULATION PROJECTS & IMPLEMENTATIONS
MARKET 2018-2022
Page 317

Regulation Projects
Page 318

Auditing, Governance & Risk Management
Page 319

OUTSOURCING & MANAGED SERVICES
MARKET 2018-2024
Page 320

Complete and/or Application Outsourcing
(client owns the HW)
Page 321

Infrastructure Outsourcing
(infrastructure, Storage mngt, DBA services)
Page 322

STKI Israeli Market Study 2023 version 2

STKI Israeli Market Study 2023 version 2

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