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STKI IT Market Study 2018

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Israel 2018: IT market that includes positioning of 460 vendors in over 150 categories.

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STKI IT Market Study 2018

  1. 1. 1 STKI 26th Israeli IT Market Study Summit 2018 Dr Jimmy Schwarzkopf jimmy@stki.info 097907000 0547000020 Page 1 STKI Company Confidential
  2. 2. 2 • Dr. Schwarzkopf has worked during the last 40 years in all areas of Computer Information Services: • 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 and Babson Conferences and Editorial Board Member of the academic journal "International Journal of Opportunity, Growth and Value Creation". • As a consultant in Arthur Andersen Consulting (USA), Booz Allen (USA) and Kesselman & Kesselman. • As a systems professional in SCS Computers and the R&D Unit of the Israel Defense Forces. • As a sales and marketing professional in Digital Equipment Corporation. • As a teacher/mentor in the MIS department / Tel-Aviv Yafo Academic College and the Computer School of the IDF. • As an entrepreneur founding three companies in the IT arena: STKI and companies in the areas of store/forward mail and office systems. • Dr. Schwarzkopf served on the Board of Directors of Ashot Ashkelon Industries, served as President of the Gymnasia Herzelia Association, Co-founder of the Mashov Political Movement 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 the R&D unit). Registered Engineer (IS22881), member of MENSA Israel. • Dr. Schwarzkopf received BSE and MSE degrees (Systems Engineering) from the University of Central Florida. Received a MSIA (Management Information Systems) and ABD (PhD Program) in Systems Science (received (twice) the William Larimer Mellon Scholarship/Award) from Carnegie Mellon University. His doctorate (DM- Management/ Entrepreneurship) he received from Case Western Reserve University. Page 2 STKI Company Confidential
  3. 3. 3 STKI’s goal is to help our clients make the right choices in the strategic and financial management 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 25 years of experience in the IT analyst sector and thousands of annual face-to-face interviews with key industry participants have 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 CEOs, CFOs, CMOs, CDOs and CIOs (as with all levels of IT decision making) thereby attaining complete information of technology innovation as well as business transformation. STKI's mission is to advise and analyze users of information technology as well as their suppliers while conducting original research and providing 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" Inquiries Surveys Strategic Marketing & Positioning Round Tables for users 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 Page 3 STKI Company Confidential
  4. 4. 4 Israeli IT Market Studies are here Initiatives/treks & vendors are here Products: Israeli Positioning is here Page 4 STKI Company Confidential
  5. 5. 5 Page 5 STKI Company Confidential
  6. 6. 6 STKI Methodology: equilibrium model The sum of all IT expenditures (from users) has to be equal to all IT sales (from vendors). most research firms are either a "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 the only research firms using an equilibrium model and the only one in Israel. Page 6 STKI Company Confidential
  7. 7. 7 Page 7 STKI Company Confidential
  8. 8. 8 › Real yearly revenues of software licenses, maintenance and cloud usage. › We are learning how to account for cloud usage for IT (Israel) only › Real yearly 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 try to distinguish between work done by the vendor's employees and work outsourced to another 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 staff augmentation (non SLA) projects. › Differentiate value between work done by high level internal professionals in a project and staff augmentation employees in the clients IT department. Take into consideration IT department’s view/mindshare of vendor’s value in projects/products (surveys) What our study (Israeli projects only) looks at: Page 8 STKI Company Confidential
  9. 9. 9 VARs or Partners: NO double bookings for IT Market Size Forecasts Value Added Resellers “VAR or Partners” are incorporated into STKI’s “TIERS”. Both sell into the Israeli Market. Page 9 STKI Company Confidential
  10. 10. 10 for SaaS products “sold” on the cloud STKI “books” in the on-premises software categories and on the SaaS category (but NO double bookings for the IT Market Size Forecasts ) Page 10 STKI Company Confidential
  11. 11. 11 Page 11 STKI Company Confidential
  12. 12. 12 What users bought? From whom? Why? IT Departments IT Vendors How much did they sell? To whom? For how much? Competitors? 26 years of IT Market Data Page 12 STKI Company Confidential
  13. 13. 13 Over 150 categories Page 13 STKI Company Confidential
  14. 14. 14 456 ITVENDORS in Israel Page 14 STKI Company Confidential
  15. 15. 15 15 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 http://index.stki.info/ Page 15 STKI Company Confidential
  16. 16. STKI Summit 2018 Israeli IT Market 16 STKI Summit 2018 Page 16 STKI Company Confidential
  17. 17. 17 Page 17 STKI Company Confidential
  18. 18. 18 Page 18 STKI Company Confidential
  19. 19. 19 from 24th to 16th better in all indexes Page 19 STKI Company Confidential
  20. 20. 20 20 Page 20 STKI Company Confidential
  21. 21. 21 12% 52% 28% 8% 80% find difficulty in hiring and retaining skilled people Page 21 STKI Company Confidential
  22. 22. 22 State of the Economy Index Page 22 STKI Company Confidential
  23. 23. 23 State of the Economy Index (% change*) 1/1998 - 12/2017 Page 23 STKI Company Confidential
  24. 24. 24 * Correlates with Israeli State of the Economy Index * Page 24 STKI Company Confidential
  25. 25. 25 Over 65% is BAD Page 25 STKI Company Confidential
  26. 26. STKI Summit 2018 Israeli IT Market 26 STKI Summit 2018 Page 26 STKI Company Confidential
  27. 27. 27 Number of Registered * “COMPANIES” in Israel (* paid employee taxes in 1/2018) Page 27 STKI Company Confidential
  28. 28. 28 28 STKI interviewed over 200 CIOs (about 70-75% of total in Israel) about: 1. Budgets * for 2018 2. Used “budgets” of 2017 3. Projects postponed: 2019-2020 4. IT department organization 5. Vendor recommendations *IT “internal” budgets are not the same for all enterprises: manpower, rent, electricity, LOB extra budgets, etc. Page 28 STKI Company Confidential
  29. 29. 29 29 Page 29 STKI Company Confidential
  30. 30. 30 Page 30 STKI Company Confidential
  31. 31. 31 Page 31 STKI Company Confidential
  32. 32. 32 4,613 enterprises with IT departments in Israel 18,730 SMBs that will “migrate” into “cloud” solutuions Page 32 STKI Company Confidential
  33. 33. STKI Summit 2018 Israeli IT Market 33 STKI Summit 2018 2017 Israel IT Market Page 33 STKI Company Confidential
  34. 34. 34 IT Market in Israel Page 34 STKI Company Confidential
  35. 35. STKI Summit 2018 Israeli IT Market 35 STKI Summit 2018 “how to read the study” Page 35 STKI Company Confidential
  36. 36. 36 The Great Debate: explanations ALPHABETIC ORDER “not worse” just smaller “boutique” shops Page 36 STKI Company Confidential
  37. 37. 37 The Great Debate: explanations ALPHABETIC ORDER “not worse” just smaller “boutique” shops Page 37 STKI Company Confidential
  38. 38. STKI Summit 2018 Israeli IT Market 38 STKI Summit 2018 2017 Israel Hardware Market Page 38 STKI Company Confidential
  39. 39. 39 Vendors: Hardware markets Page 39 STKI Company Confidential
  40. 40. 40 Israel: IT HardwareTotal Market 2014-2020 Page 40 STKI Company Confidential
  41. 41. 41 Modernization of the Data Center by using HCI technologies Built on industry-standard servers and components Hyper-Converged Infrastructure Virtualization, Compute, Storage and Networking Page 41 STKI Company Confidential
  42. 42. 42 Server Markets 2014-2020 Page 42 STKI Company Confidential
  43. 43. 43 servers/white boxes (manufacturers) Page 43 STKI Company Confidential
  44. 44. 44 servers/white boxes (VARs) Page 44 STKI Company Confidential
  45. 45. 45 DB/DW , Converged HW & HCI Appliances Servers: others (manufacturers) Legacy (non-x86) Page 45 STKI Company Confidential
  46. 46. 46 DB/DW , Converged HW & HCI Appliances Servers: others (VARs) Legacy (non-x86) Page 46 STKI Company Confidential
  47. 47. 47 CLIENTS/PCS (commercial use only) Markets Page 47 STKI Company Confidential
  48. 48. 48 Client Computing B2B manufacturers resellersVARs Page 48 STKI Company Confidential
  49. 49. 49 Storage Markets 2014-2020 Page 49 STKI Company Confidential
  50. 50. 50 “storage” (manufacturers) Page 50 STKI Company Confidential
  51. 51. 51 “storage” (VARs) Page 51 STKI Company Confidential
  52. 52. 52 “storage” (manufacturers) VTL Backup , Storage Appliances and Storage Networks Tape Libraries Page 52 STKI Company Confidential
  53. 53. 53 Security Appliances and Networking Markets 2014-2020 Page 53 STKI Company Confidential
  54. 54. 54 Networking Products Page 54 STKI Company Confidential
  55. 55. 55 Networking Products Page 55 STKI Company Confidential
  56. 56. 56 Page 56 STKI Company Confidential
  57. 57. 57 Page 57 STKI Company Confidential
  58. 58. 58 VoIP & other call center equipment Page 58 STKI Company Confidential
  59. 59. 59 Printers, Monitors, Self Service & DC Equipment 2014-2020 Page 59 STKI Company Confidential
  60. 60. 60 DC Equipment, monitors andVideo Systems (VARs & Manuf.) Page 60 STKI Company Confidential
  61. 61. 61 POS ,Self-Service Appliances Page 61 STKI Company Confidential
  62. 62. STKI Summit 2018 Israeli IT Market 62 STKI Summit 2018 2017 Israel Software Market Page 62 STKI Company Confidential
  63. 63. 63 Vendors in the Software (on/off premises) markets Page 63 STKI Company Confidential
  64. 64. 64 IT SoftwareTotal Market 2014-2020 2014 $1,528,000 4.19% $1,592,000 3.53% $1,648,250 5.12% $1,732,650 3.80% $1,798,500 4.10% $1,872,200 4.39% $1,954,350 2015 2016 2017 2018 2019 FTWARE 2020 Page 64 STKI Company Confidential
  65. 65. 65 System Infrastructure Software 2014-2020 Page 65 STKI Company Confidential
  66. 66. 66 System SoftwareVendors Software Vendors Software Local VARs Page 66 STKI Company Confidential
  67. 67. 67 Storage and Backup Software Software Vendors Software Local VARs Page 67 STKI Company Confidential
  68. 68. 68 Databases (SQL - NOSQL) Software Vendors Software Local VARs Page 68 STKI Company Confidential
  69. 69. 69 Private Cloud and AutomationTools Private Cloud and AutomationTools Software Vendors Software Local VARs Page 69 STKI Company Confidential
  70. 70. 70 2014-2020 Page 70 STKI Company Confidential
  71. 71. 71 Middleware Software Software Vendors Page 71 STKI Company Confidential
  72. 72. 72 Middleware Software Software Local VARs Page 72 STKI Company Confidential
  73. 73. 73 Software Vendors BSM, (Asset Management, APM, Monitoring etc), workload-scheduling Page 73 STKI Company Confidential
  74. 74. 74 Software Local VARs Page 74 STKI Company Confidential
  75. 75. 75 Software Vendors ITSM - Service Desk CA managengine microFocus Page 75 STKI Company Confidential
  76. 76. 76 Security Software 2014-2020 2014 2015 2016 2017 2018 2019 2020 securitysoftwaretools 180,000 8.33% 195,000 5.13% 205,000 5.32% 215,900 3.80% 224,100 4.19% 233,500 2.51% 239,350 Page 76 STKI Company Confidential
  77. 77. 77 Security/ Cyber SoftwareVendors Page 77 STKI Company Confidential
  78. 78. 78 Security/ Cyber SoftwareVendors (cont) Page 78 STKI Company Confidential
  79. 79. 79 Security/ Cyber Software (VARs 2) Page 79 STKI Company Confidential
  80. 80. 80 2014-2020 Page 80 STKI Company Confidential
  81. 81. 81 Project & Portfolio Management Software Vendors Page 81 STKI Company Confidential
  82. 82. 82 Project & Portfolio Management Software Local VARs Page 82 STKI Company Confidential
  83. 83. 83 Office of the CIO & DevelopmentTools Software Vendors Software Local VARs Page 83 STKI Company Confidential
  84. 84. 84 Office of the CIO & DevelopmentTools Development and ALM (including testing tools) Software Vendors Page 84 STKI Company Confidential
  85. 85. 85 Office of the CIO & DevelopmentTools Software Vendors Software Local VARs Mobile Apps Development Platforms including MobileTesting/monetizing Page 85 STKI Company Confidential
  86. 86. 86 Information Management Applications 2014-2020 Page 86 STKI Company Confidential
  87. 87. 87 Knowledge Management (Enterprise portals, ECM, Search, web accessibility) Page 87 STKI Company Confidential
  88. 88. 88 BI,Analytics, Cognitive and Data Mgmt.Tools Page 88 STKI Company Confidential
  89. 89. 89 Digital Output Management/ Customer Communication Management Page 89 STKI Company Confidential
  90. 90. 90 Business Applications 1 2014-2020 Page 90 STKI Company Confidential
  91. 91. 91 Business Applications 1 ERP Software (all sizes) Page 91 STKI Company Confidential
  92. 92. 92 Business Applications 1 CRM/XRM Page 92 STKI Company Confidential
  93. 93. 93 Business Applications 1 HR/Talent Mgmt./ LMS / PAYROLL Page 93 STKI Company Confidential
  94. 94. 94 Business Applications 2 2014-2020 Page 94 STKI Company Confidential
  95. 95. 95 Contact Center and Multi-channel engagement tools (chat, bots, virtual IVR,Video etc…) Page 95 STKI Company Confidential
  96. 96. 96 Marketing Automation Software Page 96 STKI Company Confidential
  97. 97. 97 Web Content Management + e-Commerce Platforms Page 97 STKI Company Confidential
  98. 98. 98 IoT tools and platforms Page 98 STKI Company Confidential
  99. 99. STKI Summit 2018 Israeli IT Market 99 STKI Summit 2018 2017 IsraelValue Added Services (VAS) Market Page 99 STKI Company Confidential
  100. 100. 100 Value Added Services Market 2014-2020 Page 100 STKI Company Confidential
  101. 101. 101 Vendors that sell in theVAS markets Page 101 STKI Company Confidential
  102. 102. 102 Page 102 STKI Company Confidential
  103. 103. 103 "Enterprise" CONSULTING: advice in a particular area not AUGMENTATION (gulgalot) or IMPLEMENTATION 2014-2020 Page 103 STKI Company Confidential
  104. 104. 104 IT Strategy Consulting & Analysts Services Page 104 STKI Company Confidential
  105. 105. 105 DigitalTransformation Consulting Page 105 STKI Company Confidential
  106. 106. 106 (Big) Data Consulting Page 106 STKI Company Confidential
  107. 107. 107 IT Infrastructure/Delivery Consulting Page 107 STKI Company Confidential
  108. 108. 108 IT Application Consulting Page 108 STKI Company Confidential
  109. 109. 109 Cyber/Security Consulting Page 109 STKI Company Confidential
  110. 110. 110 Cyber/Security Consulting (cont) Page 110 STKI Company Confidential
  111. 111. 111 2014-2020 Page 111 STKI Company Confidential
  112. 112. 112 Hardware Maintenance Services (3rd party) Software Maintenance Services (3rd party) Page 112 STKI Company Confidential
  113. 113. 113 Consolidation/ Virtualization /Monitoring/ BSM / Storage/ Hardware/ Data Center Environment/ Networking Projects Page 113 STKI Company Confidential
  114. 114. 114 Consolidation/ Virtualization /Monitoring/ BSM / Storage/ Hardware/ Data Center Environment/ Networking Projects (CONT) Page 114 STKI Company Confidential
  115. 115. 115 Mainframe (z) /AS400 / OpenVMS projects Page 115 STKI Company Confidential
  116. 116. 116 DevOps Implementation projects Page 116 STKI Company Confidential
  117. 117. 117 Software/Cloud Integration, Middleware, SOA, BPM,ALM, TestingTools Implementation Projects Page 117 STKI Company Confidential
  118. 118. 118 Cyber Security Product Implementation Page 118 STKI Company Confidential
  119. 119. 119 Cyber Security Product Implementation Page 119 STKI Company Confidential
  120. 120. 120 Unified Communication (IM,Video,Voice) Page 120 STKI Company Confidential
  121. 121. 121 PaaS and IaaS Implementation & Maintenance Projects Page 121 STKI Company Confidential
  122. 122. 122 Project Management Services 2014-2020 Page 122 STKI Company Confidential
  123. 123. 123 Page 123 STKI Company Confidential
  124. 124. 124 ALM Q/A &Testing Page 124 STKI Company Confidential
  125. 125. 125 ITTraining Page 125 STKI Company Confidential
  126. 126. 126 Implementation (HatMaa) Page 126 STKI Company Confidential
  127. 127. 127 Auditing, Governance & Risk Management Page 127 STKI Company Confidential
  128. 128. 128 Business Applications Implementation 1 2014-2020 Page 128 STKI Company Confidential
  129. 129. 129 Business Applications Implementation 1 ERP (on premise/cloud) Page 129 STKI Company Confidential
  130. 130. 130 CRM-XRM (on premise/cloud) Page 130 STKI Company Confidential
  131. 131. 131 Contact Center and Multi channel engagement tools Page 131 STKI Company Confidential
  132. 132. 132 HR ,Talent Management & Payroll Page 132 STKI Company Confidential
  133. 133. 133 Business Applications Implementation 2 2014-2020 Page 133 STKI Company Confidential
  134. 134. 134 software development Page 134 STKI Company Confidential
  135. 135. 135 SaaS implementations Page 135 STKI Company Confidential
  136. 136. 136 Business Applications Implementation 3 Core (Modernization& Package) Implementation Page 136 STKI Company Confidential
  137. 137. 137 Business Applications Implementation 3 IoT Projects Page 137 STKI Company Confidential
  138. 138. 138 Business Applications Implementation 3 2014-2020 Page 138 STKI Company Confidential
  139. 139. 139 Business Applications Implementation 3 Mobile Development Page 139 STKI Company Confidential
  140. 140. 140 Business Applications Implementation 3 UX Design Page 140 STKI Company Confidential
  141. 141. 141 Data, BI,Analytics Page 141 STKI Company Confidential
  142. 142. 142 Data, BI,Analytics (cont) Page 142 STKI Company Confidential
  143. 143. 143 Marketing Automation (on premise/cloud) Page 143 STKI Company Confidential
  144. 144. 144 Marketing Automation (on premise/cloud) cont… Page 144 STKI Company Confidential
  145. 145. 145 2014-2020 Page 145 STKI Company Confidential
  146. 146. 146 Knowledge Management (ECM, Portals) Page 146 STKI Company Confidential
  147. 147. 147 Web & eCommerce Page 147 STKI Company Confidential
  148. 148. 148 Web Accessibility Page 148 STKI Company Confidential
  149. 149. 149 2014-2020 Page 149 STKI Company Confidential
  150. 150. 150 Managed Services and Outsourcing Services Page 150 STKI Company Confidential
  151. 151. 151 Managed Services and Outsourcing Services Infrastructure Outsourcing Services (Infrastructure, Storage & DBA Services) Page 151 STKI Company Confidential
  152. 152. 152 Managed Services and Outsourcing Services Off-site Data Center (Operational/DRP). (Client owns the HW) Page 152 STKI Company Confidential
  153. 153. 153 Managed Services and Outsourcing Services Help Desk Outsourcing Services Page 153 STKI Company Confidential
  154. 154. 154 Managed Services and Outsourcing Services Cyber Security Managed Services ( ie: SIEM service) Page 154 STKI Company Confidential
  155. 155. 155 Managed Services and Outsourcing Services Printing Outsourcing Services (pay per click) Page 155 STKI Company Confidential
  156. 156. 156 Page 156 STKI Company Confidential
  157. 157. 157 Business Services as a Service - BSaaS (Salaries, Payments, BPO, etc) Page 157 STKI Company Confidential
  158. 158. 158 Platform as a Service PaaS/ Infrastructure as a Service IaaS Page 158 STKI Company Confidential
  159. 159. 159 Platform as a Service PaaS/ Infrastructure as a Service IaaS (PARTNERS) Page 159 STKI Company Confidential
  160. 160. 160 Software as a Service SaaS Page 160 STKI Company Confidential
  161. 161. 161 Software as a Service SaaS (cont) Page 161 STKI Company Confidential
  162. 162. 162 DRP as a Service Page 162 STKI Company Confidential
  163. 163. 163 Page 163 STKI Company Confidential
  164. 164. 164 Gulgalot on-premises Page 164 STKI Company Confidential
  165. 165. 165 Gulgalot on-premises Page 165 STKI Company Confidential
  166. 166. 166 Gulgalot off-premises (Near-site) Page 166 STKI Company Confidential
  167. 167. 167 Gulgalot Nearshore Page 167 STKI Company Confidential
  168. 168. 16816 8 http://index.stki.info/it-tiering/ Page 168 STKI Company Confidential

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