- The document summarizes Dr. Schwarzkopf's background and experience in computer information services, academia, consulting, sales, marketing, teaching, and entrepreneurship. - It describes his roles founding three IT companies and serving on various boards and committees. - It lists his educational background including degrees from the University of Central Florida, Carnegie Mellon University, and Case Western Reserve University.

1. version 2

2. 2
• Dr. Schwarzkopf has worked during the last 35 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.
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 as
President of the Gymnazia 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.

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 22 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 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 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)
In-house Workshops
CIO Annual Bootcamp
CTO Annual Bootcamp
Brainstorming Workshops
STKI Annual Summit

4. 4
STKI Website gives you:
4
1 2 3 4
5 Newsletters

5. 5
STKI website 2

6. 6
STKI website 3

7. 7

8. 8

9. 9
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)
or
"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.

10. 10
› 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 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
What our study looks at:

11. STKI Summit 2014
Israeli IT Market

12. 12
Israel not worse than USA

13. 13
Israel: OECD comparison data in other areas

14. 14

15. 15
Israel: more data

16. 16
ISRAEL (out of 185 countries)

17. 17
State of the Economy Index
The index is an indicator for examining the
direction in which real economic activity is
moving, in real time.
Percent change of the index correlates with
Israeli IT Market Percent Change

18. 18
State of the Economy Index 1998-2014

19. 19
State of the Economy Index 2014-2014

20. 20
Business Tendency Survey
16 months

21. 21
In order to make numbers “fit” ……….

22. STKI Summit 2014
Israeli IT Market

23. 23
Growth of 10% in enterprises (“legal” entities) paying taxes
23
number of
employees
number of
companies
(paying
taxes)
& of
TOTAL
number of
employees
number of
companies
(paying
taxes)
& of
TOTAL
number of
companies
(paying
taxes)
& of
TOTAL
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
235,773
ACCORDING 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%
35,591
232,393
TOTAL 236,125
231,844
37,161
2013
subtotals
251+ 1,493 0.63%
4,018
101-250 2,525 1.07%
63,225
239,150
TOTAL 243,168
ACCORDING TO BITUACH LEUMI 2/2014

24. 2424
I interviewed over 200 CIOs (about
70-75% of total in Israel) about:
1. Budgets for 2014
2. Used “budgets” of 2013
3. Projects postponed:2015-2017
4. IT department organization
5. Vendor recommendations
*IT “internal” budgets are not equal
in all enterprises: manpower, rent,
electricity, LOB extra budgets, etc

25. 25
industry
Budgets
2012
change
from
2012
Budgets
2013
change
from
2013
Budgets
2014
% total
Market
size
% total industry
government
security
education
health
utilities
transport
banks
insurance
fin other
manuf
retail
high tech
IT local vendors
telecomm
media
SMB 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

26. 26

27. 27
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
HARDWARE
1,694,000
3.61%
1,755,200
SOFTWARE
1,350,200
6.72%
1,441,000
VALUE ADDED
SERVICES
3,126,000
4.48%
3,266,000
TOTAL
6,172,213
4.73%
6,464,214

29. 29
IT Market in Israel (million USD): 2 phases

30. 30
2013 “used budget” and 2014 “forecasted” budget
2013 2014
HARDWARE 1,694,000 3.61% 1,755,200
SOFTWARE 1,350,200 6.72% 1,441,000
VALUE ADDED
SERVICES
3,126,000 4.48% 3,266,000
TOTAL 6,172,213 4.73% 6,464,214

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Israeli IT Market

32. 32
The Great Debate: explanations
32
Even if the
graphs “look”
different
“not worse”
just smaller
“boutique”

33. 33
The Great Debate: explanations
33
Even if the
graphs “look”
different
“not worse”
just smaller
“boutique”

34. 34
VARs or Partners: but NO double bookings
34
Value Added Resellers
“VAR or Partners”
are incorporated into
STKI’s “TIERS”.
Both sell into the Israeli
Market.

35. 35
Vendors that sell in Hardware, Software and VAS markets
22
Biggest
Vendors

36. STKI Summit 2014
Israeli IT Market

37. 37
Hardware Categories

38. 38
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

39. 39
Vendors that sell in Hardware markets
22
Biggest
HARDWARE
Vendors

40. 40
Hardware Categories

41. 41
2011 2012 2013 2014
legacy (non-x86) servers 60.0 -8.33% 55.0 -27.27% 40.0 -12.50% 35.0
Converged 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
41
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%

42. 42
Market Players: Servers 2013 (manufacturers)
X86 servers (blades, pizza, etc)
legacy (non-x86) servers
Converged Systems

43. 43
Market Players: Servers 2013 (VARs)
X86 servers (blades, pizza, etc)
legacy (non-x86) servers
Converged Systems

44. 44
Israel 2011-17 Market : “personal computing” market
44
2014 2015 2016 2017
115.0 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 2014
notebooks PC 130.0 -3.85% 125.0 -4.00% 120.0 -4.17% 115.0
desktop PCs 152.0 -13.16% 132.0 -16.67% 110.0 -4.55% 105.0
thin 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% 185.0
totals 389.0 -1.54% 383.0 3.92% 398.0 4.07% 414.2

45. 45
Market Players: Personal Computing (manufacturers) 2013

46. 46
Market Players: Personal Computing (VARs) 2013

47. 47
Hardware Categories

48. 48
Israel 2011-15 Market : “storage” market
48
2011 2012 2013 2014
disks 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% 192.0
30.0other backup solutions
32.06.67%30.0 37.023.33% -18.92%
2014 2015 2016 2017
160.0 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%

49. 49
Market Players: “storage” (manufacturers) 2013
other
Backup/Storage
Solutions

50. 50
Market Players: “storage” (VARs) 2013

51. 51
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% 225.0
enterprise 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 2014
enterprise networking and
collaboration equipment 192.0 9.38% 210.0 -0.95% 208.0 0.96% 210.0
security 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% 60.0
totals 322.0 9.32% 352.0 -0.28% 351.0 3.99% 365.0

52. 52
Market Players: Networking Products 2013

53. 53
Market Players: Security Appliances 2013

54. 54
Market Players: VoIP & other call center equipment 2013

55. 55
Hardware Categories

56. 56
Israel 2011-15 Market : DC, POS, ATMs, others markets
2011 2012 2013 2014
Printers 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% 73.0
Self 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% 42.0
Data Center Physical Equipment 70.0 5.71% 74.0 22.97% 91.0 4.40% 95.0
other 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 2017
92.0 -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

57. 57
Market Players: DC equipment & enterprise printers 2013

58. 58
Market Players: POS & Self-Service Systems 2013
POS will change
completely in 2014

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Israeli IT Market

60. 60
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

61. 61
Vendors that sell in the Software markets
22
Biggest
SOFTWARE
Vendors
&
VARs

62. 62
Software Categories 1

63. 63
2015 2015
2014 2015 2016 2017
172.0 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% 63.0
Middleware: 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 2014
system 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% 52.0
Data 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)

64. 64
Market Players: system software 2013
system level software
(OS, virtualization etc)
VARS
system level software
(OS, virtualization etc)

65. 65
Market Players: Middleware Software 2013
Middleware: WEB server, ESB, SOA, BPM, ETL, FTP,
Emulation, messaging, Job Scheduling & BRMS etc.
VARs
Middleware: WEB server, ESB,
SOA, BPM, ETL, FTP, Emulation,
messaging, Job Scheduling &
BRMS etc.

66. 66
Market Players: Data Bases Software 2013
Data Management Systems (DBMS)
VARs
Data Management Systems (DBMS)

67. 67
2014 2015 2016 2017
105.0 4.76% 110.0 1.82% 112.0 2.68% 115.0
BSM (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 2014
BSM (Asset Management, Service
Desk, Monitoring etc) 90.0 5.56% 95.0 8.42% 103.0 1.94% 105.0
storage & backup
64.0 6.25% 68.0 -4.41% 65.0 4.62% 68.0
Security / 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

68. 68
Market Players: BSM Software 2013
BSM
(Asset Management, Service Desk,
Monitoring etc.)
VASs for BSM
(Asset Management, Service Desk,
Monitoring etc.)

69. 69
Market Players: Storage and Backup Software 2013
storage & backup
software VARs
storage & backup
software

70. 70
Market Players: Networking Software 2013
networking software
VAS
networking software

71. 71
Market Players: Security/ Cyber Software Tier 1 : 2013

72. 72
Market Players: Security/ Cyber Software Tier 2 : 2013

73. 73
Software Categories 3

74. 74
Israel 2011-17 Market : Office of the CIO market
2011 2012 2013 2014
Project & Portfolio Management 22.0 18.18% 26.0 3.85% 27.0 11.11% 30.0
Governance, 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 2017
30.0 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

75. 75
Israel 2011-15 Market : Development Tools market
2011 2012 2013 2014
Development and ALM (includes
testing tools) 85.0 5.88% 90.0 -4.44% 86.0 2.33% 88.0
Apps (mobile+social) development
tools 12.0 25.00% 15.0 66.67% 25.0 44.00% 36.0
totals 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% 48.0
Apps (mobile+social) development
tools
124.0 6.45% 132.0 6.82% 141.0 3.55% 146.0 totals

76. 76
Market Players: Project & Portfolio Mgmt. Software 2013
Project & Portfolio Management VARs
Project & Portfolio Management

77. 77
Market Players: Governance, Risk & Compliance Software 2013
Governance, Risk & Compliance Software

78. 78
Market Players: Development & ALM Software 2013

79. 79
Software Categories 2

80. 80
Israel 2011-17 Market : Information Mgmt. Tools market
2011 2012 2013 2014
Office Productivity (Office, e-mail..) 85.0 2.35% 87.0 3.45% 90.0 2.22% 92.0
KM (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% 25.0
Analytics and data mngmt tools 100.0 20.00% 120.0 20.83% 145.0 3.45% 150.0
Collaboration (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% 50.0
Output 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

81. 81
Israel 2011-17 Market 2 : Information Mgmt. Tools market
2014 2015 2016 2017
92.0 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

82. 82
Market Players: KM & WCM Software 2013

83. 83
Market Players: Analytics and data mgmt. Software 2013

84. 84
Market Players: Analytics and data mgmt. (VARs) Software 2013

85. 85
Market Players: Output Mgmt & Collaboration Software 2013

86. 86
Market Players: Document mgmt. and search Software 2013

87. 87
Market Players: Mobile Development Software 2013

88. 88
Software Categories 4

89. 89
Israel 2011-17 Market : Business Applications market
2011 2012 2013 2014
Vertical (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% 75.0
Talent 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% 13.0
totals 236.2 4.57% 247.0 8.18% 267.2 14.15% 305.0
2014 2015 2016 2017
65.0 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. 90
Market Players: ERP Software (all sizes) 2013

91. 91
Market Players: CRM & CEM Software 2013

92. 92
Market Players: Vertical Application Software TIER 1 2013

93. 93
Market Players: Vertical Application Software TIER 2 2013

94. STKI Summit 2014
Israeli IT Market

95. 95
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. 96
Vendors that sell in the VAS markets
22
Biggest
Value-Added
Vendors

97. 97
The SIX categories of IT Value Added Services Offered in Israel
2011-2017
26% growth

98. 98
Value Added Services Offered 2011 2012 2013 2014
Infrastructure 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% 532.0
Application Implementation Projects 739.0 1.22% 748.0 4.01% 778.0 5.01% 817.0
Application 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% 851.0
Cloud 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 Projects
817.0 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 Projects
851.0 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. 99
IT Projects

100. 100
Israel 2011-17 Market 1 : infrastructure & DC project markets
Infrastructure and DC Projects 2011 2012 2013 2014
Hardware 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% 190.0
software 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. 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% 95.0
software 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. 102
Market Players: Hardware Maintenance Services 2013

103. 103
Market Players: Data Center and DRP projects 2013

104. 104
Market Players: hardware integration projects 2013
HWRE INTEGRATION: Consolidation/
virtualization /monitoring/ BSM/
storage/collaboration/ networking projects

105. 105
Market Players: software integration projects 2013
SWRE INTEGRATION:
middleware, SOA, BPM
projects

106. 106
Market Players: VoIP- Call Center Projects 2013

107. 107

108. 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% 98.0
Auditing , Governance & Risk
Management projects 65.0 3.08% 67.0 -2.99% 65.0 -3.08% 63.0
security projects (risk assessment/ penetration
tests. 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% 78.0
HATMAA 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. 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% 69.0
Auditing , Governance & Risk
Management projects
158.0 7.59% 170.0 7.06% 182.0 7.14% 195.0
security 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. 110
Market Players: IT Consulting 2013

111. 111
Market Players: Office of the CIO Projects 2013

112. 112
Market Players: ALM, Q/A & Testing Projects 2013

113. 113
Market Players: Risk & GRC Projects 2013

114. 114
Market Players: Security Projects 2013

115. 115
Market Players: Training Services 2013

116. 116
Market Players: “Hatmaa” Projects 2013

117. 117
Implementation Projects

118. 118
Israel 2011-17 Market 1 : application implementation market

119. 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% 116.0
knowledge 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. 120
Market Players: ERP Projects 2013

121. 121
Market Players: CRM Projects 2013

122. 122
Market Players: Core/ vertical Projects 2013

123. 123
Market Players: Data Analysis Projects 2013
nearly
same
size

124. 124
Market Players: KM Projects 2013

125. 125
Development Projects

126. 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. 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. 128
Market Players: .NET/XRM development Projects 2013

129. 129
Market Players: java & others (non-.NET) development 2013

130. 130
Market Players: Legacy & Migration Projects 2013
Migration Projects
mainframe/AS400/ older
systems applications

131. 131
Market Players: Web, Internet, Social Projects 2013

132. 132
Market Players: Mobility Projects 2013

133. 133
Market Players: UX Design projects 2013

134. 134
Sourcing and Managed Services

135. 135
Operational Deployment Models

136. 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% 68.0
application/ complete outsourcing 185.0 4.86% 194.0 -2.06% 190.0 1.05% 192.0
managed infrastructure services (storage
mngt, 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% 40.0
XXX Sourcing Services 854.0 2.81% 878.0 -3.08% 851.0 0.00% 851.0

137. 137
Israel 2011-17 Market 2 : Sourcing and manage services markets

138. 138
Market Players: "off site" data center - (operational/DRP) 2013

139. 139
Market Players: call center/help desk outsourcing 2013

140. 140
Market Players: application/ complete outsourcing 2013

141. 141
Market Players: managed infrastructure services (storage mngt, DBA services) 2013

142. 142
Market Players: “gulgalot” 2013

143. 143
Market Players: nearshore 2013

144. 144
Cloud Services

145. 145
Israel 2011-17 Market 1 : “Cloud” services market
Cloud Services 2011 2012 2013 2014
BP 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% 25.0
Cloud Services 158.0 15.82% 183.0 9.29% 200.0 11.50% 223.0

146. 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% 112.0
BP 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. 147
Computing Deployment Models

148. 148
Market Players: BPaaS Services 2013

149. 149
Market Players: SaaS Services 2013

150. 150
Market Players: PaaS Services 2013

151. 151
Market Players: DRaaS Services 2013

152. 152
Market Players: IaaS Services 2013

153. 153