version 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 (RavSeren) 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.

STKIs 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

STKI Website gives you:

Newsletters

STKI website 2

STKI website 3

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.
9

What our study looks at:

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 departments view/mindshare of

vendors value in projects/products
10

STKI Summit 2014

Israeli IT Market

Israel not worse than USA

12

Israel: OECD comparison data in other areas

13

14

Israel: more data

15

ISRAEL (out of 185 countries)

16

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

17

State of the Economy Index

1998-2014

18

State of the Economy Index

2014-2014

19

Business Tendency Survey

16 months

20

In order to make numbers fit .

21

STKI Summit 2014

Israeli IT Market

Growth of 10% in enterprises (legal entities) paying taxes

2013

2012

number of

number of companies
employees (paying

number of
& of

subtotals

TOTAL

number of companies
employees (paying

taxes)

number of
& of

subtotals

TOTAL

companies

& of

(paying

TOTAL

taxes)

251+

1,493

0.63%

101-250

2,525

1.07%

21-100

16,305

6.91%

6-20

46,920

19.87%

up to 5 175,925 74.51%
TOTAL

2011

4,018
63,225
175,925

243,168
ACCORDING TO BITUACH LEUMI 2/2014

239,150

taxes)

251+

1,476

0.63%

101-250

2,453

1.04%

51-100

4,088

1.73%

10-50

33,073

14.01%

up to 9 194,683 82.45%
TOTAL

subtotals

1,348

0.57%

2,384

1.01%

3,871

1.64%

31,720

13.43%

3,929
37,161
194,683

231,844

196,802 83.35%

235,773

3,732
35,591

232,393

196,802

236,125

ACCORDING TO BITUACH LEUMI 2/2013

ACCORDING TO BITUACH LEUMI 2/2012

23

23

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

24

24

industry
government
security
education
health
utilities
transport
banks
insurance
fin other
manuf
retail
high tech

Budgets
2012

change
from
2012

IT BUDGETS (opex/capex)
Budgets change Budgets
from
2013
2014
2013

% total

Market
size

% total

public
utilities/
transport
financial
manuf/
retail
high tech/ IT

IT local vendors

telecomm
media
SMB
in M USD

industry

IT BUDGETS (opex/capex): includes some internal expenses (mostly: not salaries)

telecomm/
media
SMB
in M USD
25

26

In order to get the IT Market (what is bought out there) we:

What users bought?

From whom?
Why?

201 ,200
55
1, 7
000
41,
1, 4
000
2%
6. 7
66,
2
,
3
214
8%
4. 4
64,
6, 4

1%
3. 6

201 ,000
94
1, 6
200
50,
1, 3
00
WA
D
R
6, 0
E
HA
AR
, 12
3
W
D
FT
13
DE
SO
2, 2
AD
, 17
6
S
UE
E
L
IC
VA
RV
SE
AL
T
TO
RE

IT Departments

4. 7

How much did they sell?

To whom?
For how much?
Competitors?

3%

IT Vendors
27

IT Market in Israel (million USD): 2 phases

29

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

3,126,000

4.48%

3,266,000

6,172,213

4.73%

6,464,214

VALUE ADDED
SERVICES
TOTAL

30

STKI Summit 2014

Israeli IT Market

The Great Debate: explanations

Even if the
graphs look
different

not worse
just smaller
boutique

32

32

The Great Debate: explanations

Even if the
graphs look
different

not worse
just smaller
boutique

33

33

VARs or Partners: but NO double bookings

Value Added Resellers

VAR or Partners
are incorporated into
STKIs TIERS.
Both sell into the Israeli
Market.

34

34

Vendors that sell in Hardware, Software and VAS markets

22
Biggest
Vendors

35

STKI Summit 2014

Israeli IT Market

Hardware Categories

37

Israel: IT Hardware Total Market 2011-2015

2011

2012

$1,714 3.79%

2013

$1,779 -4.78%

2014

$1,694

3.61%

$1,755

HARDWARE

2014
$1,755

2015
4.38%

2016

$1,832 3.93%

2017

$1,904 3.68%

$1,974
38

Vendors that sell in Hardware markets

22

Biggest

HARDWARE
Vendors

39

Hardware Categories

40

Israel 2011-17 Market : Server market

2011
X86 servers (blades, pizza, etc)
legacy (non-x86) servers
Converged Infrastructures

totals

2014
255.0
35.0
32.0
322.0

303.0
60.0
12.0
375.0

2015
1.96%
-20.00%
9.38%
0.31%

260.0
28.0
35.0
323.0

2012
5.61%
-8.33%
108.33%
6.67%

320.0
55.0
25.0
400.0

2016
1.92%
-10.71%
2.86%
0.93%

265.0
25.0
36.0
326.0

2013
-21.88%
-27.27%
20.00%
-20.00%

250.0
40.0
30.0
320.0

2014
255.0
35.0
32.0
322.0

2.00%
-12.50%
6.67%
0.63%

2017
1.89%
-8.00%
5.56%
1.53%

270.0
23.0
38.0
331.0

X86 servers (blades, pizza, etc)

legacy (non-x86) servers
Converged Infrastructures

totals

41

41

Market Players: Servers 2013 (manufacturers)

X86 servers (blades, pizza, etc)

Converged Systems

legacy (non-x86) servers

42

Market Players: Servers 2013 (VARs)

Converged Systems

legacy (non-x86) servers

X86 servers (blades, pizza, etc)

43

Israel 2011-17 Market : personal computing market

2011

130.0
152.0
7.0
100.0
389.0

notebooks PC
desktop PCs
thin clients
mobility /tablets

totals

2014

115.0
105.0
9.2
185.0
414.2

2015
4.35%
-4.76%
8.70%
13.51%
6.23%

120.0
100.0
10.0
210.0
440.0

2012
-3.85%
-13.16%
-14.29%
20.00%
-1.54%

125.0
132.0
6.0
120.0
383.0

2016
4.17%
5.00%
20.00%
4.76%
5.00%

125.0
105.0
12.0
220.0
462.0

2013
-4.00%
-16.67%
33.33%
33.33%
3.92%

120.0
110.0
8.0
160.0
398.0

2014
-4.17%
-4.55%
15.00%
15.63%
4.07%

115.0
105.0
9.2
185.0
414.2

2017
4.00%
9.52%
25.00%
2.27%
4.98%

130.0
115.0
15.0
225.0
485.0

notebooks PC
desktop PCs
thin clients
mobility /tablets

totals

44

44

Market Players: Personal Computing (manufacturers) 2013

45

Market Players: Personal Computing (VARs) 2013

46

Hardware Categories

47

Israel 2011-15 Market : storage market

2011
165.0

disks
other backup solutions

30.0
195.0

totals

2014
160.0

32.0
192.0

2015
9.38%
9.38%
9.38%

175.0

35.0
210.0

2012
3.03%

170.0

23.33%
6.15%

37.0
207.0

2016
11.43%
2.86%
10.00%

195.0

36.0
231.0

2013
-10.59%

152.0

-18.92%
-12.08%

2014
5.26%

30.0
182.0

6.67%
5.49%

160.0

32.0
192.0

2017
2.56%
5.56%
3.03%

200.0

38.0
238.0

disks
other backup solutions

totals

48

48

Market Players: storage (manufacturers) 2013

other
Backup/Storage
Solutions

49

Market Players: storage (VARs) 2013

50

Israel 2011-17 Market : Networking/call centers/security/DC markets

2011
enterprise networking and

192.0
75.0
55.0
322.0

collaboration equipment
security
VoIP/call center equipment

totals

2014
210.0
95.0
60.0
365.0

2015
1.90%
10.53%
5.00%
4.66%

214.0
105.0
63.0
382.0

2012
9.38%
9.33%
9.09%
9.32%

210.0
82.0
60.0
352.0

2016
1.40%
9.52%
3.17%
3.93%

217.0
115.0
65.0
397.0

2013
-0.95%
3.66%
-3.33%
-0.28%

208.0
85.0
58.0
351.0

2014
0.96%
11.76%
3.45%
3.99%

210.0
95.0
60.0
365.0

2017
3.69%
6.09%
4.62%
4.53%

225.0
122.0
68.0
415.0

enterprise networking and

collaboration equipment
security
VoIP/call center equipment

totals

51

Market Players: Networking Products 2013

52

Market Players: Security Appliances 2013

53

Market Players: VoIP & other call center equipment 2013

54

Hardware Categories

55

Israel 2011-15 Market : DC, POS, ATMs, others markets

2011
119.0
85.0
60.0
30.0
70.0
69.0
433.0

Printers
toners/ ink/ reillers
Self Service (ATM/Kiosks/other)
Point of Sale Appliances
Data Center Physical Equipment
other hardware and supplies

totals

2014
92.0
73.0
85.0
42.0
95.0
75.0
462.0

2015
-2.17%
1.37%
5.88%
7.14%
3.16%
6.67%
3.25%

90.0
74.0
90.0
45.0
98.0
80.0
477.0

2012
-7.56%
4.71%
3.33%
6.67%
5.71%
1.45%
0.92%

110.0
89.0
62.0
32.0
74.0
70.0
437.0

2016
0.00%
5.41%
0.00%
6.67%
2.04%
2.50%
2.31%

90.0
78.0
90.0
48.0
100.0
82.0
488.0

2013
-13.64%
-15.73%
20.97%
9.38%
22.97%
2.86%
1.37%

2014

95.0
75.0
75.0
35.0
91.0
72.0
443.0

-3.16%
-2.67%
13.33%
20.00%
4.40%
4.17%
4.29%

92.0
73.0
85.0
42.0
95.0
75.0
462.0

2017
0.00%
2.56%
0.00%
4.17%
10.00%
3.66%
3.48%

90.0
80.0
90.0
50.0
110.0
85.0
505.0

Printers
toners/ ink/ reillers
Self Service (ATM/Kiosks/other)
Point of Sale Appliances
Data Center Physical Equipment
other hardware and supplies

totals

56

Market Players: DC equipment & enterprise printers 2013

57

Market Players: POS & Self-Service Systems 2013

POS will change

completely in 2014

58

STKI Summit 2014

Israeli IT Market

Israel: IT Software Total Market 2011-2015

2011

2012

$1,134 8.71%

2013

$1,233 9.51%

2014
$1,441

6.72%

$1,350

SOFTWARE

2014
$1,441

2015
7.08%

2016

$1,543 5.31%

2017

$1,625 5.59%

$1,716

60

Vendors that sell in the Software markets

22

Biggest

SOFTWARE
Vendors
&
VARs

61

Software Categories 1

62

Israel 2011-17 Market : Infrastructure software market

2011

system level software (OS,

etc) ESB,
system
levelvirtualization
software
(OS,server,
virtualization
etc)
Middleware:
WEB

2011

143.0

changes

4.90%

2012

changes

2012

150.0 16.67%

2013

2013

changes

175.0

-1.71%

55.0
85.0

-5.45%
-2.35%

2014

2014

172.0

SOA, BPM, ETL, FTP, Emulation,

Middleware: WEB server, ESB, SOA, BPM, ETL,

messeging,
BRMS
etc.etc.
FTP,
Emulation,
messeging,
BRMS
Data
Management
Systems

Data Management
Systems (DBMS,etc)
(DBMS,etc)

totals

2014

2014

172.0

changes

4.65%

52.0 11.54%
83.0 2.41%
307.0

5.21%

45.0 15.56%
65.0 27.69%
253.0

2015

changes

2015

180.0 2.78%
58.0 3.45%
85.0 2.35%

323.0

2.79%

12.65%
2015

52.0
83.0
285.0
changes

2016

185.0 2.70%
60.0 5.00%
87.0 3.45%

332.0

3.31%

5.77%
2.41%
10.53%

315.0

-2.54%

52.0
83.0
307.0

2015

2017

190.0
63.0
90.0

343.0

system level software (OS, virtualization etc)

Middleware: WEB server, ESB, SOA, BPM,
ETL, FTP, Emulation, messeging, BRMS etc.
Data Management Systems (DBMS,etc)

totals

63

Market Players: system software 2013

system level software

(OS, virtualization etc)

VARS
system level software
(OS, virtualization etc)

64

Market Players: Middleware Software 2013

VARs

Middleware: WEB server, ESB, SOA, BPM, ETL, FTP,

Emulation, messaging, Job Scheduling & BRMS etc.

Middleware: WEB server, ESB,

SOA, BPM, ETL, FTP, Emulation,
messaging, Job Scheduling &
BRMS etc.

65

Market Players: Data Bases Software 2013

Data Management Systems (DBMS)

VARs
Data Management Systems (DBMS)

66

Israel 2011-17 Market : Infrastructure Management Tools

2011
BSM (Asset Management, Service

2012

2013

2014

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

4.71%

200.0

totals

2014

191.0

2015

2016

7.50%

215.0

9.77%

2017
BSM (Asset Management, Service

105.0

4.76%

110.0 1.82%

112.0 2.68%

115.0

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

247.0

260.0

2.07%

236.0

5.26%

Desk, Monitoring etc)

totals
67

Market Players: BSM Software 2013

BSM

(Asset Management, Service Desk,

Monitoring etc.)

VASs for BSM

(Asset Management, Service Desk,

Monitoring etc.)
68

Market Players: Storage and Backup Software 2013

storage & backup

software

VARs
storage & backup
software
69

Market Players: Networking Software 2013

networking software

VAS
networking software

70

Market Players: Security/ Cyber Software Tier 1 : 2013

71

Market Players: Security/ Cyber Software Tier 2 : 2013

72

Software Categories 3

73

Israel 2011-17 Market : Office of the CIO market

2011
Project & Portfolio Management

22.0 18.18%

Governance, Risk & Compliance

21.0 -9.52%

totals

2014

30.0 16.67%
18.0

48.0

2.78%
11.46%

43.0

2015

35.0 11.43%
18.5

53.5

8.11%
10.28%

4.65%

2012

26.0

19.0 -10.53%
45.0

2016
39.0

3.85%
-2.22%

2013

27.0

11.11%

17.0

5.88%

44.0

9.09%

2014

30.0
18.0

48.0

2017
5.13%

41.0

Project & Portfolio Management

20.0 10.00%

22.0

Governance, Risk & Compliance

59.0

6.78%

63.0

totals

74

Israel 2011-15 Market : Development Tools market

2011
Development and ALM (includes
testing tools)
Apps (mobile+social) development
tools
totals

2014
88.0

4.55%

6.45%

-4.44%

86.0

2.33%

88.0

12.0 25.00%

15.0

66.67%

25.0

44.00%

36.0

8.25%

105.0

2016
4.35%

40.0 12.50%
132.0

2014

90.0

97.0

92.0

2013

5.88%

2015

36.0 11.11%
124.0

85.0

2012

6.82%

111.0

11.71%

124.0

2017

96.0 2.08%
45.0 6.67%
141.0

5.71%

3.55%

98.0
48.0
146.0

Development and ALM (includes

testing tools)
Apps (mobile+social) development
tools
totals

75

Market Players: Project & Portfolio Mgmt. Software 2013

Project & Portfolio Management

VARs
Project & Portfolio Management

76

Market Players: Governance, Risk & Compliance Software 2013

Governance, Risk & Compliance Software

77

Market Players: Development & ALM Software 2013

78

Software Categories 2

79

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

15.0 33.33%
120.0 20.83%
10.0 -20.00%

20.0
145.0
8.0

25.00%
3.45%
25.00%

25.0
150.0
10.0

WCM (Web Content Management)

Analytics and data mngmt tools
Collaboration (IM,Video,Voice)

12.0 25.00%
100.0 20.00%
8.0 25.00%

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

80

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)

32.0 25.00%
163.0 11.66%
14.0 28.57%

40.0
182.0
18.0

20.00%
9.89%
22.22%

48.0
200.0
22.0

WCM (Web Content Management)

25.0 28.00%
150.0 8.67%
10.0 40.00%

Analytics and data mngmt tools

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

81

Market Players: KM & WCM Software 2013

82

Market Players: Analytics and data mgmt. Software 2013

83

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

84

Market Players: Output Mgmt & Collaboration Software 2013

85

Market Players: Document mgmt. and search Software 2013

86

Market Players: Mobile Development Software 2013

87

Software Categories 4

88

Israel 2011-17 Market : Business Applications market

2011
Vertical (core business)
ERP + Vertical
CRM + CEM

54.0

3.70%

115.0
55.0

Talent management/HR
totals

2014

65.0

6.15%

145.0
75.0

56.0

10.71%

2.61%

118.0

5.45%

3.0 66.67%
9.2

PLM

236.2

2015

69.0

4.35%

7.59%

156.0

9.33%

7.0 -7.14%
13.0 15.38%
305.0

7.70%

2012

8.70%
4.57%

2016

4.84%

5.93%

125.0

16.00%

145.0

58.0

6.90%

62.0

20.97%

75.0

5.0

24.00%

6.2

12.90%

7.0

10.0

20.00%

12.0

8.33%

13.0

247.0

8.18%

3.85%

162.0

3.70%

168.0

82.0

3.66%

85.0

2.35%

87.0

6.5

-7.69%

6.0

-3.33%

5.8

15.0 13.33%

17.0

17.65%

20.0

342.0

4.91%

267.2

14.15%

65.0

305.0

2017

8.33%

4.11%

2014

62.0

72.0

328.5

2013

78.0

358.8

Vertical (core business)

ERP + Vertical
CRM + CEM
Talent management/HR
PLM
totals
89

Market Players: ERP Software (all sizes) 2013

90

Market Players: CRM & CEM Software 2013

91

Market Players: Vertical Application Software TIER 1 2013

92

Market Players: Vertical Application Software TIER 2 2013

93

STKI Summit 2014

Israeli IT Market

Israel: Value Added Services

2011

2012

$3,018 3.94%

Market 2011-2015

2014

2013

$3,137 -0.35%

$3,266

4.48%

$3,126

VALUE ADDED SERVICES

2014
$3,266

2015
5.94%

2016

$3,460 5.72%

2017

$3,658 4.21%

$3,812

95

Vendors that sell in the VAS markets

22

Biggest

Value-Added
Vendors

96

The SIX categories of IT Value Added Services Offered in Israel

2011-2017
26% growth

97

2011

Value Added Services Offered

Infrastructure and DC Project
IT Department Management Projects
Application Implementation Projects
Application Development Projects
XXX Sourcing Services
Cloud Services

2014

442.0
532.0
817.0

8.60%

401.0
851.0
223.0

12.97%

3,266.0

4.51%
5.88%

0.12%
13.90%
5.94%

2015

5.07%

286.0
854.0
158.0

13.29%

0.18%
1.22%

2.81%
15.82%
3.94%

2016

480.0
556.0
865.0

4.58%

453.0
852.0
254.0

9.05%

3,460.0

434.0
547.0
739.0

3,018.0

TOTALS

2012

4.32%
4.39%

4.34%
14.17%
5.72%

4.78%

494.0
889.0
290.0

2.63%

3,658.0

456.0
548.0
748.0

-4.17%

324.0
878.0
183.0

9.57%

3,137.0

2017

502.0
580.0
903.0

4.14%
3.88%

3.82%
8.28%
4.21%

526.0
604.0
938.0
507.0
923.0
314.0

3,812.0

2013
-7.85%
4.01%

-3.08%
9.29%
-0.35%

2014

437.0
505.0
778.0

1.14%

355.0
851.0
200.0

12.96%

3,126.0

442.0
532.0
817.0

5.35%
5.01%

401.0
851.0
223.0

0.00%
11.50%
4.48%

3,266.0

Value Added Services Offered

Infrastructure and DC Project
IT Department Management Projects
Application Implementation Projects
Application Development Projects
XXX Sourcing Services
Cloud Services
TOTALS

98

IT Projects

99

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

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%

45.0

4.44%

47.0

Infrastructure and DC Project

434.0

5.07%

437.0

1.14%

442.0

Consolidation/ virtualization /monitoring/

BSM/storage/ hardware/ Data Center
Environment/ networking projects

51.0 -11.76%
456.0

-4.17%

100

Israel 2011-17 Market 2: infrastructure & DC project markets

2014
90.0

2015

2016

2017

Infrastructure and DC Projects

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

Consolidation/ virtualization /monitoring/

190.0

5.26%

200.0

5.00%

210.0

2.38%

215.0

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

101

Market Players: Hardware Maintenance Services 2013

102

Market Players: Data Center and DRP projects 2013

103

Market Players: hardware integration projects 2013

HWRE INTEGRATION: Consolidation/
virtualization /monitoring/ BSM/
storage/collaboration/ networking projects

104

Market Players: software integration projects 2013

SWRE INTEGRATION:
middleware, SOA, BPM
projects

105

Market Players: VoIP- Call Center Projects 2013

106

107

Israel 2011-17 Market 1 : IT Department Management Project

IT Department Management Projects
IT Consulting & IT Analysts

2011

2012

2013

45.0

4.44%

47.0

10.64%

office of the CIO/ PMO projects

25.0

8.00%

27.0

3.70%

ALM Q/A & Testing

142.0

5.63%

65.0

3.08%

67.0

120.0

4.17%

125.0

2014

52.0 15.38%

60.0

28.0

7.14%

30.0

102.0 -3.92%

98.0

-2.99%

65.0 -3.08%

63.0

12.00%

140.0 12.86%

158.0

150.0 -32.00%

Auditing , Governance & Risk

Management projects
security projects (risk assessment/ penetration
tests. Integration:SKADA, MDM,etc)

IT Training
HATMAA

projects

IT Department Management Projects

105.0 -19.05%

85.0 -11.76%

75.0

4.00%

78.0

45.0

4.44%

47.0

-8.51%

43.0

4.65%

45.0

547.0

0.18%

548.0

-7.85%

505.0

5.35%

532.0

108

Israel 2011-17 Market 2 : IT Department Management Project

2014
60.0

2015

2016

2017

IT Department Management Projects

IT Consulting & IT Analysts

5.00%

63.0

7.94%

68.0

5.88%

72.0

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

Auditing , Governance & Risk

63.0

65.0

67.0

69.0

Management projects

3.17%

3.08%

2.99%

158.0

7.59%

170.0

7.06%

182.0

7.14%

195.0

78.0

2.56%

80.0

2.50%

82.0

3.66%

85.0

45.0

4.44%

47.0

6.38%

50.0

4.00%

52.0

532.0

4.51%

556.0

4.32%

580.0

4.14%

604.0

security projects (risk assessment/ penetration

tests. Integration:SKADA, MDM,etc)

IT Training
HATMAA

projects

IT Department Management Projects

109

Market Players: IT Consulting 2013

110

Market Players: Office of the CIO Projects 2013

111

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

112

Market Players: Risk & GRC Projects 2013

113

Market Players: Security Projects 2013

114

Market Players: Training Services 2013

115

Market Players: Hatmaa Projects 2013

116

Implementation Projects

117

Israel 2011-17 Market 1 : application implementation market

118

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

knowledge management (ECM, SP, BPM,

104.0

5.77%

110.0

1.82%

112.0

3.57%

116.0

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

Portals) projects

119

Market Players: ERP Projects 2013

120

Market Players: CRM Projects 2013

121

Market Players: Core/ vertical Projects 2013

122

Market Players: Data Analysis Projects 2013

nearly
same
size

123

Market Players: KM Projects 2013

124

Development Projects

125

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

126

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

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

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

.NET/XRM development Projects

Web, Internet, Social projects

127

Market Players: .NET/XRM development Projects 2013

128

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

129

Market Players: Legacy & Migration Projects 2013

mainframe/AS400/ older
systems applications

Migration Projects

130

Market Players: Web, Internet, Social Projects 2013

131

Market Players: Mobility Projects 2013

132

Market Players: UX Design projects 2013

133

Sourcing and Managed Services

134

Operational Deployment Models

135

Israel 2011-17 Market 1 : Sourcing and manage services markets

XXX Sourcing Services

2011

2012
4.86%

45.0
62.0
194.0

87.0

9.20%

Gulgalot / Temps

350.0

Nearshore

"off site" data center - (operational/DRP)

call centers/help desk outsourcing
application/ complete outsourcing
managed infrastructure services (storage
mngt, DBA services)

Printing outsourcing
XXX Sourcing Services

40.0
60.0
185.0

12.50%

2013

2014
8.16%

-2.06%

49.0
64.0
190.0

1.05%

53.0
68.0
192.0

95.0

-8.42%

87.0

6.90%

93.0

-2.86%

340.0

-11.76%

300.0

-8.33%

275.0

100.0

8.00%

108.0

15.74%

125.0

4.00%

130.0

32.0

6.25%

34.0

5.88%

36.0

11.11%

40.0

854.0

2.81%

878.0

-3.08%

851.0

0.00%

851.0

3.33%

8.89%
3.23%

6.25%

136

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

137

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

138

Market Players: call center/help desk outsourcing 2013

139

Market Players: application/ complete outsourcing 2013

140

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

141

Market Players: gulgalot 2013

142

Market Players: nearshore 2013

143

Cloud Services

144

Israel 2011-17 Market 1 : Cloud services market

Cloud Services
BP as a Service BPaaS (salaries, call

2011

2012

2013

2014

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

10.0

20.00%

12.0

50.00%

18.0

38.89%

25.0

centers, etc)

Infrastructure as a Service IaaS

Cloud Services

158.0

15.82%

183.0

9.29%

200.0

11.50%

223.0

145

Israel 2011-17 Market 2 : Cloud services market

2014

2015

2016

2017

Cloud Services
BP as a Service BPaaS (salaries, call

106.0

0.94%

107.0

2.80%

110.0

1.82%

112.0

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

centers, etc)

Cloud Services

146

Computing Deployment Models

147

Market Players: BPaaS Services 2013

148

Market Players: SaaS Services 2013

149

Market Players: PaaS Services 2013

150

Market Players: DRaaS Services 2013

151

Market Players: IaaS Services 2013

152

153