STKI IT Market Study 2018

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STKI 26th
Israeli
IT Market
Study
Summit 2018
Dr Jimmy Schwarzkopf
jimmy@stki.info
097907000 0547000020
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STKI Company Confidential

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• 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.
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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
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Israeli IT Market
Studies are here
Initiatives/treks &
vendors are here
Products: Israeli
Positioning is here
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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.
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› 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:
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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.
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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 )
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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
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Over 150 categories
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456 ITVENDORS
in Israel
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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
http://index.stki.info/
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
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from
24th to 16th
better
in all
indexes
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20
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12% 52% 28% 8%
80% find difficulty in hiring
and retaining skilled people
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State of the Economy Index
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State of the Economy Index (% change*)
1/1998 - 12/2017
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* Correlates with Israeli State of the Economy Index
*
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Over 65% is BAD
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
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Number of Registered * “COMPANIES” in Israel
(* paid employee taxes in 1/2018)
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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.
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4,613
enterprises with
IT departments
in Israel
18,730
SMBs that will
“migrate” into
“cloud” solutuions
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
2017 Israel IT Market
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IT Market in Israel
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
“how to read the study”
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The Great Debate: explanations
ALPHABETIC ORDER
“not worse” just
smaller “boutique”
shops
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The Great Debate: explanations
ALPHABETIC ORDER
“not worse” just
smaller “boutique”
shops
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
2017 Israel Hardware Market
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Vendors: Hardware markets
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Israel: IT HardwareTotal Market 2014-2020
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Modernization of the Data Center
by using HCI technologies
Built on industry-standard
servers and components
Hyper-Converged
Infrastructure
Virtualization, Compute,
Storage and Networking
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Server Markets
2014-2020
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servers/white boxes
(manufacturers)
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servers/white boxes
(VARs)
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DB/DW , Converged HW & HCI Appliances
Servers: others
(manufacturers)
Legacy (non-x86)
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DB/DW , Converged HW & HCI Appliances
Servers: others
(VARs)
Legacy (non-x86)
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CLIENTS/PCS
(commercial use only)
Markets
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Client Computing B2B
manufacturers resellersVARs
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Storage Markets
2014-2020
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“storage” (manufacturers)
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“storage” (VARs)
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“storage” (manufacturers)
VTL Backup , Storage Appliances and Storage Networks Tape Libraries
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Security Appliances and
Networking Markets
2014-2020
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Networking Products
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Networking Products
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VoIP & other call center equipment
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Printers, Monitors, Self Service & DC Equipment
2014-2020
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DC Equipment, monitors andVideo Systems
(VARs & Manuf.)
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POS ,Self-Service Appliances
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
2017 Israel Software Market
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Vendors in the Software (on/off premises) markets
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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
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System Infrastructure
Software
2014-2020
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System SoftwareVendors
Software Vendors
Software Local VARs
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Storage and Backup Software
Software Vendors
Software Local VARs
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Databases
(SQL - NOSQL)
Software Vendors
Software Local VARs
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Private Cloud and AutomationTools
Private Cloud and AutomationTools
Software Vendors
Software Local VARs
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2014-2020
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Middleware Software
Software Vendors
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Middleware Software
Software Local VARs
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Software Vendors
BSM, (Asset Management, APM, Monitoring etc), workload-scheduling
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Software Local VARs
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Software
Vendors
ITSM - Service Desk
CA
managengine
microFocus
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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
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Security/ Cyber SoftwareVendors
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Security/ Cyber SoftwareVendors (cont)
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Security/ Cyber Software (VARs 2)
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2014-2020
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Project & Portfolio Management
Software Vendors
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Project & Portfolio Management
Software Local VARs
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Office of the CIO & DevelopmentTools
Software Vendors Software Local VARs
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Development and ALM (including testing tools)
Software Vendors
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Software Vendors
Software Local VARs
Mobile Apps Development Platforms including MobileTesting/monetizing
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Information Management Applications
2014-2020
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Knowledge Management
(Enterprise portals, ECM, Search, web accessibility)
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BI,Analytics, Cognitive and Data Mgmt.Tools
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Digital Output Management/ Customer Communication Management
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Business Applications 1
2014-2020
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ERP Software (all sizes)
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CRM/XRM
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HR/Talent Mgmt./ LMS / PAYROLL
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2014-2020
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Contact Center and Multi-channel engagement tools
(chat, bots, virtual IVR,Video etc…)
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Marketing Automation Software
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Web Content Management + e-Commerce Platforms
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IoT tools and platforms
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STKI Summit 2018
Israeli IT Market
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STKI
Summit
2018
2017 IsraelValue Added Services
(VAS) Market
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Value Added Services Market
2014-2020
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Vendors that sell in theVAS markets
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"Enterprise" CONSULTING:
advice in a particular area not
AUGMENTATION (gulgalot) or IMPLEMENTATION
2014-2020
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IT Strategy Consulting & Analysts Services
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DigitalTransformation Consulting
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(Big) Data Consulting
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IT Infrastructure/Delivery Consulting
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IT Application Consulting
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Cyber/Security Consulting
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Cyber/Security Consulting (cont)
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2014-2020
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Hardware Maintenance Services (3rd party) Software Maintenance
Services (3rd party)
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Consolidation/ Virtualization /Monitoring/ BSM / Storage/
Hardware/ Data Center Environment/ Networking Projects
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Consolidation/ Virtualization /Monitoring/ BSM / Storage/
Hardware/ Data Center Environment/ Networking Projects
(CONT)
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Mainframe (z) /AS400 / OpenVMS projects
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DevOps Implementation projects
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Software/Cloud Integration, Middleware, SOA, BPM,ALM,
TestingTools Implementation Projects
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Cyber Security Product Implementation
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Cyber Security Product Implementation
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Unified Communication (IM,Video,Voice)
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PaaS and IaaS Implementation & Maintenance Projects
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Project Management Services
2014-2020
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ALM Q/A &Testing
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ITTraining
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Implementation (HatMaa)
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Auditing, Governance & Risk Management
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Business Applications Implementation 1
2014-2020
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ERP (on premise/cloud)
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CRM-XRM (on premise/cloud)
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Contact Center and Multi channel engagement tools
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HR ,Talent Management & Payroll
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2014-2020
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software development
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SaaS implementations
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Core (Modernization& Package) Implementation
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IoT Projects
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2014-2020
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Mobile Development
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UX Design
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Data, BI,Analytics
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Data, BI,Analytics (cont)
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Marketing Automation (on premise/cloud)
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Marketing Automation (on premise/cloud) cont…
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2014-2020
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Knowledge Management (ECM, Portals)
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Web & eCommerce
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Web Accessibility
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2014-2020
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Managed Services and Outsourcing Services
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Infrastructure Outsourcing Services (Infrastructure, Storage & DBA Services)
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Off-site Data Center (Operational/DRP). (Client owns the HW)
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Help Desk Outsourcing Services
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Cyber Security Managed Services ( ie: SIEM service)
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Printing Outsourcing Services (pay per click)
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Business Services as a Service - BSaaS (Salaries, Payments, BPO, etc)
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Platform as a Service PaaS/ Infrastructure as a Service IaaS
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Platform as a Service PaaS/ Infrastructure as a Service IaaS
(PARTNERS)
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Software as a Service SaaS
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Software as a Service SaaS (cont)
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DRP as a Service
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Gulgalot on-premises
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Gulgalot on-premises
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Gulgalot off-premises (Near-site)
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Gulgalot Nearshore
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http://index.stki.info/it-tiering/
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STKI IT Market Study 2018

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STKI IT Market Study 2018