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2010 STKI Summit
      ENTERPRISE 3.0:
     LIQUID MODERNITY




 Dr. Jimmy Schwarzkopf
      Research Fellow
     jimmy@stki.info
Take away my people and leave the factories,
and soon there will be grass growing on the
factory floors, but take away my factories
and leave my people, and soon we will have
bigger and better factories.


                                  Andrew Carnegie


                              2
3
4
4

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Differentiation and value added




                      5
Number of “organizations”




                  6
7
IT rate of change




               8

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Company summary for research in motion limited
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m&ampa
IT Markets in Israel ($K USD)
                                                 Value added
                                                   services

 2007 marked the year when CIOs spend
 more in integration , maintaining the old
and new development than in hardware or
           software “products”



                                                     Hardware




                                                 Software




                                             9
IT “industry” share (%) per year

INDUSTRIES             2003     2004     2005     2006     2007     2008     2009     2010
Government +
Education +
Medicine               24.50%   16.90%   14.00%   10.00%    8.00%   10.00%   14.00%   15.74%
Security + Defence     14.80%   11.20%   11.00%   11.50%   10.50%   10.00%   12.00%   10.71%
Banking+ Insurance
+ Financial Services   14.80%   17.68%   27.00%   32.50%   34.00%   35.00%   30.00%   29.29%
Utilities +
Transportation          4.90%    8.25%    9.40%   10.00%   12.00%   13.00%   15.00%   12.68%
Telecomm + High
Tech                   14.80%   23.97%   19.60%   16.00%   17.00%   15.00%   12.00%   14.21%
Manufacturing +
Retail                 19.70%   16.11%   11.00%   11.00%   10.00%    9.00%    7.00%    8.74%
S.M.B. s / home         6.50%    5.89%    8.00%    9.00%    8.50%    8.00%   10.00%    8.63%




                                                                       10
Industries IT expenditures (K $ USD)
                                                                           All amounts in K $ USD



industry                2003    2004    2005     2006      2007      2008             2009          2010
Government +
Education +
Medicine               603,680 495,556 493,500   416,000   363,600   464,500         568,820        720,000
Security + Defence     364,672 328,450 387,750   478,400   477,225   464,500         487,560        490,000
Banking+ Insurance
+ Financial Services   364,672 518,605 951,750 1,352,000 1,545,300 1,625,750 1,218,900 1,340,000
Utilities +
Transportation         120,736 242,016 331,350   416,000   545,400   603,850         609,450        580,000
Telecomm + High
Tech                   364,672 702,998 690,900   665,600   772,650   696,750         487,560        650,000
Manufacturing +
Retail                 485,408 472,507 387,750   457,600   454,500   418,050         284,410        400,000
S.M.B. s / home        160,160 172,868 282,000   374,400   386,325   371,600         406,300        395,000



                                                                      11
many more categories if “our” clients ask for them

            1
            2                 • Pockets of excellence
            3                   – Users identified the need
            4                     for experts
            5                   – Most vendors are moving
            6                     or moved into the new
                                  delivery model
     All amounts in M $ USD



"It is not enough that I should succeed, others must fail“
                                                    Gore Vidal
                                           12              12

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Technological and Environmental Analysis of Israel
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environmentisraelenvironmental
Double-booking




Vendors commonly buy hardware, software and
         services from other vendors .
This is why “totals” of vendor revenues is
  higher than the total market values.
(Products are sold directly and thru several layers of partners)




                                                                   13
TOP 9 IT Vendors in Israel
                                             HP
                                      Malam-Team
                                          IBM
                                        Matrix
                                            Taldor
 These 9 vendors either sell in all
                                             Ness
Hardware, Software and Services
categories or they have extremely            One
  large market share in only part          Microsoft
         of the categories
                                            Bynet

                                      14               14
servers
blades
    non-x64
              x64
                         servers        Hardware Categories
   notebooks
      desk               Clients
     others
                                          STKI mixes manufacturers and vendors
      disks                               in the hardware tiers because in Israel
                         storage
     tapes                                manufacturers sell to organizations that
                                          are not “global size enterprises” in
 lan equipment                            several modes:
 wan equipment         networking          Directly
 VoIP equipment                            Through partners
                                           Hybrid
 departamental
                         Printer
    personal


Special Purpouse (ATMs, Kiosks, etc)
 computer room
                    Computer Supplies
   miscelaneus




                                                                       15
Hardware Market $1,046 Million(2009)




                        16

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strengthweaknessopportunities
Hardware Market
2008               2009                  2010                2011                      2012
1,275.0     -17.96%      1,046.0     5.07%      1,099.0   8.28%       1,190.0     6.72%       1,270.0

              HP                      Avaya           Alexander Schneider       All amounts in M $ USD
      MALAM/TEAM
                                      Oracle                APPLE
              IBM
                                      NetApp                dorcom
             Cisco
                                        LG                    F5
             Bynet
                                   Yael Software            Alcatel
            HarEl .
             DELL                     Matrix                Konica
                                     Lexmark               Toshiba
             Taldor
           LENOVO                    Samsung              GlassHouse
                                       Acer                 benefit
             One1
             EMET                  HILAN (We)               Rittal
              EMC                     ANKOR                Enterasys
          I.E.Mittwoch              TripleC CCC            Radware
             Xerox                    Juniper               ELAD
                                       HDS                  DDN

                                                                                 17
IBM
    HP
                                           Servers
MALAM/TEAM
   DELL                      IBM                                                    IBM                      IBM
HILAN (We)                    HP                                                    HP                      EMET
   One1                      DELL                                                 Oracle
   EMET                                                                                                      HP
                           Oracle                                               I.E.Mittwoch
  HarEl .                                                                                                 Oracle
   Bynet
                                                                                                        MALAM/TEAM
  TripleC
  dorcom                                                                                                I.E.Mittwoch
  Taldor                         X-64                                   non-X64
                                                                                                          HarEl .
   Yael
  Matrix                                                                                                    One1
                           X64 blades are                             This was the Year:
  Oracle                                                                                                    Taldor
  ANKOR                    becoming the                               IBM Mainframe
  benefit                    standard                                 installations grew
   ELAD


2008         2009                2010                   2011              2012
 165.0   -33.33%   110.0     4.55%       115.0      -21.74%    90.0   -16.67%       75.0 servers
                                                                                                            x64
 115.0   -20.00%    92.0     10.87%      102.0      12.75%    115.0   -21.74%       90.0       blades
  70.0   -14.29%    60.0    -16.67%        50.0     4.00%      52.0   15.38%        60.0          non-x64
 350.0   -25.14%   262.0     1.91%       267.0      -3.75%    257.0   -12.45%      225.0           totals
                           All amounts in M $ USD


                                                                                           18
Clients
                                              HP
     HP                                     LENOVO
                                                                                       HP
   LENOVO                                    DELL
                                                                                       DELL
    DELL                               MALAM/TEAM
                                                                                   LENOVO
     LG                                     HarEl .
                                              LG                                       Acer
     Acer
                                             Bynet                                  APPLE
    APPLE
                                             Acer                                O T H E R S
   Toshiba
                                       Yael Software
 O T H E R S                                 One1
                                            APPLE
                                            Matrix

         notebooks
                                            Toshiba
                                                                                desk
                                            Taldor
                                       O T H E R S


2008         2009             2010                 2011           2012
 200.0   -12.50%   175.0   5.71%    185.0    8.11%     200.0   2.50%    205.0      notebooks
 230.0   -23.91%   175.0   -2.86%   170.0    2.94%     175.0   14.29%   200.0           desk
                    25.0   60.00%    40.0   87.50%      75.0   46.67%   110.0           others
 430.0   -12.79%   375.0   5.33%    395.0    13.92%    450.0   14.44%   515.0           totals


                                                                   19
EMC


                  Storage Equipment                                                     MALAM/TEAM
                                                                                           NetApp
                                                                                            IBM
                                                                                           ANKOR
     EMC                                                                                    HDS
                                                                                             HP
    NetApp
                                                                                         GlassHouse
     IBM                                                                                   EMET
                                                                                            One1
     HDS
                                                                                           HarEl .
         HP                                                                                 DELL
     DELL                                                                                  Bynet
                                    Backup ≠ DRP ≠ Archiving                             TripleC CCC
    Oracle
                                         Architectures                                      DDN
     DDN                                                                                   Matrix
                                                                                           Oracle
                                                                                           benefit
                                                                                        I.E.Mittwoch
                                                                                           Taldor
                                                                                        Yael Software
2008          2009            2010               2011                        2012
 130.0   -7.69%    120.0   12.50%     135.0   3.70%       140.0        3.57%    145.0    disks
  15.0   -33.33%    10.0   20.00%      12.0   8.33%         13.0       15.38%    15.0    tapes
 145.0   -10.34%   130.0   13.08%     147.0   4.08%       153.0        4.58%    160.0    totals
                                              All amounts in M $ USD

                                                                        20

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Networking Equipment
         Cisco                                                                      Bynet
                            Avaya
    Juniper                                                                        Taldor
                             Cisco
     Avaya
                            Tadiran                                            MALAM/TEAM
          F5                Alcatel                                                HarEl .
          HP                 3com                                               I.E.Mittwoch
     3com
                                                                               Bezeq Benleumi
     Alcatel            VoIP / Call Center
                                                                                   Matrix
    Enterasys
    Radware
                                                                                    One1
                                                                                Yael Software
Network Equipment

2008             2009          2010                 2011                 2012
  80.0    -25.00%    60.0   8.33%      65.0     15.38%         75.0   20.00%     90.0   lan equipment
  50.0    -20.00%    40.0   12.50%     45.0     37.78%         62.0   12.90%     70.0   wan equipment
  40.0    -20.00%    32.0   9.38%      35.0     14.29%         40.0   12.50%     45.0   VoIP equipment
 170.0    -22.35%   132.0   9.85%     145.0     22.07%       177.0    15.82%    205.0        totals
                                             All amounts in M $ USD

                                                                          21
Printers and “new” services
               HP
             Xerox
           Lexmark
           Samsung
             Konica
             others


2008         2009               2010                      2011            2012
 100.0   -18.00%      82.0   3.66%           85.0     7.06%     91.0   9.89%        100.0   departamental
  80.0   -18.75%      65.0   -7.69%          60.0     3.33%     62.0   4.84%         65.0     personal
 180.0   -18.33%    147.0    -1.36%        145.0      5.52%    153.0   7.84%        165.0      totals



                                      All amounts in M $ USD

                                                                               22                        22
Special Categories
                                                                                         Alexander Schneider
                                                                                                  Rittal
     I.E.Mittwoch                                                                                  HP
            Taldor                                                                                 IBM
            Bynet                                                                                 Bynet
             IBM                                                                                   APC
           Netwise                                                                                May-55

             One1                                                                              Malam/Team

  mobile & special purpouse
   (POS, ATMs,Kiosks,etc)                                                         computer room accessories


2008         2009              2010             2011                  2012
 100.0   -15.00%     85.0   5.88%     90.0   11.11%     100.0    20.00%   120.0 Special Purpouse (ATMs, Kiosks, etc)
  30.0   -16.67%     25.0   40.00%    35.0   57.14%      55.0    27.27%    70.0   computer room
 100.0   -25.00%     75.0   13.33%    85.0   5.88%       90.0    11.11%   100.0    miscelaneus     Computer Supplies
 230.0   -19.57%   185.0    13.51%   210.0   16.67%     245.0    26.53%   310.0       totals
                                             All amounts in M $ USD


                                                                                         23
Software Products


                    All amounts in M $ USD




              24

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Software Market
  Microsoft
    IBM             Yael Software
    Oracle               EMC
                                        EL AD Systems            Smile 012
     SAP               Mcafee
                                             SRL
    Matrix             Juniper                                     Gstat
                      Top Group
                                           Alcatel
     CA                                                            Avaya
                    Netvision 013          Comsec
Aman Computers                                               Incentive Solutions
                       Autofont         I.E.Mittwoch
  Symantec                                                         Otzar
                  Bezeq International        SIT
  Checkpoint
                        Comda               Xioma                 Attunity
    Taldor              Consist            Intentia             IT Navigator
     HP                  Gilon            Advantech               Qlikview
   One1                  HDS
                                            Artis
MALAM/TEAM               MSP                                      benefit
                                         Aviv Solut.
   NESS                NetApp                                        F5
                                          Centerity
    Bynet            PANORAMA                                Business Solutions
                                          Enterasys
                      Mia (SAS)
     SPL                                                           Cemax
                       Qlikview         Kav Maarachot
     REL                                                          Netwise
                        Ashbal            PNMSoft
  VMWARE
                   MAGIC ISRAEL            Sapiens                Prodware
                                                                  Radware



                                                        25
System Software                                                        IBM
                                                                                                Oracle
 Microsoft                                                                                    Microsoft
   Aman
                                                        Oracle                                   Yael
 VMWARE
                   Operating and                    Microsoft                                   One1
   IBM
                   virtualization                                                                SPL
    HP                                                    IBM
HILAN (+We)           systems                                                                    SAP
                                                        NESS
   Bynet
                                                          SPL
                                                                            Middleware          EL AD
  Matrix
   One1                                                  One1                                    SRL
                                  DBMS                                                         Attunity
  benefit                                               Taldor
   Yael
                                                                                                Magic
  Taldor                                                EL AD
                                                                                                Taldor
  EL AD


   2008          2009             2010                     2011             2012
      80.0   -6.25%     75.0   -6.67%        70.0       -7.14%    65.0   -7.69%    60.0 operating systems
      50.0   -4.00%     48.0   8.33%         52.0       5.77%     55.0   3.64%     57.0    data bases
      50.0   -20.00%    40.0   12.50%        45.0    15.56%       52.0   44.23%    75.0    middleware
      40.0   -5.00%     38.0   5.26%         40.0    10.00%       44.0   9.09%     48.0   output mgmt
     220.0   -8.64%    201.0   2.99%       207.0        4.35%    216.0   11.11%   240.0      totals
                               All amounts in M $ USD



                                                                                    26
IT Management Software




2008              2009             2010             2011             2012
 20.0   -15.00%    17.0   11.76%    19.0   21.05%    23.0   13.04%    26.0                  Service Desk
 60.0   -25.00%    45.0   11.11%    50.0   30.00%    65.0   10.77%    72.0              Enterprise system Mgmt
 10.0   -20.00%     8.0   25.00%    10.0   50.00%    15.0   20.00%    18.0    Portfolio Management
 15.0   -13.33%    13.0   15.38%    15.0   20.00%    18.0   27.78%    23.0     Asset Management          Office of the CIO
 15.0   -20.00%    12.0   16.67%    14.0   21.43%    17.0   17.65%    20.0    project management
 50.0   -10.00%    45.0    4.44%    47.0   10.64%    52.0   25.00%    65.0                 Storage/ backup
 90.0    -5.56%    85.0   23.53%   105.0    4.76%   110.0    9.09%   120.0                     Security
260.0   -13.46%   225.0   15.56%   260.0   15.38%   300.0   14.67%   344.0                       totals


                                                                             All amounts in M $ USD

                                                                                      27
IT Management Software
                                                                   CA
   Service
                                Symantec           Enterprise
                                                    System        IBM
    desk
                                   EMC            Management     Matrix
                                   HDS                            BMC
   CA
                                                                   HP
                                 NetApp
 Matrix                                                         Symantec
  BMC             Checkpoint       IBM                           Oracle
   HP             Symantec         Ankor                          Aman
  IBM              Mcafee          One1                         Centerity
                      CA
 Consist                       Glasshouse                        NESS
                   Juniper
 One1                                                            Consist
                     IBM          Taldor
                                                                 Bynet
 Taldor           Microsoft        Yael                          EL AD
Symantec             Cisco
                                  EL AD                          Taldor
Netwise            Radware                                        One1
 EL AD                         Storage/ backup/dedup            Netwise
                Security
                Software

                                                  28

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Information Management Software




2008         2009             2010             2011             2012
  50.0   4.00%      52.0   5.77%     55.0   3.64%     57.0   5.26%         60.0            office productivity
  10.0   -20.00%     8.0   50.00%    12.0   50.00%    18.0   38.89%        25.0        portal & collaboration
  50.0   -10.00%    45.0   33.33%    60.0   8.33%     65.0   10.77%        72.0       modeling & development
  50.0   -16.00%    42.0   23.81%    52.0   25.00%    65.0   7.69%         70.0             BI / MDM/ ETL
 160.0   -8.13%    147.0   21.77%   179.0   14.53%   205.0   10.73%       227.0                  totals

                                                                      All amounts in M $ USD


                                                                                      29
Cont: Information Management Software
     IBM

     SPL
 Microsoft                    BI / MDM/ ETL

                                                   Microsoft
   Oracle
                                                     IBM
     SAP
                                                     SAP
   MAGIC                                             One1
   Sapiens                                          Taldor
   Matrix                                            Yael
                                                    EL AD
    One1

   EL AD                                             PORTAL &
                                                   COLLABORATION
DEVELOPMENT AND
     MODELING


                                              30
Business Applications




2008         2009             2010             2011             2012
  60.0   -41.67%    35.0   28.57%    45.0   33.33%    60.0   25.00%       75.0           vertical applications
  40.0   -37.50%    25.0   40.00%    35.0   28.57%    45.0   33.33%       60.0                   ERP
  35.0   -28.57%    25.0   20.00%    30.0   33.33%    40.0   50.00%       60.0                   CRM
  10.0   -20.00%     8.0   50.00%    12.0   25.00%    15.0   20.00%       18.0                   BPM
  15.0   20.00%     18.0   11.11%    20.0   25.00%    25.0   40.00%       35.0                  others
  15.0   20.00%     18.0   22.22%    22.0   13.64%    25.0   36.00%       34.0          Document Management
 175.0   -26.29%   129.0   27.13%   164.0   28.05%   210.0   34.29%      282.0                  totals

                                                               All amounts in M $ USD

                                                                                         31
Business Applications
    SAP                     Oracle
                                                      Document      IBM/Yael
  Oracle                   Microsoft           Management / ECM

  Matrix                    Taldor                                    NESS
  Ashbal                    Alcatel                                 Top Group
   One1                   Salesforce
                 ERP         One1
                                                                      Artis
    SIT
 Intentia                     SAP                                 MALAM/TEAM
                         IT Navigator
Microsoft
                                                                  EL AD Systems
                            Matrix
Aviv Solut.
                             Gstat                                 Otzar /Aman
Kav Maarachot                               CRM & call center
                        Yael Software
  Taldor                                                              Xioma
                       Business Solutions
   Xioma
                            Cemax                                    Taldor
    Yael
                             Bynet
 Prodware
                           Netwise


                                                 32

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Testing Software
                                                                   HP

                                                                  IBM
                                                                Matrix
                                                                 Aman
                                                             Top Group




2008         2009            2010            2011                           2012
  25.0   -20.00%   20.0   15.00%   23.0   21.74%           28.0      21.43%    34.0
                                                   All amounts in M $ USD



                                                                     33
Value Added Categories
     Application Related                                              IT Training/ Hatmaa
                                 IT Consulting/
   Infrastructure Related                                          Data Center Environment
                                    Analysts
Management/ Performance/ BI                                                 Printing
                                                                             VoIP
            Hardware Maintenance
 Hardware/Networking infrastructure Projects/       Governance & Risk Management Governance, Risk
                                                                Security                and Regulation

Infrastructure/      System
Application/ SOA   Integration                          "off site" data center
                                 Project Services            BPO services
       Q/A & Testing
                                                              call center
 Project Management Office
                                                               help desk
                                                         Complete outsourcing
     web/ portal/mobile                                                                     Outsourcing
                                                        application outsourcing
            core
                                                      infrastructure outsourcing
            ERP
                                                           cloud computing
            CRM
                                                     cloud computing (applications)
   knowledge management
                                  Development       cloud computing (development)
           .NET
      open source/java
                                                         storage
         mainframe
                                                          DBA
          BI/DW
                                                         project          contractors staff augmentation
  Migrations/ GIS/ others
                                                       long-term
                                                         temps



                                                                 34
Value Added Services Market
2008         2009               2010               2011               2012
2,530.0   -9.29%   2,295.0   15.16%   2,643.0   8.17%   2,859.0    11.37%     3,184.0


          Matrix
     MALAM/TEAM
           IBM
          NESS
           HP
          Taldor
           One1
           Aman
      Yael Software

                                                                      All amounts in M $ USD



                                                              35
Cont: Value Added Services
 1                 2             3                        4                5
     Matrix                 Aviv Solut.               Ergo             SecOz

MALAM/TEAM                     EMC                 Orantech             Tulip
                             HighView              Vision BI            Blink
      IBM
                             Libi Tech           Kav Maarachot       Activeview
     NESS
                              SEKER                 benefit             OIC
      HP                                             BitPlus           Dortal
                               SIT
     Taldor                                         MATAN             Ron Gabi
                               Xioma
     One1                   Top Group               Proceed         Rozental Avi
     Aman                    Eternity                 ROM              Neway
Yael Software                                        TopIT          PZ Projects
                               BDO
  Automazia                                         Strauss             Ratio
                              Avnet
                                                     BI-pro          Data Cube
HILAN (+We)                   Mateor
                                               Business Solutions     Digidoc
I.E.Mittwoch                Salesforce
                                                    Afarsec            niTeo
Calanit Carmon                Bugsec
                                                      Byon           Normative
     EMET                    Deloitte
                                                    CommIT             Pareto
                           HarEl Comp.
     Bynet                                           DorIT
                                                                       Tefen
                           IT Solutions
     SQLink                                         Hacktics
                             NewAge             ITIL Consulting
  Advantech
                           Point of View             Luria
EL AD Systems
                           YANA Group               ManofIT
                           Blat-Lapidot             Nihulim
                        Business & Decisions



                                          36

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IT Consultants & Analysts
                                               Strauss
                                               OIC
                                               Blat-Lapidot
                                               Ergo
                                               Orantech
                                               Tulip                                   Application
                                               Ron Gabi                                     Related
                                               Top Group
                                               BDO
                                               Yael Software
                                               SRL
                                               Consist
                                               Other Consultants




2008         2009             2010            2011                  2012
  20.0   -25.00%    15.0   33.33%   20.0   35.00%        27.0   11.11%        30.0          Application Related
  25.0   -20.00%    20.0   0.00%    20.0   35.00%        27.0   11.11%        30.0      Infrastructure Related
  30.0   -16.67%    25.0   20.00%   30.0   6.67%         32.0   9.38%         35.0             Management/
  75.0   -20.00%    60.0   16.67%   70.0   22.86%        86.0   10.47%        95.0                    totals

                                                                   All amounts in M $ USD
                                                                                              37                  37
Cont: consulting / analysts
                          Gilon
  Infrastructure
                        Methoda
      Related
                       Accenture
                         Mateor
                          IBM
   GlassHouse
                          Aman                Management /
    Methoda
                          HMS                Performance/ BI
     Mind-U
                        Eternity
     NESS
                      Point of View
      IBM
                         Consist
      Aman               NESS
 EL AD Systems       Yael Softw are
    CommIT               BitPlus
     DorIT              HighView
     Dortal             Libi Tech
  Rozental Avi           Strauss
 Yael Software            SRL
     Bynet              Netw ise

     Consist             Bynet

      BDO                 BDO
                          niTeo
Other Consultants
                       Top Group
                         BI-pro
                    Other Consultants

                                        38
IBM

 hardware/ networking/infrastructure /DRP/                                                             MALAM/TEAM
                                                                                                          Bynet

      management & maintenance                                                                             EMET
                                                                                                        GlassHouse
                                                                                                       HILAN (+We)

            IBM                                                                                             HP
                                                                                                       I.E.Mittwoch
             HP
                                                                       Hardware/Networking/               Matrix
       MALAM/TEAM
                                                                       DRP/ Infra Projects          Bezeq International
         I.E.Mittwoch                                                                                     Taldor
           Bynet                       Hardware                                                            Aman
            EMET                   Maintenance                                                             HDS
           Taldor                                                                                         NESS
            EMC                                                                                            Yael

       Yael Software                                                                                       One1
                                                                                                           Byon
            One1
                                                                                                          CommIT
           Matrix
                                                                                                          DorIT


2008         2009                 2010                2011                 2012
                                                                                               Hardware Maintenance
 160.0   -6.25%     150.0      0.00%      150.0    0.00%       150.0    0.00%     150.0
                                                                                               Hardware/Networking
 105.0   -9.52%         95.0   5.26%      100.0   20.00%       120.0    8.33%     130.0       infrastructure Projects/


                                             All amounts in M $ USD

                                                                                  39                               39
Special integration services
          Matrix
     HILAN (+We)
     MALAM/TEAM
           HP                                                                  Application
           One1                Infrastructure /
          Taldor                 virtualization
          Bynet
     Calanit Carmon
           IBM
          NESS
         benefit
          Consist
           SRL
     Yael Software
     EL AD Systems


2008         2009                2010                2011             2012
 120.0   16.67%       140.0   14.29%     160.0    3.13%    165.0   7.88%     178.0                Infrastructure/
  50.0   -40.00%       30.0   16.67%       35.0   11.43%    39.0   7.69%       42.0               Application/ SOA
 170.0   0.00%        170.0   14.71%     195.0    4.62%    204.0   7.84%     220.0                     total


                                                                      All amounts in M $ USD

                                                                                             40

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             Matrix                       • Training, assimilation,
              NESS
          MALAM/TEAM
                                            implementation, rollout,etc:
         EL AD Systems                             are change management processes.
              Taldor
              One1
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           YANA Group
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2008         2009                    2010                     2011            2012
 100.0   -10.00%        90.0    5.56%               95.0   5.26%   100.0   4.00%   104.0

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                                                                      41
Testing Q/A & PMO Services
         Matrix                                                                                            Matrix
   MALAM/TEAM                                                                                             Methoda
         NESS                    Q/A &
                                                                                                           Xioma
         Tesnet                 Testing                                                                     One1

         Tescom                                                                                           MATAN
                                                 Software Testing & PMO
  Mertens Hoffman                                                                                         Orantech
                                                 Outsourcing: An Idea                                     Netwise
    Calanit Carmon
                                                 Whose Time Has Come?                                      Neway
         Taldor
     Top Group                                                                                           PZ Projects
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   EL AD Systems                                                                        Office




2008 2009                      2010                 2011             2012
 240.0   -10.42%   215.0    13.95%    245.0      2.04%    250.0   2.00%    255.0                  Q/A & Testing
  20.0   -10.00%     18.0   38.89%        25.0   40.00%    35.0   20.00%    42.0           Project Management Office

                                                                                   42
Development Services
2008         2009              2010              2011             2012
  75.0   -20.00%    60.0   25.00%     75.0   -13.33%    65.0   23.08%      80.0               web/ portal/mobile
  60.0   -33.33%    40.0   25.00%     50.0   20.00%     60.0   16.67%      70.0                      core
 100.0   -40.00%    60.0   25.00%     75.0   -13.33%    65.0   23.08%      80.0                       ERP
  70.0   -28.57%    50.0   4.00%      52.0   15.38%     60.0   8.33%       65.0                      CRM
  25.0   -20.00%    20.0   -25.00%    15.0   33.33%     20.0   25.00%      25.0             knowledge management
  80.0   -2.50%     78.0   15.38%     90.0   -8.89%     82.0   3.66%       85.0                      .NET
  50.0   -10.00%    45.0   77.78%     80.0   -37.50%    50.0   10.00%      55.0                open source/java
  40.0   12.50%     45.0   22.22%     55.0   9.09%      60.0   41.67%      85.0                    mainframe
  90.0   -11.11%    80.0   12.50%     90.0   0.00%      90.0   0.00%       90.0                     BI/DW
  70.0   -28.57%    50.0   20.00%     60.0   16.67%     70.0   21.43%      85.0             Migrations/ GIS/ others
 660.0   -20.00%   528.0   21.59%    642.0   -3.12%    622.0   15.76%    720.0                       totals




                                                                   All amounts in M $ USD


                                                                                              43
Advantech
                                                     MALAM/TEAM
Cont Development Services                                 IBM
                                                         NESS
                        Matrix                           One1
Portal/ web /mobile   MALAM/TEAM                         Matrix
                       Advantech
    Netwise                                   ERP          HP
                         Taldor
                                                          Yael
     Matrix               IBM
                                                         Taldor
     ewave                HP
                                                     Mertens Hoffman
     Taldor              NESS
                                                         Aman
     One1              Sensecom
                                                       Aviv Solut.
                         One1
      IBM                                                 Tata
                         Gilon
 MALAM/TEAM                          CRM &                SIT
                         Yael
     Bynet                            call            Kav Maarachot
                         Aman
                                     center             ManofIT
     NESS                SIT
     Consist           ManofIT                            HMS
                       BeyondIT                         Prodware
       HP
                        Netwise                           xact
     Aman
                      Blat-Lapidot                       EL AD
     Blink
                      IT Navigator                     BeyondIT
     SRL
                         Luria                         Top Group
                         EL AD

                                                44

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       Yael
      NESS
                                                         1              2
                                                Gilon               Yael Software
   Top Group                     BI/DW/ETL    OPISOFT             Business & Decisions
      EL AD                                      IBM                   Vision BI
 MALAM/TEAM                                    Consist                    HP
      Matrix                                   Eternity
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      Xioma                                                              Ergo
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      One1                                                               Aman
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        HP                                                              BI-pro
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       ROM                                    Libi Tech               Normative
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                                                             45
Governance, risk, security …..
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                                                                          Hwre, sftr and services
                                                                          run over 5% average of
                                                                                IT budgets




2008         2009            2010            2011              2012
                                                                              Governance & Risk
  35.0   42.86%    50.0   50.00%   75.0   9.33%    82.0   9.76%    90.0     Management (also BCP)
  95.0   -10.53%   85.0   11.76%   95.0   8.42%   103.0   6.80%   110.0           Security



                                                          46
Governance, risk, security …..
                                     Bynet
MALAM/TEAM                       MALAM/TEAM
    Matrix        Governance         Taldor                       Security
                    & Risk           EMET
     IBM
                  Management        2Bsecure
     Gilon                                                integration &
                                                                          auditing
                               Bezeq International           service
     HMS                            Netvision
    Bugsec                            One1
   Deloitte                         NewAge
                                      Aman
     BDO                                                                     Comsec
                                     Matrix
    Comsec                                                                     BDO
                                      IBM
     NESS                         I.E.Mittwoch                               Avnet
    Taldor                       HILAN (+We)
                                     Avnet
                                                                   Accounting Firms
ITIL Consulting
                                     NESS
    SecOz
                                     Comda
   Orantech
                                      HP
    Proceed
                                     ewave
     Tulip                          Comsec
Yael Software                       Afarsec
                                    Hacktics
                                      BDO
                                 EL AD Systems
                                                     47
Special Project Services

                                                                               Bezeq International
           Alexander Sneider
                                                                                  IT Navigator
                   Bynet
                                           DATA CENTER
                                                                                        IBM
                    IBM                                          VoIP
                                               Design                                Bynet
               Malam Team                   /Implentation
                                                                                  I.E.Mittwoch
                   Aman                                                          MALAM/TEAM
                   Taldor                                                            Taldor



2008         2009             2010            2011                2012
  50.0   -20.00%    40.0   25.00%   50.0   40.00%       70.0   28.57%   90.0    Data Center Environment
  40.0   -25.00%    30.0   16.67%   35.0   14.29%       40.0   12.50%   45.0             Printing
  40.0   -12.50%    35.0   28.57%   45.0   22.22%       55.0   27.27%   70.0              VoIP




                                                                                   48

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Outsourcing Services
2008         2009              2010              2011             2012
                                                                                     "off site" data center
  60.0   0.00%      60.0   16.67%     70.0   21.43%     85.0   17.65%   100.0     (hosting, real estate, etc)
  80.0   6.25%      85.0   11.76%     95.0   5.26%     100.0   20.00%   120.0              BPO services
  30.0   -16.67%    25.0   40.00%     35.0   8.57%      38.0   10.53%    42.0                call center
  25.0   20.00%     30.0   20.00%     36.0   16.67%     42.0   19.05%    50.0                help desk
 140.0   0.00%     140.0   -7.14%    130.0   11.54%    145.0   13.79%   165.0         Complete outsourcing
  25.0   0.00%      25.0   20.00%     30.0   6.67%      32.0   18.75%    38.0        application outsourcing
  30.0   0.00%      30.0   16.67%     35.0   0.00%      35.0   20.00%    42.0     infrastructure outsourcing
   0.0              10.0   50.00%     15.0   100.00%    30.0   66.67%    50.0       cloud computing
   0.0              15.0   66.67%     25.0   80.00%     45.0   44.44%    65.0 cloud computing (applications)
   0.0               5.0   140.00%    12.0   191.67%    35.0   28.57%    45.0 cloud computing (development)
 390.0   8.97%     425.0   13.65%    483.0   21.53%    587.0   22.15%   717.0            totals




                                                                        All amounts in M $ USD
                                                                           49                              49
All OUTSOURCING categories
     HP
   NESS
MALAM/TEAM
    IBM
                                            infrastructure
  Automazia      Complete     application   outsourcing/
    One1        outsourcing   outsourcing     managed
                                               services
    Aman
   Matrix
   Bynet
Yael Software
EL AD Systems
   Taldor
    Gilon
 Top Group
    SIT
  Netwise




                                50
IT Service Delivery (“good souls”)




2008         2009             2010             2011              2012
  20.0   -25.00%    15.0   33.33%    20.0   25.00%    25.0   16.00%      29.0                   storage
  20.0   -30.00%    14.0   42.86%    20.0   25.00%    25.0   8.00%      27.0                     DBA
 100.0   -10.00%    90.0   11.11%   100.0   20.00%   120.0   8.33%     130.0                    project
 120.0   -16.67%   100.0   4.00%    104.0   -3.85%   100.0   -15.00%     85.0               long-term
  90.0   -5.56%     85.0   10.59%    94.0   -9.57%    85.0   -11.76%     75.0                   temps
 350.0   -13.14%   304.0   11.18%   338.0   5.03%    355.0   -2.54%    346.0                    totals

                                                                       All amounts in M $ USD             51
                                                                 51
Cont. “good souls”
                Matrix
             Yael Software
                 One1
             MALAM/TEAM
                SQLink
                Taldor
                 Aman
             Calanit Carmon
                  SRL
               OPISOFT
                Mind-U
                 LogOn
                 NESS
                 EMET
             EL AD Systems
                 Tata
              HarEl Comp.
                Bynet


                         52

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Market Analysis (Israel)

  • 1. 2010 STKI Summit ENTERPRISE 3.0: LIQUID MODERNITY Dr. Jimmy Schwarzkopf Research Fellow jimmy@stki.info
  • 2. Take away my people and leave the factories, and soon there will be grass growing on the factory floors, but take away my factories and leave my people, and soon we will have bigger and better factories. Andrew Carnegie 2
  • 3. 3
  • 4. 4 4
  • 7. 7
  • 8. IT rate of change 8
  • 9. IT Markets in Israel ($K USD) Value added services 2007 marked the year when CIOs spend more in integration , maintaining the old and new development than in hardware or software “products” Hardware Software 9
  • 10. IT “industry” share (%) per year INDUSTRIES 2003 2004 2005 2006 2007 2008 2009 2010 Government + Education + Medicine 24.50% 16.90% 14.00% 10.00% 8.00% 10.00% 14.00% 15.74% Security + Defence 14.80% 11.20% 11.00% 11.50% 10.50% 10.00% 12.00% 10.71% Banking+ Insurance + Financial Services 14.80% 17.68% 27.00% 32.50% 34.00% 35.00% 30.00% 29.29% Utilities + Transportation 4.90% 8.25% 9.40% 10.00% 12.00% 13.00% 15.00% 12.68% Telecomm + High Tech 14.80% 23.97% 19.60% 16.00% 17.00% 15.00% 12.00% 14.21% Manufacturing + Retail 19.70% 16.11% 11.00% 11.00% 10.00% 9.00% 7.00% 8.74% S.M.B. s / home 6.50% 5.89% 8.00% 9.00% 8.50% 8.00% 10.00% 8.63% 10
  • 11. Industries IT expenditures (K $ USD) All amounts in K $ USD industry 2003 2004 2005 2006 2007 2008 2009 2010 Government + Education + Medicine 603,680 495,556 493,500 416,000 363,600 464,500 568,820 720,000 Security + Defence 364,672 328,450 387,750 478,400 477,225 464,500 487,560 490,000 Banking+ Insurance + Financial Services 364,672 518,605 951,750 1,352,000 1,545,300 1,625,750 1,218,900 1,340,000 Utilities + Transportation 120,736 242,016 331,350 416,000 545,400 603,850 609,450 580,000 Telecomm + High Tech 364,672 702,998 690,900 665,600 772,650 696,750 487,560 650,000 Manufacturing + Retail 485,408 472,507 387,750 457,600 454,500 418,050 284,410 400,000 S.M.B. s / home 160,160 172,868 282,000 374,400 386,325 371,600 406,300 395,000 11
  • 12. many more categories if “our” clients ask for them 1 2 • Pockets of excellence 3 – Users identified the need 4 for experts 5 – Most vendors are moving 6 or moved into the new delivery model All amounts in M $ USD "It is not enough that I should succeed, others must fail“ Gore Vidal 12 12
  • 13. Double-booking Vendors commonly buy hardware, software and services from other vendors . This is why “totals” of vendor revenues is higher than the total market values. (Products are sold directly and thru several layers of partners) 13
  • 14. TOP 9 IT Vendors in Israel HP Malam-Team IBM Matrix Taldor These 9 vendors either sell in all Ness Hardware, Software and Services categories or they have extremely One large market share in only part Microsoft of the categories Bynet 14 14
  • 15. servers blades non-x64 x64 servers Hardware Categories notebooks desk Clients others STKI mixes manufacturers and vendors disks in the hardware tiers because in Israel storage tapes manufacturers sell to organizations that are not “global size enterprises” in lan equipment several modes: wan equipment networking  Directly VoIP equipment  Through partners  Hybrid departamental Printer personal Special Purpouse (ATMs, Kiosks, etc) computer room Computer Supplies miscelaneus 15
  • 16. Hardware Market $1,046 Million(2009) 16
  • 17. Hardware Market 2008 2009 2010 2011 2012 1,275.0 -17.96% 1,046.0 5.07% 1,099.0 8.28% 1,190.0 6.72% 1,270.0 HP Avaya Alexander Schneider All amounts in M $ USD MALAM/TEAM Oracle APPLE IBM NetApp dorcom Cisco LG F5 Bynet Yael Software Alcatel HarEl . DELL Matrix Konica Lexmark Toshiba Taldor LENOVO Samsung GlassHouse Acer benefit One1 EMET HILAN (We) Rittal EMC ANKOR Enterasys I.E.Mittwoch TripleC CCC Radware Xerox Juniper ELAD HDS DDN 17
  • 18. IBM HP Servers MALAM/TEAM DELL IBM IBM IBM HILAN (We) HP HP EMET One1 DELL Oracle EMET HP Oracle I.E.Mittwoch HarEl . Oracle Bynet MALAM/TEAM TripleC dorcom I.E.Mittwoch Taldor X-64 non-X64 HarEl . Yael Matrix One1 X64 blades are This was the Year: Oracle Taldor ANKOR becoming the IBM Mainframe benefit standard installations grew ELAD 2008 2009 2010 2011 2012 165.0 -33.33% 110.0 4.55% 115.0 -21.74% 90.0 -16.67% 75.0 servers x64 115.0 -20.00% 92.0 10.87% 102.0 12.75% 115.0 -21.74% 90.0 blades 70.0 -14.29% 60.0 -16.67% 50.0 4.00% 52.0 15.38% 60.0 non-x64 350.0 -25.14% 262.0 1.91% 267.0 -3.75% 257.0 -12.45% 225.0 totals All amounts in M $ USD 18
  • 19. Clients HP HP LENOVO HP LENOVO DELL DELL DELL MALAM/TEAM LENOVO LG HarEl . LG Acer Acer Bynet APPLE APPLE Acer O T H E R S Toshiba Yael Software O T H E R S One1 APPLE Matrix notebooks Toshiba desk Taldor O T H E R S 2008 2009 2010 2011 2012 200.0 -12.50% 175.0 5.71% 185.0 8.11% 200.0 2.50% 205.0 notebooks 230.0 -23.91% 175.0 -2.86% 170.0 2.94% 175.0 14.29% 200.0 desk 25.0 60.00% 40.0 87.50% 75.0 46.67% 110.0 others 430.0 -12.79% 375.0 5.33% 395.0 13.92% 450.0 14.44% 515.0 totals 19
  • 20. EMC Storage Equipment MALAM/TEAM NetApp IBM ANKOR EMC HDS HP NetApp GlassHouse IBM EMET One1 HDS HarEl . HP DELL DELL Bynet Backup ≠ DRP ≠ Archiving TripleC CCC Oracle Architectures DDN DDN Matrix Oracle benefit I.E.Mittwoch Taldor Yael Software 2008 2009 2010 2011 2012 130.0 -7.69% 120.0 12.50% 135.0 3.70% 140.0 3.57% 145.0 disks 15.0 -33.33% 10.0 20.00% 12.0 8.33% 13.0 15.38% 15.0 tapes 145.0 -10.34% 130.0 13.08% 147.0 4.08% 153.0 4.58% 160.0 totals All amounts in M $ USD 20
  • 21. Networking Equipment Cisco Bynet Avaya Juniper Taldor Cisco Avaya Tadiran MALAM/TEAM F5 Alcatel HarEl . HP 3com I.E.Mittwoch 3com Bezeq Benleumi Alcatel VoIP / Call Center Matrix Enterasys Radware One1 Yael Software Network Equipment 2008 2009 2010 2011 2012 80.0 -25.00% 60.0 8.33% 65.0 15.38% 75.0 20.00% 90.0 lan equipment 50.0 -20.00% 40.0 12.50% 45.0 37.78% 62.0 12.90% 70.0 wan equipment 40.0 -20.00% 32.0 9.38% 35.0 14.29% 40.0 12.50% 45.0 VoIP equipment 170.0 -22.35% 132.0 9.85% 145.0 22.07% 177.0 15.82% 205.0 totals All amounts in M $ USD 21
  • 22. Printers and “new” services HP Xerox Lexmark Samsung Konica others 2008 2009 2010 2011 2012 100.0 -18.00% 82.0 3.66% 85.0 7.06% 91.0 9.89% 100.0 departamental 80.0 -18.75% 65.0 -7.69% 60.0 3.33% 62.0 4.84% 65.0 personal 180.0 -18.33% 147.0 -1.36% 145.0 5.52% 153.0 7.84% 165.0 totals All amounts in M $ USD 22 22
  • 23. Special Categories Alexander Schneider Rittal I.E.Mittwoch HP Taldor IBM Bynet Bynet IBM APC Netwise May-55 One1 Malam/Team mobile & special purpouse (POS, ATMs,Kiosks,etc) computer room accessories 2008 2009 2010 2011 2012 100.0 -15.00% 85.0 5.88% 90.0 11.11% 100.0 20.00% 120.0 Special Purpouse (ATMs, Kiosks, etc) 30.0 -16.67% 25.0 40.00% 35.0 57.14% 55.0 27.27% 70.0 computer room 100.0 -25.00% 75.0 13.33% 85.0 5.88% 90.0 11.11% 100.0 miscelaneus Computer Supplies 230.0 -19.57% 185.0 13.51% 210.0 16.67% 245.0 26.53% 310.0 totals All amounts in M $ USD 23
  • 24. Software Products All amounts in M $ USD 24
  • 25. Software Market Microsoft IBM Yael Software Oracle EMC EL AD Systems Smile 012 SAP Mcafee SRL Matrix Juniper Gstat Top Group Alcatel CA Avaya Netvision 013 Comsec Aman Computers Incentive Solutions Autofont I.E.Mittwoch Symantec Otzar Bezeq International SIT Checkpoint Comda Xioma Attunity Taldor Consist Intentia IT Navigator HP Gilon Advantech Qlikview One1 HDS Artis MALAM/TEAM MSP benefit Aviv Solut. NESS NetApp F5 Centerity Bynet PANORAMA Business Solutions Enterasys Mia (SAS) SPL Cemax Qlikview Kav Maarachot REL Netwise Ashbal PNMSoft VMWARE MAGIC ISRAEL Sapiens Prodware Radware 25
  • 26. System Software IBM Oracle Microsoft Microsoft Aman Oracle Yael VMWARE Operating and Microsoft One1 IBM virtualization SPL HP IBM HILAN (+We) systems SAP NESS Bynet SPL Middleware EL AD Matrix One1 One1 SRL DBMS Attunity benefit Taldor Yael Magic Taldor EL AD Taldor EL AD 2008 2009 2010 2011 2012 80.0 -6.25% 75.0 -6.67% 70.0 -7.14% 65.0 -7.69% 60.0 operating systems 50.0 -4.00% 48.0 8.33% 52.0 5.77% 55.0 3.64% 57.0 data bases 50.0 -20.00% 40.0 12.50% 45.0 15.56% 52.0 44.23% 75.0 middleware 40.0 -5.00% 38.0 5.26% 40.0 10.00% 44.0 9.09% 48.0 output mgmt 220.0 -8.64% 201.0 2.99% 207.0 4.35% 216.0 11.11% 240.0 totals All amounts in M $ USD 26
  • 27. IT Management Software 2008 2009 2010 2011 2012 20.0 -15.00% 17.0 11.76% 19.0 21.05% 23.0 13.04% 26.0 Service Desk 60.0 -25.00% 45.0 11.11% 50.0 30.00% 65.0 10.77% 72.0 Enterprise system Mgmt 10.0 -20.00% 8.0 25.00% 10.0 50.00% 15.0 20.00% 18.0 Portfolio Management 15.0 -13.33% 13.0 15.38% 15.0 20.00% 18.0 27.78% 23.0 Asset Management Office of the CIO 15.0 -20.00% 12.0 16.67% 14.0 21.43% 17.0 17.65% 20.0 project management 50.0 -10.00% 45.0 4.44% 47.0 10.64% 52.0 25.00% 65.0 Storage/ backup 90.0 -5.56% 85.0 23.53% 105.0 4.76% 110.0 9.09% 120.0 Security 260.0 -13.46% 225.0 15.56% 260.0 15.38% 300.0 14.67% 344.0 totals All amounts in M $ USD 27
  • 28. IT Management Software CA Service Symantec Enterprise System IBM desk EMC Management Matrix HDS BMC CA HP NetApp Matrix Symantec BMC Checkpoint IBM Oracle HP Symantec Ankor Aman IBM Mcafee One1 Centerity CA Consist Glasshouse NESS Juniper One1 Consist IBM Taldor Bynet Taldor Microsoft Yael EL AD Symantec Cisco EL AD Taldor Netwise Radware One1 EL AD Storage/ backup/dedup Netwise Security Software 28
  • 29. Information Management Software 2008 2009 2010 2011 2012 50.0 4.00% 52.0 5.77% 55.0 3.64% 57.0 5.26% 60.0 office productivity 10.0 -20.00% 8.0 50.00% 12.0 50.00% 18.0 38.89% 25.0 portal & collaboration 50.0 -10.00% 45.0 33.33% 60.0 8.33% 65.0 10.77% 72.0 modeling & development 50.0 -16.00% 42.0 23.81% 52.0 25.00% 65.0 7.69% 70.0 BI / MDM/ ETL 160.0 -8.13% 147.0 21.77% 179.0 14.53% 205.0 10.73% 227.0 totals All amounts in M $ USD 29
  • 30. Cont: Information Management Software IBM SPL Microsoft BI / MDM/ ETL Microsoft Oracle IBM SAP SAP MAGIC One1 Sapiens Taldor Matrix Yael EL AD One1 EL AD PORTAL & COLLABORATION DEVELOPMENT AND MODELING 30
  • 31. Business Applications 2008 2009 2010 2011 2012 60.0 -41.67% 35.0 28.57% 45.0 33.33% 60.0 25.00% 75.0 vertical applications 40.0 -37.50% 25.0 40.00% 35.0 28.57% 45.0 33.33% 60.0 ERP 35.0 -28.57% 25.0 20.00% 30.0 33.33% 40.0 50.00% 60.0 CRM 10.0 -20.00% 8.0 50.00% 12.0 25.00% 15.0 20.00% 18.0 BPM 15.0 20.00% 18.0 11.11% 20.0 25.00% 25.0 40.00% 35.0 others 15.0 20.00% 18.0 22.22% 22.0 13.64% 25.0 36.00% 34.0 Document Management 175.0 -26.29% 129.0 27.13% 164.0 28.05% 210.0 34.29% 282.0 totals All amounts in M $ USD 31
  • 32. Business Applications SAP Oracle Document IBM/Yael Oracle Microsoft Management / ECM Matrix Taldor NESS Ashbal Alcatel Top Group One1 Salesforce ERP One1 Artis SIT Intentia SAP MALAM/TEAM IT Navigator Microsoft EL AD Systems Matrix Aviv Solut. Gstat Otzar /Aman Kav Maarachot CRM & call center Yael Software Taldor Xioma Business Solutions Xioma Cemax Taldor Yael Bynet Prodware Netwise 32
  • 33. Testing Software HP IBM Matrix Aman Top Group 2008 2009 2010 2011 2012 25.0 -20.00% 20.0 15.00% 23.0 21.74% 28.0 21.43% 34.0 All amounts in M $ USD 33
  • 34. Value Added Categories Application Related IT Training/ Hatmaa IT Consulting/ Infrastructure Related Data Center Environment Analysts Management/ Performance/ BI Printing VoIP Hardware Maintenance Hardware/Networking infrastructure Projects/ Governance & Risk Management Governance, Risk Security and Regulation Infrastructure/ System Application/ SOA Integration "off site" data center Project Services BPO services Q/A & Testing call center Project Management Office help desk Complete outsourcing web/ portal/mobile Outsourcing application outsourcing core infrastructure outsourcing ERP cloud computing CRM cloud computing (applications) knowledge management Development cloud computing (development) .NET open source/java storage mainframe DBA BI/DW project contractors staff augmentation Migrations/ GIS/ others long-term temps 34
  • 35. Value Added Services Market 2008 2009 2010 2011 2012 2,530.0 -9.29% 2,295.0 15.16% 2,643.0 8.17% 2,859.0 11.37% 3,184.0 Matrix MALAM/TEAM IBM NESS HP Taldor One1 Aman Yael Software All amounts in M $ USD 35
  • 36. Cont: Value Added Services 1 2 3 4 5 Matrix Aviv Solut. Ergo SecOz MALAM/TEAM EMC Orantech Tulip HighView Vision BI Blink IBM Libi Tech Kav Maarachot Activeview NESS SEKER benefit OIC HP BitPlus Dortal SIT Taldor MATAN Ron Gabi Xioma One1 Top Group Proceed Rozental Avi Aman Eternity ROM Neway Yael Software TopIT PZ Projects BDO Automazia Strauss Ratio Avnet BI-pro Data Cube HILAN (+We) Mateor Business Solutions Digidoc I.E.Mittwoch Salesforce Afarsec niTeo Calanit Carmon Bugsec Byon Normative EMET Deloitte CommIT Pareto HarEl Comp. Bynet DorIT Tefen IT Solutions SQLink Hacktics NewAge ITIL Consulting Advantech Point of View Luria EL AD Systems YANA Group ManofIT Blat-Lapidot Nihulim Business & Decisions 36
  • 37. IT Consultants & Analysts Strauss OIC Blat-Lapidot Ergo Orantech Tulip Application Ron Gabi Related Top Group BDO Yael Software SRL Consist Other Consultants 2008 2009 2010 2011 2012 20.0 -25.00% 15.0 33.33% 20.0 35.00% 27.0 11.11% 30.0 Application Related 25.0 -20.00% 20.0 0.00% 20.0 35.00% 27.0 11.11% 30.0 Infrastructure Related 30.0 -16.67% 25.0 20.00% 30.0 6.67% 32.0 9.38% 35.0 Management/ 75.0 -20.00% 60.0 16.67% 70.0 22.86% 86.0 10.47% 95.0 totals All amounts in M $ USD 37 37
  • 38. Cont: consulting / analysts Gilon Infrastructure Methoda Related Accenture Mateor IBM GlassHouse Aman Management / Methoda HMS Performance/ BI Mind-U Eternity NESS Point of View IBM Consist Aman NESS EL AD Systems Yael Softw are CommIT BitPlus DorIT HighView Dortal Libi Tech Rozental Avi Strauss Yael Software SRL Bynet Netw ise Consist Bynet BDO BDO niTeo Other Consultants Top Group BI-pro Other Consultants 38
  • 39. IBM hardware/ networking/infrastructure /DRP/ MALAM/TEAM Bynet management & maintenance EMET GlassHouse HILAN (+We) IBM HP I.E.Mittwoch HP Hardware/Networking/ Matrix MALAM/TEAM DRP/ Infra Projects Bezeq International I.E.Mittwoch Taldor Bynet Hardware Aman EMET Maintenance HDS Taldor NESS EMC Yael Yael Software One1 Byon One1 CommIT Matrix DorIT 2008 2009 2010 2011 2012 Hardware Maintenance 160.0 -6.25% 150.0 0.00% 150.0 0.00% 150.0 0.00% 150.0 Hardware/Networking 105.0 -9.52% 95.0 5.26% 100.0 20.00% 120.0 8.33% 130.0 infrastructure Projects/ All amounts in M $ USD 39 39
  • 40. Special integration services Matrix HILAN (+We) MALAM/TEAM HP Application One1 Infrastructure / Taldor virtualization Bynet Calanit Carmon IBM NESS benefit Consist SRL Yael Software EL AD Systems 2008 2009 2010 2011 2012 120.0 16.67% 140.0 14.29% 160.0 3.13% 165.0 7.88% 178.0 Infrastructure/ 50.0 -40.00% 30.0 16.67% 35.0 11.43% 39.0 7.69% 42.0 Application/ SOA 170.0 0.00% 170.0 14.71% 195.0 4.62% 204.0 7.84% 220.0 total All amounts in M $ USD 40
  • 41. TRAINING and HATMAA Matrix • Training, assimilation, NESS MALAM/TEAM implementation, rollout,etc: EL AD Systems are change management processes. Taldor One1 • Change management that YANA Group helps users change working Netwise processes. Automazia • HATMAA: is the measurement of the change process success. 2008 2009 2010 2011 2012 100.0 -10.00% 90.0 5.56% 95.0 5.26% 100.0 4.00% 104.0 All amounts in M $ USD 41
  • 42. Testing Q/A & PMO Services Matrix Matrix MALAM/TEAM Methoda NESS Q/A & Xioma Tesnet Testing One1 Tescom MATAN Software Testing & PMO Mertens Hoffman Orantech Outsourcing: An Idea Netwise Calanit Carmon Whose Time Has Come? Neway Taldor Top Group PZ Projects One1 Project BDO Netwise Management Tefen EL AD Systems Office 2008 2009 2010 2011 2012 240.0 -10.42% 215.0 13.95% 245.0 2.04% 250.0 2.00% 255.0 Q/A & Testing 20.0 -10.00% 18.0 38.89% 25.0 40.00% 35.0 20.00% 42.0 Project Management Office 42
  • 43. Development Services 2008 2009 2010 2011 2012 75.0 -20.00% 60.0 25.00% 75.0 -13.33% 65.0 23.08% 80.0 web/ portal/mobile 60.0 -33.33% 40.0 25.00% 50.0 20.00% 60.0 16.67% 70.0 core 100.0 -40.00% 60.0 25.00% 75.0 -13.33% 65.0 23.08% 80.0 ERP 70.0 -28.57% 50.0 4.00% 52.0 15.38% 60.0 8.33% 65.0 CRM 25.0 -20.00% 20.0 -25.00% 15.0 33.33% 20.0 25.00% 25.0 knowledge management 80.0 -2.50% 78.0 15.38% 90.0 -8.89% 82.0 3.66% 85.0 .NET 50.0 -10.00% 45.0 77.78% 80.0 -37.50% 50.0 10.00% 55.0 open source/java 40.0 12.50% 45.0 22.22% 55.0 9.09% 60.0 41.67% 85.0 mainframe 90.0 -11.11% 80.0 12.50% 90.0 0.00% 90.0 0.00% 90.0 BI/DW 70.0 -28.57% 50.0 20.00% 60.0 16.67% 70.0 21.43% 85.0 Migrations/ GIS/ others 660.0 -20.00% 528.0 21.59% 642.0 -3.12% 622.0 15.76% 720.0 totals All amounts in M $ USD 43
  • 44. Advantech MALAM/TEAM Cont Development Services IBM NESS Matrix One1 Portal/ web /mobile MALAM/TEAM Matrix Advantech Netwise ERP HP Taldor Yael Matrix IBM Taldor ewave HP Mertens Hoffman Taldor NESS Aman One1 Sensecom Aviv Solut. One1 IBM Tata Gilon MALAM/TEAM CRM & SIT Yael Bynet call Kav Maarachot Aman center ManofIT NESS SIT Consist ManofIT HMS BeyondIT Prodware HP Netwise xact Aman Blat-Lapidot EL AD Blink IT Navigator BeyondIT SRL Luria Top Group EL AD 44
  • 45. Cont Development Services Yael NESS 1 2 Gilon Yael Software Top Group BI/DW/ETL OPISOFT Business & Decisions EL AD IBM Vision BI MALAM/TEAM Consist HP Matrix Eternity Point of View HighView Xioma Ergo One1 One1 Aman NESS HP BI-pro Matrix knowledge Top Group IBM Advantech management TopIT Taldor / ECM Gstat Activeview SRL/Nihulim HMS Taldor SRL Business Solutions Ratio MALAM/TEAM Ergo Data Cube I.E.Mittwoch ROM Libi Tech Normative Byon Pareto Digidoc EL AD Systems 45
  • 46. Governance, risk, security ….. Security: Hwre, sftr and services run over 5% average of IT budgets 2008 2009 2010 2011 2012 Governance & Risk 35.0 42.86% 50.0 50.00% 75.0 9.33% 82.0 9.76% 90.0 Management (also BCP) 95.0 -10.53% 85.0 11.76% 95.0 8.42% 103.0 6.80% 110.0 Security 46
  • 47. Governance, risk, security ….. Bynet MALAM/TEAM MALAM/TEAM Matrix Governance Taldor Security & Risk EMET IBM Management 2Bsecure Gilon integration & auditing Bezeq International service HMS Netvision Bugsec One1 Deloitte NewAge Aman BDO Comsec Matrix Comsec BDO IBM NESS I.E.Mittwoch Avnet Taldor HILAN (+We) Avnet Accounting Firms ITIL Consulting NESS SecOz Comda Orantech HP Proceed ewave Tulip Comsec Yael Software Afarsec Hacktics BDO EL AD Systems 47
  • 48. Special Project Services Bezeq International Alexander Sneider IT Navigator Bynet DATA CENTER IBM IBM VoIP Design Bynet Malam Team /Implentation I.E.Mittwoch Aman MALAM/TEAM Taldor Taldor 2008 2009 2010 2011 2012 50.0 -20.00% 40.0 25.00% 50.0 40.00% 70.0 28.57% 90.0 Data Center Environment 40.0 -25.00% 30.0 16.67% 35.0 14.29% 40.0 12.50% 45.0 Printing 40.0 -12.50% 35.0 28.57% 45.0 22.22% 55.0 27.27% 70.0 VoIP 48
  • 49. Outsourcing Services 2008 2009 2010 2011 2012 "off site" data center 60.0 0.00% 60.0 16.67% 70.0 21.43% 85.0 17.65% 100.0 (hosting, real estate, etc) 80.0 6.25% 85.0 11.76% 95.0 5.26% 100.0 20.00% 120.0 BPO services 30.0 -16.67% 25.0 40.00% 35.0 8.57% 38.0 10.53% 42.0 call center 25.0 20.00% 30.0 20.00% 36.0 16.67% 42.0 19.05% 50.0 help desk 140.0 0.00% 140.0 -7.14% 130.0 11.54% 145.0 13.79% 165.0 Complete outsourcing 25.0 0.00% 25.0 20.00% 30.0 6.67% 32.0 18.75% 38.0 application outsourcing 30.0 0.00% 30.0 16.67% 35.0 0.00% 35.0 20.00% 42.0 infrastructure outsourcing 0.0 10.0 50.00% 15.0 100.00% 30.0 66.67% 50.0 cloud computing 0.0 15.0 66.67% 25.0 80.00% 45.0 44.44% 65.0 cloud computing (applications) 0.0 5.0 140.00% 12.0 191.67% 35.0 28.57% 45.0 cloud computing (development) 390.0 8.97% 425.0 13.65% 483.0 21.53% 587.0 22.15% 717.0 totals All amounts in M $ USD 49 49
  • 50. All OUTSOURCING categories HP NESS MALAM/TEAM IBM infrastructure Automazia Complete application outsourcing/ One1 outsourcing outsourcing managed services Aman Matrix Bynet Yael Software EL AD Systems Taldor Gilon Top Group SIT Netwise 50
  • 51. IT Service Delivery (“good souls”) 2008 2009 2010 2011 2012 20.0 -25.00% 15.0 33.33% 20.0 25.00% 25.0 16.00% 29.0 storage 20.0 -30.00% 14.0 42.86% 20.0 25.00% 25.0 8.00% 27.0 DBA 100.0 -10.00% 90.0 11.11% 100.0 20.00% 120.0 8.33% 130.0 project 120.0 -16.67% 100.0 4.00% 104.0 -3.85% 100.0 -15.00% 85.0 long-term 90.0 -5.56% 85.0 10.59% 94.0 -9.57% 85.0 -11.76% 75.0 temps 350.0 -13.14% 304.0 11.18% 338.0 5.03% 355.0 -2.54% 346.0 totals All amounts in M $ USD 51 51
  • 52. Cont. “good souls” Matrix Yael Software One1 MALAM/TEAM SQLink Taldor Aman Calanit Carmon SRL OPISOFT Mind-U LogOn NESS EMET EL AD Systems Tata HarEl Comp. Bynet 52
  • 53. 010 Thank you Dr. Jimmy Schwarzkopf 53