Israeli IT Market Study Value Added Services Forecast

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Copyright@STKI_2020 Do not remove source or attribution from any slide, graph or portion of graph
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STKI 2020
Israeli IT
Market Study(Value Added Services)
Volume 4 v3
STKI IT Knowledge Integrators
COMPANY CONFIDENTIAL
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Copyright@STKI_2020 Do not remove source or attribution from any slide, graph or portion of graph 2
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Manufacturers/Software Houses, Distributors, VARs
NO double bookings for IT Market Size Forecasts
Resellers (VARs) get credit only for their value added unless the
manufacturer/software house is not present in Israel, then they get full credit.
Integrators and other Value Added Service Providers get credit only for the
“services-work” they contributed to the project.
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DISTRIBUTORS (usually are not shown in our study)
are intermediary reseller entities; between the
original MANUFACTURERS OF HARDWARE
PRODUCTS or SOFTWARE HOUSES and other entities
in the distribution channel (VARs and INTEGRATORS).
VALUE-ADDED RESELLERS (VARs) offer third party
software and hardware to the end user or
integrators at a markup, along with a limited
combination of procurement consulting,
configuration, and customization services (shown
under HARDWARE or SOFTWARE)
INTEGRATORS offer professional’s services
(consulting, developing, implementing or sourcing
manpower) in order to deliver enterprise computer
services to the organization. (shown under VALUE
ADDED SERVICES ).
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“Israeli Positioning” slides
This is NOT a technological or functional positioning
and SHOULD NOT be used as such.
This positioning is intendended to reflect
ONLY THE DEGREE
to which a product is
PRESENT AND SUPPORTED IN ISRAEL
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X axis (Market Presence)
Installed base; New sales; Mindshare
Y axis
(Local Support):
Number and quality
of support experts,
it’s localization and
language support
and if there is local
R&D
Israeli Product Positioning Slides
Vendors to watch
New players that only
recently entered the
market and therefore
cannot be evaluated
against longtime
players
Global leaders
according to
international analyst
firms
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Methodology for “Israeli Positioning”
T is NOT a technological or functional positioning and SHOULD NOT be
used as such. This positioning is intendent to reflect ONLY THE DEGREE to
which a product is PRESENT AND SUPPORTED IN ISRAEL
Focused on the enterprise sector (not SMB)
 X axis (Market Presence):
Installed base; New sales; Mindshare
 Y axis (Local ISRAELI Support):
Number and quality of Sis; localization; local R&D
 Vendors to watch: New players that only recently entered the market and
therefore cannot be evaluated against longtime players
 Global leaders: marked according to international analyst firms
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The Area a company occupies in the circle is
not relevant and has no meaning.
STKI has signed NDAs with the vendors
(revenues, projects) and we tried to
minimize opportunities for backward
engineering of the data .
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1. Government crisis : Due to the political deadlock Israel doesn’t have a budget for the second year
in a row. Despite that fact, there will be a marked growth of government expenditures and a decline in
tax revenues. With the outbreak of the economic crisis, this budget is totally inadequate. A new
government has been established but there is uncertainty regarding the policy steps that will be
taken in various areas (with and without connection to the coronavirus crisis) and about their impacts
on growth, employment, inflation.,
2. Coronavirus crisis: A recession seems inevitable, but its depth and duration are highly uncertain, it
will depend on the evolution of the disease, the severity and duration of the restrictive measures
imposed, and on the nature and magnitude of the economic policy response. The number of
unemployed is expected to jump from some 157,000 in 2019 to over 1,250,000 and the numbers
of those eligible for unemployment benefits will jump from 75,000 to about 900,000. The Israeli
economy and public is experienced in coping with various types of shocks.
This market study was compiled in the midst of two crises:
This period is characterized by an exceptional level of uncertainty regarding the depth of
each of the crises , their length, and ramifications for the medium and long terms.
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Israeli IT Value Added Services Market
FORECAST VERSION TWO
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Comparison of Forecasts for
Value Added Services Market 2017-2022
2019 2020 2021 2022
value added
services
forecast one 52.72% 53.23% 53.43% 53.91%
value added
services
forecast two 52.72% 53.15% 55.00% 55.90%
percentage of IT Budget
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TOP 10 VENDORS: Value-Added Services Markets
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Comparison
between
Forecast one
and
Forecast two
for 2020
Comparison
between
Forecast one
and
Forecast two
for 2020
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Forecast One
2020
18
Percentage
of VAS
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2020
Forecast Two
2020
19
Percentage
of VAS
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Comparison
between
Forecast one
and
Forecast two
for 2021
Comparison
between
Forecast one
and
Forecast two
for 2021
20 20
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21
21
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Forecast One
2021
21
Percentage
of VAS
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22
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Forecast Two
2021
22
Percentage
of VAS
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Comparison
between
2020 & 2021
using
Forecast one
Comparison
between
2020 & 2021
using
Forecast one
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Comparison
between
2020 & 2021
using
Forecast two
Comparison
between
2020 & 2021
using
Forecast two
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25
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42
IT Strategy Consulting & IT
Analysts
Digital Transformation
Consulting
Data Consulting
IT Infrastructure/Delivery
Consulting
CX (Customer Experience)
Consulting and Design
IT Application Consulting
Cyber/Security Consulting
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27
27
V3
Enterprise Consulting as a Percentage of VAS
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28
28
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Enterprise Consulting
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29
29
V3
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30
30
V3
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31
31
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32
32
V3
IT Strategy, Licensing Consulting & IT Analyst Firms
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33
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V3
IT Strategy, Licensing Consulting & IT Analyst Firms
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34
34
V3
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35
35
V3
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36
36
V3
Data Consulting
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37
37
V3
Data Consulting
Small Boutiques
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38
38
V3
IT Infrastructure & Delivery Consulting
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39
39
V3
IT Infrastructure & Delivery Consulting
Small Boutiques
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40
40
V3
CX (Customer Experience) Consulting and Design
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41
41
V3
IT Application Consulting
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42
42
V3
Cyber/ Security
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43
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V3
Small Boutiques
Cyber/ Security
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44
44
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Software Maintenance (3rd
party)
Hardware Maintenance (3rd
party)
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45
45
V3
3rd Party Maintenance Hardware & Software
as a Percentage of VAS
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46
46
V3
3rd Party Maintenance
Hardware & Software
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47
47
V3
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48
48
V3
Hardware & Software
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49
49
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50
50
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Hardware
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51
51
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Software
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52
52
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Consolidation/ Virtualization
/Monitoring/ BSM/ Storage/
Hardware/ Data Center
Environment/ Networking
Projects
Legacy system projects:
Mainframe/AS400/ VMS/etc.
Devops
Container
infrastructure/platform
implrmentation
Software/cloud integration,
middleware, SOA, BPM, ALM,
Testing tools implementation
Cyber security product
implementation
Unified Communication (IM,
Video, Voice)
PaaS and IaaS
implementation &
maintenance
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53
53
V3
Infrastructure Projects as a Percentage of VAS
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54
54
V3
Infrastructure Projects
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55
55
V3
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56
56
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57
57
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58
58
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(Consolidation, Virtualization, Monitoring, BSM)
(Storage, other Hardware, Data Center Environment and Networking)
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59
59
V3
Small Boutiques
(Consolidation, Virtualization, Monitoring, BSM)
(Storage, other Hardware, Data Center Environment and Networking)
Page 59

60
60
V3
Maintenance & Implementation for Legacy Systems
MVS, OS400, VMS, others
Page 60

61
61
V3
(Cloud Data Integration, Middleware, SOA, BPM, ALM, Testing)
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62
62
V3
Small Boutiques
(Cloud Data Integration, Middleware, SOA, BPM, ALM, Testing)
Page 62

63
63
V3
DevOps Services
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64
64
V3
Cyber Security Product Implementation
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65
65
V3
Small Boutiques
Cyber Security Product Implementation
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66
66
V3
Unified Communication (IM, Video, Voice)
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67
67
V3
Unified Communication (IM, Video, Voice)
Small Boutiques
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68
68
V3
Cloud PaaS And IaaS Implementation & Maintenance
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69
69
V3
Cloud PaaS And IaaS Implementation & Maintenance
Small Boutiques
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70
70
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Office of the CIO/ PMO
Q/A & Testing services
Page 70

71
71
V3
PMO Managed Services
Q/A and Testing as a Percentage of VAS
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72
72
V3
Q/A and Testing Services
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73
73
V3
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74
74
V3
Q/A and Testing Services
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75
75
V3
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76
76
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Services
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77
77
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Implementations
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78
78
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ALM Q/A & Testing (only enterprise clients)
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79
79
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Professional Education
Coaching & Mentoring
Fruition & Implementation
(‫)הטמעה‬
Auditing, Governance & Risk
Management
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80
80
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Professional Education, Fruition and Governance
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Professional Education, Coaching & Mentoring
Fruition and Implementation ‫הטמעה‬( ) Projects
Auditing, Governance & Risk Management Projects
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82
82
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Professional Education, Coaching & Mentoring
Fruition and Implementation ‫הטמעה‬( ) Projects
Auditing, Governance & Risk Management Projects
2019 2020 2021
Professional Education
Coaching & Mentoring
66,500 -21.80% 52,000 11.54% 58,000
Fruition & Implementation
(‫)הטמעה‬
84,000 -22.62% 65,000 10.77% 72,000
Auditing, Governance & Risk
Management
75,000 -6.67% 70,000 4.29% 73,000
T O T A L 225,500 -17.07% 187,000 8.56% 203,000
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‫הקורונה‬ ‫משבר‬ ‫בצל‬ ‫ישראלי‬ ‫שוק‬ ‫סקר‬ :‫המקור‬
STKI 2020
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Professional Education , Skill Training,
Mentoring and Coaching
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Professional Education , Skill Training,
Mentoring and Coaching
PLUS Online Learning
Platforms:
Coursera, LinkedIn,
Lynda, Udemy, Edx,
Skillsoft, Pularsight, etc..
PLUS Online Learning
Platforms:
Coursera, LinkedIn,
Lynda, Udemy, Edx,
Skillsoft, Pularsight, etc..
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88
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Fruition, Implementation (‫הטמעה‬)
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89
89
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Auditing, Governance & Risk Management
Implementation & Services
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90
90
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CRM-XRM
ERP
Contact Center and Multi
channel engagement projects
HR & Talent Mng & Payroll
Page 90

91
91
V3
Business Application & Implementation
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92
92
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Business Application &
Implementation Projects
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93
93
V3
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94
94
V3
Business Application &
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95
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96
96
V3
CRM-XRM
Business Application & Implementation Projects
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97
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CRM-XRM
Small Boutiques
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98
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ERP
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99
99
V3
ERP
Small Boutiques
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100
100
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Contact Center and Multi-Channel Engagement Projects
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101
101
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Contact Center and Multi-Channel Engagement Projects
Small Boutiques
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102
102
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HR & Talent Management
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103
103
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Knowledge Management
(ECM, Portals, Collaboration)
E-Commerce
Web Content Management
Web Accessibility
Page 103

104
104
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Information Management as a Percentage of VAS
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105
105
V3
Information Management
Projects
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106
106
V3
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107
107
V3
Information Management
Projects
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108
108
V3
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109
109
V3
(ECM, Portals, Collaboration, E-service knowledgebases)
Information Management Projects
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110
110
V3
Small Boutiques
(ECM, Portals, Collaboration, E-service knowledgebases)
Page 110

111
111
V3
E-commerce
Page 111

112
112
V3
Accessibility Platforms (Web, Documents)
Page 112

113
113
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UX Design
Data, BI, Analytics
Marketing Automation
Data Scientists
RPAs
Page 113

114
114
V3
"Digital " Applications as a Percentage of VAS
Page 114

115
115
V3
"Digital " Applications
Projects
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116
116
V3
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117
117
V3
"Digital " Applications
Projects
Page 117

118
118
V3
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119
119
V3
UX Design
"Digital " Applications Projects
Page 119

120
120
V3
UX Design
Small Boutiques
Page 120

121
121
V3
Data, BI, Analytics
(fraud analytics & other special cases)
Page 121

122
122
V3
Small Boutiques
Data, BI, Analytics
(fraud analytics & other special cases)
Page 122

123
123
V3
Data Scientists
Page 123

124
124
V3
Marketing Automation
Page 124

125
125
V3
RPA Implementation
Page 125

126
126
V3
Blockchain Implementation
Page 126

127
127
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General Software
Development (except Web &
Mobile)
Web & Mobile development
SaaS implementations
Core (Modernization &
Package) implementations
Blockchain projects
IoT Projects
Page 127

128
128
V3
Development Implementation as a Percentage of VAS
Page 128

129
129
V3
Development
Page 129

130
130
V3
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131
131
V3
Development
Page 131

132
132
V3
Page 132

133
133
V3
General Software Development
(except for Web & Mobile)
Development Implementation Projects
Page 133

134
134
V3
Small Boutiques
General Software Development
(except for Web & Mobile)
Page 134

135
135
V3
Web & Mobile Development
Page 135

136
136
V3
Small Boutiques
Web & Mobile Development
Page 136

137
137
V3
SaaS Implementations
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138
138
V3
Core Modernization
Page 138

139
139
V3
IoT Implementation
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140
14042
Complete and/or application
outsourcing (Client owns the
HW)
Infrastructure Outsourcing
(infrastructure, storage mngt,
DBA services)
Off-site Data Center
(Operational/DRP). (Client
owns the HW)
Call Centers/Help Desk
Outsourcing Services
Cyber security managed
services (ie: SIEM service)
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141
141
V3
Outsourcing & Managed Services
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142
142
V3
Outsourcing
& Managed Services
Page 142

143
143
V3
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144
144
V3
Outsourcing
& Managed Services
Page 144

145
145
V3
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146
146
V3
Complete and/or Application Outsourcing (Client Owns HW)
Application Support Outsourcing (SLA Based)
Page 146

147
147
V3
(Infrastructure Operations, Storage Mgmt, DBA services)
Page 147

148
148
V3
(Infrastructure Operations, Storage Mgmt, DBA services)
Page 148

149
149
V3
Off-site Data Center includes Operations and DRP
(Client owns the HW)
Page 149

150
150
V3
Call Centers/Help Desk Outsourcing
Page 150

151
151
V3
Cyber Security Managed Services (SIEM Service)
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152
15242
Business Services as a
Service- BSaaS (Salaries,
Payments, BPO, etc)
Platform as a Service PaaS/
Infrastructure as a Service
IaaS
Software as a Service SaaS
DRP as a Service
Page 152

153
153
V3
Cloud Services as a Percentage of VAS
Page 153

154
154
V3
Cloud Services
for Enterprises (only)
Page 154

155
155
V3
Page 155

156
156
V3
Cloud Services
for Enterprises (only)
Page 156

157
157
V3
Page 157

158
158On-Prem, Hosted, PaaS Located and SaaS (born in the cloud)
applications are not the same, very different
Page 158

159
159
V3
Business Services as a Service BPaaS
(Salaries, Payments, BPO, etc)
Cloud Services for Enterprises
Page 159

160
160
V3
Platform as a Service (PaaS) and Infrastructure as a Service (IaaS)
Public & Enterprises only
Cloud Owners
Page 160

161
161
V3
Global public clouds
enterprise market presence 1H20
Market Presence
LocalSupport
AWS
Microsoft
Google
Oracle
Page 161

162
162
V3
Platform as a Service (PaaS) and Infrastructure as a Service (IaaS)
Public & Enterprises only
Cloud Resellers
Page 162

163
163
V3
SaaS (Software as a Service)
Born in the cloud or cloud-enabled
Page 163

164
164
V3
(many, many, many more)
SaaS (Software as a Service)
Born in the cloud or cloud-enabled
Page 164

165
165
V3
Disaster Recovery as a Service (DRaaS)
Page 165

166
166
V3
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Team Expansion on-premises
Team Expansion Nearsite (off
premises)
Team Expansion Nearshore
Page 166

167
167
V3
Team Expansion Services & Staff Augmentation
Page 167

168
168
V3
Team Expansion Services
Staff Augmentation
Page 168

169
169
V3
Page 169

170
170
V3
Team Expansion Services
Staff Augmentation
Page 170

171
171
V3
Page 171

172
172
V3
Team Expansion Offshore (not in Israel)
Staff Augmentation
Page 172

173
173
V3
Team Expansion on-premises
Staff Augmentation
‫גולגולת‬
Page 173

174
174
V3
Team Expansion Near-shore
Staff Augmentation
‫טובות‬ ‫נשמות‬
Page 174

175
175
V3
175
For more results of
the 2020 Study and
the v3 version
please open the
other 3 volumes.
Page 175

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176
V3
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V3
42
Any questions or comments
please contact me:
Dr. Jimmy Schwarzkopf
jimmy@stki.info
972 9 790 7000
Page 177

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