This document presents market analysis and trends in the Israeli IT market from 2021-2022. It finds that the hardware, software, and services sectors are converging, with traditional hardware and software companies increasingly offering cloud and subscription-based services. Growth areas include public cloud infrastructure, data platforms, cybersecurity including zero-trust and SASE models, and low-code development tools. Traditional IT consulting services are expanding to include more cloud consulting. Infrastructure is increasingly automated through DevOps practices and software-defined approaches.

1. CTO Markets
perspective
Israeli IT
Market Study
2021

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In the battle between Hardware, Software and
Services

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We’ve got a winner:
Services

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The business journey:
HW company
“We are a
software
company now”
“We are cloud
(services)
company now”

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Traditional “Services” are now part of HW & SW. Examples:
2018 0.05% 2019 0.05% 2020 0.05% 2021 0.05% 202
Data Center Physical
Equipment
$97.00 2.58% $99.50 -14.57% $85.00 20.00% $102.00 58.82% $1
Off-site Data Center:
Co-Location; Hosting (Client
owns the HW)
$88.00 6.82% $94.00 8.51% $102.00 22.55% $125.00 60.00% $2
POS +Self Service
(ATM/Kiosks/other)
$170.00 8.82% $185.00 2.70% $190.00 7.89% $205.00 7.32% $2
TOTALS $355.00 6.62% $378.50 -0.40% $377.00 14.59% $432.00 34.72% $58
2018
servers X86 $305
Legacy (non-x86) $32
Data Appliances $13
HCI appliances $36
Public Cloud IaaS PaaS
(Compute as a Service )
$130
TOTALS $516

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Servers: general decline in traditional HW, growth in HCI (on
the expense of storage) and Cloud

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HCI neck to neck battle
(from Hyper Converged to Hybrid Cloud)

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Israel Public cloud for enterprises : how will next 2-3
years look like?

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Repatriation from cloud in Enterprise IT? Not yet
Cloud

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PC: 2021 Eldorado
2018 0.05% 2019 0.05% 2020 0.05% 2021 0.05% 2022
Window PCs (Notebook &
Desktops) Enterprise only
$278.00 1.08% $281.00 28.83% $362.00 -3.31% $350.00 -14.29% $300.00
Non window's PC's
Enterprise only
$13.00 7.69% $14.00 50.00% $21.00 33.33% $28.00 10.71% $31.00
TOTALS $291.00 1.37% $295.00 29.83% $383.00 -1.31% $378.00 -12.43% $331.00

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Storage market
Similar location
Influence by Defence contract

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Cisco dominance in the networking market

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DC market is booming because of global cloud vendors
& R&D labs
2018 0.05% 2019 0.05% 2020 0.05% 2021 0.05% 2022
Data Center Physical
Equipment
$97.00 2.58% $99.50 -14.57% $85.00 20.00% $102.00 58.82% $162.00
Off-site Data Center:
Co-Location; Hosting (Client
owns the HW)
$88.00 6.82% $94.00 8.51% $102.00 22.55% $125.00 60.00% $200.00
POS +Self Service
(ATM/Kiosks/other)
$170.00 8.82% $185.00 2.70% $190.00 7.89% $205.00 7.32% $220.00
TOTALS $355.00 6.62% $378.50 -0.40% $377.00 14.59% $432.00 34.72% $582.00

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SOFTWARE (on-prem & cloud) PRODUCTS

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Software is not traditional “Software” anymore but
rather “Subscription”

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New (still small) category: Data platform in cloud

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STKI new Cyber Security SW categories
2018 2019
Endpoint related tools $43.50 5.75% $46.00 15
NetworkWeb cloud services (FW,
WAF, ddos services , etc.)
$75.00 6.00% $79.50 10
data content related tools (DLP,
DB FW, DLP Halbana, etc.)
$32.50 10.77% $36.00 2
cyber management tools (SIEM
tool, Incident responds, automation)
$33.00 6.06% $35.00 2
Zero Trust including identity,
access, SDP software defined
perimeter, SASE (secure access
$20.00 5.00% $21.00 4
Other cyber tools (secure
development, awareness etc.)
$11.00 4.55% $11.50 4
TOTALS $215.00 6.51% $229.00 8

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Cyber tools categories market size 2
Endpoint related tools $4
NetworkWeb cloud services (FW,
WAF, ddos services , etc.)
$7
data content related tools (DLP,
DB FW, DLP Halbana, etc.)
$3
cyber management tools (SIEM
tool, Incident responds, automation)
$3
Zero Trust including identity,
access, SDP software defined
perimeter, SASE (secure access
$2
Other cyber tools (secure
development, awareness etc.)
$1
TOTALS $2
1
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Endpoint Cyber Security – Old vs. New

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SASE includes lots of functionality

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Gartner’s
SASE: Secure
Access Service
Edge

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SASE is
more than
Access and
Identity

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Low code growing market
2018 2019 2020 2021 2022
Project & Portfolio Management $28.00 3.57% $29.00 -13.79% $25.00 -12.00% $22.00 -9.09% $20.00
Development tools, ALM, Devops
for all environments (including
Mobile)
$74.00 2.70% $76.00 -14.47% $65.00 7.69% $70.00 2.86% $72.00
Low Code tools $2.00 115.00% $4.30 39.53% $6.00 50.00% $9.00 33.33% $12.00
TOTALS $104.00 5.10% $109.30 -12.17% $96.00 5.21% $101.00 2.97% $104.00

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The advantages
TTM
No need for specialized
developers
Fit for junior/legacy
developers
Low technical debt
Good for business
(application) experiments
(MVP)

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Will 2021 be the “Low Code” year ? “Critical mass” is needed

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IT MANAGEMENT & OPERATIONS TOOLS
MARKET 2018-2022
Values in Million USD
2018 2019 2020 2021 2022
IT Operations, Asset Management,
APM, AIOPS Monitoring, Workload-
Scheduling excluding ITSM,
Service Desk
$80.00 5.62% $84.50 -5.33% $80.00 -6.25% $75.00 6.67% $80.00
ITSM - Service Desk $24.00 10.42% $26.50 -16.98% $22.00 13.64% $25.00 8.00% $27.00
TOTALS $104.00 6.73% $111.00 -8.11% $102.00 -1.96% $100.00 7.00% $107.00

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IT Operations, Asset Management, APM, AIOPS Monitoring,
Workload-Scheduling (excluding ITSM, Service Desk)

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SRE (Site Reliability Engineering) vs. Devops
Devops
• Delivery
• Release automation
• Environment builds
• Config management
• Infrastructure as code
• Primary focus: Delivery Speed
SRE
• Operations
• Incident response
• Post Mortems
• Monitoring, Events, Alertings
• Capacity planning
• Primary focus: Reliability
Source: Atlassian

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Observability –
Developer’s mission in
the new world of
Operations

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VALUE ADDED SERVICES

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From “Infra consulting” to “Infra & Cloud consulting”

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Traditional STKI services categories:

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Than came “Devops”
Infrastructure
Projects
Consolidation/
Virtualization/
Containers
/Monitoring/
BSM/ Storage/
Hardware/
Networking
Projects
DevOps and
Infrastructure
automation
projects
Software
integration of
middleware, SOA
& BPM
Cyber security
product
implementations

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But what about public cloud?
So we divided the service to 2 categories:
Infrastructure
Projects (on
premise only)
companies
Consolidation/
Virtualization/
Containers
/Monitoring/
BSM/ Storage/
Hardware/
Networking
Projects
DevOps and
Infrastructure
automation
projects
Software
integration of
middleware, SOA
& BPM
Cyber security
product
implementations
Cloud
infrastructure
projects (public
cloud only)
companies
Consolidation/
Virtualization/
Containers
/Monitoring/
BSM/ Storage/
Hardware/
Networking
Projects
Devops and
Infrastructure
automation
projects
Software
integration,of
middleware, SOA
& BPM
Cyber security
product
implementation

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Traditionally, infrastructure related services were divided
between "System”, “Storage”, “Networking”, “Cyber”
Storage
System Networking
Cyber

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In the cloud, all is done by the same person
(with code…)
Storage
System Networking
Cyber

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STKI On premise positioning vs. cloud positioning:
similarity in the cloud positioning
STKI on premise positioning
STKI public cloud positioning
Rather different companies
Rather same companies

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Should STKI rank “system, storage, network, cyber,
devops” services all together?

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Cyber Security services map
Consulting (PT,
regulations, organization,
budgets, etc.)
Projects: implementing
products
Siem/Soc as a service
MDR – managed
detection response
IRT Incident Response
Team ERT (emergency)
Install and operate the
products – in the cloud
(automatically) as a service
From manual consulting
to automation → create
a product
CISO as a service

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Cyber product implementation (on prem + cloud)
In public cloud
On premise

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Including MDR activity

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Cyber security services
The trend from “manual” to “automation” reduce the difference
between “consulting” and ”product implementation” segments

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What about new “cloud” categories?

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Should STKI still divide the IT market to HW-SW-VAS?

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Any questions or comments
please contact me:
Pini Cohen
pini@stki.infl
972 9 790 7000
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