STKI Israeli Market Study 2024 final v1

jimmyschwarzkopf 820 views 190 slides Jun 29, 2024
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About This Presentation

2024 Market analysis of the Israeli Information Technology Market


Slide Content

Israel IT
Market

Dr.Jimmy Schwarzkopf

Jimmy is a founder of STKI (META Israel)
land holds degrees in Engineering (BSE & MSE)
and in Business & Entrepreneurship (DBA & MSIA)

Areas ol cove
i

Pini Cohen

ee Pin has ben working in STKI sin
el ia Pini holds BA in Computer Scien
and MBA from Tel Aviv Univer

0,

‘Areas of coverage:
Cloud strategies and operations

Cloud native development and architect
‘Traditional Hardware and Data Center
Devops and cyber operation envronme
Finops and data platlorms

Middleware and modern integration
Technology procurement management

STKI Research Team

Einat Shimoni
Einat has been working in STKI
holds a BA in socal studies from.
Galit Fein

and an MBA from Tel-Aviv University,
Galt has been working in STK! since 2008,
holds an MBA from Ben-Gurion University

and is a registered Chief Risk Manager (CRO)

2 1996,
Han Univ

‘reas of coverage:
Customer engagement strategies:
un + Customer Experience
- CRM
+ Marketing Automation
Omni channel
sien (RPA, OCR, ect 2 Service Design
Data den transformation:
+ Data sraegy
Data operations
+ Data science, Machine
Loaming and Al
+ Democratization
Reut Shefer Bar + iteracy and monetization
Reutjined STKI during 2021,
holds MBA in Finance rom Univers
of Haifa and MBA in
Data Science Anal
from Tet Av Une

Areas ol coverage
Organizatio

(eb 3.0 and M

ERP, SCM.
4 Web Contant Management

M - Enterprise Content Management, KM

ICM, HA and work environment

X - Employee Experience

OA and Testing technologies and software

Call Center

Ps N Methodology and how to understand the
NE results

$ page: 4
(re Economy, business activity and number
Í / of companies
Page: 24

Israeli Trends 2024 -2026

) page: 59
de IT Budgets by Industry
7 “ pase 70
Ki IT Market forecasts (statistics)
po page: 83

=
=
a STKI.INFO

Infrastructure Products
“Markets and Rankins”

Pa | page: 91

Software Products
“Markets and Rankins”

3 page: 127

N
Value Added Services + 8
“Markets and Rankins” |

Pm page: 242 | —

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

STKI:
methodology and
how to
“understand”

the results

Founded in 1992, STKI is the leading business technologies
market research and strategic analyst firm in Israel.

Over 32 years of experience in the IT analyst sector and thousands of annual face-to-face
interviews with key industry participants have enabled STKI analysts to establish solid, long-
standing relationships with customers.

STKI customers include major IT organizations (government, defense, financial institutions,
telecoms, manufacturing, medical, education, etc.) and IT suppliers/vendors (infrastructure
and software suppliers, consulting and professional services firms).

STKI works closely with vendor’s senior management (strategy, business development, and
marketing).

Where end users are concerned, analysts meet with CEOs, CFOs, CMOs, CDOs and ClOs
(as with all levels of IT decision making) thereby attaining complete information of their
technology as well as their business needs in order to service the account with value .

.

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Unlike some research

and advisory firms
e

Ms info

does no consulting
work,

allowing our research to
be totally unbiased,
with no hidden
agendas to promote
any particular
technology or vendor.

e
ft STKI.INFO

Virtual meetings
Face-to-face meetings

STKI Analyst House
Calls (for both users
and vendors)

CIO STKI "Help Desk"
Inquiries

Surveys

Strategic Marketing 4
Positioning

Round Tables for users

STKI Annual Summit
(Israeli Market)

STKI services include

Weekly Webinars

Vendor Discovery
Series (Newsletters
and workshops)

Vendor Innovation
Workshops

In-house Workshops
CIO Annual Bootcamp
CTO Annual Bootcamp

Brainstorming
(based on Design
Thinking) Workshops

STKI Annual Summit
(Trends)

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

USER
Strategic Bi

+ 250 CIOs
+ 16 Industries

+ 456 VENDORS
product Presented XOOs Briefings
briefings 150 categories
& sales Over 1000
analysis products/services offered
in Israel

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Number STKI Research Results:
1. ITTrends
2. Surveys about organizational issues
Round Table Summaries
Industry IT Budgets
IT Market Forecasts by category
Vendor Tiers by category
Product Positioning
Staffing Ratios
Other

aw

son

Marketing Automation Suites 2019

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

STKI Methodology: equilibrium model

Y

The
must be equal to all /T sales (from vendors).
are either
(market information based on data from users of IT)
(market information based on data from IT vendors).
STKI is one of model
= and the

e
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

In order to calculate the “IT Market”
(what is bought/sold in Israel)

a

A hy,
Technology Soe Technology
Users x Vendors

What users bought?

From whom? how much did they sell?

to whom?
¿for how much?
competitors?

x Data frormi2023. 53

Our study looks at any (products/services) sold to
enterprises (also government & security) in Israel; taking into

We rom VENDORS by
account REVENUE

ond

| rankings are based partly on new projects, new names and market penetration growth SIT ARRMEE

> Yearly revenues of hardware sales and hardware maintenance
> Yearly revenues of software subscriptions & licenses, software maintenance

> between new projects and continuing projects (| )
> between work done by the
. The to the vendor the work.
> revenues from projects done in fixed price, cost plus ( Ds
managed services and those done by staff augmentation ( ) projects.
> of work done by professionals in a project versus
that done by employees in the clients IT department.
> We any work/ products for .
=
EAS
=

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Users of >
IT

- Gan

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Some IT vendors in the study are:

+ Private Israeli Companies

+ Public Israeli Companies

Subsidiaries of international companies

Israeli companies connected to international companies
Partly owned (by other IT companies)

Divisions of IT Companies that are managed independently

In order to be part of our study companies in
detailed vendor briefings with our analysts and answer a detailed
survey; what is be clients of our services.

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Vendors
page 1

sr | a

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Vendors
page 2

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Over Es
150 =

categories
(revised)

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Infrastructure
Products &
Services

Software

Products
(usage fees, licenses,
subscriptions, SaaS
and maintenance)

VAS

Value Added Services
(professional services)

THE KNOWLEDGE INTEGRATORS STKI changed “categories”

retroactively (2018) in order to

A represent better the trends of:
sa COLA on-prem, cloud, payment by
ANNUAL ISRAELI IT MARKET STUDY subscription, All as a Service, etc

| eee

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Msmoanro

We ro VENDORS y]
e
tej [QUENT anses

Copyright @STKI_2¢24 Do not remove source or attribution from <:iy slide, graph or portion of graph

The a company is

STKI has with the vendors —~
| (revenues, projects) and we tried to

Tier One Companies Smaller Companies

Small Boutique company
== > or department
+ | = en
and not
deliveries or

i
invoices STKI ranks vendors by REVENUE and CLIENT MINDSHARE >

zu == | rankings are based partly on new projects, new names and market penetration growth

STKI.INFO

STKI calculates
market sizes by
revenues/sales

Copyright @STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

ef 8 A

Atl

RAXAY Pie Ne

Users of Technology Integrators VARs Manufacturers/Software Houses

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

(usually are not shown in our study) are
Es intermediary reseller entities; between the original
or
En and other entities in the distribution channel (VARs
age Sete, au, and INTEGRATORS).

Local Company Representative

+ Distributors.
offer third party software
ES and hardware to the end user or integrators at a markup,
Ses aca, along with a /imited combination of procurement

A consulting, configuration, and customization services (shown
in sections INFRASTRUCTURE and/or SOFTWARE)

Integrators Integrators
Value Added Services Value Added Services
ay offer professional's services (consulting,
developing, implementing or sourcing manpower) in order
to deliver enterprise computer services to the organization.
users of technology (shown in section VALUE ADDED SERVICES).
a=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

É and be used as
such. This positioning is intendent to reflect to which a
product is

Focused on the enterprise sector (not SMB) 92
a X axis (Market Presence): 92%,
Installed base; New sales; Mindshare 2 qe
4 Y axis (Local ISRAELI Support):
Number and quality of support experts; localization; local R&D

4 Vendors to watch: New players that only recently entered the market

and therefore cannot be evaluated against longtime players
4 Global leaders: marked according to international analyst firms

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Number and quality
of support experts,
it's localization and

language support
and if there is local
R&D

a

Zz
i sTKI.INFo

%
The
9
9 Yo

Installed base; New sales; Mindshare

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

according to
international analyst
firms

©

New players that only
recently entered the
market and therefore
cannot be evaluated
against longtime
players

This is NOT a technological or functional positioning
and be used as such

This positioning is intended to reflect

to which a product is

Israel
economy, business
activity

aby THE ISRAELI BUSINESS WORLD IS CHANGING
companies must do more with less (and fast)

New Business Cycles || [ue

New cycles have
greater volatility

Old Business Cycles

¢
Frequency
New cycles come faster

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Misriaanro

Israel GDP grows by 14% in Q1 2024 after slump in late 2023

The Israeli economy recovered from some of the worst effects of the war in Gaza at the start of the
year, returning to growth after a heavy setback in the final months of 2023.

The Central Bureau of Statistics said in an initial estimate that the Israel GDP grew at an annualized
rate of 14.1% in Q1 2024 from the prior three months, just shy of a Reuters consensus of 15,3%.

The rise marked a significant recovery from a contraction of close to 22% in the last quarter of 2023,
which followed Palestinian group Hamas' October 7 cross-border attack on southern Israel and the
IDF’s subsequent ground invasion of Gaza.

The shock derailed nearly two years of continuous growth in the Israeli economy. Israel's military
operation in Gaza has continued to persist into 2024, and attacks by both military and settlers in the
occupied West Bank have escalated.

The war has precipitated severe labor shortages within Israel, compounded by the mobilization of
Israeli citizens for military service and the barring of Palestinian workers from entering the country.

Despite the ongoing war, which includes continued Israeli operations in Gaza, northern Israel and
escalating violence in the West Bank, many economic indicators such as private consumption and
investment have shown signs of recovery, though they have not returned to pre-war levels.
Military spending continues to inflate public consumption figures.

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel's Economy Rebounds Sharply
War against Hamas caused one of Israel's deepest slumps ever
|

M GDP change year-on-year
40
30
20
nl ll L':
3
Bs im En ee —… lo 8
> = TE 7
-10
+20
-30
2 8 Q4 Q1 2 8 Q4 Q1 2 3 a Q1 02 Q3 a Q1 Q2 Q3 a Q
2019 2020 2021 2022 2023 2024
Bloomberg @

Source: Israel's Central Bureau of Statistics, Bloomberg

Ex
A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

)) OECD Economic Outlook, Volume 2024 Issue 1

Which is projected to grow by 1.9% in 2024 before picking up by 4.6% in 2025. Private consumption rebounded quickly and is set to remain an
engine of growth, together with government consumption related to the war. Investment and especially construction, which declined sharply late in
2023, are projected to recover only in part, remaining below their October 2023 levels, as influxes of foreign workers do not fully compensate the
suspension of Palestinians’ work permits. Inflation is projected to remain at 2% per cent in 2024-2025, as the impact of the 2025 VAT increase
offsets ongoing disinflation.

Disinflation will allow policy interest rates to be cut in 2024. Nevertheless, greater sovereign risk and the rise in government spending call for prudent
monetary and fiscal policy. Permanently higher military expenditure needs to be funded by a combination of revenue-generating measures and
spending restraint, whilst preserving programs that underpin future growth such as education and research. The planned value-added-tax rate
increase in 2025 should be supplemented with a streamlining of exemptions.

The attacks on Israel of 7 October 2023 and the subsequent war have deeply impacted the Israeli economy. Schools and many services closed for
three weeks. The suspension of work permits for Palestinians and the departure of many foreign workers halved the number of non-Israeli workers
from 6.796 of employment before October 2023 to 3.5% at the end of 2023. Homebuilding consequently declined by 53% in the fourth quarter
compared with the previous quarter, and overall investment shrank by 26%. Foreign labor shortages are also weighing on farming. The enlistment of
340,000 reservists (7.2 % of employment) weighed on activity across the economy including in the high-tech sector. Government consumption
however soared by 17% in the fourth quarter of 2023 due to military operations. Credit card purchases, which expanded strongly in December 2023
and the first quarter of 2024, point to a rapid recovery in private consumption.

=
=

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

)) OECD Economic Outlook, Volume 2024 Issue 1

with exports and imports both shrinkingin the last quarter of 2023. Following resumption of industrial activity after the October production shutdowns, goods
exports rebounded in early 2024. Service exports have been more sluggish especially foreign tourism, which has been mostly halted. The 2023 fallin global
food and energy prices contributed to the disinflation process prompted by policy interest rate increases from 0.1% until April 2022 to 4.75% in May 2023. The
annual consumer price inflation rate was 2.7% in March 2024, down from 5.0% in March 2023

Fiscal policy is being reviewed to adapt to new requirements. The very large amount of war and associated expenditure has contributed to the move from a
budget surplus of 0.4% of GDP in 2022 to a deficit of 4.1% of GDP in 2023. This deterioration, together with greater perceived country risk, led credit rating
agency Moody's to downgrade Israel’s sovereign rating in February. Israel's sovereign credit default swap rate has remained half a percentage point aboveits
pre-October 2023 levels since November 2023. A key part of the authorities’ response has been to find new sources of revenue including by increasing the
VAT rate from 17 to 18% in 2025. There is also restraintin non-military spending, one example being cuts in convalescence pay in 2025. Looking beyond the
immediate cost of the war, military spending is set to rise permanently by at least half a per cent of GDP.

Headline and core disinflation together with a stable currency opened the way for the central bank to start an easing cycle. The Bank of Israel cutits main
policy rate from 4% to 4% per cent in January 2024. Easinginftationary pressures are anticipated to allow the central bank to implementthree further 25 basis
point cuts to bringits key rate to 3% per cent by the end of 2024 andin 2025.

Outputis set to expand over 2024-2025 under the impetus of stronggovernment and private consumption anda partial recovery of investment. Construction
is projected to recover only partly from the depths at the end of 2023, holdingback investment and imports, as foreign workers replace only some of the
Palestinians whose work permits have been suspended. Homebuildingis anticipated to account for about 4% of GDP by end 2025 against 7% in the third
quarter of 2023. Labor shortages are also set to weigh on farming activity. Foreign tourists are assumed to start returning to Israel towards the end of 2025.
Prices are projected to keep mildly decelerating, as the economy operates slightly below full capacity and lower global energy and food prices pass through
the economy, even if the VAT increase is going to push up headline prices.

a=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

)) OECD Economic Outlook, Volume 2024 Issue 1

The opening of a northern front in the current conflict would halt consumption and further disrupt economic activity, generating a slump similar to
the one observed in late 2023 and considerably exacerbate budget pressures. Furthermore, failure to attract enough foreign workers could result
in the construction and investment recovery being weaker than projected. On the other hand, construction and overall investment could expand
considerably more than projected if influxes of foreign workers are large enough to compensate the shortages that followed the suspension of
Palestinian work permits, or if this suspension is reversed. A peaceful resolution of the conflict would also boost growth, including through the
resumption of foreign tourism and stronger investment, while easing budgetary pressures through lower military expenditure and a reduced
sovereign risk premium

The large government spending shock created after the attacks and the subsequent war can only in part be absorbed through higher debt.
Permanently higher military spending calls for new tax revenue and spending restraint. In this regard, the choice of raising the general VAT rate in
2025 is welcome, as the current rate of 17% is relatively low by OECD standards and VAT is a form of taxation that implies comparatively limited
economic distortions. This measure should be accompanied by efforts to remove VAT exemptions, starting with the one applicable to certain
online purchases. Increasing residential property tax rates would also bring revenue whilst creating a more level playing field for municipalities
between commercial and housing development.

Expenditure restraint would best preserve future prosperity by using spending reviews to identify programs to cut, scale back or reform. Examples
to consider for cuts include subsidies that weaken incentives to join the labor market. Spending restraint however ought to leave sufficient funding
for areas, such as education, that are particularly important to a country with strong demographic growth and an economy whose dynamism
depends on the knowledge-based high-tech sector. Whilst disinflation leaves space for some monetary easing, monetary policy must remain
prudent to maintain favorable funding conditions for the government and the economy.

=

e
=

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STKI.INFO

Israel

GDP at market prices
Private consumption
Government consumption
Gross fixed capital formation
Final domestic demand
Stockbuilding*
Total domestic demand
Exports of goods and services
Imports of goods and services
Net exports’

Memorandum items

GDP deflator

Consumer price index

Core inflation index?

Unemployment rate (% of labour force)
General government financial balance
General goverment gross debt (% of GDP)
Current account balance (% of GDP)

1
2. Consumer p

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel: Demand, output and prices

ributions to changes in real GP, actual
index excluding food and en
Source: OECD Economic Outlook 115 database

2021

93
114
52
135
104

05
107
148
212
-09

21
13
50
-34
678
39

2022

64
75
0.0

10.4
65
09
73
85

12.1
06

48
44
4.0
38
04

60.4
39

2023

2015 pri

18
07
79
46
10
07
03
06
66
17

41
42
42
3.4
41
623
51

2024

147

124

26
05
24
0.1

04

28
25
20
39
66
66.4
44

2025

46
25
27

127

48
0.0
48
30
34
00

23
25
25
39
55

677

43

OECD Economic Outlook, Volume 2024 Issue 1

)) OECD Economic Outlook, Volume 2024 Issue 1

Israel: Economic growth and activity indicators

The war Credit card purchases
has hit the economy hard point to private consumption recovering
Index 202303 = 100 eee Index 202101
108
ne 2023 project 150
104

140

109 Ñ 130
98
120

94 no

a a a m a a 100
2023 2023 2024 2024 2024 2024 2021 2022 2023

e: Bank of Israel; OECD Economic Outlook 113 database; OECD Economic Outlook 115 database; and OECD calculations.

e
=

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)) OECD Economic Outlook, Volume 2024 Issue 1

Israel: Inflation and fiscal indicators
Inflation remains below 3% The war has deepened fiscal pressures
of GOP of GDP
7 100 2

A ‘Tamm
~~ - EN
|

22 2023 2024 2025 2021 2022

ECD Economic Outlook115 database.

2024 2025

e
=

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Economic indicators - Business Sector Activity

GOP and uses

Asof: Last Figure change

Employment and wages As of: Last Figure Change

Other industries As of: Last Figure Change

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

n°0,2016 ynna nm ann anima
PRICES 2015 SEASONALLY ADJUSTED DATA - CHAINED, AT

sr

NIS

43,000

42,000

41,000

40,000

39,000

38,000

37,000

36,000

35,000 9

34,000

wo? 'n'71 mın Win
Gross Domestic Product per Capita

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

di Expected Slice of GDP for T! L military Expenditures in 2024

Israel’s Military Expenditure

Bloomberg

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

ats

e
=

How we check our economic forecasts

State of the Economy Index (% change) ICE CREAM SALES
Probability of a slowdown MI

(both monthly data sets) der IT

y Ay aa Market
< > CORRELATION
Py TR =

HOT WEATHER

IT Company

AA Budgets
= Reichman | TheMeinickindex SUNBURN
University |

(monthly data set) >. \ monthly data

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Business Cycles by the Melnick State of the Economy Index 1994-2024

The Melnick State of the Economy Index rose by 0.3 percent in April
‘The recovery of the business sector activity continues{main causo of the recovery Is private consumption)

170

The Corona Crisis - Mar 2020

130
[The Big Crisis - Oct 2000

[The World Financial Crisis - Dee 2008

110

The Current Cycle - Oct 2023

Monetary Restraint - Mar 1996
Prolonged Output Growth - Jun 2010

70 A ere
[Growth and Recovery - Aug 2003
y [The High Tech Boom- May 1999

Prof. Rafi Melnick, Reichman University

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

The Melnick State of the Israeli Economy Index
increased by 0.3 percent in April 2024

+ THE BUSINESS SECTOR continues to grow although the level of economic activity has not yet returned to pre-war levels
+ THE REVENUE IN COMMERCE AND SERVICES continues to rise and is the main factor for economic growth in the second

quarter of 2024.

+ THE INDUSTRIAL PRODUCTION INDEX remains low and probably reflects a slow return to activity in the industry.
+ THE IMPORT INDEX, corrected itself downward this month. It is possible that the jump in imports recorded the previous

month was temporary

+ THE NUMBER OF EMPLOYEE posts in the business sector remains unchanged and reflects stability in the labor market.

Employee

Revenue in posts in the The Melnick The change!

Industrial commerce Imports business Index theindex

Date production and services index sector (a) (percent)

Jul23 132.3 174.8 155.4 2,684 164.6 o1 |
Aug-23 139.5 1785 152.3 2,707 165.1 03
Sep-23 1333 1711 148.7 2,720 165.3 01
Oct 23 125.3 147.4 141.2 2,627 163.1 13
Nov-23 7 128.1 152.7 139.7 2,538 1612 12
Dec-23 31239 165.1 129.5 2,581 161.2 00
Jan-24 S 127.2 1726 140.4 2,600 161.4 01
Feb-24 5123.9 1711 149.3 2,599 161.5 01
Mar-24 (123.5 1725 161.0 162.0 03
Apr-24 148.1 1625 03

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Business Tendency Survey

(oa? OVNNA OPN Dim) ¿Uan 924 7797 [TON TINA "wat 7713 [TAN

Total Balance and the Change in the Revenue Index for All Industries in the Economy
30%

that
20%
executives have about

10% current and expected

A | 4 N developments
0% M À k UM lav AAA Ny Lr regarding production,
Y employment and
changes in the USDILS

exchange rate.

-10%

20%

30%

40%

50%
aah BE bd [ab Mk tl lM a be LA RL

2019 2020 2021 2022 2023 2024,

un 70 ¡ren puna ‘oy 9997 ron TINA nun
Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

10200

101.00

99.00

9700

The Composite State
of the Economy Index
is a synthetic indicator for
examining the direction of the
development of real
economic activity, in real time

9600

sr

100.16

101.54 101.60

9846 9841 9937

1.00

0.50

0.00

-0.50
percent

:1.00 | change

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Probability of slowdown relatively to the long-term growth

percent probability of slowdown

e
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Israel Purchasing Managers Index

© bank hapoalim

Manufacturing PMI in Israel decreased to 50.90 points in April from 51 points in March of 2024. Manufacturing PMI in
Israel averaged 50.73 points from 2003 until 2024, reaching an all time high of 67.20 points in December of 2016 and a
record low of 27.80 points in December of 2008. source: Bank Hapoalim/LPMA

PMI summarizes whether
market conditions, as viewed
by purchasing managers are

expanding, staying the same,
or contracting.

The purpose of the PMI is to
provide information about
current and future business
conditionsto company

decision makers, analysts, and
investors.

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

482

e
=

e

C

STKI.INFO

Israel: Consumer Confidence Index

Consumer Confidence in Israel decreased to -26.49 points in May 2024, the lowest in three months
April. Consumer Confidence in Israel averaged -17.55 points from 2011 until 2024, reachi

points in April of 2021 and a record low of -38.47 points jember of 2012. source: Central

om -20 14 points in
an all time high of 15.09

#
2024-06-10 10:50 AM May 265 20.1 18 =

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ATTN DOMINA”
‘ANNA YONN7 NIMIONA MITA 7w ANNA

DINNNI 101 VAT MIND 1.5 à Israel is not alone

‘NW! 7 VIN DANN AIR 70-2 fr

RI IT HT! 3 WLAN NIN

adDATAI2

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ECONOMIC FREEDOM

ISRAEL

57.4 58.6

e
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United States 701 4 2 4 8 . Y 8 80.0
Israel un 21 44 ) 8. 80 4 8 1]

ECONOMIC FREEDOM: REGIONAL VARIATIONS
(REGIONAL AVERAGE)

Middle East/
Regional North Africa
Ranking (57.4)
1 United Arab Emirates
2 Israel
3 Qatar

=
=
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2024INDEX OF

COMPARE COUNTRIES

3 israol United States France E United Kingdom
— Air France, x

e
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aby 12 ECONOMIC FREEDOMS | ISRAEL

RULE OF LAW GOVERNMENT SIZE

=
=
Ä STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

REGULATORY EFFICIENCY OPEN MARKETS

=
=
Ä STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

High-Tech Output Grew More Than Any Other Sector
Over The Past Decade

Output of selected sectors (in NIS billions)
and ts growth rate between 2012-2022

Ge) High-tech
$)

> À) Wholesale and
+ SD
Ce) Hantech SN

==

Wholesale m
and retail

QOD ins

e (LO mining and
PEE

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

provide appropriate long-term and shor term responses to the needs of the population,
including urban planning and formulation of scaland economic polices,

The data relate o the demographic characteristics of the population of krack population
‘romthanditssources:the geographic distribution othe population and population density
immigration to rad and Intemational migration, In adaiton, data ae presented on the
Structure of households and families, as wll as on the main components of change in the
famib er. marioge, dlvorce). This yea particular emphasis was placed on characteristics
of petsonal and amly status of men and women ina

‘Te data are based one st Population nd Housing Census (2008, as wellasonthe reports
resides a recrdedin the Population Register afte the Census ith, death immigrants,
‘dress changes, marages dores ec)

y ‘The population of Irael Is constant growing, and Ite demographic characteristics are

Population Immigration tolsrael and Family
Population oflsrae | International Migration Marriage and divorce (2020)
end year Immigration tolerael coupes who mans
Peers pensent fe sate | Coleco dread
nr Live births and fertility,

“Total fret at (verge

Annual popstion

Done

Migration felis abroad
(2020)

Departed rom brat

Terminations of pregnancy
Applications to commites
for terminaton of pregnancy

in 3020)
Retumedt aed
fate of appeatons
er 1000 women aged 15-49
Work permit holders
Eat] Households and families
Entered hr Pate households
¿compared with 26002020) | pease number of persons
a Departed rom raat erhowehol

angen moran

ze or

ducatonisa process ofleaming in which apersonacqutesknawledge professional expetise,
Skills vales and attitudes. Education enables people to realize thet ables s thatthe state

an improve human capital snd maximize he human potential of ke chiens. m she evn nn LAY ar
The data oneducatoninclude thefellowing: expenditure on education; the education system
{students ond teaching st}: higher education and vocational waning courses Inaction, soem en na aren) omo no aon m

data are presented on specaltopies I education.
The data are obtained rom the Ministry of Education as well as from institutions of higher 2
Sucaton the Ministry of Economy and Indus rom Central Bureau of Static surveys

And rom thersourcer. 2021,

National Expenditure
‘on Education (2021)

ofthe or
(compared with

‘ofthe COR In 2020)

The Education System
Schoais

In pray educaton
Teaching tat

Day care centres and
pre-primary education

Chien aged o-7

Teaching pe prima

of xamineer were
ent (oa mateo

=
E > matriculation Examinees

Dropping out ofthe education Reciplents of degrees

psi (under Ministry of from all Ian
Education supervision) ofhighereducation
during 2020/21
and before 202/22
sfene sensing 7-12 degree
(Joe Ab det)
topped outa a educó stem
Sénat enolnanenu | Second degree
ana ame
Higher Education,
Short Cycle Tertary Education THidearee
{Nom Academic) and Vocational
Grece Teaching diploma
Sendemiccolegen and
scademiccaegerstedueation AN
shorveydetertany
Theo: satention
a (nomacademic
Second degre suena
Ted degree student a,
Nel gee sade vocational raining
Teaching poms students cous fo sauts
peris bythe
Students atthe Open University Penn
Socal Mars and
Social Services 2020)

Theol
Fist degre students

AO nanny
A mann

Ce

‘ata onthe population ofbuainesesindudefrancalestimatesand demographic at all
Sevarous indices thr provides bas for chartering te structure of hela economy
inthe act of ndurtresin he economy.

Te data include the along top: active businesses inde economy the annua revenue
industries in the economy and chain store cre card purchases of private consumers
financial data on businesses based onthe Survey o Industries he production account and
thebalance sheet account and formation about trends in business.

The data re obtained fom business surveys conducted by the Central Bureau of Statistics

Sodom une score

Total even of eles
(excl dumands)

Chain Stores

Therevenue ales inde
leh see

Production Account
of the Business Sector
2019)

ross ale added

Compensstontor jobs

(8.4% ofatacove buinenen) 2020

Credit card Purchases | Balance Sheet Account
Business deaths 2019) by Private Consumers | of the Business Sector
(2019)

ninas deba msi un
Teer acter Indust goods

Othe goods and senics

“Thess value indexar
Gece press by
tores

seen yawn
020) pupa aN

ana mann
020) oy vana

paw manu

pepe ans nu nay

A country economic roth Ergl dependent on the aby o generate «cent and
tecnologia improvements, ad o senate them in process, e production a wel zn
‘ew gods and senos These improvements ae created rau inovatie scent and
technological aces whch tum absrct [das ito durable goods and series and ty
Sorte tnemansoucedteconamicgrth elas nese qua sands caco
Thistle presents à range of data on. among others the follwing areas senti and
technologie ac in the Ira economy, expendrure on clan RAD in the business
and iger education sectors separately busted research nthe higher education sector
ron innen and Communications Techndogies IC) andhigh tera ne fT

=
Hina Expenditure HighTech Information and
A E]

aa]

thetatienpendte

Higher Education Sector

02021)
Startup Companies
12020)

—— torpe as

Ruesga monthly mages

ns

pas
Use oficT
‘Sodalsurey)
Expenditure of
households on
‘communications
‘products 2019)

TEE Ba, a

‘trian pm)
i ee aan IN na

pa SR

orion won inate mom einen 2021) para man

pan oro an

uae gener government setrindudes the government minis the Nationa Insurance
It oaauihri Ihe attention hase mk
‘ieee are france the government

The gener goverment cor afretimportancein the areal economic regdaonand
producto of eres rind cect consumption

‘The ifomaton includes economic dita on eipendture reven, def and debt of the
enel government sector Dota abo presented on of development sistance (ODA)
ars paso deep come

‘The data ae obtained from the Minty of race he Minty of Defense. the Nation
Insurance mt, cal utes anc port of ubico prof tuto na of

General Government Expenditures General Government Overall Deficit

Tet Government Debt

tegen ore

Debt Product Ratio
General Government Revenue ss
87 2avecon General Government Debt
Thee 0
P Official Development Assistance
Rire ne

pon ox fa OU BE ES

snwnnn aına
snnnna mana ain

(ODA) mina? men ro :

| AND PER( DNS |

Da on pubhe tite and pacepcn provide information boutthe opus ttes
ressdence. employment econorr situation, emotional state and volunteerism.
Data an pub attudes and perceptions are bined fom the Social Survey mich scared
ut er yen on a ne sample dll ak population aged 2 and ver Te Socal
‘Survey whch teport one ring condone and are of he opus: mo paña
‘or Permanent qusrtonnarecotainng Quesson hat ae aka eschyrananda ann
‘mode that examines ew topes cach eo whch re mienta nee

The 221 survey dain death he tops Transportation andre ae languageuse
‘Pending mew fem member spending Une outdoor and aly ole an.

SatacionWehLte SemectStrss,— — QuaMyofLleinicators
andconomicSiuaión naines, meagan en
39 306 runs andDisrmination sera"
Satisfaction With One's nt RI TA
Dwelling and Area AS ‘Satisfaction with personal
Senn" 26.3% raro aan
aca] “mama | ee
ssc" a
etes | 552 Pe amas
none pl

ne gage uti

rabrlaguagefuan Work-Life Balance
RE coma MAA

Han REES are

me | 29

eg pas Mm: hs UNO

aoe BS eta
> na
EEE
2 madame Siow
5 cn opa
Din

israel
Trends
2024-2026

+ Hybrid Workspace & Workers
Crisis Management Services & Tools
Regularly modifed & tested BCP
Data Literacy Svategies & Sefservico Analytics
+ Outsourcing
Staff Augmentation (especially offshore)
Managed Services
+ Fullstack development
Microservices& Container Development
Internal Development Platform (DP )
Progressive Web Applications (PWA)
+ Lowcode(ciizen developers)
API & Composable Software (enter office)
Decsecope
Site Reiabiliy Engineering (SRE)
FinOps (software & managed services)
+ Io (Connected Sensors & Edge Infrastructure)
Home, & Business Sensors
Vehicle Sensors
Health Sensors

Existing trend

| acceleration. al |

serre Temporary <
+ Procurement Cloud/SaaS/Software/Hardware
Moving perpetual to subscriptions licenses
CAPEX to OPEX in IT Budgets
Uniting NOC & SOC centers
+ Four (4)lracl-Based Hyperscalers
Local XaaS marketplaces
+ Four (4) undersea cable (1/Q 2024)
+ Smartphone capabilites
‘Allways-on camera
Seamless voice contol
WiFi 6 & SG connectivity (10Gbps) |
+ Technical Debt should be paid
(id omprem ERP to cloud
Life & shi
New SaaS core apps
Closing of on-prem Data Centers
* Co-location services
Backup as a Service
laaS & PaaS services

ANS

Displacement

New trend

STKI.INFO

+ Digitalin Scale Value Strategies
Hyper Personalizaon & concierge services
Employee Empowerment & Customer Engagement
Productied Enterprise Organizations
+ Naw Team Topologies
+" Stearmaligned Teams
Enabling Teams
Data Teams
Platform Teams
+ Hybrid-loud Core Technology Stack
+ SaaS Enterprise Solutions as frst choice
Cloud First Development
Open Industry (banks, insurance, health) Integration (API)
Communication & Knowledge Software
+ Cyber Tools
Zero-1ust SASE, Automated Incident Investigation
Digital identity Enhanced Privacy
Password Less Authentication
+ Ransomware Readiness, Mult Cloud Visibiliy

Catalyst

> Structural"

Data Science & Inteligent Predictive Analytics

Data Governance
Al (GenAl Narrow Al)
Innovation $

Al Literacy Strategies
ML Guperised, Unsupervised, Slftsupemised)
DL models (Iterpretabilty Risks, Compliance)
Inteligent Automation
+ Augmented Intelligence
Business Process Optimization (theory of constraints)
Alenabled Enterprise Applications
RPA. BPM tools
+ Robotics
Ecosystem Business Model
Industy-specie Gouds
Platforme & marketplaces
Super Apps
+ Quantum Computing
Blockchain
Ceyptocurrencies
Web 30
+ ARR (augmented realty & extreme realy) & Metaverse

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

bl 2024-2026 era of transformations

+ Digital Transformation

* Data Transformation

» AlTransformation

+ Cloud (infrastructure services)Transformation
+ Cloud (software) Transformation

» E(verything)as a Service Transformation

+ Intelligent Automation Transformation

+ Human Transformation

* Others Transformation

=
=

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

WE

There are three invisible trends

4. outdated “everything "and
inability to integrate applications and/or
processes.

2 a shift from capital

expenditures to operational expenditures,
which has significant implications for
budgeting decisions.

3. the idea that a single vendor cannot

“Would it be so bad if the CEO, CFO & CIO could see you?” (
do the whole project.

e
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

WE

A
00

w y

SITIO

How much does unplanned IT
downtime really cost?

=
=

Invisible trend 1

“Technical Debt”

Age of most senior manpower employees (that hold important
application software knowledge) is over 65

Outdated infrastructure (software/ hardware)

Outdated software (several versions behind latest vendor version)
+ ERP and/or CRM

Outdated data management tools (ETL, DW, BI)

Core systems based on outdated technologies (not in itself broken
systems) but are critical to day-to-day operations
Inability to integrate applications or processes (in-house or partners)

Missing documentation
Un-commented configuration
Un-documented code changes

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Invisible trend 2

fiewoe _ etoitte

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

CapEx to OpEx

Israel’s High-Tech and Startups are cloud native and by definition have OPEX IT
budgets

+ CAPEX is capitalized and depreciated or amortized over the life of the asset, whereas OPEX is
expensed in the accounting period it's incurred.

+ CAPEX can improve the company's future earning capacity, while OPEX is necessary for the
daily functioning of the business.

e
E stKi.nro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

al servers,

\ i 4 Instead of large, one-time capital expenditures (CAPEX) for software licenses and phy
CE

This shift has several implications:

Budgeting and Cash Flow: OPEX costs are typically predictable and spread evenly over time, which can aid in budgeting and cash
flow management. When getting software as a subscription, the opportunity to stop paying maintenance doesn't exist, payments must
continue if the data it produced is needed.

Flexibility: with subscription models and cloud services, companies can easily scale up or down as their needs change. They can also
out a significant upfront investment.

experiment with different tools

Updates and Maintenance: SaaS and cloud providers typically handle updates and maintenance,

Security and Compliance:

In response to these trends, companies may need to adjust their financial planning, IT
strategy, and vendor management practices.
They may also need to train their employees on new tools and update their security and

compliance protocols..

=

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

WE

e
=

the shift from capital expenditures (CAPEX) to operational expenditures (OPEX)

Profit Margins: An in the short term because these costs
are expensed when incurred, whereas CAPEX is spread out over several years through depreciation.
Earnings Before Interest, Taxes, Depreciation, and Amortization

Return on Assets (ROA) and Return on Investment (ROI): These metrics could improve because shifting to an OPEX model often
means fewer assets on the balance sheet.

Cash Flow: Shifting to an OPEX model can lead to smoother and more predictable cash flows, since costs are spread out evenly
overtime. However,

Immediate Expense Deduction: OPEX can be fully deducted in the year they're incurred, potentially

Depreciation Deductions:

Profitability and Earnings Per Share (EPS): If the shift to OPEX leads to a

Long-Term Growth Prospects: Investors may view the shift to OPEX positively if it signals a move towards more flexible, scalable,
and efficient operations, which could enhance long-term growth prospects and thus stock price.

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

"|

Terre
Today,
ae because
TRUST different vendors do separate
parts.

We “should” have learned to

MA “either for

TRUST consulting, implementation
testing and fruition

ran
=

e
=

fe STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Invisible trend 3

Consultant: In this phase the project formally is initiated,
‘and planning gets under way.

Integrator A: In the Business Blueprint phase the team
gates fequrenenis and ene ess jal design of
ion.

ItegratorB: In the development phase the system solton

Fruition Vendor: In Final Preparation phase the
integration is tested, end users trained and the authorization
to cut over to new system solution is done.

Change Management Consulting :From initiation of the
project through the Go Live, Support and project closure
phase change management becomes cent

Trends and recordings presented on the
webinar of 30/6/2024

=
=

e
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel
number of
companies & IT
budgets by
Industry |

U —e a 3
y oN
A .
Bstkiioto __ c nn —

fi

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=

i sTKI.INFo

STKI’s analysts interviewed over 100 ClOs & VP
Techs in Israel (managing around 70-75% of IT
budgets) about:

Approved Budgets for 2024 9
Amount used in Budgets 2022-2023
Projects forecasted for 2024-2026
IT Department re-organizations
Vendors to recommend or not

OP ob =

IT “internal” budgets differ from enterprise to enterprise
because:
+ OPEX& CAPEX
+ rent & electricity
regulation projects

LOB "digital
etc.

=

==

€ >
previous

2) forecast
—— E -—-
future AAA

forecast

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Number of Companies in Israel 2023

2017 | 2018

‚number of | number of

employees
v2

1.602 [EE
2,757 101-250 |

4,985 | 51-100

| 10:50 39,689 — 13.13% 13.13%

98.10%

2109 256,932 84,98% 84.98%

305,77: totals

acconoma ro eruacn ia 5202 AB) | |

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

ig:
\ Number of Companies 2023 (by Industry) page 1

(1) "DD q 197 ,07:y9 n'1oy AAA
number of employees per company ses
Industry ployees pı pany companies witout
Toor [75100] 5074 [4045 [ 3039 | 2029 [1019 EN EC] ens
number of companies 4415 | 1,650] 3,360 | 2,629 | 4,204 [2.610 | 25,046 | 47,135 | 216,557 370,550
Tefermationand communications aie | 165 | 202 | 188 [302 | seo | 776 | 8094 | 13.052 | 14045 27,097
Tolacommunaation, computer jopamingad
consdtenyandiaatdsctitin,ormationsovice | 391 | 160 | 278 | 172 | 206 | 519 | 1,158 | 1,590] 7070 | 11,624] 14,175 | 22700

Financial and insurance actives 78 | 30 | 29 | a5 | 57 | 157 | 515 | 1365 | 7572 | 9558 8481 19,339

D Betr sw | 8 | 28 | 12 | 34 | es | 323 | es | oo | 10427 | 33,534 33361

Professional, selene and technical tie. 220 | 120 | 250 | 2ı6 | 321 | 83 | 2072 | 6304 | 050 | 52987 | 05,152 138,039

‘Administrative and support srvie ation 409 | 105 | 235 | 149 | 196 | 430 | 1055 | 1801 | 8027 | 12407 | 13015 25,422

cal public and dolence säminstatienandsoeistsecunmy | 282 | 25 | 45 | 14 | 30 | 87 | 85 121 318 | 1010 13 1023

Education 433 | 158 | 271 | 205 | 315 | sis | 1170 | 1702 | 5721 | 10.386 | 14350 24,836

Humanhealthandsovlaworkaoti ioe a21_| 103 | 179 | 114 | 175 | 321 | 1017 | 2255 | 14170 | 18.755 | 97,448 56,203

Human health activites a | 28 | so | 34 | 62 | 150 | 554 | 1404 | 10545 [13024 | 33,728 46,752

Residential care and socal work asien sio | 79 | 129 | eo | 13 | 171 | 463 | 761 | es | 5,731 3,720 9.51

Arts entertainment androcrestion 79 | 44 | 90 | 71 | 114 | 241 | 665 | 1039 | 513 | 7476 18,415 25.891

EI | 74 | tan | es | tes | sea | 707 | 1391 | 9598 [1270 | 20 a
=—
=

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Number of Companies 2023 (by Industry) page 2

"A
mn GON
(2) "D'D Qay ‘97 ,D0"7y9 p'7oy Gin aa o
Indust number of employees per company total a total active
ry Tu 12) Topes | business
number of companies 4,415 | 1,650 | 3,360 | 2,629 | 4,204 | 8,610 | 25,046 |47,135 | 216,557 |313,606| 370550 |684,156
arca forest ani a | s7 7,659 7,634 15,293
Gime | | | |: «|| ES 1946
Construction 164 | 62 | ter | 185 | 306 | 768 | 544 | 8010 | 32889 | 05787 | 3332 EXT
Wholosaleandretaltradeandroparofmetorvicies | 473 | 225 | 504 | 435 | 761 | 1623 | 5379 | 10822 | 41073 | 61295 | 39,380 100,675
Wholesale androtattradoandrpairotmotorvanictos | 38 | 29 | 46 | 53 | 78 | 213 | 658 | 1480 | 5537 | 8,122 4,831 12,953
Wholesale trade, except motor ven 191 | 105 | 220 | 174 | 311 | 702 | 1936 | 3404 | 11490 | 18,632 | 0172 27304
Retlltrade, except mator vehicles 244 | 1 | 229 372 | 708 | 2705 | 5868 | 24006 | 34541 | 25377 59918
Transportation, storage, postal andcourieraciies | 153 | 53 | 126 155 | 337 | 1047 | 2126 | 11.179 | 15274 | 30,360 25634
Postal and courier ation ww | 6 | 9 7 | 23 | 72 | 142 | oo | 120 2,571 3,838
Accommodation andood service activities 282 | 186 | 444 | 427 | 655 | 1187 | 2717 | 3243 | 9602 [18,708 | 9222 27,975

=
=
Ä STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

(i The trend towards software as a service (SaaS) and cloud-
based infrastructure is indeed

y
ation hat “dl
aq, q number of
ee gy yes number of companies
— This companies have IT departments that 251+ 1,786
will introduce hybrid cloud solutions | 101-250 2,688

51-100 4,679
SMB companies will move to “SaaS” | 10-50 | 39,689

cloud solutions

| 2t09 | 256,932

=
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

IT BUDGETS (cash-out NOT opex/capex accounting)includes some other expenses FORECASTED
ee
government $1,630] 59% $1,727] -16.04% | $1,450] 414% $1,510] * $1,750) 9% $1,800) oe $1,950] 129 $2,150)
security $525| 22% | $537] zum | $550| sam | sse0| 2% | sao] 1020% $750| zo $900] sam $985]
education $292| sao $30s| 10754 | $350] 17.10% $410] 14.69% $azo| 20% $450| 220% $aso| 108% $510
health $350] 280% | $340] aus | $390| us | saso oom | Sago] «ame $460 sass| nam $520)
uti a $215} $210} 11.00% $235] 638% $250] 400% $260} $210) $210)
transport $340| 7356 | $365| sosox | $405] 21006 | $450] 22205 | 5550] $530 $520)
banks $920| 10.87% $1,020} -6.86% $950} -3.16% $920} 652% $980} $910) $915)
insurance $405] 3.70% $420] asm | $435] 3.45% $450) 7.70% $485| 722% $450| -33% $475
fin other $310} 29.08% $400} 12.50% $450} 13.33% $510} 13.73% $580] -345% $560} -5.30% $580)
manuf $875] -1715 $860] -233% | $840] 7.10% $900] -222% $880| 73% $815| -245% $825|
retail $238| -336% $230] 870% | $250| 12004 $295| 330% $305| 160% $300| es $345
high tech $842| 70% $901] 337% | $1,250] 22006 | $1,650] 209% | $1,800] 22% $1,650| -606% | $1,550] 23% $1,680]

IT local vendors $165] 9.09% $180] -2705 | $175] 220% $180| + sis2| 5% Sir sıso] 2 $158
telecomm $230| 13.00% $260| -5.7% $245| -6.12% $230| -6.52% $215] -6.98% $200} -7.50% $185} 18.92% $220)
media $180} 12.11% $200} 15.00% $230} 870% $250] 400% $260] -9.62% $235] -s51% $215] 162% $250)
SMB/SME $410} -6.10% $385} -11.00% $340} 17.65% $400] 20.00% $480] -525% $450) um $430] 116% $480]
in MUSD $7,927 | 521% | $8,340 | 246% | $8545 | 1042% | $9,435 | 977% | $10,357 | om $9,942 oa $9,975 850% $10,823

e

R STKI.INFO

all amounts in M $ USD

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

t

Internal Budgets variance can only be explained by economic
changes (corona, war, etc.) explained in previous chapters

industry
budgets

$7,927

5.21%

$8340

246%

58545

10.42%

$9,435

$10,357

$9,942

033%

$9,975

850%

$10,823

IT market
totals

$6,903

9.88%

$7,585

3.63%

$7,860

10.62%

$8,695

$9,295

$9,001

3.02%

$9,273

8.20%

$10,033

internal
budgets

$1,024

-26.27%

$755

-9.27%

$685

8.03%

$740

43.51%

$1,062

11.39%

$941

25.40%

$702

12.54%

$790

.

i sTKI.INFo

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

analysis of budgets 2024 & 2025

Budgets
2024

Budgets |, | Market

6 total Jindusts
ry 2025 size

industry industry

$2,159]

government government

security soas| 9% | $04,165

security $3,765 |37.74%| public

education education $510] 5%
health health ss20| 5%
$210)

utilities utilities
Zn utilities

transport

utilities/
transport

6.74%

transport
banks seso] 9%

transport ss20| 5%
banks ssıs| 9%

insurance sass| ax | $1,845 |18.50%| financial insurance sa7s| 4% | $1,970 | 18.20% | financial

fin other $530] 5% fin other

manuf ‘manuf manut/
ret at 20-81% | etait

retail

mentweh | £1550) 06 = mensch | $3,000) 20% En
= $1,710 [17.14%] le 2
mo | sin | 2x EU Bere wear

telecomm $220] 20 telecom

Telecomm | 5185] 2%
$470
ma $250] 2% Im/ media

media $215] 20

$400

sms

m] la (ao un son | ele [ae [ar

inmUsD | $9,975 | 200% | 59,975 | 100% s10822 | 100% | sio,e23 in M USD)

in M USD

e
=

STKI.INFO ‘Copyright @STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

ME fauno” STKI IT Market Health Index | 79

over 1 excellent, .99-.85 very good
7 to .84 good

(banks + insurance + fin other) IT budgets
(government + education + health) IT budgets
good

Market Health Index

0.63

“0.67

ES

K
0.50 eve
0.45 N
10.0
2018 2019 2020 2021 2022 2023 2024 2025
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025
Market
= Heath | 0.58 | 0.63 | 0.67 | 0.64 | 0.61 | 0.55 | 0.49 | 0.47
& u Index

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

WE

OPPORTUNITIES according to IT Budgets

high tech

security security

banks $915
manuf
fin other finothes
transport health
education ERAS Pera
Rane education $510
eal
P SMB/SME $480
insurance AA
7 insurance $475
SMB/SME
retail $345
media $250
utilities telecomm $220
telecomm utilities $210
IT local IT local SE
vendors all amounts in M $ USD vendors

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

no IDF, security agencies, HMOs
universities, or gov industries

10.701%

ee 2.936%

es [3.2210

40 [282%] 2.597%)

T 1791%
[1.968%]

Boss:

percent of government it budgets

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Expected Slice (2) of Government IT Budgets 2024*

(0.910% “no IDF, security agencies, HMOs
TT RE universities, or gov industries
[09320] 10.2555] [0.8710]

LE]

0.721%] |

0.2%

0.4%

[ ae]
[0.285%] | [215% [0.136%]

108%]

02% Sa

percent of government it budgets

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

israel

IT Market Forecasts
(statistics)

0

Dr. Sven) Sorel not Shimon

Bi stkiinto

THE KNOWLEDGE INTEGRATORS STKI changed “categories”

retroactively (2018) in order to

cowie 2024 represent better the trends of:

= on-prem, cloud, payment by
INUAL ISRAELI IT MARKET STUDY subscription, All as a Service, etc
ic

IT Market 2018-2026

2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026
Pre $6902.65 |s758520| 5785950 |$8,695.30] 5929450 | $9,00050] 5927200 |$10031.50| $10,987.00
ve change IT] 8.66% 8.86% 10.51% 6.90% 3.26% 2.95% 8.17% 9.52%
Market
=
ii. /alues in Million USD

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

IT Market 2018-2026

TOTALS IT MARKET

$12,000

$10,987.00

song
$10,000
$9,294.80 $9, mn

Pe $8,695.30,

$11,000

= $7,859.50,
$8,000 $7,585.20
$6,902.6
$7,000
$6,000
$5,000

2018 2019 2020 2021 2022 2023 2024 2025 2026

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

IT Market 2018-2026

% change IT Market

3.26%

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israeli IT Market 1989-2026

10,000,000
a 8,000,000
a
2
x
= 6,000,000
4,000,000
2,000,000
0
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 202
ran
=

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

IT Market 1989-2026
5000000 IT History

5,000,000
a ‘000,000
Mi
>
= 3,000,000
<
2,000,000 WA
Wane an La
3,000,000 QM
o
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 20
ÈS — Infrastructure Software Value Added Services

e
=

STKI.INFO copyright @STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph 88

Israeli IT Market 2018-2024

$4,666.00
$4,473.00 94/554.00
$4,338.00
3,870.0
sam $3,756.00 _ $9870.00
$3,362.00
$2,372.00 ==
$2,256.00 == En
$2,030.00
$1,736.15 _ $1,841.00
2018 2019 2020 2021 2022 2023 2024 2025 2026
= —Totals Infrastructure Totals Software Total VAS

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

(Ai) Israeli IT Market (% change) 2018-2026

12.08%
11.13%

Ca)
NA N 7.57%
7

5.14%

1 11.71%

3.05% 7

-0.93%

-4.14

2018 2019 2020 2021 2022 2023 2024 2025 2026

% change infra % change software % change VAS

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel
Infrastructure Product
Markets 2024
"vendor rankings”

HE Infrastructure Market 2018-2026

Infrastructure
Market Totals Infrastructure

‘TKI changed “categories
retroactvely(2018) in order to
represent better the trends of
on-prem, cloud, payment by
ption, All as a Service, ete

| 6.04% 10.27% 11.13% 5.14% | -0.93% | -0.53%

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE TOP VENDORS: Hardware-Infrastructure Markets

Infrastructure
Market

Infrastructure Suppliers Infrastructure VARS

Oracle DELL
zeq BenLeumi

Bynet
Lenovo
cisco
Malam Team
1.E.Mittwoch
NetApp
AWS HPE EMET ONE
We rork VENDORS by
REVENUE
end
= CLIENT MINDSHARE

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Infrastructure
Market

E Infrastructure Categories (pages)

Servers 8 Appliances Client PCs Enterprise Storage

page: 95 page: 103 page: 106

Networking, Call Centers Data Center Equipment General Cloud
Colocation & Self Service

Security Appliances Consumption

page: 112 page: 119 page: 124

ran
=

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

A

Infrastructure
Market

Servers & Appliances
Market 2018 - 2026

2018 | 2019 2020 2021 2022 | 2023 2024
servers X86 | 20500 $3100 $2900 $3200 $32500 $31800 $30500 532000 $32500
Legacy (non-x86) | $2200 $3050 $2600 $31.00 $3200 $2600 $2200 $2000 $2500
Data Appliances | $1300 $1500 $1300 $1100 $1000 $800 $850 $750 $100
HCl appliances | $3600 $4500 $8600 son $7500 $7800 $8000 $9600 55200
Toms Er} 54050 $8500 43200 54200 43100 $41550 san su
Bi
e. -
STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE SERVERS X86

Infrastructure
Market

SUPERMICRO

FUJITSU Lenovo

‘We rank VENDORS by |
REVENUE
ond
CLIENT MINDSHARE

sr

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Servers X86 VARs

Infrastructure
Market

Triple C
TeraSky
2%
ES MYND
x (NGSOFT)
2% D
loma
Yael GROUP
eet
DnAT Matrix

We rank VENDORS by]

REVENVE Gi
ond RAP HILAN-NESS-
CLIENT MINDSHARE (Alltrade) WE ANKOR

.

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Servers X86 VARs

Infrastructure

Market Sheket

PUREPEAK| Technologies Allegronet

TSG IT Advanced

Systems ARDOM

We rerk VENDORS by |
REVENVE
ond
CLIENT MINDSHARE

Oasis-Tech telrad ELK

KAKADOTECH Eshnav-Aman

=
=
Ä STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

%

Infrastructure
Market

=
e =
ft STKI.INFO

General Purpose Intel Server - market presence 2024

DellEMC

cisco PE

Lenovo

Fujitso

Market Pres

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E Legacy (non-x86) Computer Systems

Infrastructure
Market

HPE

Oracle

=

Zz
i sTKI.INFo

ONE
BARMOR
kyndryl (Emet)
Eshnav-
Aman
We rok VENDORS by MalamTeam

REVENUE

ond
CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Data Appliances

Infrastructure
Market

Teradata Matrix >
NCR IBM 1.E.Mittwoch

Oracle

Bynet

EMET

nVIDIA We rork VENDORS by]
REVENUE
ond
Se GLIENT MINDSHARE

ONE

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E HCI Appliances

Infrastructure
Market

Yael GROUP
TeraSky EMET
Cisco
HPE DnA-IT
Nutanix
Matrix MalamTeam
Dell
Technologies kyndryl
We rank VENDORS by]
REVENVE Bynet
ond
CLIENT MINDSHARE

=

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

AS

Clients (enterprises only)

Infrastructure
“ Market 2018-2026
2018 2019 2020 2021 2022 2023
Window PCs
(Notebook & Desktops) | $27800 $281.00 $3620 $35000 522500 52000 520000 $185.00 515000
Enterprise only
Non re FS) lo $1400 $2100 $2800 $2700 $2600 $2500 $2700 $2300
Enterprise only
TOTALS $291.00 529500 538300 $37800 $31200 $27600 s21200 517300

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

| Values in Million USI > |

%

Infrastructure
Market

FUJITSU
ASUS

Dell
Technologies

HP

Zz
i sTKI.INFo

Window PCs (Notebook & Desktops) Enterprise only

MYND
(NGSOFT)

kyndryl ONE

Lenovo

Bezeq Int

Matrix MalamTeam

Yael GROUP EMET

We rank VENDORS by’
REVENUE

ond
CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Non window's PC's (MAC IPADS)
u Enterprise only VARS
Yael GROUP
kyndryl

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

%

Enterprise Storage

Inhasrucure
” Market 2018-2026
2018 2019 2020 2021 2022 2023 2025 I 2026
Enterprise Storage : Disks:
Fe | sraco $13200 $13500 12800 200 sico $15500 simo
Ene Sige Tepe
ee || E85 $2200 $4200 $4800 $50.00 $4800 $4600 $4800 $5000
thes some pires
TOTALS ses 17400 | $18800 $19000 519400 | szz000
| Ve lues in Million USD |
=
a E
E stkiNFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

# Enterprise Storage Disks

Infrastructure

L (HHD & SSD)

Delt
Technologies

Hitachi Vantara

We rerk VENDORS by
REVENUE
ond

CLIENT MINDSHARE CLS

E
=
A "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

AS

Infrastructure
Market

Enterprise Storage Disks
(HHD & SSD) VARs

Oasis-Tech teirad| | PUREPEAK
MYND (NGSOFT)
Mey

Yael GROUP
= D
4 Chayon (Altrade) x

DnAAT | us
E
2 TeraSky
A
€ =
iG

="

m

Wi stki.inro

ond

Bezeq int
Beloca
CLIENT MINDSHARE

kyndel

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E Enterprise Storage Disks

Infrastructure

~ (HHD & SSD) VARs

Allegronet
Sinopia
ARDOM
Sheket
Technologies
We ro VENDORS by
REVEWE ed
cod
CLIENT MINDSHARE ELK

=
=
a STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE Enterprise Storage Tape Libraries,
A VTL, FC Switches, Backup & other Storage Appliances

Hitachi Vantara | Infinidat

IBM
We rork VENDORS by ni
REVENVE
ond
CLIENT MINDSHARE
ES A
=

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE Israel enterprise high end for critical systems storage

rase market presence 2024
EMC
. NETAPP
= Infinidat Hitachi
IBM
A HPE
The fact that one vendor is located
next to another doesn't mean they
are similar in terms of
functionality/technology.
e = Market Prese
R STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

%

Infrastructure

Networking, VoIP/Call Center,

“ne” Call Center as a Service, Security Appliances
Market 2018-2026

2018 | 2019 2020 2021 2022 2023 2024 | 2025 2026 |
Enterprise Networking | 522000 52500 52350 525000 525500 525000 EN 24500 525500
Sn a $148.00 $156.00. $180.00 $19500 520300 $208.00. $220.00. $230.00 $240.00.
Appliances
Note) Cal Centon NE $5800 $7800 58600 $8200 $9500 10000, 10800 511500
Equipment
EEE $5.00 $8.00 $1800 $3000 $3500 $33.00 $35.00 $3800 54200
Service
TOTALS su zo Er 357100 559500 52600 550000 62100 365200
| Values in Million USD |
=
e. ==
=
ffi STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Infrastructure
Market

.

i sTKI.INFo

Enterprise & Data Center Networking

CATO NETWORKS
Extreme
networks z
Juniper
Dell
Technologies
RUCKUS.
ARISTA
We ronk VENDORS by —
REVENUE CSG (Citrix)
ond
CLIENT MINOSHARE
FORTINET

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E Enterprise & Data Center Networking VARs

Infrastructure
Market

Malay
eam HILAN-NESS-
WE ANKOR
S
CA Inde
o We ronk VENDORS by’
z REVENWE Oasis-Tech
m and

CLIENT MINDSHARE tetrad Ei

a "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Security/ Cyber Appliances

Infrastructure
Market

CATONETWORKS

Extremenetworks

> Juniper (HPE)
EN |
Cisco ARISTA,

Ss (Citrix),
é
é
ry We ronk VENDORS by
& neve PulseSeare (Want)
_
= +
FE

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% Security/ Cyber Appliances VARs

Infrastructure
Market

MedOne

Bezeq

2
%
5, Yael GROUP
®
%

Partner

Pider (Emon)
kyndryl

We rok VENDORS by
REVENUE Cellcom
end HILAN-NESS-WE
CLIENT MINDSHARE ANKOR

e
=

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E VolP / Call Center Equipment

Infrastructure
Market

3CX
A, Tadiran
% Telecom
We rank VENDORS by]
REVENUE
ond
CLIENT MINDSHARE AudioCodes

=

e
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

% CALL CENTER as a SERVICE

Infrastructure
Market

Malam Team
% a
% Tadiran
2p.
%,
2s Telecom
ye
® We rk VENDORS by
ER REVENVE HOT
ZF ‘ond
2 CLIENT MINDSHARE
Amazon

=>

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Y

Data Center Equipment , Co-location Services,
xe" Self Service (POS, Robot, Self Service, ATM, Kiosks)
Market 2018-2026

2018 | 2019 2020 2021 2022 2023 | [eos] | ms
Data Center Physical | $9700 $9950 $9500 $1020 10500 ‘staz00 $9800 $9500 $9200
Equipment
ecc $88.00. $9.00 $10200 $12500 $16000 $18500 $210.00 $235.00 $240.00
Co-Location;
POS , Robot , Self
Service s17000 $165.00 19000 s20500 s21000 20000 $165.00 19500 soo
{ATM/Kiosks/other)
TOTALS 58500 sro sw PR 547500 suero | 5300 $52500 855400
>
e =
=

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E Data Center Physical Equipment

Infrastructure
Market

CORNING APC by
MedOne Schneider
Electric
Stulz
PANDUIT
Vertiv ‘We ronk VENDORS by
REVENE
ond
Rittal Leemos
ÈS

e
=

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

& Data Center Physical Equipment VARs

Market

Matrix

HPE

Dell
Technologies
Yael GROUP 2

kyndryl

Atexanven
Sconces
EMET
ONE
We rerk VENDORS by
rai MedOne
end
CLIENT MINDSHARE
>

a

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE Off-Site Data Center, Co-location, Hosting

Infrastructure

(client owns the HW)

Partner

we Triple C
kyndryl
2 We rok VENDORS by Aida
E REVEE
=
[een unes | under construction
e =
=
STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

# POS, Robots (enterprise use only) & other SELF SERVICE
ser . (ATM, KIOSKS, OTHER)

other
ONE
Ewave
‘We rork VENDORS by |
REVENVE
ond

CLIENT MINDSHARE Matrix
=
=

e
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

%

General Purpose Cloud Enterprise

Inhasrucure
Fait C .
2018 2019 | 2020 | 2021 2022 | 2023
General Purpose
Cloud Enterprise | s13000 $1700 20000 se 00 so $4200 sooo som
Consumption
TOTALS sano soc | soo | 26000 EN $000 000 EN - ES
E
a E
R STKI.INFO Copyright @STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

E General Purpose Cloud Consumption

Infrastructure
Market

Yandex Cloud

NEBUS

Alibaba Cloud

KAKADOTECH
Dell Technologies a

HPE

%
%e
%

x
Co)
Koy Matrix
Medone
%
% We rok VENDORS by] Fame
REV
ond

‘ONE Bynet
CLIENT MINDSHARE

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

HE Cloud on premise for Israeli Enterprises- market presence 2024

Infrastructure
Market

Oracle cloud

@ customer
E HPE
Dell Apex Greenlake
Microsoft Azure
AWS
= Outpost
Google This diagram is not
“apples to apples”
Anthos comparison - it contains
all kind of DC located
“public cloud”
2 un 7 5
lun Market P

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israel

Software Product
Markets 2024
“vendor rankings”

0

o Get gain

= Software (on-prem & cloud)

14.00% ‘TKI changed “categories
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10.00% as ES 3
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6.00%

400

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000

2.00%

‘ Values in Million USD
ne 600%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2018 2019 2020 2021 2022 2023 2024 2025

2018 2019 2020 2021 2022 2023 2024 | 2025

$1,80450 | $1,988.20 | $1,959.50 | $2,101.30 | $2,256.80 | $2,177.50 | $2,37050 | $263800 | $2,908.00

2, =

Ti sTKI.INFo

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Software Companies

Atlassian

ServiceNow Microsoft

Salesforce

18M / RedHat

Broadcom

Oracle

SAP

Zz
Bi sTKI.INFo

TOP VENDORS: Software Markets

Software VARS

Methoda

EMET Matrix

Allcloud

Hilan
Nesspro Qlik

MalamTeam
We rank VENDORS by
REVENUE

ond Bynet ONE

CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Storage & Middleware Tools
Backup Tools .
page:
page: 131 pea
Knowledge &
Ere ee Collaboration Tools
page: page: 184

SOFTWARE CATEGORIES (pages)

IT Management & Security & Cyber Project Development

Operations Tools Tools E Management Tools
page: 141 page: 158 page: 171
Analytics & Data Enterprise Business
Management Tools Management Tools Application Tools
page: 189 page: 205 page:225

rankings are based partly on new projects, new names and market penetration growth

Mismo

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

System, Storage & Data Platforms
Market 2018-2026

2018 | 2019 2020 2021 2022 2023 2024 2025 2026
| Infrastructure & System | | | ] | |
Software (including storage $276.00 $295.00 53150 30500 525000 51000 532500 s51500

software) _ |
A ÉS ssoco $2200 $2500 som $5500 $5800 200
NoSQL dbms) |
(Cloud data platforms (SQL, | =
$1000 $1500 $2000 $2000 $5000
NoSQL dbms) al Cy ji
Bi
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E

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to) Infrastructure & System (including storage)
Software

software market

Ms
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Red Hat ‘Cone
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&
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= id
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A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel enterprise backup market presence 2024

software market

Commvault
Veeam Brands in
fees - Veritas backup — SW,
3 Rubrik backup
al appliances (not
A “apples to
apples”)

DellEMC

Vendors to watch:

HCL{TSM) Microfocus
HPE (new solution)
Arcserve

>
FES Market Pres

e IC
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software market

We rork VENDORS by
REVENUE
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CLIENT MINDSHARE

ÜC) Data Platforms (SQL, NoSQL, dbms)

Teradata NCR (VMWare)
Software AG
Fede) CLOUDERA
MariaDB gen

Couchbase| | splunk (cisco)

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

SH

0) Data Platforms (SQL, NoSQL, dbms)

Cloud-based

SAP Q elastic

Opentext
VU (Micro Focus)
S iz splunk (cisco)
Couchbase
$,
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te SingleStore
9 databricks
InterSystems
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end
== CLIENT MINDSHARE

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Data Platforms (SQL, NoSQL, dbms)
Cloud-based

Software AG

IBM

scyliadb

GigaSpaces
aerospike
MariaDB
Broadcom
We rank VENDORS dy (VMWare)
REVENUE
ond
CLIENT MINOSHARE redis neodj
=
a =
=

A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

O

software market

Middleware Tools
Market 2018-2026

:
2018 2019 2020 2021 2022 2023 2024 | | 2025 ans
ApplWEB Server, Emulation, ,
BRMS APaa (container platforms) | $58.50 $6000 $60.50. ‘$6300 $65.00 $62.00 $000 $78.00 8500
Integration Streaming
TS ES seo son sam so“ sem soo sun $3500
=
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==>

software market

NE App\WEB Server, Emulation, , BRMS, APaaS, container

platforms ,Integration Streaming
VENDORS

Snaplogic| boomi

HPE CSG (Tibeo)
Informatica

Salesforce
stl
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7 Commitigo
y 24 We rank VENDORS by (logist)
ed 2% ME
a cod
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BR steı.unro

InterSystems
CLIENT MINDSHARE

GigaSpaces

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

App\WEB Server, Emulation, , BRMS, APaaS, container
platforms ‚Integration Streaming
VARs

MYND (NESOPD) cr

Matrix

We rank VENDORS by
REVENUE
end
CLIENT MINDSHARE

E
=
A "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

I

Israel enterprise on premise (+cloud) container platform

No 4 market presence 2024

Redhat (IBM) openshift

a Vendors to watch:
3 Broadcom tanzu Google-Anthos

Amazon EKS Anywhere

HPE EZMERAL
SUSE Rancher

>
ad Market Pres

e
=

ffi STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

software market

IT Management & Operations
Tools Market 2018-2026

2018 2019 2020 2021 2022
TT Operations, Asset Management
APM, NOPS Monitoring, Workload | 510400 $1100 10200 10000 10700 10000 10500
Scheduling TS Sence Desk
FinOps tools $500 $600 $800 $1000 $1400
TOTALS sro 11000 10200 510000 11200 $10600 11300 $1200 51000
Values in Million USD.
=

«f=
ft STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

IT Operations, Asset Management, APM, AIOPS Monitoring,

Workload-Scheduling ITSM, Service Desk
VENDORS
‘SOLARWINDS HCL!
Coralogix

F =
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y; Opentext (Micro
J Focus)
clastic
IBM new relic Atlassian
Se
2
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riverbed ControlUp
ManageEngine

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LY
3
= We rank VENDORS by]
REVENVE
ond
CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

e
ft STKI.INFO

IT Operations, Asset Management, APM, AIOPS Monitoring,
Workload-Scheduling ITSM, Service Desk
VENDORS

Centerity Syst RESOLVE Systems
enterity Systems cloudFabrix (Ayehu)
PagerDuty
GETPORT
Flexera Ivantl
(SnowSoftware) EVOLVEN
QUALI
FADDOM Highnet
zabbix

Passler AG (PRTG)
eginnovations

Quest TriggerPlus Software
We rork VENDORS by sit
rte that’s it a
Ru isco
CLIENT MINDSHARE SysTrack
Freshdesk

SysAid RIT Tech | !TCC (IT Care Center)

=
=
a STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

NE IT Operations, Asset Management, APM, AIOPS Monitoring, Workload-
Scheduling ITSM, Service Desk

sna Sa VARs

KMC
MYND (NGSOFT) lyndryt

PractiProject
4 niturtech
/ Deloitte
AutoMonX
TIE
x
> TeraSky
EMET
w Yael GROUP
8
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REVENVE m
ond
CLIENT MINDSHARE that’sit
= ae
=

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel ITSM (Help Desk Tools) market presence 2024

software market

a BMC
Sysaid Servicenow

Broadcom
Atlassian

That's IT
ITcc Freshdesk

ManageEngine

= Market P

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel enterprise Observability (monitoring) market presence 2024

software market

Dynatrace
BMC
al Cisco (+splunk)
Opentext Datadog
Faddom—Elastic Selmer
Centerity dl
New Relic This diagram is not
8 PRTG, Riverbed ‘apples to apples”
HCL Ginnovations comparison — it contains
. Il kind of Obs bility
a cie types: infra (vadiiona),

APM, AIOPS, MOM,
Discovery, Cloud, etc.

Market P

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel enterprise job scheduling market presence 2024

software market

BMC

Broadcom
(CA\Automic)

IBM/HCL

= Market P

e
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Israel enterprise job scheduling Selected Integrators

Vendor Product Israeli Rep. Integrators
BMC Control-M BMC Matrix
Broadcom Automic Broacdom Israel Ness Pro
IBM/HCL IBM/HCL workload manager IBM Matrix, Emet
=
STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

in API Management (with on premise option) —
market enterprise presence 2024

software market

Google
IBM
Vendors to
6 Microsoft watch
al Redhat (3scale)
3 Tyk
SalesForce (Mule) KONG

Broadcom (layer7)

Oracle
WSO2

un Market Pres

e
=

ffi STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israeli API Management (with on premise option) selected integrators

Vendor Product Israeli Rep. Integrators
IBM API Connect IBM Matrix, Ellipsis
Google APIGEE Google Israel Yael Software
Tibco Mashary Yael Software
Redhat 3Scale Redhat Israel Matrix

Broadcom Layer? Ness Pro Ness Pro, Emet
SoftwareAG WebMethods API mng. SoftwareAG Israel

Tyke EL-AZ

=
=
Misriaanro

Open source

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

==>

©

software market

Brands in ESB - Israeli market presence 2024

IBM with

SoftwareAG
Tibco
e Oracle

Qlik (Talend)
IntersystemsSalesforce (Mulesoft)
atrix (MCX)
Informatica

Magic WSO2

=
un: Market Presenc

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Brands in IPaaS - Israeli market enterprise presence 2024

software market

Workato
7 iConduct Vendors to
watch
Google

Salesforce (Mulesoft)
Microsoft
Make (Integromat)

2 IBM Celigo Snaplogic
Oracle

SAP
WSO2

=
un: Market Presenc

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israeli application integration selected integrators

Vendor Product Israeli Rep. Integrators
IBM WMB Websphere Message IBM Matrix, Ellipsis
Broker

Iconduct Iconduct Iconduct Ness Pro One

Tibco BusinessWorks Yael Software

Redhat Fuse Redhat Israel Matrix

Workato Workato Workato Israel EladCRM, Deloitte Digital,
Malam Team, Allcloud, Yael
Group, Strauss Strategy

SoftwareAG WebMethods SoftwareAG Israel One

Oracle OSB Oracle Israel Malam One

Magic XPI Magic Israel Malam

WSO2 WSO2 Enterprise Integrator Matrix

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Integrators in application integration / Cont.

Vendor Product Israeli Rep. Integrators
OpenLegacy OpenLegacy OpenLegacy Ness

Talend Qlik Talend Integration Qlik Israel
Informatica Informatica PowerCenter Aman

Celigo Integrator io SanglT
Snaplogic Snaplogic IPAAS One

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Se

=

i sTKI.INFo

Brands in ETL (Extract Transform Load)-
market enterprise presence 2024

Informatica

Qlik (Talend)

Rivery

ıgMMierosoft
Oracle Salesforce (Mule)

Market Presenc

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Vendors to watch:
Equalum

bigbi.io
Snaplogic

Not including
coc

Israeli ETL selected integrators

Vendor Product Israeli Rep. Integrators

Informatica Informatica Informatica Israel Aman Matrix

Talend Talend Integration Smartstreams YaelSoft QLIK

Rivery Rivery ETL Twingo

IBM Datastage IBM Israel Malam, IBM, YaelSoft and
more

Bigbi.io bigbi.io SQLINK

Snaplogic Snaplogic One

=

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

We rank VENDORS by
REVENVE
ond
CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Security (Cyber) Tools
Market 2018-2026

2018 2019 2: 202 2022 >» | | [ss | [al
iso 300 moo mo srozoo caco co #51400
sn 2100 so s2200 + B sc 18000
200 ‘2500 es sz 3800
Pr 200 s co + © +1500 :
TOTALS, y $2150 22900 $248.00 #25850 329600 531100 ‘$3300 596200 $390.00.

e = Values in Million USD

E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

mated, Endpoint related tools

BROADCOM
Cynet Security
TREND MICRO 6 Sao

CrowdStrike PaloAlto E Uni 2

stki 4

dis is Trellix (Mcafee)

Forcepoint
Ha
We ronk VENDORS by]
— ce) FORTINET

CLIENT MINDSHARE

2
F STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Endpoint related tools

EasySec Solutions CSG (Citrix)

ivanti

thales

Cybereason
SIGA
BlackBerry
Radiflow
eset
We rank VENDORS by 3
ple ICS security
ons

CLIENT MINOSHARE
A EA
=

e
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Network\Web cloud services
(FW, WAF, DDOS service

s , etc.)

ida
Accesslayers | CYBONET Cofense
fy Pormox amazon
D SOPHOS
FORESOOUT island
7 Reblaze
pans
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Jen radware N
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Forcepoint
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Le) 5 REVENVE
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CLIENT MINDSHARE

TRENDMICRO| proofpoint

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

PaloAlto

Sasa Software

Orade| | Specterx
Trellix (Mcafee) \ |
- E

7 Juniper (HPE)
Microsoft A
3) proofpoint 5
Cisco
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3 Re
2 EN VOTIRO Go)
2 CLIENT MINOSHARE OPSWAT.
a
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A STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

NO Cyber Management Tools
nc (SIEM tools, incident responds, automation)

PENTERA) [SEPIO (cyber)

Google

Cyberint

Cybereason
Trellix (Mcafee)
Tenable

SafeBreach

Rapid?

Algosec

SKYBOX (Security)

RSA

We rork VENDORS by
nae LogRhythm

Exabeam eyray.io

tufin
‘ond

CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

a Zero Trust including identity, SDP software defined perimeter,
SASE (secure access service edge) IDM, Access

BeyondTrust | Cyole
Juniper (HPE)
Quest

CATO NETWORKS SyberAk,

Opentext (Micro

RSA | Focus)
Trellix (Mcafee)
IBM
Infobay (Malam
Team)
CSG (Citrix) y Semperis|
Forcepoint zscaler
We rok VENDORS by
REVENVE
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CLIENT MINOSHARE
== Lean |
=

2
R STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel SASE for enterprises - market presence 2024

software market

Netskope
Broadcom

Vendors to watch:
Google Beyondcorp
Cato

Cyolo

Terrazone.io

Fortinet | Palo-Alto
ZSCALER= CISCO

ForcePoint

Checkpoint
(Perimeter81)

© Cloudflare Same positionning

= Mark

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

SH

©

software market

SASE Selected Integrators-providers in Israel

Vendor Product Integrators

Netskope Security Service Edge One Spider, Qmasters, Trustnet, 2B,
Danet

Palo Alto Prisma Access (lots)

Cloudflare Cloudflare's SSE 8 SASE Platform Matrix

Zscaler Zscaler SASE Internet-Bynet We-Ankor

Checkpoint Perimeter81 (lots)

Broadcom Luminate Ness

Fortinet FortiSASE YouCC

Forcepoint Forcepoint SSE Bulwarx Trustnet Spider Malam

ft STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Cloud security protection tools (CNAPP, CSPM, CASB)

Tenable) (15
FORTINET TREND MICRO

sysdig
SOPHOS

Cisco

Juniper (HPE) CrowdStrike

netskope

rca security
BROADCOM
upwindio tales
‘SALT Trellix (Mcafee)
We rork VENDORS by Red Hat CHECK POINT.
REVENUE nonamesecurity
end globaldots| “auesee

CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israel APP SEC for enterprises - market presence 2024

software market

Checkmarks Vendors to watch:
Synopsys Apirio
Arnica
wız Snyk
Jfrog-Xray-
Ox Security Mend
mu SonarQúbe
© OpenText Fortify
HCL Veracode This diagram is not

‘apples to apples”
comparison - it contains
all kind of tools from the
APPSEC landscape

=

es Market P

e
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other cyber tools
a (secure development, awareness etc.)

snyk

x
é We rok VENDORS y
À RENE
cd
eur ainosnase

Ss
=
A "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

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Brands in Enterprise B2B Vaults (replacing Cyberark vaults)

No 4 market presence 2024

GoAnywhere

= Kiteworks = Accellion

Infobay
BMC

un Market Pres

e
=

ffi STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Project Development & Management Tools
Market 2018-2026

2018 2019 2020 2021 2022 2023 2025 2026
— = | _
Project & Portfolio Management | $28.00 82900 $25.00 $22.00 $26.00 $31.00 $3800 $47.00 $58.00.
Development tools, ALM, DevOps
fecal enronnerts(cuding | $7800 $7600 $6500 seso s7200 $7900 $8700 $9600 s10700
Poble
Low Coe tos $200 seso 600 $200 $1000 $1200 $1800 $2800 sw
Toms 10400 10930 $9600 10000 10800 12200 14309 17100 20000
Values in Million USD
E
e =
E

ffi STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Project & Portfolio Management Tools

Trello

ServiceNow

EN
x

Commugen

Mona com SAP

Actionbase

We renk VENDORS by 1
meat clarizen

ond
CLIENT MINDSHARE

=
=
A "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

==>

©

software market

PPM Israeli Market Positioning— 2024

Monday 9
Atlassian

a

MicrosoftMySP
Q Clarity PPM
9 Schiforma

O) service|Now

9g SAP PPM
9 “Planview (Clarizen)
9 Actionbase Vendor to watch:
Commugen Zoho
Trello
= t P

e
E steı.unro Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

PPM Tools & Integrators in Israel

Integrators

| Proceed (HMS)

EPM Microsoft

Matan, Abra, DeePlan (PZ Projects)

Attlasian Jira

Methoda, Matrix, Practiproject, Abra, Proceed, Bynet

Monday.com Advanced Solution Parner Abra, Boost Platinum: Matix, KPMG, ESL; Gol: Abra,
Silver: TWODO, Entry point
Proceed

MySP ONE1

Sciforma Top Group

ServiceNow Dicomano One, Deloitte, Bynet, Verdera

Strategic Portfolio Management

SAP PPM

SAP, Proceed, Matan, Malam other potential SAP integrators

Clarizen
(Purchased by PlanView)

DeePlan (PZ Projects)

CLIENT MINDSHARE

Development, Mobile, ALM & DevOps

tools

too!
tricentis a

rocketsoftware

SMARTBEAR Software
PERFORCE (testeraft)
Jenkins
magic ©

Software AG
Cloudbeat
HCL.
Appium
Oracle
GitLab
Sonatype (Nexus)

BROADCOM ‚Frog

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

=
=

i sTKI.INFo

ALM (Application Lifecycle Management)-
Israeli market presence 2024

Atlassian

Microsoft

Microfocus
Gitlab
IBM/HCL

Broadcom (Rally)

Market Pres

r
Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Israeli ALM selected integrators

Vendor Product Israeli Rep. Integrators

Atlassian Jira, Confluence, Bitbucket, Methoda, Matrix, practiproject ,
etc. HMS-Proceed. Agilesparks

Broadcom Rally NessPro

Microfocus QC, Octaine, etc. Microfocus Israel matrix qualitset vness

Gitlab Gitlab ALM Toolbox

sonatype Matrix

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

¿e

e
ft STKI.INFO

Low Code ( includes BPM) tools

Commugen

VANTIQ.

intex |
> nin
%
2
4
%,
AN We rank VENDORS by
%

REVENVE Proceed) appian
ond

CLIENT MINDSHARE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

=

agilepoint

EGRC & Regulation Tools

Market 2018-2026

2018 2019 2020 2021 2022 2023
Governance Risk & Compliance | $2000 $2490 $2000 $1800 $1400 $1350 $1500 $1700 $1900
Regulation $800 $700 $850 $1000 $1200
TOS $2000 $2490 | 52000 $1800 $2200 $2050 $2350 $2700 $3100

ft STKI.INFO

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

Governance, Risk & Compliance Tools

soars maño
Atlassian UCL.
kyndryl
NICE
a eM Servicenow
We ronk VENDORS by] datricks

REVENUE
‘ond
CLIENT MINDSHARE

MalamTeam

E
=
A "STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

SB

©

Governance, Risk & Compliance Tools
(VARS)

kyndryl… UCL
MalamTeam
Yael GROUP
Top Group ONE
We rok SOS y
REVENVE
E,

CLIENT MINDSHARE Aman
Er
=

STKI.INFO Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

O GRC 2024

sonara mia: Israeli Market Positioning

9 °

SAS

9 “>

io Commugen

qs

Datricks

9 Service Now

MysP

SER
| a Market P
i sTKI.INFo Copyright @STKI_2024 Do not remove source or attribution from any dade, graph or portion of graph

GRC Tools & Integrators in Israel 2024

Global Players:

IBM OpenPages

Service Now

Commugen

Actionbase

(Financial Integrity Platform)
=> MysP

Ti stKI.INFO

Integrators

Malam, KPMG, Deloitte, Globicon, ONE, SAP integrators

IBM Expert Labs, ABP, Malam, Matrix
MIA, Entropy
Cognizant ,Bynet ,Deloitte ,Docomano One

Methoda, Matrix, Partiproject, Abra, Proceed

Integrators
Commugen

Top Group, Deloitte

Datricks, SAP

ONE

Copyright@STKI_2024 Do not remove source or attribution from any slide, graph or portion of graph

O

software market

Knowledge & Collaboration Tools
Market 2018-2026

2018 2019 2020 2021 2022 2023 2024 2025 2026,
|Ofce productivity (ffce calendar,
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