STKI definition of the Israeli IT market should include the following: - 1. Basically we want to count everything that IT departments buy and vendors sell for the IT use in Israel.
- 2. While personnel expenditures of employees' salaries is not counted, staff augmentation is counted.
- 3. Hardware expenditures are counted taking out any amortization and other financial amounts.
- 4. Software expenditures include licenses and maintenance costs.
- 5. Value Added Services had to neutralize contractor/subcontractor relationships and give credit for the project only to the vendor doing the actual work.
- 6. IT Market covers all "outside" expenditures of IT departments in Israel.
- a. IT departments of multinational companies that have their headquarters in Israel are counted but not the expenses of subsidiaries outside of Israel that buy their products or services locally.
- b. Only local expenditures of Israeli subsidiaries of multinationals are counted.
So what STKI analysts do during the year? - 1. During the year STKI analysts meet with clients (users) and answer inquiries for them. 2010-11 we had over 600 meetings face to face with clients (CIOs and their managers) and answered over 2,000 inquiries. We also meet with groups of 15-30 users and discuss predetermined subjects (we call this round tables). Between 11/2009 till 3/2011 STKI hosted over 90 round tables. STKI runs about 30 surveys a year about subjects from security implementation to software development. In our interactions with IT users (e.g. CIOs, IT managers), our objective is to understand the role of IT in the organization and the corresponding IT strategy, as well as to gain an overview of ongoing and planned projects and strategic decisions. Furthermore, there is an exchange of thoughts on the users' experience with IT vendors and their criteria for vendor selection.
STKI analysts are involved in: - a. Quality assessments of products and vendors
- b. Strategy and architectural solutions
- c. Procurement questions
- d. Decisions on new technologies
- e. Understand their budget
- f. Help in best practices/staffing ratios for the Israeli Market
- g. Much more
- 2. During the same time they meet with vendors and answer inquiries for them. During 2010-2011 we had over 500 face to face meetings and answered over 1,500 inquiries. We also met with over 60 vendors for vendor briefings (vendors describe their past performance and future strategies). Through the interactions with IT vendors we gain a profound understanding of the organization, portfolio, and the market positioning of the relevant vendors. This way we can assess the revenue information by different dimensions. Moreover, we discuss the market perspectives and outline our market development scenario.
STKI analysts are involved in : - a. Market understanding
- b. Industries needs and projects
- c. New products and services
- d. Product packaging and marketing strategies
- e. Much more
So how does STKI deliver it's research ? To present our results we use several methods: •1. Trends and Technologies (look at STKI Summit presentations) •2. Round Table Summaries (http://www.scribd.com/drjimmys) •3. Israeli Vendor Tiers presentations (http://www.slideshare.net/jimmyschwarzkopf/stki-summit-2011-israeli-market-data) •4. Projects/services market positioning in over 100 categories •5. Israeli IT department Staffing Ratios (http://www.slideshare.net/jimmyschwarzkopf/stki-it-israel-2011-staffingratios) METHODOLOGY (Equilibrium Model) Starting after our annual STKI Summit (this year it was our 18th) we maintain our market model and update it (our segmentation is adjusted when the market changes) constantly. STKI activity year goes from Summit to Summit, in other words from 1 of April till the end of March. Our summit has been scheduled at a time that all budgets have been closed and we have time to meet and discuss them with clients. At that time vendors can also discuss the past year and new strategies with us. What companies (IT departments) does STKI cover STKI Analysis covers over 100 categories STKI covers about 300 vendors that work in the IT Market of Israel | 
