Review and assessment of the development prospects of the global and Russian IT markets

    Earlier, in our blog on Habré, we wrote about why the Moscow Exchange is primarily an IT company . As expected by IT companies, we constantly monitor new trends in the IT market, do analytics and make forecasts.

    We present a fresh analytical review of the IT market, prepared in conjunction with the RVC fund and IDC.

    In this review

    The first part of the review is devoted to a review of the global market for information technology (IT). Particular attention is paid to the description of factors for the future development of the market, such as the spread of cloud computing, an exponential increase in data volumes, and the use of mobile devices and social networking technologies in the corporate environment. Separately, the evolution of the role of the director of information technology is considered.

    The second part of the review provides an overview of the Russian IT market, including a detailed description of market segments and their development trends. The main provisions of the state policy in the field of IT are separately covered and the ranking of economic sectors by the volume of IT costs is given. It also provides a description and a list of the main players in the Russian market.

    The report contains a forecast for the development of the global and Russian IT markets in the main categories for the period 2014-2018.



    This study was prepared by IDC in collaboration with the Moscow Exchange Innovation and Investment Market and the Russian Venture Company.

    Overview of the global IT market

    Today, the combined global IT market exceeds two trillion US dollars.

    The largest market segment in terms of expenses is equipment. Explosive growth of information volumes stimulates demand for servers and data storage systems. The ubiquity of data centers and cloud solutions provides a steady demand for various types of network equipment. The market for personal computers is gradually declining in volume, while the market for mobile devices is growing steadily. Supplies of printing and copying equipment are relatively stable, and sales of monitors are steadily declining.

    The demand for IT services is provided by the growing variety and complexity of corporate IT systems used, which require large costs for installation, integration, training and maintenance. IT outsourcing, that is, the transfer of functions to support and maintain IT infrastructure to third parties, is one of the promising areas in this market.

    The most dynamic segment of the global IT market is software, whose annual growth over the past few years has exceeded 6%. Over half of the total segment volume is formed by various categories of applications, the rest falls on system software and development tools. The category of applications for organizing joint work, in particular, solutions for in-house social networks and file sharing, is developing fastest: their volume is increasing by more than 20% annually. The category of solutions for database management and analytics is also developing dynamically with an annual growth of more than 8%. Consistently high demand remains for solutions for managing enterprise resources and customer relationships, as well as security solutions.

    Among the strategic directions of IT development, cloud technologies, large data analytics, the integration of mobile devices and social networking technologies into the corporate environment occupy a special place. The combination of these technologies and processes IDC combines in the collective term "Third Platform", the development of which in the next few years will lead to the transformation of business models in most industries.

    Scientific and technological trends and the fastest growing segments in the global IT market

    IDC presents the stages of development of the IT industry in three platforms. The first platform was built on the basis of mainframes and terminals, on which thousands of applications and users worked. The second platform is based on traditional personal computers, the Internet, client-server architecture and hundreds of thousands of applications. The third platform is characterized by a rapidly growing number of
    mobile devices that are constantly connected to the Internet, combined with the widespread use of social networks and developed cloud infrastructure used to solve complex analytical problems.

    Applications, content and services built on the technology of the Third Platform are available to billions of users. Cloud computing, big data, mobile and social technologies stimulate mutual development. Indeed, users of a growing number of mobile devices are generating more and more content that is conveniently stored in the clouds. Due to the growth of mobile devices, user activity on social networks is increasing. The content accumulated in them becomes an important source for the analysis and extraction of valuable information using big data technologies.

    Three platforms in the evolution of the IT market

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    A typical example of a solution based on the technologies of the Third Platform is the use of an application from a mobile device to gain access to corporate information or information located on social networks, real-time analysis of this data and the organization of activities depending on the information received. At the same time, both the application and the data can be in different clouds, private or public.

    As noted, the Third Platform concept is based on four elements: big data, mobile devices, cloud services and social technologies.

    Big data means the technologies and architectures of a new generation for the economic extraction of value from large-format data of different sizes by quickly capturing, processing and analyzing it. Big data technology has three distinguishing features: speed, variability, and volume. The volume is expressed in the fact that huge data arrays of tens of terabytes are analyzed. Speed ​​indicates that the capture and processing of data is carried out in a mode close to real time, or that the organization accumulates data at a high speed. Variability indicates that data is collected from one or more sources in different formats.

    The costs of big data technology in the world

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    Cloud solutions are at the heart of the Third Platform, as they provide remote access to information resources, including through a variety of mobile devices. Cloud services provide savings through standardization of equipment, virtualization, new principles for the joint consumption of software applications, as well as a new form of payment for the resources that the client actually consumes.

    According to IDC studies, the costs of public cloud (operational) services in the world will approach $ 100 billion in 2016. The costs of public cloud services from 2013–2018 will grow five times faster than total IT costs.

    Today, 16 of the 100 largest software developers receive more than half of their income from the cloud delivery model. The third platform, therefore, is not only a technological revolution, but also a revolution in the field of consumption, as a result of which new business models appear.

    The costs of public cloud services in the world

    The proliferation of mobile devices and the organization of mobile access is another crucial element of the Third Platform. The double-digit annual growth rate of sales of mobile devices encourages companies to more actively implement the concept of using their own devices of employees (BYOD) by deploying specialized solutions for the safe and efficient integration of personal mobile devices in the corporate IT environment. Mobile applications are the link between the device and the user. Most business applications today have a mobile version or represent a mobile application development environment. Application development for home users has a strong impact on the growth of the entire mobile application market.

    Worldwide mobile spending

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    Social networks are becoming a standard tool for attracting customers and promoting products. By 2017, 80% of Fortune 500 companies are expected to have active online consumer communities. Such communities will be critical components of marketing strategies and customer acquisition campaigns. With the help of social networks, companies receive valuable user information - user opinions about the brand, wishes for product improvements, identification of shortcomings - for more effective planning of future developments. IDC identifies several factors that contribute to the rapid development of solutions based on the Third Platform:

    • Availability. Enhanced access facilitates the diffusion of Third Platform technology. Access can be provided at any time, anywhere and through any device.

    • Cost. The Third Platform is characterized by the emergence of more flexible pricing models, due to which the cost is established on the basis of actual consumption.

    • Sales channels. Enterprise applications based on the Second platform are distributed through partners of various statuses (resellers, system integrators, distributors). With the development of the Third Platform, access to applications is increasingly carried out through cloud technologies (by leasing) or through special corporate stores where mobile versions of applications are located.

    • Self catering. The solutions of the Second platform are characterized by high capital costs and a long installation time. In the era of the Third Platform, capital expenditures for the acquisition of IT solutions are transferred to operational (rental payments), which helps to reduce costs and accelerate the implementation process.


    It is expected that the development of solutions based on the technologies of the Third Platform will be the main driver of the global IT market during this decade and will provide, according to IDC, more than 75% of future growth.

    Worldwide IT Costs

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    Technology Convergence

    The following limiting factors are characteristic of a modern IT infrastructure: floor space, high energy consumption, the need for individual connection and configuration, the need for highly qualified staff. Any new technology must be built into the existing infrastructure, which requires additional integration tasks. Converged infrastructure solutions - capacious, cost-effective, flexibly customizable and energy-saving all-in-one systems - are based on the latest equipment and can comprehensively cope with the problems associated with the aforementioned limiting factors.

    Converged infrastructure solutions available on the market today combine computing devices, storage systems, network equipment, virtualization and infrastructure management software on a pre-configured platform from a single vendor. A number of companies, including HP, IBM, EMC and Oracle, offer similar solutions that allow the user to choose the configuration that best meets his needs and at the same time the most cost-effective.

    The traditional data center is a combination of servers, storage systems, network equipment from various vendors that have been building the IT infrastructure for many years. A similar heterogeneous environment appeared as a result of the automation of individual business processes using the best niche solutions.

    As a rule, in such computer centers it is difficult to organize centralized management of the entire infrastructure, since each individual element has an individual control system. The bottleneck in the functioning of such data centers is the diagnosis and troubleshooting.

    The concept of converged infrastructure offers computing centers an all-in-one solution for the entire infrastructure. Buying a set of infrastructure equipment from one supplier eliminates many integration and compatibility issues, and also allows you to better organize infrastructure management, since the software tools are specially designed for this particular equipment, and the service is carried out by the same supplier.

    At present, the implementation of converged infrastructure systems is moving from the stage of trial operation to wider use. There are significant benefits to this in terms of reduced downtime, cost savings, increased IT staff productivity and more efficient use of IT resources in general.

    According to IDC estimates, the aggregate market of network equipment, servers and external storage systems will grow in the next five years at an average annual rate of 0.1%, while supplies of converged network equipment systems, servers and external storage systems - 19.6%.

    Investments in traditional and converged solutions (network equipment, servers and external storage systems) in the global market.

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    The new role of Director of Information Technology

    Information technologies make a huge contribution to improving the efficiency of most business processes and therefore are perceived as the most important source of a company's competitive advantage in the market.

    It would seem that the director of information technology should play a strategic role in the company, since he defines the vector of innovation and helps to maximize the benefits of using technology, but traditionally this is the person who is responsible for the smooth operation of the IT infrastructure and the preservation of corporate information. Therefore, its activities are aimed, first of all, at increasing the efficiency of IT operations, maintaining the infrastructure and managing the IT department. In other words, the IT director performs primarily tactical functions and is less involved in working on the company's strategic objectives.

    More and more IT projects are initiated by business users. According to an IDC study conducted in 2013, 43% of more than 1200 business executives surveyed independently conduct local IT projects, and 61% also fund them without IT. Obviously, in such circumstances, the IT director is directly interested in strengthening his position in the organization, expanding his functions and acquiring new competencies. But as with everything related to information technology, not one of the current duties of the CIO disappears - only new ones appear.

    As before, the chief task of the CIO is to systematically and efficiently manage the infrastructure. Its main focus should be on cost, complexity, and the consistent implementation of new systems in an existing IT environment. Traditional systems account for 65-70% of the total IT budget of the company. However, Third Platform technologies such as virtualization, converged systems and cloud computing will play a key role in further cost reduction.

    Among the new competencies that an IT director should have today, not only knowledge of the structure, business processes and goals of the company, but also participation in the development of corporate strategy and business planning. So, in developed markets, the IT director has been a member of the board of directors for a long time and has been actively influencing the company's business processes, in Russia this trend is only beginning to gain strength.

    An important place in the work of the IT director should be assigned to the functions of risk assessment and management, which can arise in the planning and implementation of information technologies: from choosing the optimal automation solution and design errors to violating deadlines and going beyond the allocated budget. Here, the director’s task is to make a detailed list of possible risks and determine the most effective ways to eliminate them even at the stage of project planning.

    Competition in most markets is constantly increasing, so companies now urgently need to calculate future profits and correlate them with the costs of implementation and maintenance before introducing a new IT system. This defines an additional aspect in the activities of the CIO related to participation in investment planning of capital investments in IT and assessment of the economic efficiency of projects.

    The scale of IT projects is growing, their portfolio is constantly growing, they can be dispersed across different departments of the company, covering several regions or even countries. Therefore, CIOs also require exceptional leadership and communication skills. He should not only create an effective team of IT professionals, but also be a kind of ideological leader who could convincingly at various levels of the organization talk about the practical benefits of new technologies, their impact on business and financial results, and also help employees in their development.

    Such a comprehensive participation of the IT director in the company’s activities implies that the existing model of the entire IT department of the company must change. The existing business support model should gradually transform into a full-fledged proactive business partnership, which is based on the promotion of business goals and development of the company.

    Investments in IT: TOP 10 most successful IPOs of global companies over the past three years

    . Over the past three years, the technology sector has been among the world leaders in the number of initial public offerings on the stock exchange. The reasons for entering the IPO of the company are very different: from acquiring assets and raising funds for development to increasing the flexibility of the company and its recognition.

    In September 2014, the initial public offering of the Chinese Internet retailer Alibaba on the New York Stock Exchange became the largest in history. According to the results of the first trading session, securities of the company went up to $ 93.89, which is 38% more than the placement price. IPO brought Alibaba 21.8 billion dollars, and the company's capitalization reached 231.4 billion dollars. Given the exercise of the option to sell additional shares, Alibaba's placement volume reached $ 25 billion, exceeding the previous best result achieved in 2010 on the Agriculture Bank of China Hong Kong Stock Exchange ($ 22 billion). Due to Alibaba IPO, the total volume of initial offerings in 2014 is expected to exceed $ 80 billion, which is the best result since 2000.

    One of the most successful public offerings among technology companies was the IPO of the microblogging service Twitter, held in November 2013. Trading in securities of the company started on the New York Stock Exchange at a price 73% higher than the offering price and amounted to $ 44.9 by the close. During the auction, Twitter attracted $ 1.82 billion in investments, and the company's value exceeded $ 25 billion. By the end of 2013, Twitter shares went up almost three times in comparison with the placement price of $ 26, reaching its all-time high of $ 74.73. At that time, Twitter was equal in market capitalization to Yahoo Internet and
    the LinkedIn social network.

    The largest IPO of 2012 was the placement of shares of the social network Facebook on the NASDAQ exchange. As a result of trading, with a starting price of $ 38 per share, the company attracted $ 16 billion in investments, and its capitalization reached $ 104 billion. At that time, Facebook was one of the three largest IPOs in US history after Visa and General Motors, and became the most significant in the technology sector. Nevertheless, the IPO of the social network is also considered one of the most unsuccessful in recent years, as Facebook shares fell below the placement price and did not come close to it for more than a year already in the first days after the listing. It was possible to return to the growth of social network quotes only after in mid-2013 it became known about the growth of Facebook's revenue from mobile advertising sales and a development strategy for this line of business was presented.

    Table 1 lists the ten most successful IPOs of technology companies over the past three years, depending on the amount of capital raised. One of the largest IPOs of 2014 was the listing of Japan Display on the Tokyo Stock Exchange, which on the first day of trading attracted $ 3.13 billion in investments. However, the company is not included in this list, since the Japanese market for screens for smartphones and tablets cannot be called successful on the Tokyo exchange. With a starting price of placement of $ 8.85 per share on the first day of trading, Apple's main supplier securities fell 15.2%, which allowed Japan Displays placement to be among the worst IPOs in Asia-Pacific companies with attracted capital of over $ 1 billion since 2008.

    The ten most successful IPOs of IT companies in 2012-2014

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    Of the Russian companies, the most successful entry into the exchange was carried out by Yandex and Mail.ru Group. The initial public offering of Yandex took place in May 2011 at a price of $ 25 per share. During the IPO, investors acquired 52.2 million shares of the company, resulting in a placement volume of $ 1.3 billion. Yandex IPO became the largest for Internet companies after Google, which in 2004 attracted 1.67 billion dollars. Mail.ru Group became one of the first Russian companies to place their securities on a foreign trading platform. In November 2010, Mail.ru Group held an IPO on the London Stock Exchange at a price of $ 27.7 per share. As a result, Mail.ru Group shareholders received $ 912 million for 17% of the company's securities, and the company's value was estimated at $ 5.71 billion.

    Largest companies and IT markets

    The United States accounts for more than half of the supply of information technology in the world. The headquarters of leading IT companies are located in the USA. At the same time, manufacturing companies from India and China are beginning to play an increasing role in the global market. For example, the Indian company IT provider Tata Consultancy Services in terms of market capitalization overtakes Dell and EMC. And the Chinese Internet giants - Baidu, Tencent Holdings and NetEase.com - are generally among the leaders in the IT industry in terms of revenue growth and profitability.

    The ten largest public IT companies in the world of the

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    USA are not only the main supplier of information technologies to the world market, but also their largest consumer, which accounts for about a third of the total turnover of the entire market.

    The top 15 countries in terms of IT spending in 2013

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    The largest IT consumer countries — the United States, China, Japan, the UK and Germany — account for 60% of the total global IT market.

    China is not only the second largest in the world in terms of IT spending, but it is also one of the fastest growing markets, the volume of which is growing annually by more than 8%.

    Double-digit annual growth rates show developing countries, including Brazil, India and some countries in the Asia-Pacific region. In them, the growth rate of IT costs significantly exceeds the annual GDP growth rate, which indicates the priority use of information technology to increase the competitiveness of these countries in the world.

    In the countries of Western Europe amid the economic recession, there is a slowdown in the growth rate of IT expenses to 1.7% per year (for the region as a whole).

    Russia ranks 13th in the world in terms of IT spending, far ahead of developed countries such as the Netherlands, Sweden and Switzerland.

    Analysis of the Russian IT market

    According to IDC, the volume of the Russian IT market in 2013 amounted to 34.49 billion dollars, which is 0.8% more than a year earlier.

    Key drivers and industry constraints

    In the long run, there are a number of macroeconomic and infrastructural factors that have a significant impact - stimulating or restraining - on the development of the Russian IT market as a whole.

    A serious deterrent to the development of the entire market is the weak diversification of the Russian economy. According to the forecast of the European Bank for Reconstruction and Development, at the existing rates of energy production, the proven oil and gas reserves of Russia will last only for the next 20 years. The development of new fields in Eastern Siberia and the Arctic will require large investments, which may be unavailable due to the slowing economic growth and economic sanctions. Weak diversification of the economy leads to excessive dependence of the country on the energy sector and fluctuations in energy prices.

    A negative factor in the development of the entire market is the inefficiency of large state projects. Weak interaction of federal and regional authorities leads to an increase in the cost of IT projects, a violation of the timing of their implementation and bloated budgets.

    Market development is stimulated by an increase in the volume of processed information. Further automation of business processes covers all new areas and forces companies and organizations, regardless of industry and size, to process and store huge amounts of information, which forces them to modernize their IT infrastructure.

    Another important long-term factor in market growth is Internet penetration. More and more services in Russia are being provided via the Internet. Consumers increasingly prefer online services to traditional ones, which leads to an increase in the use of cloud file-sharing systems. The spread of online services has a positive effect on the Russian IT market as a whole. About half of the 140 million inhabitants of Russia are Internet users - in absolute terms, more than in any country in Europe except Germany.

    A positive factor so far has been the desire of foreign investors to invest in cloud technologies in Russia. Leading international manufacturers continue to invest in IT infrastructure to provide cloud services in Russia. IBM has invested in the construction of three data centers in Moscow and one in St. Petersburg. In April 2014, SAP announced plans to invest $ 20 million in the construction of data centers in Russia to support its cloud services.
    In addition to the above factors, new factors began to have a significant impact on the market.

    At the end of 2013, as a result of the slowdown in the Russian economy, the ruble began to weaken. In 2013, GDP growth was only 1.3%, and hopes for recovery next year did not materialize. The crisis in Ukraine and the deployment of economic sanctions against Russia, announced by the US and the EU, put additional pressure on the Russian currency. In the fall, with the fall in oil prices, the ruble fell to a historic low. From the first exchange day to the second half of November of the current year, the ruble lost more than 40% of its value against the dollar. Further weakening of the national currency can lead to dire consequences for the entire economy, and the situation on the IT market will correspond to the general economic situation in the country.

    One of the main current negative factors is political and economic uncertainty. The ongoing crisis in Ukraine reinforces negative sentiment, and further cooling of relations between Russia and the West undermines investor confidence. The deepening Russian-Ukrainian conflict will increase geopolitical risks, and the uncertainty may increase due to further sanctions and retaliatory actions of Russia. This will increase market volatility and make recovery prospects even more illusory.

    A weak ruble, political and economic uncertainty accelerate the outflow of capital from the Russian Federation. According to the Central Bank of Russia, the net outflow of capital from the country for the first three quarters of 2014 amounted to $ 85 billion, which is almost double
    exceeds the same indicator a year earlier. In general, the net outflow of capital from Russia at the end of the year, according to the Ministry of Finance of Russia, may amount to 120-130 billion dollars.

    Finally, the surge in inflation and rising prices for imported products also significantly impede the development of the IT market, forcing Russian and foreign entrepreneurs to abandon ruble investments. High inflation undermines consumer confidence and
    negatively affects the entire market.

    It should be noted that along with new negative factors, some factors have also appeared that contribute to the development of the Russian market.

    This includes the planned adoption of a law on the storage and processing of personal data within the country. This change in legislation will significantly increase the need for data storage systems of companies operating in Russia. An important positive factor is the plans for import substitution and development of domestic IT products, including processors, which will also entail significant costs for IT services, especially custom software development, IT consulting and system integration.

    New opportunities for the development of the IT market in the country may arise due to the development of cooperation with China, as well as the creation in 2014 of the Eurasian Economic Union (EAEU). In addition to the largest gas contract in the history of Russia, Russia and China have signed a number of agreements affecting the banking, aerospace, telecommunications, transportation and other industries, which will stimulate the modernization of IT infrastructure. The EAEU will begin its work in 2015 and will become the largest common market in the post-Soviet space with a GDP of 2.7 trillion. dollars. Russian suppliers of IT products and services will gain access to a wider market and will be able to participate in joint projects in member countries of the union.

    Sector overview of the Russian IT market and development forecast until 2018

    The market of hardware manufacturers (computer and network equipment)

    Results and main trends

    Equipment continues to occupy a large part of the market (63.1%), however, compared to the previous year, its share decreased by 2.4%. After 2012, when the market reached its maximum ($ 22.4 billion), equipment deliveries in 2013 fell by almost 3% due to falling demand for PCs and servers.

    Server and client equipment remain the most expensive part of the IT budgets of most Russian companies. However, if in 2012 this segment occupied one third of the entire Russian IT market, then a year later this figure fell by more than 5%. It is expected that the downward trend will continue in the future, and the purchase of expensive equipment will become characteristic only for large organizations that prefer to have their own IT infrastructure. Small and medium-sized companies are gradually reorienting to cloud solutions, which will allow them to save significant funds.

    Currently, the following main trends are observed in the equipment segment:

    • Mobility. In Russia, as elsewhere in the world, consumers are increasingly choosing to buy mobile devices than PCs. PC sales in Russia have been declining over the past two years, while smartphone sales have been growing steadily since these devices hit the market. The factors that stimulated changes in user preferences towards mobile devices were the reduction in prices and the improvement of their functionality. As elsewhere in the world, the rapid growth in the number of new applications and services for mobile devices has played a large role in changing consumer behavior in Russia. The availability of low-cost broadband in the largest cities of the country was also of great importance.

      The proliferation of mobile devices in the corporate environment is still not so impressive pace. Security issues and the relatively underdeveloped environment of corporate mobile applications are the main reasons that sales of smartphones and tablets to business customers account for an extremely small fraction of the total sales of these devices.

    • Virtualization In the corporate environment, one of the priority tasks for many CIOs is to achieve maximum savings by realizing the benefits provided by cloud computing and technologies that make it possible to create cloud platforms. Virtualization of servers, data storage systems and network infrastructure allows for more even distribution of computing resources, which means more efficient use of equipment, which, in turn, helps reduce the amount of funds allocated to it from the organization’s IT budget.

    • Consolidation of infrastructure. More efficient use of equipment leads companies to centralize computing infrastructure and move towards converged systems. As a rule, companies — especially large and medium-sized ones — reduce the number and size of server and network infrastructure installations.

    • Data centers. Today, more and more companies are starting to use infrastructure hosting services. An obvious trend in the enterprise equipment market is the increase in purchases of products for use in commercial data centers. In some cases, such centers serve the needs of large organizations that consider them as an alternative to maintaining their own data centers.

      Services for the construction, development, management and operation of data centers in the next five years will be one of the most noticeably growing segments of the Russian IT market.

    Below is more detailed information on the categories of IT equipment.

    Expenditures by categories of IT equipment in Russia in 2013

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    Servers

    In 2013, the server market fell by about 30% (to 894.23 million dollars), with the largest decrease in supplies recorded in the server segments of the middle and higher price segments. This was due not only to the high cost of this product, but also to the lack of new technical solutions. The market was supported by large state infrastructure projects, for which a large number of servers of standard architecture were purchased, due to which the decline in this segment was only 20%.

    At the beginning of 2014, standard architecture servers still occupied about 70% of the market, however, the demand for them was caused by the desire of large customers to make purchases for the future amid concerns about sanctions, as well as the introduction of the SORM-3 system, designed to accumulate, store and processing of statistical information on the provided communication services with the subsequent provision of access to this information to authorized state bodies for conducting operational-search measures on the network of the communication operator.

    The launch of the Rostelecom Sputnik search engine and the development of a network of data centers in the interests of government agencies (the Federal Tax Service, the Federal Security Service, the Pension Fund and others) also have a positive effect on the market. The adoption of amendments to federal law No. 152-FZ, which prescribe the processing and storage of personal data of Russians in the country, will also have a positive effect on it.

    The negative aspects that affected the market at the beginning of 2014 include a decrease in business activity due to changes in the tender legislation - cancellation of No. 94-ФЗ and adoption of No. 44-ФЗ on the contract system for the procurement of goods, works, services to meet state and municipal needs.

    In the second half of 2014 and beyond, an increase in the number of data centers and an increase in the consumption of their services will serve as an incentive for the consumption of rack-mount standard architecture servers. The growth in sales of blade servers will be ensured by increasing the number of installations of business intelligence applications.

    The fall in the advertising market caused by the general unfavorable economic situation will affect the reduction in the cost of online advertising companies. The fading of the online advertising market, as well as the consolidation of its main players, will cause Internet companies to stop buying servers in the same volume.

    The dynamics of the server market growth will be determined by deliveries as part of the development of automation systems for the procurement process via the Internet (eprocurement) and the electronic system for the provision of public services (egovernment).

    External storage systems

    Deliveries of external disk storage systems decreased in 2013 by almost 2% to 552.91 million dollars. In 2014, the market returned to growth in both quantitative and monetary terms. Market development was facilitated by the further accumulation of data volumes, as well as the requirements of the Federal Tax Service, requiring companies to store information about financial transactions for a set time, which entails the inability to reuse the already installed capacities for data storage.

    The expansion of the network of data centers in the interests of government agencies has a positive effect on the storage market, while the development of software solutions for data deduplication slightly reduces the growth rate of companies' needs for external disk storage systems.

    Technological progress and the trend towards unification of system software within the product line of each manufacturer of external disk storage systems allow customers to migrate from systems of the highest price segment to more affordable mid-range systems, while maintaining compatibility within the entire software stack.

    In the future, customer migration between different manufacturers will decrease with the increasing complexity of storage systems and the number of installed systems of a single infrastructure. At the same time, the lack of breakthrough development in the technology of data storage systems and the slow evolution of interfaces will not satisfy all the needs of users for data storage, which promises a good future for the growth of the market as a whole.

    The expansion of the market for external disk storage systems is possible not only at the expense of companies from Southeast Asia, but also at the expense of local players who are rapidly building up their technological potential and are likely to be able to create complex systems in the near future.

    Personal computers

    The PC market (desktop and laptop computers) reached its maximum value in 2011, but after two years it significantly reduced volumes. In 2014, the market continued to decline, while due to the growing demand for tablets in the segment of home users, the rate of decline in notebook shipments was significantly higher than the same figures for desktop PCs. The general drop in supplies is due to stagnation of demand and saturation of the market, which is caused by the lack of fundamental reasons for starting the process of replacing an existing fleet of equipment.

    According to the IDC methodology, the laptop market consists of: traditional laptops with a full component base; ultra-thin devices with a thickness of not more than 21 mm, while possessing the functionality of traditional computers and the mobility of tablets; laptops with the mechanism of transformation into a tablet PC; as well as netbooks - compact devices based on Intel Atom processors. With the advent of tablets, we can say that the category of netbooks has virtually ceased to exist. Segments of ultra-thin laptops and transformer laptops appeared on the market relatively recently and so far remain niche products with a slight level of demand. The reason for this is the high price of the device and the lack of significant cost reduction options.

    The desktop market continues to decline, while the share of monoblocks continues to increase. The commercial segment remains the main consumer of desktop computers, while home users prefer laptops. Since the budgets of companies and IT costs are directly dependent on macroeconomic indicators, and the situation in the economy remains difficult, many organizations postpone the purchase of new equipment. Evidence of this is a sharp decrease in tender activity in the public sector.

    Price erosion has such a negative impact on the stagnant market that for some manufacturers the PC market ceases to be a priority at all. Since small producers are in an even more difficult situation than large ones in a falling market, further consolidation and a reduction in the number of players in the market are expected.

    Tablets

    From 2010 to 2013, the Russian tablet computer market was growing rapidly - its volume increased from 196.65 million to $ 2.295 billion. However, from the beginning of 2014, inexpensive laptops and smartphones with large screens began to compete with tablets. Now the tablet market is shrinking in both unit and monetary terms. In unit terms, the drop is due to the gradual saturation of the market in Moscow and large cities, and in money terms it is due to a significant expansion of offers in the budget segment and an increase in the share of second-tier brands.

    Many manufacturers are quite difficult to adapt to negative growth rates and continue to maintain high volumes of shipments, creating serious stocks. Some manufacturers are guided by the fact that the rapid growth in demand for tablets has passed, and is revising its business plans, reducing shipments and reducing pressure on distribution channels.

    The main trend of 2014 was the penetration of Asian and Russian manufacturers on the tablet market, not inferior in quality to well-known Western brands. Moreover, the products of such companies are significantly cheaper. Tablet PCs are now available to consumers with any budget. The largest market segment is the 7-inch device at a price of 50-70 dollars.

    To date, the tablet segment is focused on home users, most of whom consume ready-made content. In this regard, the tablet is easier to use, more ergonomic and attractive in price than personal computers. These factors contribute to the active growth in the popularity of tablet devices. Penetration of tablets into the business segment is proceeding at a slow pace. The commercial sector is only just looking at tablet PCs, and the most interesting are two-in-one devices (a hybrid tablet and laptop).

    The most popular operating system in tablet PCs is Android, whose share is more than 85%. The operating system Apple iOS takes the second position with a share of about 10%, in third place is Windows, which occupies less than 5% of the market. The growing popularity of Windows-based tablets will positively affect the share of these devices in the commercial sector, as the Microsoft platform facilitates integration in terms of software infrastructure.

    Peripheral devices

    The market of peripheral devices in Russia decreased in 2013 by 4.8% in quantitative and 3.7% in monetary terms, or to 3,985,778 units in the amount of 982.64 million dollars.

    The main trends in the peripheral market in 2013 were a decrease in sales of monofunctional devices (printers, copiers and scanners) and an increase in sales of multifunction devices (MFPs); the transition from entry-level inkjet devices to more expensive ones, as well as a general decrease in the share and volume of inkjet printers. The only market segment of peripheral printing devices, which showed double-digit growth rates in 2013, was color laser printers and multifunction devices based on them. A decrease in the average price of these devices gives reason to predict a further increase in their supply.

    In 2014, the market continued to decline. The falling ruble significantly reduced the purchasing power of private users, highlighting corporate customers. Sales of inkjet devices are decreasing due to the gradual “leaching” of the input level inkjet devices from the market (with a price of less than $ 100) due to their unprofitability for manufacturers, while sales of inkjet printers and multifunction devices equipped with a continuous ink supply system are growing. In the current environment, end users are striving to reduce peripheral costs while increasing its efficiency. Among home users and small businesses, low-cost MFPs with color printing capabilities and low cost of ownership will be in demand.

    If we take into account the number of installed peripherals per capita in Western Europe (almost double the Russian figures), then the Russian market for printing and peripheral devices is still far from saturated. The gradual transition from monochrome to color printers will continue and affect the office infrastructure.

    Print management services are becoming increasingly popular; In addition, in the corporate environment, there is a constant increase in demand for multifunctional multifunction devices with enhanced functionality.

    The development of the visualization market will also affect the printing market, which will lead to an increase in interest in mobile printing and the possibilities of using cloud solutions in printing devices.

    Smartphones and mobile phones

    Smartphone sales in Russia for the first time exceeded those of conventional mobile phones in the first quarter of 2014. In total, according to the results of the year, the share of smartphones will exceed 60% of the total Russian market of mobile phones (about 42 million units).

    In monetary terms (retail prices excluding VAT), the volume of the mobile phone market in 2013 amounted to 6.63 billion dollars. Similar results are expected in 2014. If last year, smartphones accounted for more than 80% of the market volume in monetary terms, then in 2014 this figure may exceed 90%.

    The depreciation of the ruble will certainly have a significant impact on the mobile phone market. According to IDC forecasts, the main trend in this market will be a shift in demand towards low-cost smartphone models, but not a reduction in demand for smartphones as such. The total number of phones sold in 2015 may decrease slightly. About 75% of all sold phones will be smartphones.

    Sales of conventional mobile phones are declining rapidly. The number of phones sold in 2014 will be almost half that of the previous year. The fall of this market segment in monetary terms will be even more significant.

    The Future and Impact of the Third Platform

    According to IDC forecasts, further development of the corporate equipment market in Russia will be largely associated with products intended for use in the data center environment. Small organizations will gradually abandon their own server rooms and use the services of commercial data centers. Large organizations often use their own data centers.

    Converged platforms based on compatible and integrated hardware and software will be in greater demand than disconnected products from multiple manufacturers. There is potential for the development of domestic software and hardware development, as well as greater use of solutions from Chinese suppliers.

    The increasing use of mobile phones and tablets, as well as the availability of Internet connectivity for a wide range of devices, will significantly increase Internet traffic. In the context of rapid traffic growth, the priority area of ​​investment for enterprises and telecom operators in the next five years will be the modernization of networks and network architecture.

    Mobile, cloud and social technologies will drive change in everyday business practices. A familiar office will no longer be a necessity for more and more work processes. This, in turn, will affect the structure of demand for IT equipment.

    Software Manufacturers Market

    Summary and Main Trends

    The Russian software market showed steady growth rates until 2012, adding an average of 17% annually. In 2013, against the backdrop of the general unfavorable economic situation and the decline in the manufacturing sector, the growth of the software market slowed down, but reached its maximum historical value of $ 4.99 billion. More than half of this amount falls on various applications, about 30% - on infrastructure software, slightly less than 20% - software for application development.

    Costs by software categories in Russia in 2013

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    In the application segment, the most popular in 2013 were solutions for the automation of enterprise management systems: enterprise resource management systems (514.39 million dollars), business intelligence systems (210.05 million dollars) and production operations management applications (134, 98 million dollars). Such solutions were most in demand among large companies, which accounted for about two-thirds of the entire market. Among the most active consumers were companies engaged in manufacturing, retail, energy, transportation and business services. The public sector in 2013 showed the largest increase in costs for this type of software, exceeding similar indicators of the previous year by 50%.

    The security software market continued to grow, despite increased competition from alternative security systems such as hardware and security services. In 2013, it added 9.2%, reaching $ 412.62 million, while solutions to protect workstations, which accounted for 56.6% of the entire security software market, made the largest contribution. Demand for network protection, vulnerability management monitoring systems and message protection solutions also had a significant impact on market growth. In the future, a hybrid approach to security will prevail, and organizations will decide for themselves which protection method is more economically advantageous for them with one or another IT infrastructure.

    Despite a slight decline in 2012 in the market for storage systems, sales of storage software in 2013 showed an increase of almost 19%. High growth rates and a significant number of idle server capacities in the country have attracted new suppliers to the market, such as Kaseya, OpenText and RedHat. Cloud data storage, deduplication solutions, virtualization of software and data storage systems became more popular in Russia last year. In the coming years, all of these technologies will allow companies to make their storage systems more productive, easier to manage and take up much less space. It is expected that the spread of virtualization and the introduction of cloud technologies, as well as the growth of projects related to big data, will force companies to make further investments in data storage software.

    For both Russian and foreign software providers, there are currently two key areas of research and development. The first of these is software as a service. Gradually, all major applications become available on demand via the Internet and are less and less acquired as resident programs installed on a specific computer. The second direction is providing access to applications through mobile devices: software versions that can be launched through a phone or tablet running on iOS, Android or another mobile operating system. Open source software has long attracted Russian users as an opportunity to avoid dependence on any one foreign supplier. There are many examples of the implementation of such solutions by customers in the public sector. The main difficulty here has always been the availability of qualified specialists, necessary not only to create, but also to support and update these solutions. In the near future, it seems highly likely that interest in solutions using open source software will increase in areas of strategic importance to the state.

    Gradually, the decision-making process on the purchase of this type of software moves from technical managers to managers responsible for the areas for which these products are intended. This is partly due to the fact that introducing new applications of this kind is becoming easier and faster. In addition, directors of such areas as marketing, finance, logistics, are beginning to realize that the success of their activities increasingly depends on the ability to use information technology.

    Investments by large companies still determine a large part of the software market in Russia, however, the share of costs from small and medium businesses continues to increase. Large companies have already gone through the main phase of automation of their business processes, and the interest of software suppliers has been aimed at attracting small and medium-sized business customers for several years. Most software vendors operating in the Russian market have specialized solutions for medium and small enterprises. In addition, the use of the cloud model makes the automation of the business processes of these companies significantly more affordable.

    The Future and Impact of the Third Platform

    Customer consumption patterns will change dramatically. Customers will gradually move from purchasing licenses to subscribing to applications. The subscription mechanism will also undergo changes over time - customers will be able to choose various options for using applications (pay for a single use, per hour, for a certain amount of traffic, etc.).

    The process of using cloud technologies in Russia lags far behind world indicators. In the overall structure of the software market, the cost of cloud solutions does not exceed a few percent. Large Russian business is still struggling to abandon internal corporate decisions. The most likely scenario is the use of hybrid clouds, in which individual departments in the company will use cloud services. Such a model is already being implemented and will continue to develop. Non-business critical applications, such as mail, human resources, electronic procurement, and supply chain optimization, are migrated to public clouds.

    Small and medium-sized businesses will migrate more actively to the cloud-based software delivery model, guided by the principle of minimizing IT costs and the flexibility of resources consumed. This is important in times of economic uncertainty. In mobile versions of the main applications, there will be a significant expansion of functionality and access capabilities.

    Granting access to corporate resources to various user groups in the company, and not just top managers, determines the further development of the mobile application market. The main tasks are the use of mobile applications by employees who provide services outside the office. Use of corporate mobile applications by this group of employees improves
    the effectiveness of their work, to minimize the influence of the human factor and errors, to work with relevant information in a mode close to real time.

    The next stage in the development of mobility is the transfer of data to the system not only from mobile users, but also from devices. Mobile app developers should also consider this trend.

    Software companies will try to maximize individualization of relations with their customers. More and more software will be sold directly to customers through all kinds of application stores. This, in turn, can qualitatively change the role of partners in Russia. One of the possible business models for them will be the provision of consulting services, the other - the sale of additional services related to a particular decision acquired by the customer.

    IT services market (consulting, outsourcing, system integration)

    Results and main trends

    Despite large investment projects, such as E-Government and the Sochi Winter Olympics, as well as continued high oil prices, the IT services market in 2013 showed the lowest growth rates over the past few years and stood at 7.73 billion . dollars, which is only 8.1% more than a year earlier.

    The Russian market for IT services is still not transparent enough, since many Russian suppliers provide far from all the details of their activities. In many projects related to new technologies, customer names are not disclosed under the terms of confidentiality agreements and remain inaccessible to the public.

    Difficult relations with the West again emphasized the need to reduce Russia's dependence on Western IT systems, expand the development of its own open source solutions, and strengthen IT infrastructure, especially in the public sector and the military-industrial complex. Nevertheless, despite the current situation, the main international high-tech companies continue to engage in large-scale projects in Russia. It is expected that in the coming years the IT services market will greatly depend on the economic situation in the country and the availability of large state projects.

    Expenses for the basic markets of IT services in Russia in 2013

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    The largest market share of IT services is still occupied by system integration. Projects in the field of system integration are usually long, complex and expensive. The growth of IT resources and the demand for their centralization will require new projects related to system integration.

    The market share of support services associated with the installation of new hardware and software will decrease with a decrease in the margin of revenue from these services.
    Equipment maintenance services will continue to be in stable demand .

    The share of the IT education and training segment will decrease with the increase in low-cost online courses and the possibility of free training on social networks. Compared to Western countries, the share of outsourcing in the Russian IT services market remains quite small. The advantages of cloud technologies, such as the ability to quickly get IT infrastructure for rent, use it on demand and
    pay upon consumption, are known to users, however, many Russian organizations are still afraid to introduce these technologies, due to the lack of a common outsourcing culture, as well as issues security.

    The growth rate of cloud services will significantly exceed the growth rate of traditional IT services. The advantages of cloud technologies, such as the ability to quickly get an IT infrastructure for rent, use it on demand and pay upon consumption, are obvious to many users, however, many Russian organizations are still afraid to introduce these technologies. This is partly due to the lack of a common outsourcing culture, as well as security issues. The share of project costs in private clouds is still very high.

    The costs of public cloud services in Russia

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    Services based on public clouds are resorted primarily to medium and small businesses. For them, the transition to the cloud model is not perceived as undesirable from a security point of view, but on the contrary, as a step towards better protection of information assets, as they begin to use licensed software.

    Large Russian organizations, by contrast, are less likely to resort to public cloud services and mostly build private clouds. At the current stage of IT development in Russia, cloud technologies are mainly used to support non-business critical applications and test environments.

    The Future and Impact of the Third Platform

    On the one hand, IT service providers, as high-tech companies, are beginning to introduce new technologies of the Third Platform in order to be able to test them and demonstrate to the customer. So, many system integrators in Russia transfer their IT infrastructure to the cloud and develop mobile technologies. Most providers have begun to provide user support not only by phone and email, but also through social media. Big data technologies are used by IT service providers in order to optimize their professional activities, for example, to predict failures in customer equipment and provide services proactively.

    On the other hand, IT service providers are increasingly engaged in consulting, training and implementation of solutions based on the technologies of the Third Platform. The demand for cloud hosting services is growing. New types of services are emerging - such as cloud brokers. The cloud broker acts as an intermediary between cloud providers and cloud consumers, integrates cloud services from various manufacturers, and manages the use, performance and security of an integrated cloud solution. The introduction of mobile solutions requires IT service providers to launch new projects for managing mobile devices, and stimulates custom software development. A growing number of Russian IT service providers are starting to engage in big data ─ they train specialists and create centers of competence in this area.

    Costs of IT in Russia

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    In the structure of the Russian market, IT equipment will retain a dominant role, and the development of the segment will follow global trends. Traditional desktop computers will be replaced by laptops and ultrabooks, and the release of various mobile devices will be facilitated by the release of low-cost models by Asian manufacturers. The need to store personal data of citizens exclusively on the territory of the Russian Federation will require the opening of additional data processing centers and will ensure stable demand for various types of server and network equipment and data storage systems. Demand for printing and copying equipment,
    especially MFPs, will remain.

    In the software segment, security solutions and heterogeneous infrastructure management, including workstations, mobile devices, virtual and cloud environments, will be in demand. High demand will continue for various categories of solutions for working with information, including databases, analytical applications, reporting systems. Traditional office applications (for example, MS Office) will be increasingly distributed according to the model of software as a service. Demand for solutions for managing enterprise resources and customer relationships will be ensured by launching industry-specific industry solutions and a cloud-based delivery model.

    The increasing complexity of information systems and the lack of staff of most companies with the competencies necessary for their effective implementation and support will ensure a steadily growing demand in the IT services market. The direction of IT outsourcing will be actively developed, including in the field of ensuring integrated infrastructure security.

    Export volume on the Russian IT market

    According to the Russoft non-profit partnership, the export of Russian software and services for its development in 2013 grew by 15% and amounted to 5.2 billion dollars, and by 2015 it will increase to 7.2 billion dollars. IDC considers this estimate to be significantly overstated. This is primarily due to differences in taxonomy. By exporting software from Russia, IDC refers to the turnover from the sale of licenses and their support. Programs developed by domestic companies and built into foreign DSP processors do not apply to software export. Providing IT
    services to foreign companies, according to IDC taxonomy, also applies to software exports, and not to IT services. At the same time, IT services include not only writing custom code, but also consulting, implementation, testing, training, etc. Writing software by employees of development centers of foreign companies in Russia, according to the IDC taxonomy, does not belong to the category of “software export”.
    IDC estimates software exports from Russia in 2013 at $ 980 million, and
    IT services exports at $ 1.2 billion.

    Given the crisis period in the Russian market, IDC suggests that a larger number of companies will focus on foreign markets, as a result of which software exports in dollar terms will increase by about 8% by 2018, while the Russian IT services market will grow by about 10 %

    The export of IT equipment of Russian manufacturers makes up a very small fraction of the volume of the hardware market of domestic brands. Today, tablet devices of some Russian manufacturers are presented in the markets of the countries of the Customs Union (Digma, Explay, iRU, PocketBook, Texet, Wexler). In addition, the Russian manufacturer of T-Platforms supercomputers is present in the US and European markets. In 2012, the company won a tender to supply a supercomputer to New York State University at Stony Brook. However, in March 2013, the Bureau of Industry and Security, subordinate to the US Department of Commerce, announced the inclusion of T-Platforms and two branches of the company in Germany and Taiwan in the "List of organizations and individuals acting contrary to US national security and foreign policy interests."
    the beginning of this year.

    The total volume of exports of IT equipment in monetary terms in 2013, according to IDC, did not exceed $ 10 million. Given the small base, it is difficult to give a numerical forecast of the change in the volume of exports for the period up to 2018, although in percentage terms the growth is likely to be higher than for the software and IT services market.

    The main consumers in the IT market in Russia: assessing the level of IT penetration in various industries.

    In the structure of IT consumption in Russia, home users still play a large role. In 2013, their IT expenses exceeded 13.41 billion dollars, which is almost 40% of the total market.

    More than 90% of this amount was spent on various devices, most of which were smartphones, tablets and personal computers. At the same time, costs for tablets and smartphones increased by 50.8% and 39.5%, respectively, which is higher than similar indicators for all other types of equipment. In total, these devices accounted for $ 8.01 billion, or almost 60% of all home users' IT expenses in 2013.

    In terms of investment in software, home users are in second place. The main share of their costs in this segment is accounted for by security systems. Home users are becoming increasingly aware of the need to protect not only personal computers, but also tablets, mobile devices, especially if they use them for online shopping, banking, social networking and media consumption.

    The second place in terms of investment in IT in Russia belongs to the vertical market, represented by organizations of the transport, communication and energy sectors.

    The transport sector, especially in large cities, is growing thanks to government investments aimed at developing the public transport system and reducing the travel of citizens by personal transport. Concepts for the development of a city network of paid parking lots, ground transportation, and the subway are inextricably linked with the introduction of technologies such as GLONASS, solutions in the field of enterprise resource management and customer relations, business analytics, and the development of Internet services.

    Telecommunication and media companies are also large IT investors, however, 85% of these companies' IT costs are for specialized telecommunication equipment. At the same time, the development of communication technologies is one of the factors of the increasing spread of mobile devices. Telecommunications companies, in particular the Big Three mobile operators, continue to invest in the development of LTE networks. The introduction of cloud services requires improving the quality of communication services. Telecommunications companies account for just over 11% of all software costs in the country. The main expenses here are security software, business intelligence systems and other application solutions.

    Large telecommunications companies make long-term investments and are less affected by short-term economic factors. Planned changes to the laws on personal data and on access of special services to telecommunication networks can cause a significant increase in investments in this sector.

    The costs of IT in the energy sector are mainly associated with the modernization of the existing infrastructure through the introduction of business intelligence solutions aimed at creating a dynamic payment system, redistributing workloads and creating so-called “smart grids”.

    The fastest growing vertical market in 2013 was the retail market, which showed an increase in investment in IT by 15.2%. The development of mobile technologies, the further spread of IT outsourcing, the implementation of analytical solutions and the use of cloud computing are the main directions in the development of IT infrastructure for retail companies.

    Rapid growth is seen in the online trading sector. Companies such as Ozon, Wildberries and Yulmart have proven that online stores are able to attract customers and deal with the problems of online payments and delivery. In this sector, there is a growing demand for the creation of applications (including mobile ones) that can be used to implement end-to-end functions for selecting and delivering goods from the catalog of online stores with one click. Companies are also introducing solutions to optimize work with suppliers. In addition, retail can be one of the first industries to implement the concept of “Internet of things”.

    The introduction of advanced IT solutions is becoming critical for the successful operation of online stores. The problem of the efficient operation of the delivery service for goods purchased on the Internet is solved by implementing integrated IT solutions that provide effective route planning, remote monitoring of vehicles and minimization of losses associated with inefficient logistics.

    Large customers of IT equipment are traditionally banks and other financial organizations. At the end of 2013, they accounted for more than 5% of all equipment costs, and the costs here cover many technological segments, including corporate networks, servers of all types, printers and MFPs, monitors and personal computers, as well as external disk storage systems.

    Financial institutions have traditionally been the driving force of the IT services market and occupy more than 20% of it. In 2013, banks and other financial institutions spent $ 1.7 billion on IT services. In total, over the past three years, the total cost of these institutions for IT services has exceeded $ 4.4 billion. Banks, insurance companies and other financial organizations invest in consolidating IT infrastructure, automating business processes, protecting trade secrets and personal data, as well as solutions aimed at increasing customer loyalty. As a rule, banks already have advanced IT infrastructure, which limits their need for significant new investments.

    Russian banks are increasingly transferring branch operations to remote channels - ATMs, kiosks, online and mobile banking. Providing customers with the ability to independently conduct financial transactions is one of the important tasks for the industry. The introduction of a modular approach in key banking systems along with the partial transition of critical payments to private cloud environments will become a fundamental condition for real-time analysis of customer behavior in order to provide supply channels and product lines.

    In an effort to optimize business and technological processes, enterprises in the vertical production market invest in business intelligence solutions, enterprise application software and security. Since 2010, the industrial production growth rate in Russia has steadily declined, reaching 0.1% by 2013. With the introduction of sanctions against Russia and the country's import substitution program, as well as the ban on the import into Russia of certain types of agricultural products, raw materials and food, the situation began to change. Many manufacturing companies began to think about updating their IT infrastructure, and the enterprises of the military-industrial complex, supported by state investments, began to spend more and more money on the development of IT products.

    In the defense and automotive industries, Russian manufacturers traditionally invest heavily in IT. Enterprise resource management, product life cycle management (PLM) and operational production management (MES) systems are still in demand. With their help, the most successful manufacturing companies were able to optimize business processes and increase productivity. System integration is also in demand, which is becoming an important step towards cloud architecture and the associated cost savings.

    Government organizations remain stable and welcome customers for IT service providers. The planned decrease in investment flow from private companies is partly able to compensate for the state, which adopted the program for the development of the IT industry until 2025 and considers it an important element in the development of the country. Large-scale projects related to the supply of equipment, system integration, network integration and consulting will be carried out by state customers.

    In a period of unfavorable economic conditions, investments in education and healthcare tend to decrease. However, the consolidation and integration taking place as part of the reorganization of these industries is associated with the need for significant investments in IT infrastructure, which was previously very poorly developed. IT budgets in these segments are not expected to be reduced. In
    particular, the restructuring of educational and healthcare institutions provides for the integration of servers, information storages and accounting systems into a single information space.

    IT expenses by sectors of the Russian economy in 2013

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    The sharp deterioration in the economic situation at the end of 2014 led to the correction of industry trends in the Russian IT market. In addition to the long-term industry-specific factors described above, a number of additional trends are unfolding related to the reaction of various industries to the action of two main unfavorable macroeconomic factors - the devaluation of the national currency (largely tied to world oil prices) and sanctions against Russia, introduced in stages by the United States and the EU.

    By blocking access to capital markets for large Russian banks, sanctions made it very difficult to seek financing for both Russian companies and Russian projects abroad. So, in August 2014, Rosneft requested a loan of $ 42 billion from the Russian government, citing the need to counter sanctions as a reason.

    The lack of sources of funds for investments will affect IT consumers in various sectors of the economy, will lead to a decrease in the number of new projects, and will affect the cycles of updating the infrastructure and modernization plans. The public sector should expect a correction in the IT budgets of local authorities. In the oil and gas sector, demand for IT is expected to decline as a result of a ban on the supply of equipment and services in support of long-term exploration and development of new types of raw materials. Due to import restrictions, growth is slowing and a decrease in the volume of IT investments in retail is possible, while in the energy, banking and transport sectors, IT budgets for systemically important organizations are not expected to be reduced in the Russian economy.

    The devaluation of the Russian currency at the same time gives a short-term advantage to all Russian producers competing in the market with imports. An additional effect of the same kind is created by Russian sanctions against food imports from Europe. The food industry and the agro-industrial complex as a whole may benefit from this situation. Subsequently, some other industries may also benefit as prices for imported products rise significantly.

    Ten largest Russian IT companies in 2013

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    Above is a table of the largest annual turnover companies operating in the Russian IT market. In accordance with the definition of the boundaries of the Russian IT market adopted in IDC standard reports, the list includes companies operating in one of the three components of the IT market - the software market, the IT equipment market, or the IT services market. Therefore, we did not include, for example, Yandex and Mail.ru in the table - they do not belong to any of these categories; they are not taken into account in the figures of the Russian IT market provided by IDC. Turnover data is based on information provided by companies participating in the IT market in IDC and verified by IDC analysts.

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