Russia has become an exporter of cloud services: foreigners are forced to buy Russian hosting

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Russia has become a net exporter of cloud services. According to a study by iKS-Consulting , in 2018, the Russian cloud service market grew by 25% compared with 2017 and reached 68.4 billion rubles. The share of foreign customers is 5.1%, or 2.4 billion rubles. In the coming years, rapid growth will continue, so that by the end of 2022 the market will reach 155 billion rubles.

Two positive factors contribute to the growth of the Russian market:

  • Roskomnadzor is systematically blocking Western services in Russia. For example, 208 days were blocking 2.7 million Amazon AWS addresses. The lock was removed on January 22, 2019 . To date, 810,159 addresses , mostly foreign hosting and cloud services, this is 0.022% of the total IPv4 space on the Internet.
  • According to the law “On Personal Data”, companies are obliged to store personal data of Russian users in Russia.

Of course, this is fueling the demand for Russian hosting, including from foreign customers.

The main market volume (up to 70%) falls on the SaaS segment (Software as a Service).

If you look at another iKS-Consulting report “The Russian Market of Commercial Data Centers” for November 2018, you can identify the two largest players in this market: Rostelecom-DPC and DataLine. Over the past year, Rostelecom has increased the gap between competitors, adding 600 seats and bringing their total to 5868.

But SaaS is more than just hosting. For comparison, iKS-Consulting estimates the annual revenue of Russian data centers for the year at 27 billion rubles ...

... and the annual volume of the cloud services market in Russia - at 68.4 billion rubles. for the same 2018.

However, the Russian market looks faded against the global background. According to forecasts of international research companies, in 2023, the total volume of the global market for data storage and data center services (colocation) will increase to $ 73.8 billion, the market for public cloud services - to $ 376.1 billion. As of the end of 2017, the share of the Russian Federation in the world volume of rendering services of data processing and storage centers amounted to 1%, public cloud services - 0.6%.

IKS-Consulting reports that against the background of the rapid growth of the data center market and cloud services in Russia, foreign cloud providers have become more active. For example, Google Cloud is increasing its presence in Russia and is preparing to create here “something like a representative office,” said iKS-Consulting development director Dmitry Gorkavenko. In addition to Google, Chinese providers are increasing their presence, in particular, Alibaba and Huawei.

New services appear in Russia. For example, Yandex.Oblako , which by certain parameters is inferior to AWS and Google Cloud , recently opened , but many Russian customers have no choice: they must be located in the country.

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