SYS-CON MEDIA Authors: Pat Romanski, Gary Arora, Zakia Bouachraoui, Yeshim Deniz, Liz McMillan

News Feed Item

Research and Markets: Russia Information Technology Report Q2 2010 - Independent Forecasts and Competitive Intelligence

Research and Markets ( has announced the addition of the "Russia Information Technology Report Q2 2010" report to their offering.

Russia Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Russia's information technology industry.

Market Overview

The Russian IT market is expected to start to recover in 2010 from a double-digit contraction in spending on IT products and services in 2009. As the Russian market was buffeted by strong economic headwinds throughout last year, BMI projected that IT spending would contract by 21% in 2009 and not return to 2008 levels until 2011.

A contraction in PC sales in H109 continued the trend of Q408, with leading indicator data including consumption and investment showing little sign of improvement through Q309. Stronger sales of computers in the 2009 New Year holiday season suggested, however, that the market had entered the recovery phase and the pace of real GDP contraction narrowed considerably in Q409. In 2010, the Russian IT market is forecast to grow to US$15.0bn, up substantially on 2009 but still short of the 2008 pre-crisis level, which will not be reached until 2011. Growing computer penetration, government ICT projects and immense potential for IT spending by Russia's traditional industries could drive an increase in IT spending per capita from around US$107 in 2010 to US$190 by 2014.

Industry Developments

In December 2009, the Russian governments Expert Council of the Federal Antimonopoly Service (SAS Russia) on Developing Competition in Information Technologies convened a meeting on identifying problems in the IT sector. The council set up a working group to summarise ideas and proposals on the development of the IT sector, which were expected to be presented to the government in early 2010. The government has suggested that it will consider new measures if necessary to drive Russian government bodies to achieve key e-government targets. In a strongly worded speech in August 2009, President Dmitry Medvedev said that progress on e-government projects had been a disgrace and threatened to introduce financial penalties for government bodies that failed to meet targets. The presidents address echoed similar remarks made in May 2009 by Prime Minister Vladimir Putin, who also called for urgent drafting of a new e-government programme for the period up to 2015.

Competitive Landscape

In 2009, the rapid expansion of Russia's fast-growing retail sector continued to drive spending by major local players such as OKey and the Detsky Mir group. Detsky Mir, Russians largest retailer of children's goods, announced in January 2010 that it had implemented Oracle retail applications to support its strategic growth plans for long-term expansion. In November 2009, Microsoft said that it was considering launching its own retail presence in Russian in 2010. The outlets would be opened in Russia's largest cities and would be used more for brand development rather than as a new sales channel. Microsoft hoped that sales of its Windows 7 operating system, launched in October 2009, would boost local sales. Fellow US IT giant HP admitted that it had been hit hard by the Russian market contraction in 2009. The firm said that it expected 2009 annual output decline to be about 40% in Russia. However, HP said that it had outperformed the Russian IT market in the second quarter and that it expected to restore revenues to pre-crisis levels by 2011.


BMI forecasts a return to growth for the Russian computer hardware market in 2010, following a sharp contraction in PC sales in 2009. According to BMI projections, the computer hardware market is forecast to recover to US$8.1bn in 2010, up from 2009s US$7.1bn but still short of 2008 levels, which will not be reached until 2012.

Data from Citibank suggested that retail spending on computers and software was up 55% in December 2009. Hardware spending will have support from a number of fundamental drivers including low PC penetration, rising incomes, government IT initiatives and industrial reform in many sectors. PC market compound annual growth rate (CAGR) for the next five years is projected to be in the region of 14%, with spending reaching about US$11.3bn by 2014.


The domestic software market is projected at around US$3.1bn in 2010. Spending on software is forecast to return to positive growth territory, after demand was hit in 2009 by the much sharper decline in PC sales. Going forward, the market is projected to grow at a CAGR of 15% to US$5.3bn by 2014, making Russia potentially one of the most significant global software market opportunities.

The domestic software market is forecast at around US$3.1bn in 2009. Although Russia has the fifth highest software piracy rate in the world (87%), BMI expects that government efforts to strengthen intellectual property protection will see this fall closer to average Eastern European levels, boosting the market. There are, unsurprisingly, regional disparities, with Moscow some way ahead of its closest rival St Petersburg in terms of enterprise resource planning (ERP) deployments.


BMI projects an IT services market value of US$3.8bn in 2010, which will represent some recovery from 2009 when the market experienced a sharp contraction. The IT services opportunity is forecast to grow to around US$7.2bn by 2014 as the IT market gradually recovers from recent external shocks. The broader use of ICT in government and other sectors will ensure an upward market trajectory in the medium term. Systems integration is the largest IT services component, with as much as one-third of segment revenues and, together with implementation of hardware and software, probably account for about half of all IT services. However, more value-added services such as consulting and applications development are growing fast. Outsourcing is also on the rise, although below the levels in some other Central and Eastern European (CEE) countries.


The governments ambitious policy is that every locality in Russia should be provided with fixed-line telephony infrastructure, mobile phone coverage and internet by 2015. According to the Ministry of IT and Communications target, every populated area in the country should be provided irrespective of its economic weight and population. IT and Communications Minister Reiman has described the digital divide as a very challenging issue for all CIS countries and one that the Russian government was seeking to overcome.

Internet usage is forecast to see robust growth over the remainder of our forecast period. However, the current tight credit markets are limiting the ease with which broadband operators are able to source much needed funds to invest in broadband network proliferation. Coupled with the economic uncertainty, this is creating a troublesome environment for operators to plan their investment decisions. That said, growth will still be strong just not meeting its full potential.

Competition between the incumbents holdings and alternative operators such as Comstar-UTS, Golden Telecom and Net By Net will continue to drive the sector forward. Continued expansion of networks, both fixed and wireless, should see penetration increasing in the regions, while uptake remains strong in the more urbanised areas. Alternative technologies such as WiMAX and fibre will also play their part in expanding the market, by introducing competition as well as offering services over a wider area.

Companies Mentioned:

  • IBS Group
  • IBM Russia
  • Kraftway
  • NCC
  • HP
  • Oracle

For more information visit

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the competition, or worse, just keep up. Each new opportunity, whether embracing machine learning, IoT, or a cloud migration, seems to bring new development, deployment, and management models. The results are more diverse and federated computing models than any time in our history.
On-premise or off, you have powerful tools available to maximize the value of your infrastructure and you demand more visibility and operational control. Fortunately, data center management tools keep a vigil on memory contestation, power, thermal consumption, server health, and utilization, allowing better control no matter your cloud's shape. In this session, learn how Intel software tools enable real-time monitoring and precise management to lower operational costs and optimize infrastructure...
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical Infrastructure as a Service cloud provider but it's been designed around data privacy," explained Julian Box, CEO and co-founder of Calligo, in this interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software with the simplicity and reach of the open web. With staff in 10 timezones, Isomorphic provides a global network of services related to our technology, with offerings ranging from turnkey application development to SLA-backed enterprise support. Leadin...
While a hybrid cloud can ease that transition, designing and deploy that hybrid cloud still offers challenges for organizations concerned about lack of available cloud skillsets within their organization. Managed service providers offer a unique opportunity to fill those gaps and get organizations of all sizes on a hybrid cloud that meets their comfort level, while delivering enhanced benefits for cost, efficiency, agility, mobility, and elasticity.
DevOps has long focused on reinventing the SDLC (e.g. with CI/CD, ARA, pipeline automation etc.), while reinvention of IT Ops has lagged. However, new approaches like Site Reliability Engineering, Observability, Containerization, Operations Analytics, and ML/AI are driving a resurgence of IT Ops. In this session our expert panel will focus on how these new ideas are [putting the Ops back in DevOps orbringing modern IT Ops to DevOps].
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Most organizations are awash today in data and IT systems, yet they're still struggling mightily to use these invaluable assets to meet the rising demand for new digital solutions and customer experiences that drive innovation and growth. What's lacking are potent and effective ways to rapidly combine together on-premises IT and the numerous commercial clouds that the average organization has in place today into effective new business solutions.
Concerns about security, downtime and latency, budgets, and general unfamiliarity with cloud technologies continue to create hesitation for many organizations that truly need to be developing a cloud strategy. Hybrid cloud solutions are helping to elevate those concerns by enabling the combination or orchestration of two or more platforms, including on-premise infrastructure, private clouds and/or third-party, public cloud services. This gives organizations more comfort to begin their digital tr...
Keeping an application running at scale can be a daunting task. When do you need to add more capacity? Larger databases? Additional servers? These questions get harder as the complexity of your application grows. Microservice based architectures and cloud-based dynamic infrastructures are technologies that help you keep your application running with high availability, even during times of extreme scaling. But real cloud success, at scale, requires much more than a basic lift-and-shift migrati...
David Friend is the co-founder and CEO of Wasabi, the hot cloud storage company that delivers fast, low-cost, and reliable cloud storage. Prior to Wasabi, David co-founded Carbonite, one of the world's leading cloud backup companies. A successful tech entrepreneur for more than 30 years, David got his start at ARP Instruments, a manufacturer of synthesizers for rock bands, where he worked with leading musicians of the day like Stevie Wonder, Pete Townsend of The Who, and Led Zeppelin. David has ...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Addteq is a leader in providing business solutions to Enterprise clients. Addteq has been in the business for more than 10 years. Through the use of DevOps automation, Addteq strives on creating innovative solutions to solve business processes. Clients depend on Addteq to modernize the software delivery process by providing Atlassian solutions, create custom add-ons, conduct training, offer hosting, perform DevOps services, and provide overall support services.