In the red
In the context of international sanctions, the decision to partially suspend its activities on
- Microsoft - the giant has suspended the sale of goods andservices, and this is the most popular operating system for PCs, Microsoft Word, Excel, PowerPoint and other popular services, the share of which in Russia is much higher than software from other manufacturers.
- Oracle, a software company for database management and analytics, announced on its social networks the suspension of all operations in Russia.
- Cisco - This network solution provider hadapproximately 50% of the network infrastructure market. The company stopped work in Russia and Belarus. The Cisco-owned web and video conferencing service Webex also stopped working.
- IBM - the largest software supplier at the beginning of March, 2022 announced a temporary stop of business in Russia.
- Adobe - the company needs no introduction,as it is the developer and supplier of Photoshop, Premiere, Illustrator and Lightroom. The company stopped selling its products and services in Russia, and also closed access to services for state-owned Russian media.
- Apple has stopped exports and suspended a number of services.
- Nokia, the world's leading manufacturer of telecommunications equipment, announced its withdrawal from the Russian market, but at the same time emphasized the importance of supporting existing networks.
Also about leaving the market or suspendingactivity reported by Acronis, Arbor (Netscout), Atlassian (Jira), Autodesk, Avast, AWS, Canonical, Coursera, Citrix, Docker, ESET, Figma, Fiverr, Globalstar, GoDaddy, Google Cloud, Grammarly, IBM, Javarush, JetBrains, Juniper , Intel, MATLAB, Mikrotik, Miro, MongoDB, NortonLifeLock, NVIDIA, Pearson VUE, Qt, Red Hat, SUSE, TeamViewer, Udemy, Unity, Upwork, VMWare, Xsolla, Zabbix and others.
For some companies, a crisis is a time to wind downbusiness, and for others - a period of searching for new opportunities. Under these conditions, Russian IT companies can receive an impetus for development and significant support that the state is ready to provide.
When creating Russian analogues of software and equipment, a number of difficulties may arise. Ban on the supply of foreign semiconductorsputs the industry at a standstill. They have no Russian analogues and are not yet expected (it takes several years to create the corresponding industry). There are domestic manufacturers of chips, for example, the Mikron plant, but even it cannot work without foreign supplies. It remains to look for alternative foreign partners. Today, Taiwan is the world leader in semiconductor production (with a market share of over 60%), and ideally, one should take advantage not only of its supplies, but also of the experience of creating an advanced industry.
Regarding Russian software, today there arerecommendations of the Ministry of Digital Development, Communications and Mass Media of the Russian Federation. The corresponding document contains a list of companies banned in the territory of the Russian Federation, as well as domestic analogues that can replace them. A total of 15 categories are presented, which include: social networks and instant messengers, video conferencing and communication programs, antivirus programs, document editors, electronic mail services, web browsers, educational resources and others. The transnational company Yandex is mentioned the most times.
Which Russian startups show promise and succeed in the IT sector?
Among Russian IT companies, there are several players that are now actively developing. Here are a few of them:
- "Algorithm". In 2016 appeared on the domestic marketAlgorithmika is a school of programming and mathematics for children and adults. A small startup founded by an ex-McKinsey consultant has expanded and become international in a few years. The company now operates in more than 200 cities around the world, from New York to Moscow, and offers classes in video blogging, graphic design, visual programming, and more.
- Winstrike. In 2017, marketer Yaroslav Komkov becamethe author of the Winstrike project, an esports marketing agency. It is worth saying that at the time when the company was just starting to take its first steps, eSports was not so popular in Russia and was just starting to gain momentum, but the startup managed not only to enter the Russian market, becoming a successful player, but also to popularize this type of competition . Now the agency is actively involved in the largest esports projects in Russia and acts as an organizer of tournaments.
- Owlcat Games. This is a studio development of computer games, which wasfounded in 2016. Experienced programmers who previously participated in the development of such products as "Allods" and "Heroes" took part in the development of the project. In 2018, the company was able to release the successful hit game Pathfinder: Kingmaker. It currently has over 600,000 active users and the number is only growing.
- one step. Dating service allows you to start a dialogue withperson within 100 meters of each other. First, you can look at the profile of a person in the application on your phone, and then decide whether it is worth getting to know him live here and now. The steps are very simple: go to the "Nearby" screen, find a profile you are interested in, send a welcome emoji, start chatting after the answer. All basic functions are available to users free of charge, and monetization occurs through paid subscriptions for advanced functionality and built-in advertising. The co-owner of the Merlion company, entrepreneur Alexei Abramov, invested in the startup. So, an amount of $570,000 was invested in the project. In October 2021, the service, according to experts, amounted to $2.85 million.
- Drimsim. In 2011, an entrepreneur from NovosibirskSergei Redkov came up with the idea to create a universal SIM card. For help in the implementation of the project, he turned to various large companies, including one of the largest operators in the world, Vodafone, but he failed to find an investor. Two years later, the entrepreneur began to cooperate with a Swiss company, which helped bring his plan to life. As a result, the startup gained about 200,000 subscribers from more than 200 countries. Later it was joined by Vodafone as a partner and such giants as Telefonica and T-Mobile. The total investment was about 2,500,000 euros. By 2021, the company has acquired 400 mobile operators from around the world.
- Real speaker. An indispensable assistant for writers, students andanyone who often has to do transcription. The program is used to translate speech into text. The project was founded in 2013 by Viktor Osetrov. Since then, the program has been updated and supplemented with new features and languages. Today, among the main advantages: printing text from dictation, good speech recognition, voice commands.
State support measures
For startups Russia provides several types of support:
- Financial. It implies investments, lending on favorable terms, subsidies, grants.
- Informational. Startup coverage at the federal and regional levels.
- Property. Provides for the use of state property and materials, resources that the state can give to a startup for use.
- Educational. Providing training sessions and consulting for entrepreneurs.
All measures of state aid and supportare regulated in a special document - the Federal Law "On the Development of Small and Medium Business", which is aimed at supporting business at all stages of its development. In order for the state to provide assistance to a startup, it is necessary to meet certain criteria, which are prescribed in Article 14 of the Federal Law No. 209, which sets out the conditions and principles for providing state assistance1. It is also important that the company is a small or medium-sized business entity with information entered in the Unified Register of SMEs.
To apply for government assistance you need:
- Refine the idea. It can be a business plan in the form of a technical task, which contains a description of the product and financial statements, or a business plan, which spells out all the details of the project.
- Choose a fund or company that can contribute to the project and estimate the amount of support.
- Submit an application on the official website of the State Service.
- Defend the project publicly in front of experts from a government organization.
Do not forget about special support measures,which the state began to provide IT companies. In particular, those who paid income tax in the amount of 3% are completely exempted from it until 2024. Companies accredited by the Ministry of Digital Development can take advantage of a three-year moratorium on scheduled audits, and the Russian Federal Tax Service has suspended tax audits of the IT industry until March 2025. Company specialists can receive a deferment from military service.
Experts agree that sanctions and withdrawalforeign companies will spur the development of the Russian IT industry. Demand for Russian software products has increased several times, and this trend will continue. In recent years, the share of domestic software on the market did not exceed 25%, so development should be very intensive. It is already clear that there are some Russian analogues of foreign products, and they work, but a significant number of programs and services have yet to be replaced by domestic developments. This, of course, takes time. In 2021, when the pandemic and lockdown were the most pressing problems, the Russian IT market grew by 17%. Now the pace of development should be even faster. So far, even industry experts do not dare to give exact forecasts when Russian companies will replace the departed foreign giants.
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