RUSSIA CLOUD COMPUTING INDUSTRY SNAPSHOT
- Revenue in the Russia cloud computing market is estimated to amount to US$ 4.47 billion in 2023. The market is expected to expand at a CAGR of 8.62% from 2023 to 2031.
- By type, the largest segment in Russia is projected to be Software as a Service (SaaS) with a market value of US$ 4.02 billion in 2031.
- In the Russian cloud computing market, 42.31% of total market value will be generated through IT & Telecom end user by 2031.
- During the forecast period, the education sector is anticipated to be the most rapidly expanding segment in terms of revenue generation, witnessing 9.76% CAGR.
RUSSIA CLOUD COMPUTING INDUSTRY SCENARIO, TRENDS, AND DEVELOPMENTS
The pattern of cloud services adoption among enterprises in Russia witnessed a noticeable change in recent past with the majority of the very large and large organizations increasingly shifting towards cloud-based IT infrastructure and spending substantial amount on cloud services and solutions. This is projected to fuel growth of the Russia cloud computing market during the forecast period. Further, growing inclination of these organizations is mainly linked with rising adoption of IoT technology and growth in big data. This has resulted in the increase in the demand for the platform as a service (PaaS) and infrastructure as a service (IaaS) in the country. However, small and medium business remains among early adopters of software as a service (SaaS) model for application.
Future of cloud computing in Russia is bright as next generation cloud-based solutions especially designed to enhance virtual infrastructure rather than only abstracting physical infrastructure. Cloud computing technology in Russia is likely to represent a combination of on-premise compute and cloud-based solutions to create a hybrid IT infrastructure to improve security of private data center and scalability and flexibility associated with cloud. The Russian government has been actively promoting the adoption of cloud computing technologies as part of its digital transformation agenda. Key initiatives such as the "Digital Economy of the Russian Federation" program aimed at modernizing the IT infrastructure and promoting the use of cloud services among government agencies and businesses. This is likely to stimulated Russia cloud computing market progress.
Moreover, many organizations in Russia are adopting hybrid and multi-cloud strategies, leveraging both public cloud services and on-premises infrastructure to meet their specific needs. This approach enables end user enterprises reap benefit from the scalability and flexibility of the cloud while maintaining control over sensitive data or legacy systems. In contrast, growing concern over data security and increasing incidents of cyber-attacks is impeding growth of the Russia cloud computing market to certain extent. However, with increasing regulatory requirements, there is a growing emphasis on security and compliance in the Russian cloud computing industry. Thus, cloud vendors are investing substantial amount on advanced security measures and obtaining relevant certifications to assure customers of the safety and integrity of their data. These factors are stimulating growth of the cloud computing market in the Russia. Furthermore, the Russian cloud computing sector has witnessed various developments and trends.
- Major cloud service providers like Microsoft Azure, AWS, and Google have limited their operations in Russia owing to sanctions imposed after the invasion of Ukraine. This, in turn, has created a gap in the industry and opened opportunity window for domestic players functional in Russia cloud computing market.
- Although smaller than aforementioned western counterparts, local cloud providers like Yandex Cloud, SberCloud, and VK Cloud are witnessing significant growth. Also, the Russian government is actively supporting their development through subsidies and preferential treatment.
- By 2023, 24 federal government entities are expected to shift their IT systems to GosTech, comprehensive national platform. Following suit, regional bodies are slated to commence their migration in 2024. The endeavour to establish a national digital platform stands as a crucial component in boosting the nation's technological sovereignty.
- VEON Ltd., a prominent provider of connectivity and internet services, completed the acquisition of IBS DataFort, a reputable cloud IT infrastructure provider. This strategic move empowers VEON's Beeline mobile operator (Russia) to expand its cloud services portfolio tailored for business clientele, thereby positioning it as one of the leading players in the Russia cloud computing market.
RUSSIA CLOUD COMPUTING MARKET COMPETITIVE LANDSCAPE
Prominent players present in the Russia cloud computing market are An-teko, CROC, Inoventica, Oversun, Clodo, Cloud4Y, ActiveCloud, Onlanta, DataLine Cloudone, and Oblankoteka. Apart from organic growth strategies such as introduction of cost-effective cloud services and solutions vendors are also focused towards meeting regulatory compliances related to data sovereignty introduced by Russian governments. Further, these players are concentrating on standardization, enhancement of on-demand service capabilities, and diversification cloud services portfolio to reduce end user organizations perceived risk associated with migration to a cloud-based IT model. Global players present in Russia cloud computing industry are Amazon Web Services, Inc., Microsoft Corporation, IBM Corporation, and Oracle etc. Alongside international players, there has been a rise in number of local cloud providers offering cloud services to various end user industries in the Russian cloud computing market. These providers offer services tailored to the specific needs of Russian businesses and often emphasize factors such as data sovereignty and localized support.
RUSSIA CLOUD COMPUTING MARKET COVERAGE
2019 – 2031
2019 – 2022
2023 – 2031
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
- Public Cloud
- Private Cloud
- Hybrid Clou
- On-Demand Subscription
- Committed Use Subscription
- Package Subscription
- Hybrid Subscription
- Startups & Small Businesses (1-50 employees)
- Mid-Sized Companies (51-250 employees)
- Large Enterprises (251+ employees)
- IT and Telecom
- Media and Entertainment
- Energy and Power
- Transportation and Logistics