Business Monitor International


Russia Information Technology Report

Published 08 April 2014

  • 83 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Russia Information Technology Report

BMI View:   Investment in the Russian data centre and cloud computing market has been strong in the first half of 2014, backed by a well-developed telecoms sector, skilled IT professionals, large internet population and opportunities for outsourcing. This is indicative of our strong medium-term outlook for Russia's IT market, as we see growth potential in devices and enterprise solutions. State intervention is helping to promote IT development but excessive regulation of the internet could also result in the industry losing its lustre. Similarly, joining the WTO and the Information Technology Agreement (ITA) should help the industry, but Russia lags behind in terms of IPR enforcement and online piracy has been, and remains, a significant problem in Russia. Our short-term outlook is weaker following our macroeconomic and IT forecast downgrades in the Q214 update. Pressure on retail hardware sales as a result of competition from low-cost tablets, meaning value growth will fail to keep pace with unit growth over the medium term.

Headline Expenditure Projections

Computer Hardware Sales: RUB361.4bn in 2013 to RUB418.5bn in 2014, +5.3% in local currency terms. Hardware is forecast to be the underperforming market segment in 2014, as the shift in consumption to lower cost tablets means growth in market value will fail to keep pace with unit growth. 

Software Sales: RUB139.5bn in 2013 to RUB149.7bn in 2014, +7.3% in local currency terms. Modernisation initiatives of Russian enterprises are driving spending increases as they become more integrated in global markets and supply chains.

IT Services Sales: RUB201.0bn in 2013 to RUB219.0bn in 2014, +8.9% in local currency terms. Cloud computing demand is increasing rapidly as awareness levels and infrastructure quality improves.

Key Trends And Developments

We have a positive outlook for the Russian data centre market over the next few years, as the country's large internet population and data demand creates...

Table of Contents

BMI Industry View
7
SWOT
9
Wireline
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Table: IT Industry - Historical Data And Forecasts (RUBmn)
16
Macroeconomic Forecasts
21
Economic Analysis
21
Risks To Outlook
26
Table: Russia - Economic Activity
26
Industry Risk Reward Ratings
27
Industry Risk/Reward Ratings
27
Table: Europe Risk/Reward Ratings, Q213
31
Market Overview
32
Hardware
32
Software
38
Services
44
Industry Trends And Developments
50
Table: Russia's Technopark Expenditure, 2006-2010 (US$mn)
53
Regulatory Development
54
Table: IT Authorities
54
Company Profile
58
NCC
58
Oracle Corp
61
Table: Oracle: Selected Acquisitions
62
Hewlett-Packard
66
IBM
72
IBS Group
78
Kraftway
82
Regional Overview
83
Regional IT Overview
83
IT Penetration
83
Market Growth And Drivers
85
Sectors And Verticals
87
Demographic Forecast
92
Table: Russia's Population By Age Group, 1990-2020 ('000)
93
Table: Russia's Population By Age Group, 1990-2020 (% of total)
94
Table: Russia's Key Population Ratios, 1990-2020
95
Table: Russia's Rural And Urban Population, 1990-2020
95
Methodology
96
Methodology
96
IT Industry
96
IT Ratings - Methodology
97
Table: IT Business Environment Indicators
98
Weighting
99
Table: Weighting Of Components
99
Sources
99

The Russia Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

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

Key Benefits

  • Benchmark BMI's independent IT Industry forecasts for Russia to test other views - a key input for successful budgetary and strategic business planning in the Russian IT market.
  • Target business opportunities and risks in Russia's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Russia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Regional Overview

Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

BMI Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2018 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Competitive Landscape

Full analysis of the competitive landscape within the hardware, software and services sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc