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April 2019 www.intellinews.com I Page 3
Cloud services on the rise in Russia
Russia's market of cloud services has been boosted by a recent requirement that Russian citizens' personal data should be stored within the country as part of the Kremlin’s ongoing drive to sanction-proof the Russian economy.
Although Russia's total share of the global cloud storage market is still under 1%, the sector is undergoing a boom as foreign companies hire local service providers to store Russians' data,
a recent study by iKS-Consulting revealed.
In 2018, Russia’s cloud services grew by 25% y/y to RUB68.4bn ($1.1bn), and about 70% of it is accounted for by SaaS - Software as a Service, or programmes that are operated from the cloud rather than being installed on a personal computer.
Meanwhile, Russia's cloud services industry is projected to grow by roughly 23% a year over the next few years and could reach RUB155bn ($3.4bn) by the end of 2022, according to iKS- Consulting.
Foreign customers' share has been growing and currently stands at 5.1% for SaaS and at 2.2% for the IaaS (Infrastructure as a Service) segment, which covers various types of cloud data storage.
The controversial Yarovaya data storage law, enacted on September 1, 2015, led to blocking of the international recruitment network LinkedIn, which refused to comply and put other global tech giant operating in Russia in a tough spot.
And while the global tech giants are still playing
a tug-of-war game with the government, smaller companies are looking for ways to store Russians' personal data within the country.
Russian e-commerce could reach $43bn by 2024
IntelliNews Pro
Russian e-commerce market could reach RUB2.78 trillion ($43bn) by 2024 or 8.5% of all Russian retail sales Russian e-commerce market could reach RUB2.78 trillion ($43bn) by 2024 according to the study by the Gaidar Institute published on March 13 and cited by RBC business portal. This would bring online sales to 8.5% of all Russian retail market, up from 3.5% in 2017 and 4.1% in 2018.
In absolute terms this would almost double the e-commerce market estimated in 2018 at RUB1.5 trillion ($22.8bn). Gaidar's forecast is a conserv- ative one at that, with Morgan Stanley expecting RUB3.5 trillion market by 2024, RBC reminds.
Gaidar's study notes of rising rates of internet penetration in Russia to about 70%, but notes that in the past three years the share of those involved in e-commerce plateaued at 35-43% of the population or 41mn-51mn people.
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