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Russia IT market: 16.2% CAGR growth expected between 2012-2016

Press Release   •   Aug 21, 2013 16:07 BST

The Russia IT market is to grow at a CAGR of 16.21 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increase in the oil prices. The IT market in Russia has also been witnessing the increasing use of cloud computing. However, lack of legal framework to control piracy could pose a challenge to the growth of this market.

Cloud computing is an internet-based computing where all the data of end-users are stored on vendor's data center. Cloud resources are not only shared by multiple users but also dynamically re-allocated as per demand. The users of the cloud computing don't have to invest in infrastructure and other resources. They have to pay only for the services which they use, based on pay-per-subscription model, which helps them save cost and time of implementation. This also helps end-users to focus on their core competencies. Cloud computing can be divided into IaaS, SaaS, and PaaS. Until recently, people of Russia were not much aware of the benefits of cloud computing. However, they have started investing in IaaS, so the demand of IaaS is growing followed by the demand for SaaS-based solutions. In addition, the investment in public clouds is expected to increase by the time depending on awareness among the consumers. Because of the cost and time associated advantages, cloud computing is highly popular among the SMEs, worldwide. However, SMEs of Russia have not invested much in cloud-based solutions, such companies have started investing into SaaS. Therefore, SMEs in Russia are expected to be the major end-user for this technology during the forecast period.

The growth of the IT market in Russia is driven by several factors, one of which is the increase in oil prices. The rise of oil prices is responsible for stable economy of Russia. Increment in oil prices strengthens the Russian Ruble (RUB), which will further drive the IT spending from various end-users segments, contributing to the growth of the market.

For more information on the Russia IT market, please click here: Russia IT market

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