Software AG Russia and CIS countries of Softvear AG

Activities

Key activities of the company

• Organization of business processes
• Strategic management and improvement of a management system
• Information support of business processes
• Application of methodology and work benches of ARIS

History

2020

Agreement with Borlas on the organization of the uniform Russian-language Center of technical support

The Borlas group and Softvear AG (Rus) LLC announced on August 4, 2020 agreement signature about cooperation according to which in the territory of the Russian Federation the Russian-language Center of Technical Support (CTS) of the first software line Software AG for the first time will begin to work. Read more here.

Interview of TAdviser with the vice president for sales Oleg Poretsky

In May, 2020 in an interview of TAdviser the vice president for sales of Software AG Oleg Poretsky told about positioning of the company in the market of Internet of Things. Read more here.

2015: Software AG discusses start in Russia of cloud services from local DPC

The director of Software AG of work with clients Eric Duffaut in March, 2015 told TAdviser about results of a company performance in Russia in 2014 and plans for the near-term outlook. According to him, at the end of 2014 turnover of the company in Russia remained approximately at the same level, as the previous year. This is the representative of Software AG connects, mainly, with the adverse economic and political situation which developed in the country and notes that it affected also work of other players of the Russian IT market.

In 2010-2013 business of Software AG in Russia grew approximately by 40%. According to Eric Duffaut, despite the current situation, there are perspectives of resuming of growth of business in Russia at the level comparable to former. Russia remains the growing market, local clients show the increasing interest in IT and on use of technologies catch up with Western Europe and America, the market becomes more and more mature, he says.

The American sanctions can also promote growth of business of Software AG in Russia: according to Duffaut, they can affect that the Russian organizations, especially in a public sector, will prefer the European solutions to American. In this sense a particular interest for the local clients wishing to gain more independence of the American technologies can represent DBMS Adabas as an alternative of DBMS Oracle and Microsoft, Eric Duffaut believes.

He added that he to a status for March of Software AG conducts in this direction negotiations with a number of the Russian state structures and also with a number of local integrators which closely work with a public sector.

The American sanctions against Russia can stimulate local demand for Adabas DBMS, believe in Software AG

One more direction which could contribute to business development of Software AG in Russia – providing to local clients the solutions on cloud model. In 2014 Software organized distribution from a cloud of a number of the products, for example,of Aris and WebMethods, based on a cloud platform of Amazon Web Services.

In plans of Software AG – expansion of a cloud portfolio and geography of providing these services. Initially they became available to clients in Germany where the company has own DPC, and other countries of Western Europe and also in the USA. Eric Duffaut told TAdviser that now Software AG discusses a possibility of deployment of cloud services and in Russia – based on local DPC of any local partner.

He noted that in Russia there are many companies which could provide the infrastructure for deployment of cloud services, however potential partners in this direction in the company are not sounded yet.

Speaking about other plans of Software AG in Russia Eric Duffaut selected two key directions for the near future. One of them – increase in awareness of the Russian clients on technologies of Software AG, brand recognition of the company.

The second direction is acceleration of development of partnership with local players of IT market. Eric Duffaut noted that development of partnership is important in any market, and in Russia – especially: "we know that it is the market created by the local companies for local clients". According to him, the company makes considerable efforts in this direction and conducts negotiations with a number of the IT companies considerably to expand a local partner ecosystem.

2013

Software AG prepares the business development strategy in Russia

Software AG is going to expand a product portfolio in Russia: in particular, to bring to the market the Terracotta platform with in-memory technology for work with Big Data and software for planning and management of corporate IT architecture of Alphabet AG company which is going to purchase in the nearest future. Representatives of the company in June, 2013 told about it.

With respect thereto Software AG will develop special strategy of work in the Russian market. The chief executive officer and the chairman of the board of directors of Software AGKarl-Heinz Shtraybikh notes that his company is provided in Russia already many years and achieved success with the products presented at the market long ago – for example, Adabas Natural DBMS[[Adabas&Natural|]] which has the big developed base of customers here. However the company still did not study the strategy of an output to the market of new products in Russia while like that should exist for each separate market.

The Deputy CEO of Software AG in RussiaVladimir Egorov explained TAdviser that strategy will be expected three years. Based on end of the first half of the year 2013 in Software AG the big session of strategic planning should take place, he on which further development plans for business of the company in Russia will be defined says.

Already now it is known that within strategy it is going to increase the number of staff of the Russian office, Egorov reported TAdviser. Now it makes more than 30 people from whom more than 10 people - consultants. Expansion of the state will be tied to the strategy and financial performance of business in Russia reached at the end of 2013 and the next year, the top manager of Software AG adds.

Turnover of the Russian business of the company did not go down even in crisis 2009, Vladimir Egorov in a conversation with TAdviser noted. It was possible in many respects thanks to rendering services in support of the products Aris and Adabas Natural numbering big base of old clients, he explained.

According to Egorov, throughout the last time local turnover of the company shows growth, unlike the universal indicator of revenue which showed reduction the third year in a row. In the short term Software AG expects to increase revenue in Russia by 20-25%.

In 2012 the most part of turnover of the company in Russia – about 35-40% - fell on Adabas Natural DBMS, development and upgrade of applications, and all the rest – on the products connected with business process automation, Egorov says.

Software AG twice exceeded own forecast for growth in Russia

Revenue of Software AG in Russia at the end of 2013 grew approximately by 50%, the head of representative office of Software AG in Russia and the CISVladimir Egorov in June, 2014 told TAdviser.

Last year the company sounded expectations on the annual growth of local business at the level of 20-25%. According to Egorov, the first sales of products for management of corporate architecture and IT of Alphabet AG - the company which Software AG purchased in 2013 and also implementations of new versions of the product Aris, including - technologies of performance management of business processes became the main points of growth in 2013.

Head of representative office of Software AG in Russia and CIS Vladimir Egorov

Alphabet Software AG implements projects based on solutions, in particular, in Lukoil and Rosneft. The company told TAdviser that as of June, 2014 in a stage of signing there is a contract for implementation of Alphabet in Gazprom Neft. Negotiations on deliveries of Alphabet and with a number of the organizations in the financial and telecom sector are conducted.

The previous year Software AG also announced plans to bring to the market the Terracotta platform with in-memory technology for work with Big Data. Vladimir Egorov reported to TAdviser that in this direction his company in study also has a number of projects.

In Russia Software AG works mainly through partners. According to the Deputy CEO of Software AG in Russia and the CIS, as of the middle of 2014 his company in Russia has about 20 partners from whom the main - 10 companies. Their number in a year practically did not change.

Egorov notes that the strategy of the company assumes more active development of the relations with regional partners in the CIS, in particular in the market of Kazakhstan which is the market, the second in value after Russia, for Software AG in the region.

The number of staff of the company in a year also practically did not change, however there was its some redistribution: the quantity of administrative roles for benefit of increase in number of technical experts for deeper study of solutions at the stage pre-sale decreased.

Vladimir Egorov adds that the Russian division of the company also became more active to use resources of the European competence center of Software AG which is located in Germany, recruiting his specialists in local projects at their different stages.

2010: Acquisition of IDS Scheer company

As a result of acquisition of stocks of IDS Scheer the Software AG company became the world's largest independent supplier of infrastructure software for business processes. The functionality of this software includes upgrade, automation and optimization of the existing IT systems and processes for business. With the declaration of the integrated product portfolio the company is positioned as the leading supplier of software solutions for perfection of business processes (BPE) now.

Software AG is going to close the deal on acquisition of stocks of IDS Scheer by the end of 2010. From the middle of February when between Software AG and IDS Scheer AG, according to the German legislation, the agreement on domination and transfer of profit was accepted, operational merge of two companies began. In the different countries of division of Software AG and IDS Scheer take different positions – on the number of employees, market position, specialization. Therefore the uniform model of operational consolidation cannot be. Russia acts as the pilot region for this process: here consolidation of two companies is made in January based on IDS Scheer Russia and the CIS countries. The united company was headed by Kamennova Maria. Since March 9 the company works at new office – in business center "Nakhimov" which is located in Moscow on intersection of the Sevastopol and Nakhimov avenues.

"As a result of consolidation of two companies our offer in the Russian market became wider and is more complete, – the CEO of Software AG & IDS Scheer in Russia and the CIS countries Maria Kamennova says. – The packet of webMethods allows to automate end-to-end business processes due to integration of the supporting IT systems and creation of SOA into the companies. And consolidation of the products ARIS and webMethods which first results are shown at the beginning of March, 2010 in Hanover will lead to creation of the end-to-end solution for end-to-end business processes which functionality, according to Gartner and Forrester, is broader, than at any of competitors (IBM, Oracle, Tibco, Microsoft). It is this "Big red button" for BPM initiatives which, I think, will interest our clients. Our offer to the market also includes BPM-consulting and SAP-consulting on the process focused implementing solutions of SAP".

The 1980th: The first deliveries to the USSR

All new — well forgotten old. This rule as well as possible characterizes the history of development of Software AG of century Russia. Created in 1969 by five young consultants, the company began deliveries in Russia even in the early eighties. Business developed on accruing, and in the peak of the success the share database management systems Adabas (one of main products of the company at that time) on number of installations reached 85% of Soviet "market" of databases. In planned economy the decision on the choice made in the center assumed mass distribution of a product. In the country the scientific research institutes occupied with adaptation the German DBMS for work on domestic computers worked. The institutes responsible for information support of the country leaders, including the Central committee of the CPSU and the government, used Adabas in the work. The applications working at this DBMS (under different names), are used in the Russian President Administration, in to this day the companies"Gazprom", "Rosoboronexport" and some other.

Today at the Russian office Software AG nobody can tell what conditions of deliveries of software to the USSR were any more. But anyway the prices of DBMS for state needs were incomparably below, than today. Anyway, from the beginning of market conversions in the early nineties in the country the uniform customer disappeared. The state organizations could not pay by new rules, and Software AG could not orient in the new Russian market or just waved on it a hand. In the 1993rd the representation in the country was opened by the American Oracle. Working aggressively, it successfully squeezed out Adabas. It is curious that some managers of today's office Software AG happened to be partners of Oracle at that time, and they well remember how the German developer lost the market. The new businesses which were actively arising in Russia in the 1990th selected products of competitors of Software AG. Tremendous opportunities of a market dominance were missed.