Interview with the technical director of РДП.ру Nikolay Guzakov

Nikolay Guzakov: The Russian specialists are capable to create highly intellectual IT solutions

TAdviser: In what does the biggest problem in the context of import substitution of high-performance telecommunication equipment consist today?

Nikolay Guzakov: The biggest problem - a situation when actually OEM-suppliers, but not real Russian producers for a row of years proposed to customers the solutions. For such companies as РДП.ру which really are engaged in own developments of highly intellectual products in Russia it became a problem. It is necessary to overcome the prejudice which already developed at the customer that everything is made in China or still somewhere "behind a hillock", only a sticker Russian.

OEM-suppliers discredited the idea of capability of the Russian specialists and the companies to make own intellectual product.

TAdviser: What technology factors made possible import substitution in the field of the telecom equipment?

Nikolay Guzakov: Emergence of the Russian network equipment became possible essentially from the moment of a new round of the concept of software-defined networks based on commodity of platforms. Thanks to it there was a paradigm shift of network equipment. This technology factor in combination with a foreign policy situation gave chance for development of the Russian IT industry, and in particular – for creation of domestic telecommunication equipment.

TAdviser: For what time did your company pass a way of development of a line of own commercial products of EcoNAT?

Nikolay Guzakov: We passed a way from Research and Development to a market product of EcoNAT in three years.

TAdviser: What history of creation of the solution EcoNAT? The product was created specially under the tender of Rostelecom?

Nikolay Guzakov: Some companies do quite so – learn about the announced competition, and especially for participation in it try to create a competitive product in a short time. We went on other way. We initially created the product EcoNAT according to own technical requirements for solving of tasks of the telecom operators which faced exhaustion of IPv4 of the addresses. The possibility of carrying out real implementations of EcoNAT in the conditions of a core of network of Ekotelekom provider became the most important advantage of РДП.ру.

TAdviser: Software for the hardware and software system EcoNAT is created only by forces of specialists of your company? On what it is written? Whether the database is used?

Nikolay Guzakov: Software - completely own development of РДП.ру company. The Si programming language, Si ++ with connection of elements of the Assembler for deep low-level optimization. There is no database, special data structures – besides own development are used.

TAdviser: How does the foreign policy situation influence a segment of domestic manufacturers of the telecom equipment?

Nikolay Guzakov: A foreign policy situation in total with rate fluctuation of ruble gave real chance to domestic manufacturers to occupy specific market segments of telecommunication equipment. For example, in a present situation as a part of the Russian Federation there are territories which completely got under embargo – the Crimea, Sevastopol. The foreign equipment doubled in the price due to falling of an exchange rate of ruble that made us more competitive. In general it is possible to note that despite a number of negative aspects for the population, in the field of IT there was qualitatively new internal situation with the postponed positive effect, just because in one day you will not create the IT industry.

TAdviser: Due to the double growth of ruble exchange rate and growth of cost of the import equipment the specifying question – as hardware and software system cost between iron and software is distributed?

Nikolay Guzakov: The equipment is simpler, the it is less in it than "brains", that it is cheaper, and the smaller cost portion lays down on software. Than the hardware and software system is more difficult, it is more expensive to those, and the bigger share of the price is undertaken by the software. Specialized solutions for a core of provider to which also our product EcoNAT belongs, certainly, belong to highly intellectual products where more than a half of cost is necessary software. Because we incur expenses for development in rubles, we can really compete with the western vendors at the price.

TAdviser: You already mentioned technology of software-defined networks. What does this technology in the context of import substitution specifically give? A little in more detail...

Nikolay Guzakov: In the context of import substitution orientation to standard x86_64 servers as hardware platforms of network devices has many pluses. The first – what we spoke just about: the currency component of hardware and software systems in a case with the Russian software makes less than a half. The second – to the leading western powers is much more difficult to enter embargo on basic components of which the hardware platform is made. Especially – in comparison with the solutions executed on dedicated, American chips of ASIC and FPGA. The third plus – price advantage. The fourth – flexibility, "reprogrammability" of solutions (programmability). So an opportunity by correction of a program code quickly to change functionality and even purpose of the device. The hardware platform after loading of the corresponding software turns into BRAS, DPI, NAT, the system of detecting and protection against invasions of IDS/IPS or all combined.

TAdviser: Question of reliability of the solution. It is considered that software solutions can be potentially more vulnerable...

Nikolay Guzakov: In a case with the proprietary, closed solution I cannot agree that the software-defined device is more vulnerable. In a case with the open code – yes, the increased vulnerability takes place to be. A striking example – the public CMS systems on which the majority of the websites is under construction are most subject to the attacks - owing to openness of the code and any common knowledge of vulnerabilities. The solution EcoNAT is proprietary, all source codes are closed, they are not published. The standard attacks will not manage to be applied to our solution. In case of certification on compliance to a certain level of protection (for example – state secrets), we are ready to open codes to such state structures as FSB, but it will not make them public and more vulnerable.

TAdviser: How do you assess a competitive situation in a segment of telecommunication equipment of the Russian market?

Nikolay Guzakov: As for our company and specifically a segment of the equipment for a core of network of provider, for today we compete with the western vendors, and is very tough. It leads to strong falling of the prices and unprecedented discounts from the foreign companies at tendering process. And tender of Rostelecom showed it, having opened the new phenomenon – the price fell by 3.9 times! It means that all participants of the tender were to reduce the price in a forceful mood – much more resolutely, than usually. Also it is connected first of all with the fact that the western companies wanted to avoid the competition to us in the future.

TAdviser: What technical tasks were set for itself by Rostelecom, organizing the tender?

Nikolay Guzakov: All telecom operators are faced the need to constantly increase capacity of the networks in connection with the steady growth of volumes of consumption of traffic by subscribers. Organizing this procurement procedure Rostelecom solves problems of upgrade and increase in bandwidth of the IP/MPLS network and subsystems of CG-NAT.

TAdviser: Tenders for equipment procurement are always won by the minimum price?

Nikolay Guzakov: Under the terms of this tender of 90% the price, and 10% solved delivery date which at all is usually identical. At the same time, it is necessary to consider that if the solution does not conform to requirements of the customer based on technical testing, then his supplier cannot become a bidder. The Russian legislation and competitive procedures are like that today that additional points for the Russian origin the company – the bidder does not receive.

TAdviser: By your assessment when the normative legal framework changes to the best? When will reach case, i.e. before the actual providing preferences to domestic manufacturers from the state?

Nikolay Guzakov: The situation cardinally changed to the best. At this stage departmental lists of the Russian software and hardware solutions from Minpromtorg already appeared.

At the level of corporate standards of a motion are available too – in particular, in Rostelecom the internal standard with criteria is developed for assessment of the Russian origin of telecommunication equipment. It becomes according to changes in the federal legislation and orders of the Government of the Russian Federation. However, there is a risk of appearance of the same OEM suppliers under the guise of the Russian producers.

TAdviser: And it is bad for the customer and for the market – if "the Russian tsisk" appear?

Nikolay Guzakov: It is bad because does not develop the Russian industry as such. Does not lead to accumulation in our country of an intellectual capital. The hi-tech product entirely developed abroad at any time can return back, abroad. And in this sphere we will not grow up the Russian developers.

TAdviser: And where the РДП.ру company of specialists for Research and Development within development of EcoNAT took?

Nikolay Guzakov: In the market, including – from the Russian divisions of the foreign companies which are engaged in software developments for similar applications. The western companies hastily disband a part from such divisions owing to sanctions policy.

TAdviser: Why the western vendors still did not open joint ventures?

Nikolay Guzakov: Until recently to the western vendors was and it is so good. In lack of the legislation with preferences for benefit of the Russian producers the practical sense in a similar mimicry for the western vendors was absent. The Russian origin of telecommunication equipment aroused mistrust at domestic consumers until recently. Now the situation began to change because of sanctions and change of an exchange rate, and we expect manifestation in the market of products of "joint ventures".

TAdviser: The EcoNAT device is not the only software solution of this class presented at the Russian market. In what its competitive advantage?

Nikolay Guzakov: The design approach of CG-NAT devices in itself based on Commodity – platforms, and x86_64 of servers becomes commonly accepted at global manufacturers. In respect of functionality all similar solutions of foreign suppliers are similar. The customers exploiting them got used to a certain feature set, and this set should be provided by default. The main competitive advantage of EcoNAT - the advancing performance and competitive price. And a source of this advantage - our examination in creation of the high-optimized algorithms of programming and data structures.

TAdviser: What hardware platform of the device? Where it is made and in what its advantages?

Nikolay Guzakov: In English-speaking terminology – it is the specialized server, Networking Appliance which is made on Taiwan. Advantage of use of such platforms to us that the power of processors approximately everyone two - doubles three years and we use it without additional investments, increasing the capacity of the devices. I will highlight that we would like to increase localization of the device and are ready to pass to domestic hardware platforms and microprocessors as soon as the bid price becomes competitive. So far we do not observe it.

TAdviser: The customer by forces of the IT specialists can install software on the new EcoNAT platform?

Nikolay Guzakov: In the working model of business – no. Software is established on iron only by forces of IT specialists of РДП.ру. And case even not only in business model – the consumer is not ready to it. The customer got used that the ready hardware and software system for which the supplier company bears complex responsibility is provided to him.

TAdviser: The product line of EcoNAT includes three devices. In what their fundamental differences? Why in a line three devices, but not five or seven?

Nikolay Guzakov: We segmented the provider market depending on the scale of their business and requirements on traffic. Conditionally speaking - it is providers with a subscriber base in several thousands of subscribers, in tens of thousands and 100+ thousand. As for number of configurations, too big nomenclature creates difficulties with maintenance of necessary stock remainders, too small – it is inconvenient for the customer. Three products in a line – are optimal.

TAdviser: What deliveries of the device from a line are provided by the agreement with Rostelecom?

Nikolay Guzakov: Deliveries of all three configurations of EcoNAT devices are provided.

TAdviser: What conditions of the won tender are equipment purchasing amounts, delivery time?

Nikolay Guzakov: The number of devices which give us the chance to deliver within complete tender – up to 70% of all volume of requirements of Rostelecom network. Delivery date – within two years. Thus, considering a share of Rostelecom of 40% in the ShPD market, in case of successful project implementation up to 30% of all Russian Internet traffic will pass through our devices.

TAdviser: What it is possible to tell about existence or lack of interest in a line of EcoNAT devices of other large domestic corporations, except Rostelecom?

Nikolay Guzakov: We work hard with alternative telecom operators. Interest is present, there are potential customers from among large regional providers. Within different projects there are about ten testings now. As for the big three, and here interest also is, we plan participation in similar tenders.

TAdviser: What plans of РДП.ру for development of new devices?

Nikolay Guzakov: We already over a year conduct development of a line of routers for different segments of the market, including a corporate and public sector. Internal demonstrations to which we invite representatives of future customers are already carried out. The release of the first samples is planned for January, 2016.

TAdviser: What hardware platform of new products?

Nikolay Guzakov: For our new routers we ordered specialized network servers of different power and with a different set of interfaces and characteristics. Including, there will be also specialized platforms intended for work in dusty premises with the increased humidity in severe climatic conditions of the North or South – for the enterprises of the oil and gas industry, in particular.

TAdviser: How will the competitiveness of new solutions with devices of a similar class from world vendors be provided?

Nikolay Guzakov: We hope that competitive advantage to us will be provided by our prices and functionality of the devices developed under specific requirements of potential operators.

TAdviser: How do you estimate perspectives of transition to IPv6 protocol – it can occur in the next one or two years or it is a question of more remote perspective?

Nikolay Guzakov: IPv4 will be still very much and very long. All previous forecasts were naive as showed time. It is necessary for complete transition to IPv6 that all telecom operators on a global scale and also all subscriber devices supported IPv6. Up to this point it is not possible to refuse IPv4 infrastructure. By my estimates complete transition will become possible not earlier than in 10 years.

TAdviser: What purposes are set as the company on the 2016th? Whether РДП.ру has plans of an output of own developments for international markets?

Nikolay Guzakov: In plans - the creation of a line of routers which was already mentioned above for different segments of the market. Global task: become the Russian vendor – solution provider for a core of provider network No. 1. In the international context of the company the market of BRICS where the Russian IT solutions in modern conditions have certain perspectives is interesting.