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2017/10/05 12:13:59

Andrey Sviridenko, SPIRIT: AI, AR and VR will become an integral part of communication of people soon

Andrey Sviridenko, the chairman of the board of SPIRIT told about priorities of development of the company, specifics of the different markets and also new projects and products in an interview of TAdviser.

Andrey
the Russian VideoMost costs
to Sviridenko's significantly less, and quality of video, reliability and compatibility - at the level of expensive foreign hardware solutions VIDEOCONFERENCING

What priorities of development of the company in 2017 - 2018? What objects are set?

Andrey Sviridenko: Thanks to our developed partnership with Rostelecom, Transtelecom, MTS, other telecom operators and local system integrators, VideoMost is permanent No. 1 in Russia on number of the implemented VIDEOCONFERENCING projects in the state and corporate sectors, according to analytics of TAdviser in 2014, 2015, 2016 and the first half of 2017. Software products of SPIRIT - voices, technically world-best on quality, and video in mobile networks of communication that is confirmed by hundreds of our international technology clients in dozens of the countries of the world and more than one billion end users of our products. We are going to increase international sales with focus by Asia, including sales of cloud services (SaaS) and also to start and bring to a growth phase several new products, including in the field of artificial intelligence and computer vision. We invest these projects at the expense of own company funds.

How many employees work in Spirit company now? Whether you are going to increase the staff?

Andrey Sviridenko: In SPIRIT about 100 people work. Now we have a set of programmers, heads, marketing specialists and sellers for development and promotion of our new innovation products.

How essential will be expansion of the state?

Andrey Sviridenko: Tasks to take hundred more people before us are not necessary. We always look for and we take in staff of talented people. It is possible to tell that at us are always as in an IT segment they are always not enough also the competition between the companies for specialists cruel open for the qualified developers of products and sellers of a rate.

What projects for the last few years were remembered to you most of all? Why?

Andrey Sviridenko: We belong with equal attention and readiness for mutually beneficial cooperation with each client, is not dependent on the size of the company of the customer. Those projects when implementing which it was succeeded to solve some especially non-standard problems and to prove compliance of our product to the most strict of terms of reference are more remembered.

For example, VideoMost is used by Department of information and communications of Ho Chi Minh in Vietnam. Feature of the project was the fact that at strict budget restrictions the royal quality requirements of communications were submitted. Foreign cloud services in that case do not provide the due level of protection of important state information and control of servers for video conferences. Hardware solutions conform to quality requirements, but terminal equipment for each workplace, specialized servers and the selected Internet channels require the serious capital investments that could not be implemented in the conditions of the budget stipulated by the customer. VideoMost, being completely software solution, it was that option at which the video conferencing of the highest quality is provided. At the same time servers are integrated into the existing infrastructure of the client and are under full control of Department of information and communications of Ho Chi Minh.

I will emphasize that our product VideoMost is actively used not only by corporate and state customers, but also telecom operators as abroad, and in Russia. In particular, Rostelecom sells cloud VIDEOCONFERENCING service on the VideoMost platform several years and the number of corporate users continues to grow every month. Recently, for example, Tele2 company started WiFi-calls on the Mitel-Mavenir platform in which there are voice also videos SPIRIT engines. More than 130 service providers use the Mitel-Mavenir platform worldwide. Thus, our project on cooperation with Mitel-Mavenir is important for development of the international telecommunication industry.

In November of last year the company signed the new agreement with Rostelecom, for five years. Whether influenced cooperation recent replacement of the leadership of Rostelecom?

Andrey Sviridenko: Some correction of strategy and the state always is when changing the top management of the large company, but in general we normally have a cooperation. For today corporate clients – users of cloud VIDEOCONFERENCING service Rostelecom about 1500, dynamics of growth of the customer base – approximately, 100 new corporate clients a month. We have not enough of it, and we try to work together with Rostelecom so that to grow quicker.

Demand for source codes of the mobile VideoMost IM messenger is how high? What plans for development of this direction?

Andrey Sviridenko: The mobile TeamSpirit.IM (VideoMost.IM) messenger is released by us as a separate product recently. Requests for its implementation began to come practically next day an official output of a product to the market. It was promoted, in particular, by the fact that we provide source codes and the mobile client of the text messenger, and the server main thing at very low price, without permanent payments. It is the unique offer in the world market of messengers. At present we conduct negotiations with several customers and as soon as contracts are signed, we will be able to announce them.

I will in addition note what in addition to functionality of the standard text messenger for transfers of messages, a photo and documents via servers in a cloud, VideoMost SDK supports today 16 interactive videos of windows on the smartphone screen (and iOS and Android) for videokonferntion and joint work with documents.

In the fall of 2016 your company announced application for the patent of technology of compression of multimedia data which will help telecom operators to spend tens times less for DWH at performance of the Yarovaya Law. Whether domestic operators became interested in this solution?

Andrey Sviridenko: Domestic operators wait for more detailed requirements from the regulator and consider and estimate different options of solutions for performance of the Yarovaya Law.

How do you in general assess the situation which developed around this law?

Andrey Sviridenko: We assess a situation not from the point of view of officials or FSB considering that control for fight against terrorism is necessary and not from a position of telecom operators, sure that to store such huge amounts of data – is unreal as it will lead to strong rise in price of communication services, and from a position of the technology innovator. We propose technical solution of a problem of storage of large volumes of data while around the law actually there is a big political struggle. I think that all involved in a situation in own way are right therefore it is necessary to hear each other and to come to a reasonable compromise. In fact, such process of search of a compromise already began.

Let's assume that total data storage, transferred by means of networks of mobile communication will be required. What is offered by your company as technical solution?

Andrey Sviridenko: Video occupies about 70% of the total amount of the data transferred on communication networks and therefore to store it especially expensively. We offer technology of supervideo compression which includes, first, record and triple compression (after the standard voice codec) of a voice track - by means of Spirit VoStoC technology (Voice Storage Codec), and secondly, compression approximately by 100 times of video, already compressed standard videos codecs. I will note in passing that the problem of effective storage of video recorded during the sessions of VKS for a corporate segment costs also without the Yarovaya Law.

And in the context of performance of this law what technical issues get in a propagation path of new technology of compression?

Andrey Sviridenko: For competent setup of software processing operations of video our software needs data on the current traffic, a procedure of procedures, the criteria which are based on requirements which give telecom operators. But, as I already also told above, operators do not know yet what is required to be stored and how it is admissible to squeeze video to provide compliance to requirements of the law. Yet there are no accurate regulations which would explain its application.

How it is possible to reach such video compression – on two orders?

Andrey Sviridenko: The most effective method of video compression is a recognition. Therefore the artificial intelligence technologies including automatic, by means of special algorithms, recognition of a video series and its postprocessing taking into account the value of the written information are used. It also increases on two orders efficiency of compact submission of the multimedia information in comparison with traditional methods of image compression, video and speech. In fact, instead of video of the hour report, suppose, of Ivan Ivanovich, it is possible to save only the key personnel. The saved video fragments, among other, give an idea of appearance of the speaker and the key moments of his report. The voice track can be stored completely.

How the program defines what frame is key? Processing is executed online or after the end of record of video?

Andrey Sviridenko: Selection of the key personnel is automatic, tuning properties for determination of degree of importance of a frame can be changed. Processing can be executed and online, and a post factum.

Can you show to the customer as it works today?

Andrey Sviridenko: Yes, already today the customer will be able to see how compression works, to experiment with processing parameters.

In what direction does development of the systems of a video conferencing go?

Andrey Sviridenko: These directions are well-known - clouds, SaaS, mobile technologies. Communication of people now most actively proceeds in the messengers set on mobile devices, correspondence flows by e-mail migrate in hundreds of daily messages in chats. The modern user, in addition, wants to have an opportunity to make a video call and to send the document from the mobile application. Therefore vendors of video conferences should offer not only high-quality video conference on terminals and the PC, but also on all mobile devices.

Our solution VideoMost supports all fundamental international standards of communication (H.264, SIP, BFCP, H.323, H.239, etc.), open protocols (XMPP, WebRTC, etc.) and an ecosystem of the free software (Linux, MySQL, etc.) that allows to connect in our video conferences VideoMost of VKS the equipment of Polycom, Cisco, Avaya, Huawei and also clients of Skype. Thus, on the basis of compatibility and interoperability of VideoMost protects earlier made VKS of investment of corporate clients, provides compatibility old and new.

Whether it is worth expecting some revolutionary changes in solutions for VKS in the next years?

Andrey Sviridenko: Revolutionary changes in the VKS area should be expected based on 3D technologies of augmented reality (AR), virtual reality (VR) and artificial intelligence (AI). At the same time mobile videkonferentssvyaz on 4G both 5G becomes more and more available and assumes integration of adjacent tools and technologies (work with documents CRM).

Whether means it that in a product line of SPIRIT new solutions of the corresponding orientation will appear?

Andrey Sviridenko: In 1999 we created SeeStorm subsidiary company whose work was completely devoted to augmented reality (AR), or as we still called it "synthetic 3D - video". This term meant that video was synthesized, constructed in a certain artificial way based on 3D models. Options of synthesis could be different. For example, the person could become on video the improved version of himself - more beautifully, more young, is more sporty, with the southern suntan. the 3D model was created or automatically, on the basis of the photo, or manually, on the basis of the personal version created 3D - the sculptor, – it depended on wishes and the user's opportunities. When people should be oneself in situations, but not play any games with the appearance. For example, that during video conferences its participants unambiguously identified people, modification of an image can be minimum, virtual rejuvenation, type how to brush the hair or be powdered in front of TV air. For youth which, on the contrary, wants to experiment with the image in scenarios where it is possible to be someone another, more extreme transformations were possible. For example, it was possible to become the Hollywood superman, an exotic animal or the fairy tale character. Our product was constructed based on technologies of computer vision, the analysis of a facial expression in real time and the subsequent overlaying of a mimicry of the person on a 3D model.

This product was put on the market? In what projects did it work?

Andrey Sviridenko: The product SeeStorm was put by us on the market Japan in 2003 in partnership with KYOCERA, on KDDI network, the second in value mobile operator in Japan, in partnership with one local game company. The product worked as a consumer cloud service. By then Japan was the first country which put on the market the 3G-standard. For promotion of this standard they needed killer application therefore they also put on the market our game application with "talking heads". The game company drew images – animals, cars and other, we provided the engine, KDDI performed functions of the mobile operator. Except this deployment SeeStorm had about 30 more international projects – in South Korea, Holland and some other countries.

What was then?

Andrey Sviridenko: As it appeared, our product which appeared in 2003 outstripped development of the world market approximately for 11 years. In 2014 the similar product was made by Looksery company (Snap Inc is purchased . (Snapchat)), and in 2016 the similar product was made by MSQRD company (Facebook is purchased). Neither tubes, nor cameras, nor software, nor processors, nor data transmission channels were ready to emergence of a product of such class in 2003. The market in general was not ready. As a result, despite about 30 executed projects, the product did not become commercially successful and therefore in several years business was contracted. At the same time, I will note that we have patents for our developments in this sphere.

What occurs now?

Andrey Sviridenko: Now there came the correct time. Phones, cameras, processors, channels – everything is ready.

Technologies of augmented reality and virtual reality come to the sphere of communication of people. I would like to emphasize that we are engaged not only and even not so much VKS. SPIRIT is the company which left area of communication therefore we are engaged in communication as such, all its types, unified communication in the international terminology. For this reason in 1999 we thought and that will come after video, and understood that it will be augmented reality, artificial intelligence and virtual reality, as occurs as a result. Will be to tell more precisely that AR, AI and VR in the long term will become an integral part of communicating process.

Andrey Sviridenko: VideoMost was included into the state register of domestic software of the Ministry of Telecom and Mass Communications at its formation as 100% a domestic product of 100% of domestic company SPIRIT at once.

What your personal relation to import substitution?

Andrey Sviridenko: The relation to import substitution positive, but is that flywheel which is in words untwisted much more so far, than in practice, i.e. money this the correct in fact policy still really brings to domestic vendors very little. At the same time, big state clients are already interested in our product, and this in itself progress because before adoption of law to domestic software solutions state customers had in general no interest. All Russian VIDEOCONFERENCING market of the state and large corporate clients was completely monopolized by such global foreign manufacturers as Polycom, Avaya, Cisco, Huawei, Microsoft. Now state customers began to understand that VideoMost costs significantly less, and the quality of video provides at the level of expensive hardware solutions. Besides, our software is compatible to earlier purchased VIDEOCONFERENCING-equipment, we will combine with Skype, supports about 100 functions, including joint work with documents, mobility, security, scalability, cloud data storage, control of servers, etc. Enormous work on import substitution still needs to be brought to result. Besides, as technologies have no borders, and international markets there is much more domestic Russian market, the advanced software products cannot be imagined out of a world ecosystem of software, including Open Source.

So upon import substitution does not work yet, it – just the declaration?

Andrey Sviridenko: Small positive shifts are - generally regional tenders, but in general it so. Unfortunately, federal state customers still often continue to buy the American software and iron. That to make sure of it, it is enough to look at results of large state tenders in the field of VKS – all of them are won by Avaya, Polycom, Cisco, Huawei. Fresh examples - recently Supreme Court, the largest customer of the systems of a video conferencing in Russia, bought the equipment of Polycom for 10 million dollars again, this spring Sberbank bought the equipment Avaya for 30 million dollars again and signed the agreement for 100 million dollars with Huawei.

What share in total sales of the company is occupied by foreign projects?

Andrey Sviridenko: Revenue of SPIRIT from export and still makes nearly 25 years more than 90%

What foreign markets for you now in a priority?

Andrey Sviridenko: We develop business in Southeast Asia and the USA.

Some Russian IT companies, seeing that the Russian market decreases, the potential circle of customers, respectively, is narrowed, try to reorient the business on foreign markets. You, it is how possible to understand, you are not afraid of the Russian market? This strategic balance between business abroad and business in Russia - 90/10 - it will also remain to like that in near perspective?

Andrey Sviridenko: I think that for today and on the near-term outlook, it is normal balance. If to look at a situation in historical aspect, and our company soon 25 years, and the first 17 years revenue for 100% was export origin: a third is Europe, a third - Southeast Asia, a third - the USA. But the last 7 – 8 years both in the world, and in our business occurred important shifts. In 2011 we released the corporate product VideoMost, and before the SPIRIT company sold only the engines which are built in products of other companies. VideoMost competes with Skype, Polycom, Avaya, Huawei which all our clients, i.e. these companies licensed software products of SPIRIT earlier.

But also in Russia you compete with them too … In what advantage of the Russian market to SPIRIT?

Andrey Sviridenko: Really, in Russia our main competitors – Microsoft, Polycom, Cisco, Avaya, Huawei. Our competitors are incomparably more powerful than us, they have much more money, people, channels, clients, etc. In international markets we still sell only the built-in products, engines. Compete with world monopolists on sales and marketing in their territory – such opportunity at the Russian company, unfortunately, is not present. Let's tell directly: compete, for example, with Cisco in America or with Huawei in China is a suicide. In the Russian market we hope for a certain security, here after all import substitution policy is declared, the relevant laws and bylaws are adopted.

In what specifics of the American and Chinese markets?

Andrey Sviridenko: Both in the USA, and in China all places are taken by the local companies because practice of protectionism works for the business very effectively there. "buy realities in America American" in a technology segment of economy where they and on a global scale really are leaders with a big separation, very well works. In China a situation similar to the American: "buy Chinese".

And in Europe it is possible to compete with local vendors?

Andrey Sviridenko: About 10 years ago in the European telecommunication markets there was a certain independence, we had clients in the field of production of telecommunication equipment there – such companies as Philips, Siemens, Ericsson, Nokia. We worked in Italy, France, Great Britain, Germany, Austria, Switzerland and some other countries where about 50 public companies were our clients. But then Asians literally "pressed" Europeans in iron. The niche of telecommunication "iron" was occupied by Huawei, ZTE and other Asian producers.

In software too SAP remained nearly only European player of a world class, in respect of software Europe was "pressed" by Americans. Thus, the European market for us was lost, its share for the last seven years in our portfolio reduced almost to zero.

Can you characterize briefly a situation in the world telecommunication market?

Andrey Sviridenko: American software and Asian "iron". Respectively, we continue to work at the American market, cooperating with vendors – producers of software, and in the markets of Southeast Asia.

Whether anti-Russian sentiment in some countries influenced your international business?

Andrey Sviridenko: Affected, but it is a subject to us it is not new as we do business abroad since 1992 and got used to prove competitiveness of the products. To the Russian developments in the West there was always a prejudiced relation. But already 25 years as we manage to disprove successfully a wrong thesis as if with the companies from Russia to do business is unsafe. All arising questions both on technology, and on legal support of projects are solved us in communication with our foreign clients and partners. Trust us as the companies.

How you work with the product VideoMost what specifically you offer the Russian customers?

Andrey Sviridenko: Our product supports all platforms, browsers, operating systems, including a set of versions of Linux, all models of mobile phones, VKS the equipment of global manufacturers of iron and domestic software. VideoMost is focused on business market, is on sale in several segments – large enterprises, a state segment, SMB. We create vertical solutions for such segments of the market as banks, the sphere of distance learning, telemedicine, contact centers, the situational centers and some other. On these segments we work as independently, and with partners. For example, together with telecom operators we go to a segment of SMB, in an Enterprise segment we participate in tenders together with integrators. Our slogan: "VideoMost – Together!" It means also what VideoMost can supplement (and not just completely to substitute) the foreign solution VIDEOCONFERENCING who were already purchased by clients and set, to save investments and to work together with partners.

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