Features of the development of the Russian IaaS market
The article is included in the overview of Cloud services for business.
Content |
2024
IaaS allows companies to quickly deploy new applications and services, reducing time to market. This is especially important for competitive markets, where the speed of implementation of new solutions can be a critical factor in success. IaaS avoids large capital costs for the purchase and maintenance of servers, network equipment and other components. Instead, only the resources used can be paid for, making costs more predictable and manageable. Companies often lack large IT departments with the necessary knowledge and skills to manage complex IT infrastructure. IaaS cloud providers offer management, monitoring, and support services to focus on core business rather than technical aspects.
Large enterprises and corporations bring the greatest profits to providers. In recent years, state organization has been actively showing interest in the segment. Confidence in him from business and the state is increasing.
According to the sum of the estimates of experts surveyed by TAdviser, the volume of the segment is still inferior to SaaS, while the gap between them is rapidly shrinking, and by the end of 2024 the segments may even be equal in revenue. The development of IaaS will continue, but may already be smoother, without the jump growth characteristic of 2022-2023.
The most blurred CA of all cloud segments
The IaaS audience is the most vague, the segment is in demand among all types of business and among state-owned companies (B2G). Interested parties can be, for example, wholesale and retail trade, e-commerce, financial organizations, software developers, logistics, medicine, the agricultural sector.
Major players and corporations bring the main profits to providers, but SMB enterprises prevail quantitatively.
{{quote 'author = Oleg Fedorov, Head of Cloud Products and Solutions at Linx Cloud. | About 70% of the revenue of cloud service providers is brought by large enterprises and corporations (according to our observations, their share in revenue from cloud services is about 70%). Medium and small businesses predominate quantitatively, but their shares vary from year to year in the range of 10-15%. }}
{{quote 'author = Alexey Krishtop, Director of Cloud Services, Astra Group. | IaaS solutions are actively used by large businesses, a big breakthrough in this segment has occurred just over the past couple of years. }}
Market participants can be dispersed, on the one hand, to suppliers with modest infrastructure or themselves, and on the other, to IaaS users.
Another possible classification option is by consumption format.
{{quote 'author=Alexander Ivannikov, mClouds.ru Development Director. | Startups often choose the "cloud only" model, since their key task is to focus on rapid growth, and the cloud according to the IaaS model just allows you to take care of the IT infrastructure from the business, focusing on the key business. }}
IaaS provides organizations with a range of benefits: access to advanced cloud provider technologies; the ability to quickly start and scale computing power; no one-time significant capital expenditure; guarantee uninterrupted operation of its own services due to reliable IT infrastructure.
Cloud providers typically offer high standards of security and reliability, including data backup, disaster recovery, and other security measures. This helps businesses protect their data and ensure business continuity without significant investment in their own security solutions.
Large enterprises tend to use IaaS in a hybrid format, while working with their own IT infrastructure and cloud.
{{quote 'author=Viktor Fedotov, Product Manager "Cloud Infrastructure" Softline Multi-Cloud. | The main IaaS CA in the Russian Federation is medium and small businesses, for which the cloud is one of the main ways to solve problems. It is also the most dynamic category of our clients. In addition, we attribute large companies to the main IaaS CA in the Russian Federation, but for them IaaS is not the main tool, since often their infrastructure is built in the form of a hybrid cloud on its own equipment, as well as on several cloud providers. }}
There is a scenario when a company tests product hypotheses in the provider cloud, while key business processes remain at their own facilities.
Another common option is to reserve infrastructure based on cloud provider resources to improve fault tolerance.
Large corporations pay special attention to information security issues, and SMBs come to the fore with the cost, the ability to optimize costs and quickly launch products.
In addition, large consumers can be divided into several classes by industry.
Шаблон:Quote 'author=Dmitry Balyukov, EdgeCloud product manager.
In recent years, one of the drivers of the segment's development has been government organizations that increasingly trust cloud technologies, as service providers continuously increase their expertise in the field of information protection, seek certification of their infrastructures in accordance with current legislative requirements, develop their own services and solutions, and keep their hands on the pulse of cyber threats.
According to Anatoly Trifonov, head of cloud services at Onlanta (part of the LANIT group), there is an expectation on the market that the vast majority of IT ecosystems in the next few years will be based on infrastructures provided under the IaaS model.
 | The only difference will be what level of insourcing-to-outsourcing ratio a particular company will choose: a private cloud under its own control, a public cloud under the control of a provider or a hybrid architecture, the expert shared. |  |
Which services are in greatest demand?
Services for renting cloud infrastructure, dedicated servers, kubernetes, information security services, and data storage are in demand.
The departure of Western vendors gave a strong motivation to switch to OpenStack platforms and other solutions based on technologies with. open source These solutions are becoming more and more popular in the Russian market.
The demand for private clouds based on Russian virtualization tools is growing. The service model of services in the field of information security is becoming more and more popular: companies are striving to get a secure IT infrastructure "turnkey."
{{quote 'author = Andrey Nikitin, Product Director, T1 Cloud. | Interest from large businesses in projects of hybrid private and cloud solutions is especially noticeable. In addition, the model of the "alienable" cloud is gaining popularity, when, with its own cloud platform, the provider "alienates" its external customers. This is due to the complication of the tasks facing the business, increased confidence in the clouds and increased requirements of regulators. }}
This model corresponds to the on-premium format, in which the entire infrastructure is on the client side, while the cloud provider provides the necessary services and tools to manage them.
Also, the business is increasingly using AI and ML technologies in its own developments. This increases the demand for GPU servers needed to implement projects in this area.
Шаблон:Quote 'author=Oleg Fedorov, Head of Cloud Products and Solutions at Linx Cloud.
Шаблон:Quote 'author=Dmitry Balyukov, EdgeCloud product manager.
The main driver of the market is classic virtual machines, but the rest of the services become a criterion for customers to choose providers, and therefore have become very important for the latter, says Mikhail Barablin, partner and head of cloud solutions at the Digital Economy League.
Segment volume, demand dynamics in 2023-2024
When assessing the volume of the market segment, experts agree on the amount of over 100 billion rubles in 2023. The upper bar can be from 110 to 120 and even up to 160 billion.
In 2023, by 2022, IaaS growth ranged from 20-30%, twice the forecast level, which indicates the established high dynamics of demand and interest in all key services of the segment. The average growth forecast for the current year is 30-35%.
Growth could remain around 25% a year in the coming years, but that is not a consensus estimate. It is believed that the market can grow even at double-digit rates.
Шаблон:Quote 'author=Oleg Fedorov, Head of Cloud Products and Solutions at Linx Cloud.
Шаблон:Quote 'author=Dmitry Balyukov, EdgeCloud product manager.
According to Alexey Krishtop, director of cloud services at Astra Group, in 2023 revenue in the IaaS segment amounted to 100 billion rubles, and 127 billion is expected in 2024. At the same time, from 2025, the market should grow even more rapidly, and by 2030 the amount may already reach 424 billion.
| | The software segment was "overtaken" back in 2023:100 billion rubles in IaaS against 91 billion rubles in SaaS, the expert shared. - It will be even more interesting further, because the IaaS and SaaS segments promise exponential growth in the next 5 years. | |
Alexey Krishtop cited the following figures: the IaaS segment showed revenues of almost 77 billion rubles in 2022 and 100 billion rubles in 2023, while the SaaS segment showed revenues of 81 billion rubles and 91 billion rubles, respectively.
| | According to our data, the SaaS market turned out to be about half the size of the provider infrastructure market in 2023, - said Mikhail Barablin. | |
According to the expert, the growth of the segment amounted to at least 30% year-on-year. At the same time, demand even increases, fueled by some shortage and complication of supply schemes.
Шаблон:Quote 'author=Sergey Naumov, CEO of Timeweb Cloud.
According to Sergei Naumov, in 2023 the IaaS segment grew by 35%, while SaaS - by about 20%. About 70% of large Russian companies are actively integrating cloud technologies into their import substitution strategies. The demand for Russian cloud services grew not only due to the departure of foreign players, but also due to the emergence of new customers.
It is obvious to the expert that more than 35% of companies plan to expand their consumption of cloud resources during the current year. At the same time, it is expected that by the end of 2024 they will increase cloud consumption by more than 25%.
The previous period was characterized by high demand dynamics associated with sanctions, the course of digitalization, equipment shortages, and the desire of large businesses to localize the IT infrastructure within the country. According to one estimate, demand is even increasing today, fueled by some shortages and the complication of supply schemes. According to other sources, the growth dynamics have shrunk, since many companies have already solved their problems.
Шаблон:Quote 'author=Alexander Ivannikov, mClouds.ru Development Director.
The market segment is still undergoing large changes related to the allocation of the Russian part of the business in international companies and the need to localize their services within the Russian Federation. Most of these projects are complex, because the IT services of such companies were supplied by 90% from single centers based on the standards established by headquarters. Any such localization requires actually transferring the entire IT landscape on which companies' business processes operate.
Шаблон:Quote 'author=Dmitry Balyukov, EdgeCloud product manager.
Under what conditions does the segment exist?
Geopolitics and sanctions are the main factors in which the segment is developing. This opinion was expressed by Alexey Krishtop, director of cloud services at Astra Group. He noted difficulties with the purchase of equipment and ensuring adequate DDoS protection of local infrastructures.
Growing trust and healthy competition
Among other factors, experts called the increase in confidence in cloud services and infrastructures from large businesses. Even those companies that have not previously considered the transition to the cloud model began to trust the clouds.
There is no obvious monopolization in the market: a sufficient number of players can be called competitive even in the public sector. New vendors from China are showing themselves, but there is still no sufficient demand for their hardware. This opinion was expressed by Dmitry Balyukov, EdgeCloud product manager.
Increase the level of requirements for functionality and special attention to information security
Requirements for the quality of technical support are growing - today this is an important factor in choosing a provider.
The requirements of service buyers for reliability and functional fullness of services are increasing. The needs of Russian business are growing both in infrastructure and in terms of fault tolerance requirements. More and more attention is paid to improving the level of information security.
Шаблон:Quote 'author=Sergey Naumov, CEO of Timeweb Cloud.
The increased number of cyber attacks and tightening regulatory information security requirements (presidential decrees No. 166, No. 250) cause the use of information and network security services (Cloud Security). The public sector shows a bias towards registry decisions tied to information security.
Шаблон:Quote 'author=Viktor Fedotov, Product Manager "Cloud Infrastructure" Softline Multi-Cloud.
Providers are increasing investment in cybersecurity and compliance by advancing the security of cloud infrastructure. Information security services in the cloud are also actively developing. Providers will continue to improve in this direction, undergo certification and certification.
Шаблон:Quote 'author=Sergey Naumov, CEO of Timeweb Cloud.
It is possible that separate protected segments will appear within public clouds (this is a segment physically and logically isolated from other clients and networks that meets all basic standards and security requirements).
No supply issues or ongoing shortages?
The period of problems with complex supply chains in the supply of equipment has come to naught. Only some narrow technologies, such as GPUs, remain relatively scarce.
{{quote 'author=Anatoly Trifonov, Head of Cloud Services at Onlanta (part of LANIT Group). | The period of complex supply chains for the supply of equipment, problems with technical support, the inability to get certain licenses, which was keenly felt until mid-2023, has passed. Provider infrastructures continue to develop steadily, scaling both horizontally and vertically. Although slowly, the transition to domestic products continues - virtualization system, backup, etc. }}
However, a tense attitude has managed to form towards parallel imports, and at prices domestic products sometimes surprise customers.
Шаблон:Quote 'author=Alexander Ivannikov, mClouds.ru Development Director.
Deepening specialization, diversification, regionalization
There has been a deepening specialization of solutions by providing industry-specific cloud solutions based on provider experience and industry-specific data.
There is an increase in demand for SaaS and PaaS products, since "naked IaaS" does not always meet the needs of the business. Companies request integrated solutions, including the ability to use the professional skills and knowledge of providers.
Шаблон:Quote 'author=Alexander Ivannikov, mClouds.ru Development Director.
The supply of sites in Russia is expanding with an increase in focus on regional markets such as the Urals, the South of Russia and the Far East.
Maturity growth in the context of time
The main drivers of market growth include the digital transformation of all sectors of the economy, the growth of computing and data storage, state support for the IT industry, import substitution and subsidies for the transition to domestic software, as well as short stories in legislation aimed at regulation in different industries.
{{quote 'author = Natalia Efimtseva, Senior System Architect, ICL Services. | At the end of November 2023, the State Duma adopted a bill on the transfer of banking secrecy to outsourcing. The bill will allow banks to outsource the development of IT solutions and allows data storage with bank secrets in cloud services. This expands the scope of public cloud services for financial institutions. }}
The requirements of the legislation to ensure the protection of software and IT infrastructure are strengthened. Over the past year, many companies have faced the task of fulfilling the requirements of the 187-FZ governing the safety of CII facilities. Experts expect further accumulation of the legislative framework.
Шаблон:Quote 'author=Andrey Nikitin, Product Director, T1 Cloud.
There have been significant changes in the structure of customer needs. Business puts forward increased requirements for the quality and functionality of cloud solutions.
Шаблон:Quote 'author=Oleg Fedorov, Head of Cloud Products and Solutions at Linx Cloud.
In addition to the high need for digitalization, the continuing risks of uncertainty in the economy motivate businesses to outsource non-key processes, including IT infrastructure, maintaining the pace of use of IaaS.
Шаблон:Quote 'author=Sergey Naumov, CEO of Timeweb Cloud.
Competition among providers forces each market player to constantly improve services, introduce new technologies and offer good conditions. Expanding the functionality of the cloud infrastructure attracts more customers to providers and contributes to the development of the industry as a whole.
Шаблон:Quote 'author=Dmitry Balyukov, EdgeCloud product manager.
Trends-2024 and segment prospects
Market expertise is growing, and the trend of transition to clouds will grow. The demand for digital services is only increasing. The risks associated with foreign infrastructure are unlikely to decrease, they also affect the SMB.
Шаблон:Quote 'author=Alexander Ivannikov, mClouds.ru Development Director.
Шаблон:Quote 'author=Natalia Efimtseva, Senior System Architect, ICL Services.
If the list of equipment permissible for import is adjusted, the relevance of IaaS will only increase. In addition, providers have much more resources and competencies to comply with regulatory requirements for information systems of companies and IT landscapes in general.
Artificial intelligence and voice assistants are gaining popularity in infrastructure projects.
Шаблон:Quote 'author=Sergey Naumov, CEO of Timeweb Cloud.
According to the expert, cloud technologies are increasingly penetrating various industries, the demand for tools that simplify the launch of new services and their individual functionality is increasing.
Шаблон:Quote 'author=Viktor Fedotov, Product Manager "Cloud Infrastructure" Softline Multi-Cloud.
According to the expert, in 2024 and beyond, one can expect from the market segment of sustainable growth, stimulated by demand from the SMB, an increase in the popularity of hybrid and multi-cloud strategies, as well as an increase in the frequency of containerization implementations, which will have a beneficial effect on the segment.
| | Another trend is GPU Cloud, which allows you to develop, among other things, large AdTech and IoT projects. Demand for them has significantly increased and will continue to gain momentum in subsequent years. Sergey Naumov, CEO of Timeweb Cloud.
| |
Low-code technologies are no less popular, they help to create applications by the hands of industry experts who do not have special knowledge in programming. Serverless helps you develop applications, store data, and configure integration with other platforms without creating virtual machines or maintaining infrastructure.
There is a growing demand for cloud solutions from the financial sector, retail, IT and other industries. The business is digitalized, switching to online communication with customers, online sales, electronic document management. All this requires storing and processing more data, implementing more complex IT systems.
{{quote 'author=Konstantin Ansimov, Selectel Product Director. | One of the trends that we see is that Enterprise companies are building increasingly flexible IT systems, for example, using a microservice architecture in development. This is justified by the current needs of the IT market and best practices for development. Such changes are easier and more convenient to implement on the provider's infrastructure. }}
New payment models may appear. For example, Yandex Cloud offers a discount for reserving resources (constant use of resources), but only for managed databases. Perhaps something similar will be developed for other services. Natalia Efimtseva, Senior System Architect of ICL Services, told Tadviser about this.
There is a noticeable increase in interest in hybrid clouds. Companies are looking for the optimal combination of cloud and local infrastructures: part of the infrastructure is deployed in the provider's cloud, and critical services, due to information security regulatory requirements, are controlled on their own. The hybrid model will remain in trend. There will be more and more hybrid clouds - private clouds that are compatible with the provider's public cloud. This will make it easier to develop or migrate systems. The hybrid functionality of cloud services for integration with local infrastructure will also be expanded.
Growing demand for IaaS in all directions requires the allocation of more and more capacity. The main challenges may be problems with increasing the cloud offer with hardware, as well as the so far observed lag of domestic software.
Read also
- Cloud services (Russian market)
- Infrastructure as a Service, IaaS (Russian market)
- SaaS (Russian market)
- Cloud computing: top definitions
- Public clouds vs Private clouds
- Creation of private clouds (Russian market)
- Main trends in the private cloud market in Russia
- Private Clouds - Typical Customers
- Russian IT Services Market
- Private clouds in the public sector
- Private clouds in the banking sector
- Cloud Solutions for SMB
- How do I choose an IT service provider?
- Service companies: Western vs domestic
- Cloud Services Economics
- Cloud Data Security
- Global Cloud Services Market
- Top Trends in the Global Private Cloud Market
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