Features of the development of the Russian SaaS market
The article is included in the overview of Cloud services for business.
Content |
2024
SaaS more often they choose SMB companies. In recent years, this market segment has been actively developing, annual growth is about 10-30%. "Import substitution" here is still mainly state organizations, which means the prospect of growth of the domestic product may lie in the corporate sector. To do this, you can accumulate functionality and improve information security, learn about the specific needs of companies in different areas and close them. health care Spheres, production, can become promising for expansion. formations Solutions should and will move away from universality towards industry specialization. To work with SMB, the development of "unobtrusive" payment methods can become promising. SMB budgets are limited, so you should not count on explosive or abrupt growth of the segment.
SMB selects SaaS
Two-thirds of the surveyed experts believe that SaaS is more likely to choose companies from the small and medium-sized business (SMB) segment, and the rest believe that everything depends on specific requests, the product - that is, that it is impossible to categorically distinguish CA by the scale of the enterprise.
For small companies, SaaS is a good way to save on IT: you do not need to invest in the development and purchase of equipment, pay staff. SMB companies need quick solutions: access to the necessary tools and applications. They do not have the appropriate infrastructure and resources, they are important for the ease of implementation and use of software, the absence of support costs, a single point of control. In addition, SaaS offers standardized processes and the ability to easily switch between different solutions, which is especially important for small and medium enterprises.
{{quote 'author = Dmitry Shulga, Sales Director, VideoMost. | The main audience is still SMB, including for the reason that the budgets of small and medium-sized businesses are more modest, and cloud services are usually cheaper than on-premium installations and often contain a free tariff with a basic set of options. In addition, large corporations require a greater degree of confidentiality of information, since losses (monetary and reputational) in case of leaks of important corporate data will be much more significant. }}
In medium and large businesses, solutions with the possibility of migration from foreign software, customization, hybrid ones are resonating. Large companies typically need a custom product. Integrating Solutions SaaS into their work is a more complex and demanding process. Corporations prefer on-premium solutions that they can monitor and integrate into their infrastructure, as well as the presence of accounting systems that require installation on their servers.
{{quote 'author = Pavel Grebeshkov, Head of Marketing at Comindware. | It all depends on the product. As a rule, this is an SMB that needs "boxed solutions." In our area of activity, Low-code BPMS we see that large corporations want to have business-critical systems and data within their loop. Among our customers, less than 10% work according to the SaaS model, and these are companies from the SMB segment. }}
The development of Solutions SaaS begins with a small business, it is he who is both the first target audience and the driver of the development of software functionality. This was told by Alexey Krishtop, director of cloud services at Astra Group. In his opinion, initially such software does not have the widest set of capabilities, but as the business grows for the target audience and the number of requests to the product, the developers improve it and add new tools. Over time, enterprise companies are also transplanted to the improved version.
 | This is a classic SaaS development scheme, although there are still rare cases when a product that is almost immediately suitable for large business is "rolled out" to the market, the expert noted. |  |
Market Demand and Volume Dynamics
You can see an increase in demand in the SaaS segment against the background of the growth of the cloud technology market as a whole. Over the past 2-3 years, the segment has been developing quite actively - these are automation services, payment solutions, communications, document management, CRM, cybersecurity, etc. In addition to those players who have already entered the market earlier, SaaS came to companies that previously dealt with On-Anticipate products.
The demand for cloud solutions continues to grow, as they provide more effective tools for managers, allowing them to optimize automation costs, because the SaaS model allows companies to quickly scale their IT infrastructure.
According to the latest data from Statista, the Russian segment of SaaS in 2023 is estimated at about 143 billion rubles. According to forecasts for 2024, it will continue to demonstrate growth and may reach a volume of 160 billion rubles (an increase of 10.6% year-on-year).
Шаблон:Quote 'author = Dmitry Shulga, Sales Director, VideoMost.
Шаблон:Quote 'author = Vladimir Shcherbakov, founder and CEO of Instrucbase.
{{quote 'author = Oleg Fedorov, Head of Cloud Products and Solutions at Linx Cloud. | According to our estimates, the growth dynamics in 2023 in the SaaS segment amounted to about 20%. About 70% of large organizations consider the use of cloud technologies as part of an import substitution strategy, and SaaS plays a prominent role in it. }}
According to Alexei Krishtop, director of cloud services at Astra Group, in 2023 the SaaS segment is estimated at 91 billion rubles. For 2024, an increase in revenue is expected to 103 billion rubles. And by 2030 this figure may reach 236 billion rubles.
Шаблон:Quote 'author = Pavel Grebeshkov, Head of Marketing at Comindware.
{{quote 'author = Rustem Iskakov, Chief information officer SberKorus, a digital platform for electronic document management. | I assess the capacity of the Solutions SaaS market as proportionate to the entire SMB market. The need for such solutions is growing for small and medium-sized enterprises, so they will increasingly purchase SaaS products. }}
However, it is necessary to take into account the multidirectional dynamics of demand, which is influenced by piracy and the limited capabilities of some companies in the SMB segment.
Growth factors
The SaaS model is an effective solution in the face of high uncertainty and changing business strategies. We can talk about the wide availability and large volumes of cloud infrastructure in the Russian Federation, including certified and certified clouds. Today in Russia, several key factors influence the SaaS segment.
The demand for the remote work format
The pandemic has created a trend of going offline. Various modern studies show that specialists liked the remote format of work, and many would like to continue to work from home. Cloud platforms are essential to effectively coordinate remote workers. Connection to SaaS applications is possible from anywhere in the world from any device, which makes them an integral part of business processes for many companies.
Import substitution
As a factor in demand, we can talk about mass migration from foreign clouds. The departure of Western vendors "exposed" the market, which forced manufacturers from the Russian Federation to develop Solution SaaS faster. Russian, with similar functionality, received a powerful boost of development.
Competition
More and more vendors are adapting the SaaS model to promote their developments in order to simplify access to them and quickly enter the market, where, due to the departure of many familiar products, many free niches have formed. This was told by Oleg Fedorov, head of cloud products and solutions at Linx Cloud.
The situation in the economy is such that competition between domestic companies in various industries is "very dense," experts say.
| | When your competitors implement digitalization tools and become more efficient, you have no choice - you either transform too, or lose the market. Pavel Grebeshkov, head of marketing at Comindware.
| |
Kirill Cherkasov, head of sales at IT company SKB Techno, agrees with him, who believes that high domestic competition weakens the desire of foreign companies to enter the Russian Federation. As an example of a competitive situation, he gave an example with two developers.
| | If there are two leading developers in one region, but one is introducing remote transactions, and the other is not, then the first will win, "the expert said. - Remote transactions allow not only to save time, but also to find buyers from other regions, which increases the number of sales from the developer. | |
Customers of companies value their time, require better and more comfortable provision of services, and are more and more willing to switch to an electronic format of interaction. For example, they require remote registration of various services, such as the release of an electronic signature in real estate, etc.
As for the competition between Solutions SaaS themselves, Alexey Krishtop, director of cloud services at Astra Group, believes that the segment can be influenced by the lack of adequate competition.
| | Very conditionally, but if 1C says that only the SaaS format is available from Monday, everyone will switch to it, simply because there is no full-fledged alternative, the expert suggested. | |
According to Alexei Krishtop, the key influence factor is the maturity of the software: if the program is good, its functionality is well developed and the market needs it, it will be used, including in SaaS format.
Expansion of cooperation
Along with the growth of competition, the level of maturity of Russian SaaS Solutions SaaS in relations with partners and distributors is increasing: interesting and mutually beneficial partner programs appear, vendors support service and cloud providers. In turn, providers provide demand in the market, offer customers Russian solutions that become not only analogues of Western ones from year to year, but also develop new functionality inside.
Accelerated Technology Development
Solution SaaS are becoming simpler, clearer and more accessible to a wide range of users. It's easier for people to work with them. The quality of existing software products and services is improving, functionality is developing. Thus, the key discontent of the market about the lack of familiar functionality is removed. There are more and more new services from the cloud that solve business problems of companies: from office applications to communications tools and business programs. The market itself is becoming more experienced, there are more specialists who understand how to work with cloud solutions.
AI and machine learning technologies are being introduced: an increase in the number of new services for business automation based on artificial intelligence is noticeable. Although it is not yet used en masse, organizations are already trying to integrate it into their work. This is a very large-scale change that awaits the segment.
Providers are actively investing in the security of their platforms and SaaS services, focusing on protecting customer data. This is a continuous process of improvement.
Solution SaaS are beginning to penetrate into those areas that have traditionally been the patrimony of on-premium ERP and MES systems. More companies are starting to use Solution SaaS to manage their business processes.
State influence
The state encourages, for example, developers to switch to electronic document management, including electronic registration of transactions. Project financing has put developers in a tight framework controlled by the investor bank, which also affects the SaaS development trajectory in the segment.
Some cloud solutions, such as video surveillance, are affected by restrictions related to import substitution of equipment and legislation.
The number of information security requirements for the solution architecture is growing.
Forced, including due to state requirements, SaaS introduces SMB.
Legislative services necessary to work with marked and excisable goods with traceability are in demand.
{{quote 'author = Dmitry Prede, Director of Public Relations of the cloud platform RCloud by 3data. | It is important that Russian providers receive support from the state. Government initiatives to develop and support Russian technologies can increase demand for domestic cloud systems. }}
Шаблон:Quote 'author = Kirill Cherkasov, head of sales at IT company SKB Techno.
Counterparty impact
SMBs are primarily suppliers and have to work in formats selected by purchasing companies.
Integration Challenges and Universalization
Some companies have difficulty integrating software solutions into customer IT landscapes, which sometimes updates the SaaS model vs on-premise dilemma.
{{quote 'author = Vladimir Shcherbakov, founder and CEO of Instrucbase. | We see a growing demand for a boxed solution. Those who were previously ready to buy the cloud now, due to security requirements, choose on-premium. Demand is growing for both solutions and competition is emerging, which is actually interesting. }}
However, it is difficult to draw unambiguous conclusions about how widespread this "confrontation" is now. On this issue, the opinions of experts do not sound in unison.
{{quote 'author = Dmitry Papin, CEO of iiko. | The number of users choosing on-premium has been declining in recent years. In contrast, SaaS sales grew - we increased revenue from the sale of cloud solutions by 52%, and the number of active users by 22%. Since July last year, we have switched completely to the cloud model, and the number of new users is constantly growing. }}
Also, market participants talk about the growth of supply from telecom providers who have their own data centers, inside which entire platforms and ecosystems of cloud services for business are deployed.
The corporate segment is waiting
The replacement of foreign technologies remains one of the key tasks for Russian companies and will be relevant for the future from 2 to 5 years. The need for import substitution affected everyone.
{{quote 'author = Andrey Nikitin, T1 Cloud Product Director. | If we talk about the role of cloud technologies in the import substitution process, today providers with a high level of maturity already have in their portfolio a whole range of ready-made independent solutions for the rapid transition of customers to Russian technologies. }}
The trend of transition to Russian cloud systems is gaining momentum. The reasons lie in the complexity of supporting software from foreign vendors and problems with the supply of equipment, the desire of Russian companies to reduce capital costs and ensure the continuity of business processes. In addition, tightening regulatory requirements and restrictions on the use of foreign technologies have an impact.
First of all, state organizations are switching to domestic development, to a lesser extent - business.
Шаблон:Quote 'author = Dmitry Shulga, Sales Director, VideoMost.
Шаблон:Quote 'author = Alexey Krishtop, Director of Cloud Services, Astra Group.
According to the expert, this is a temporary phenomenon, since such software cannot be updated or used technical support. But in a competitive environment, flexibility is extremely important, which cannot be achieved using "frozen" software solutions.
Comindware believes that the import substitution trend has noticeably fizzled out, although medium and small businesses can still afford to wait and continue to use foreign counterparts while Russian vendors refine products and lower prices.
Шаблон:Quote 'author = Pavel Grebeshkov, Head of Marketing at Comindware.
What other changes are happening?
- Communication providers, service providers and IT integrators are becoming more and more prominent players in this market.
- There are more specialized solutions for individual tasks and industries. On the one hand, large solutions begin to segment their offer, and on the other, small products appear aimed at solving a specific problem or industry training.
- To attract large businesses to the clouds, service providers are working to increase the degree of personal data protection and provide dedicated servers using the PaaS model.
- There are more online training specialists in companies.
- An interest in low-code systems could potentially develop. With the help of such software, you can very quickly close some of the business tasks, which can be useful if there are temporary gaps in import substitution.
- In the segment of electronic trading platforms (ETP), large companies have formed a request for automation of the end-to-end procurement process, S2P and automation of low-cost purchases (corporate online stores).
- In the construction sector, integrations of various services are becoming in demand, from a credit broker and electronic registration to a key transfer service. Large developers who initially launched Solution SaaS for their own use began to bring them to the market. This is a pronounced trend in which not only top feds participate, but also large regionals. All this leads to an increase in supply in the market. Which of these projects will turn into a successful business, time will tell.
{{quote 'author = Alexander Yaresko, Director of Product Management of the Corporate and State Segment of PJSC Rostelecom. | The use of AI in SaaS products, the transition from universal solutions to industry solutions, as well as the personalization of products in accordance with customer needs, is significantly increasing. }}
SaaS prospects in Russia
In 2024, the Russian segment of SaaS will continue to grow, and the main focus of providers will be on providing high-quality services focused on the current needs of users. This includes the creation and development of new technologies to maximize the convenience and security of Solutions SaaS. The prospects for the Russian SaaS segment are very optimistic, but subject to constant attention to product quality and innovative developments.
Customers of Russian vendors SaaS systems appreciate the convenience of payment schemes and local support.
Solutions SaaS, like any "subscription" services, has a problem with a negative attitude towards the need for regular payment in the key SMB segment. An interesting and promising direction in SaaS can be the creation of complex package products with a total payment, including those "sewn" into the transaction fee, such as acquiring, with regular, but invisible to users, organic payment methods.
Additional services will continue to actively develop in the ETP segment. The diversification of purchases by volume will continue: low-cost purchases will be transferred to the KIM format.
More and more organizations working in the fields of health, production, education will use SaaS in their work. This is due to the fact that such services are easily adapted to the specific needs of these organizations. It is also possible to strengthen security and data protection measures in Solutions SaaS in response to growing cyber threats and compliance requirements.
Those SaaS providers who already have extensive infrastructure and budgets to expand and scale it up will have the advantage. These are large telecoms and cloud providers, many of which are developing their ecosystems and trying to absorb smaller companies.
Which SaaS services are in demand?
- Tools for collaboration and file sharing, instant messengers. Desktop or mobile applications for all popular operating systems, including domestic Astra Linux, Alt, RED OS, etc. They can be used from the browser. Provide efficient interoperability within teams and make it easier to work on projects.
- Cloud-based business solutions for organizing and managing workflows. CRM, ERP, 1C, virtual PBXs and electronic document management systems. These systems require complex computing and high-performance capabilities, provide users with almost unlimited computing resources.
- The segment of communication services: applications for web conferences and platforms for holding large-scale online events, VKS have become an integral part of business communications in the modern world.
Services tied to external and internal relations, whether with customers or with employees, are in high demand. Therefore, various CRMs, solutions for checking counterparties, document management, logistics, various HR software or software for project managers are all in great demand in SaaS format.
| | Working with critical data, for example, in ERP or financial management systems - such software often remains "inside" the company on the local infrastructure Alexey Krishtop, Director of Cloud Services, Astra Group.
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- Backup and storage services. Ensure the security and reliability of information storage.
- Wi-Fi. The main drivers here are the introduction of various authorization methods in accordance with Russian law, the use of information security services (content filtering, black and white search lists), as well as targeted communications.
- Digital Signage. Demand growth drivers - integration with various CRM systems, remote collaboration (services like Miro or Slac), as well as the possibility of wide application in different areas, for example, in finance, HR and marketing.
- Budgeting and smart logistics contours. Financial management and budgeting solutions help you optimize costs, forecast revenues, and make informed financial decisions. SaaS logistics solutions help optimize routes, control inventory and improve process efficiency.
- Personnel accounting. Solution SaaS are increasingly being used to automate HR, HR and payroll processes.
In addition, you can talk about SaaS in relation to postal services, electronic trading platforms (ETP), corporate online stores (CIM), supplier management services, contracts.
Software solutions on the SaaS model are of interest to companies, as they are easily integrated into the existing landscape.
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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