Enterprise Software (Russian Market)

Segments

• CRM (Russian market)
• Enterprise Management Systems (Russian ERP Market)
• EDMS (Russian market)
• Russian HR-tech market
• Business Intelligence (Russian market)
• LMS (Russian market)

2024: The Russian corporate software market grew by 34% over the year and reached 199 billion rubles

At the end of 2024, the volume of the Russian enterprise-class software market reached 199 billion rubles. This is a third - 34% - more compared to 2023, when the costs were estimated at 148 billion rubles. Such data are given in a study by the consulting company Strategy Partners, the results of which were published on February 27, 2025.

The report says that in 2021, expenses on the corporate software market in Russia reached 201 billion rubles. However, then there was a sharp decline due to the formed geopolitical situation. So, in 2022, the market volume decreased to 128 billion rubles, having decreased by 36% on an annualized basis. For 2022-2023, about 200 foreign IT companies stopped working in the Russian Federation. Against this background, domestic players began to actively occupy the vacated niches, which contributed to the restoration of positive dynamics. So, at the end of 2023, the market volume increased to 148 billion rubles, and in 2024 it returned to the pre-crisis level.

Analysts note that leading companies in the sector are actively developing product ecosystems, increasing their recognition and allowing customers to use solutions from one supplier. Among the leading players in the industry are named, SberYandex",," VK Tech"Astra,,," T1 MTS",," SKB Kontur Selectel"," "," "," "." "Rostelecom Arenadata1C-BitrixRed Soft

At the end of 2024, the total share of domestic products in the Russian corporate software market reached 89%. For comparison, a year earlier this figure was 83%, and in 2021 - 29%. The popularity of Russian software is growing rapidly due to difficulties in paying for most foreign products and the lack of support for existing old licenses for foreign software.

The departure of foreign developers most significantly affected the segments in which their solutions occupied key positions: corporate communications and productivity, data management and software for private clouds. Thus, the departure of Microsoft as a key provider of office applications has formed a significant share of the business, which is not ready to switch to domestic counterparts, but can no longer pay for foreign solutions. At the same time, as noted in the report, the segments of public cloud services and tax monitoring were slightly affected by the departure of foreign companies and quickly recovered in volumes due to sales of Russian products.

Among the main drivers of the corporate software market in Russia, Strategy Partners analysts call digital business transformation, satisfaction of pent-up demand for domestic solutions after the departure of foreign developers and digitalization of the interaction between B2B and B2G. In addition, the industry is stimulated by various government support measures, including a preferential income tax rate for IT companies of 5% (until 2030). The study identifies six main trends that will affect the further development of the corporate software sector in Russia.

• Growing demand for AI: the rapid development of neural networks and machine learning forms the need to integrate relevant technologies into domestic software products;
• Focus on cybersecurity: increased attention to this area contributes to an increase in the share of software implemented in the client's infrastructure (on-premium), as well as expanding the sphere of private clouds;
• Development of ecosystem approaches: the transition of suppliers to the formation of complex products and ecosystems is actively manifested in the segment of corporate communications and productivity, where package products with several types of software are the most popular;
• Big Data and Analytics: The trend towards collecting and analyzing huge amounts of information creates the need to develop storage and implement advanced database management systems in large companies;
• Cloud transformation: The proliferation of cloud infrastructure and the popularization of cloud products create an increased demand for both software in public clouds and software for organizing and managing private clouds for large companies, as well as for hybrid infrastructure;
• Innovations in the field of user experience: the development of interaction between employees of companies and their clients creates a demand for platform solutions for corporate communications and productivity, increasing the demand for software suppliers with complex products.

The authors of the study believe that the corporate software market in Russia until 2030 in monetary terms will grow at a rate ahead of the average for the IT industry as a whole - 24% versus 13%. This is due to the active import substitution and localization of software, the ongoing digital transformation of the business and public sector, as well as the rapid development of domestic ecosystem corporate products. As a result, by 2030 the volume of the industry is expected to reach 727 billion rubles. The most significant growth, according to analysts, will be shown by the directions of HR-Tech and software for private clouds with a CAGR value (CAGR in complex percentages) at 34% and 30%, respectively. The segments of corporate communication and productivity and data management will gradually recover after the departure of foreign companies with a CAGR of 21% and 11% until 2030. In the field of public cloud services, growth is predicted by 25% per year, in the field of tax monitoring - by 23%.^[1]

2023: Expenses of Russian companies for the development and purchase of software for the year increased by 6% to 328.9 billion rubles. Regions

In 2023, Russian large and medium-sized enterprises spent 328.9 billion rubles on the creation and purchase of software. For comparison, a year earlier, expenses were estimated at 310.3 billion rubles. Thus, growth was recorded at 6%. Such data are given in the materials published on August 12, 2024 by the analytical service of the audit and consulting network FinExpertiza.

The report says that the nominal expenses of the corporate segment for the development of a new and purchase of existing software increased steadily from 2005 to 2023. The exception was 2010 and 2017, when a year-on-year drop of 17% and 7% was recorded, respectively. Since 2018, spending on software has shown stable growth: over six years (by 2024), spending has almost tripled. In 2018, according to estimates, the costs amounted to 191.1 billion rubles. In 2019, the figure increased to 227.3 billion rubles, and in 2020 reached 245.7 billion rubles. In 2021, 274.1 billion rubles were spent.

Analysts note that the growth in business costs for software in 2023 at the level of 6% can be considered relatively low - even in 2020, against the background of the COVID-19 pandemic, it reached 8.1%. Moreover, taking into account both average annual consumer inflation (4.3%) and industrial inflation (4%), real costs slightly exceeded the indicators of 2022.

If we take into account basic inflation (excluding positions whose prices are influenced by administrative and seasonal factors), which in 2023 amounted to 6.8%, and also take into account the annual increase in the cost of direct software development, estimated by experts at more than 10%, then the record high value of 329 billion rubles seems not so impressive, - the study says.

Several factors are called that cause a decrease in the growth rate of computer software costs. This, in particular, the acquisition of multi-year licenses by companies - fixed assets for software in such cases were spent in 2022, that is, before the lack of funding and the purchase of software using "gray import schemes." In addition, despite the formal departure of Western suppliers from the Russian market, corporate users are not ready to quickly abandon their products, since an emergency transition to analogues available in the Russian Federation can create certain risks, including those associated with data loss.

If we consider the Russian market in terms of software applications, then enterprises in the field of information and communications invested the maximum funds in the purchase and development of software (in addition to IT itself, this also includes telecommunications, television and radio, publishing, etc.; 129.3 billion rubles), manufacturing industry (among them, the largest share in the increase in software costs was provided by the production of petroleum products, metallurgy and computer production; 69.2 billion rubles), wholesale and retail trade (40.5 billion rubles), professional, scientific and technical activities (the group includes jurisprudence, accounting, management consulting, engineering and technical design, scientific research and development, advertising; 21.4 billion rubles), as well as transportation and storage (16.4 billion rubles).

The study says that in 2023 the largest costs of creating and buying software among Russian regions were recorded in Moscow - 169.2 billion rubles, or 51.5% of the total market volume. In second place are enterprises in St. Petersburg with 69.2 billion rubles, or 21.1%. This is followed by Krasnodar Territory (15.8 billion rubles, 4.8%), Moscow Region (11.4 billion rubles, 3.5%), Tatarstan (8.9 billion rubles, 2.7%), Sverdlovsk Region (4.7 billion rubles, 1.4%), Yamalo-Nenets Autonomous Okrug (4.3 billion rubles, 1.3%), Vologda Region (4 billion rubles, 1.2%), Krasnoyarsk Territory (3.7 billion rubles, 1.1%), as well as Chelyabinsk Region (2.9 billion rubles, 0.9%).

At the same time, the Yamalo-Nenets Autonomous Okrug became the leader in terms of investments in software per organization in 2023 - an average of 13.8 million rubles. This is followed by St. Petersburg with an indicator of 11.8 million rubles. Closes the top three Moscow with 9.4 million rubles. This is followed by the Vologda Oblast (6.1 million rubles), Krasnodar Territory (5.8 million rubles), Tatarstan (5.1 million rubles), Moscow Region (2.44 million rubles), Krasnoyarsk Territory (2.43 million rubles), Lipetsk region (2.38 million rubles) and (Yakutia 2.1 million rubles).

The report says that the costs of computer software from St. Petersburg businesses increased most significantly in absolute terms: in 2023, enterprises in the northern capital paid 24.2 billion rubles, or 53.6% more than a year earlier. At the same time, the maximum spending affected enterprises in the fields of information and communications, manufacturing and transportation and storage. The Krasnodar Territory took the second and third places in terms of growth in IT product purchases (the main contribution to growth was made by trade; an increase of 5.8 billion rubles, or plus 58%) and the Yamalo-Nenets Autonomous Okrug (growth was provided by enterprises in the field of mining; plus 3 billion rubles, or 230.8%). This is followed by the Chelyabinsk region (plus 2.3 billion rubles, or 377.5%), the Vologda region (plus 2.0 billion rubles, or 96.9%), Tatarstan (plus 1.7 billion rubles, or 23.7%), the Sverdlovsk region (plus 1.6 billion rubles, or 53.3%), Perm Territory (plus 1.5 billion rubles, or 126.1%), Leningrad region (plus 1.3 billion rubles, or 175.4%) and Nizhny Novgorod region (plus 1.1 billion rubles, or 76.6%).^[2]

2022

Russian companies have spent a record on the purchase and development of software. Leading regions

Russian companies in 2022 spent a record on the purchase and development of software - expenses reached 310 billion rubles, which is 2.7 times more than 5 years ago. Analysts of the audit and consulting network FinExpertiza disclosed such data on September 6, 2023.

According to the study, the investments of the corporate sector in the development of a new and purchase of software in 2022 increased by 13.2% compared to 2021, or 36.2 billion rubles. On average, one company accounted for 3.8 million rubles of expenses.

In the industry, the main investments in the creation and purchase of computer software in 2022 were made by enterprises in the field of information and communications (this is directly the field of IT, as well as telecommunications, television and radio, publishing, production of various content; 131.3 billion rubles), manufacturing industry (61.2 billion rubles), wholesale and retail trade (35 billion rubles), professional, scientific and technical activities (this includes jurisprudence, audit, consulting, engineering and technical design, scientific research and development, advertising; 27.5 billion rubles), as well as the transport industry and warehousing (14 billion rubles).

After the departure of Western vendors such as SAP, Oracle, Microsoft and others, which accounted for a significant part of the Russian software market, the largest Russian companies, for which computer security and stable functioning of the IT infrastructure are an indispensable condition for work, significantly increased the demand for domestic software, says Elena Trubnikova, President of FinExpertiza. - The crisis situation created a window of opportunity for Russian developers and gave impetus to the active development of the domestic IT industry. The increase in computer software costs is also associated with the modernization of the existing IT infrastructure and long-term digital transformation programs implemented by Russian corporations. The national software market, additionally stimulated by measures of state support for the IT industry, is actively developing, the process of replacing Western software is gradually accelerating. In this regard, we expect a further increase in corporate spending on computer software.

Among the Russian regions, Moscow holds the undisputed primacy in terms of total corporate expenses for the creation and purchase of software. The largest number of enterprises are concentrated in the capital, their total spending on software amounted to 189.9 billion rubles - about 61% of all-Russian corporate investments in For 2022. This is followed by St. Petersburg (45.1 billion rubles), Moscow region (10.9 billion rubles), Krasnodar Territory (10 billion rubles), Tatarstan (7.2 billion rubles), Tyumen region (7.1 billion rubles), Krasnoyarsk Territory (3.6 billion rubles), Sverdlovsk region (3.1 billion rubles), Novosibirsk region (2.5 billion rubles) and Bashkortostan (2.3 billion rubles). These are economically developed regions with a large number of enterprises.

The study for 2022 also says that on average, large and medium-sized companies spend over a million rubles a year on software in a quarter of the regions (21). In most entities (47), the costs for each enterprise range from one hundred thousand to a million rubles. And in 17 regions, the corresponding spending does not reach 100 thousand rubles. On average, companies in the republics of Kalmykia (0.4 thousand rubles per company), North Ossetia (1.9 thousand rubles) and Dagestan (3 thousand rubles) spend a minimum of money on software.

Named regions with the highest corporate software costs

Half of Russian companies could not renew licenses for foreign software

Half of Russian companies in 2022 could not renew licenses for foreign software. This is stated in a survey by the A2:Research Research Center, the results of which were released at the end of May 2023.

Almost a third of entrepreneurs complained about problems with technical support (32%) and payment for services (31%), and every tenth complained about the lack of stable work of foreign software. First of all, the problems affected state organizations and large commercial companies. According to Pavel Kalyakin, General Director of MyOffice, during 2022 the number of applications for the introduction of domestic software instead of foreign software increased sixfold. The greatest threat is the use of foreign software at critical information infrastructure (CII) facilities: the lack of updates is fraught with risks in the field of information security ( IS), explained Mikhail Nazarov, ESA PRO Service Director.

Half of Russian companies in 2022 could not renew licenses for foreign software

The tangible consequences were due to foreign manufacturers who remotely blocked the operation of their devices and software, said Roman Karpov, director of strategy and technology development at Axiom JDK, in a conversation with Vedomosti. If the National Payment Card System (NSPK) had not transferred the Mir payment system from Oracle Java to the Russian Java platform in advance, the transactions of the departed Visa and Mastercard could not have been serviced in the Russian Federation, he notes.

The A2:Research survey also showed that for 58% of entrepreneurs it is important that the software used in their companies be developed in the Russian Federation. Also, 57% of respondents said that they had already switched to domestic software in 2022.

As part of their research, A2:Research analysts interviewed 1,200 entrepreneurs and top managers from retail, production, transport, telecom, IT, etc.^[3]

Software Market Trends

The company Sissoft"" analyzed the structure of demand for software 2021 and examined changes in the preferences of software customers. Analysts of the company note that 2022, in terms of sales, will only strengthen existing trends. The company announced this on January 24, 2022.

The main driver in the software market is still business changes associated with the pandemic. Everyone understands that in the medium term (at least 2-3 years), companies will have to work in fundamentally new conditions in terms of operating hours, employee motivation, security, and IT infrastructure maintenance. This fact forced the business to reconsider its approaches to the purchase and use of software products again.

Geographical "blurring" of commands and a hybrid format of work will lead to the fact that vendors that support the remote work infrastructure and offer appropriate solutions will increase their share in the software market: from managing remote desktops and mobile devices, to software for dedicated teleconferencing and teamwork.

New manufacturers are entering the niche, offering solutions with fresh licensing systems and more attractive prices. Therefore, in the segment of tools for remote work, competition will only intensify, and the buyer will have greater opportunities to choose software in terms of quality and price.

The unambiguous and long-term trend that is observed is an increase in demand for products related to information security. {{quote 'This trend will be intensified by the course of import substitution. We see that in recent years, Russian manufacturers of information security solutions have become leaders in the local market, especially in large companies, enterprises with state participation and among state customers, "explained Ilya Panteleev, General Director of Sissoft. }}

In 2021, such solutions were especially in demand as: firewalls the latest generation, subsystems of control and protection against, confidential information leaks subsystems of control of privileged users - employees who have access to servers to critical information systems. Business digitalization also leads to the fact that type protection subsystems become relevant attacks , DDoS helping to ensure the constant availability of the service for both employees and customers, - said the Dmitry Kovalev head of the information security department of Sissoft.

Subsystems of user control and monitoring will also be in demand in terms of scope of work, efficiency, time and behavioral analysis in order to be able to control the situation and build graphs of connections and main communications. This will be useful when identifying internal violators, - said Dmitry Kovalev.

Sissoft analysts record a steady trend towards the creation of internal development units in companies in various industries. If earlier such a strategy was chosen by financial organizations, now retail is actively going into development.

Development costs are rising, and companies are tempted to 'save' development providers' profits and 'keep' them. In addition, in-house IT development structures are often more flexible and can respond more quickly to changes in sales channels. There are companies that need to be equipped with the solutions necessary for development, testing, and command management. This trend creates an increased demand for relevant products, - said Ilya Panteleev.

The vast majority of industry customers are interested in products that implement this technology, such as Autodesk solutions. In the medium term, we see the use of products of this family not only for the design of buildings, the creation of construction estimates, but also at the stage of support and repairs during operation. This is a strong trend for years to come, - explained Alexey Pazhiltsev, head of the department for work with key vendors of Syssoft.

Sissoft experts identified five main trends for 2022

• The number one trend is the increase in software consumption associated with remote work, information security and the involvement of "remote" employees in the life of the company.
• Trend number two - uncertainty in the timing of equipment deliveries, which will indirectly affect the needs of the business in the supply of complex project software.
• Trend number three - the growth of the software segment, solving the problems and management of IT projects, organizing development and testing due to the emergence of internal departments to create their own digital products in all industries.
• Trend number four - the development of the market will be determined by state programs for import substitution and the introduction of specific technologies, for example, BIM.
• Trend number five - Russian and foreign IT products will rise in price, taking into account rising inflation and labor costs of software developers.

In 2022, we changed the approach to developing business areas, betting on a more detailed study of the tasks and problems of companies that they face. This is our response to the market's needs for strong expertise and a reliable technology partner. This approach gives customers confidence that cooperation will be effective: as a result, companies will jointly determine the priority task, and the software provider will find a solution for it and implement it. This is the path all resellers will take sooner or later. Only in this way in 2022 it will be possible to achieve high-quality sales growth, "sums up the president of Sissoft Maxim Tikurkin.

The study of software sales took into account transactions carried out with individuals and legal entities in the period from January 1, 2021. Excluded subcategories that demonstrated high growth due to the "low base effect." The results are adjusted for the company's marketing and commercial activities to eliminate factors associated with business growth. To draw conclusions about the change in customer preferences, the data of the Customer's Voice surveys conducted by Sissoft in 2020 and 2021 were taken into account.

2020: Growth in the volume of Russian corporate software by 6.7%, to 61.43 billion rubles - IDC

The volume of Russian corporate software at the end of 2020 reached 61.43 billion rubles, which is 6.7% more than a year earlier. In American dollars, sales of such software decreased by 4.5%. Such data on June 24, 2021 were cited by IDC analysts.

They linked the differences in market dynamics in rubles and dollars with the devaluation of the Russian currency. Positive dynamics in rubles were achieved due to a less prolonged lockdown compared to many countries and, as a result, less negative consequences for the Russian economy, the study explains.

The Russian corporate software market added 6.7% over the year

In the past [2020], thanks to a short lockdown, many organizations in Russia worked without serious restrictions, and the pandemic became a catalyst for digital transformation, says the research program manager, IDC Russia and. - As CIS Natalia Vinogradova a result, demand for corporate application software in the country has been robust.

At the same time, as the analyst noted, with the growth of geopolitical risks, more and more Russian customers are starting to invest in alternatives to Western solutions and platforms.

The share of the largest functional market - enterprise resource management solutions (ERM) - increased in 2020. Demand for customer relationship management (CRM) and industrial applications (OMA) solutions has been robust throughout the year. The volume of investment in supply chain management ( SCM ) applications has not changed in 2020 compared to the previous year.

The leading positions in the market are occupied by SAP and 1C - in terms of the share of the domestic market for business automation software in monetary terms, the latter lags behind SAP by 3.2 percentage points. Over the year, the Russian company increased its market share, which was facilitated by the policy chosen by the state on import substitution in IT.

In general, market shares at the end of 2020 were distributed as follows:

• 42,4% — SAP
• 39.2% - "1C" (versus 36.7% in 2019)
• 7,4% — Microsoft
• 4,8% — Oracle
• 3.6% - "Galaxy"

Data for 2020, IDC

According to the head of 1C Boris Nuraliev, the price of a license from a Russian company is much lower than that of SAP, therefore, in the number of automated jobs annually, the share of 1C exceeded 80% (as of June 2020). At the same time, 300 thousand are programmed in the 1C language. IT professionals.

The leading vertical markets in corporate software spending were manufacturing, retail, resource industries and construction.^[4]

See also

• Office Software (Russian Market)
• Russian Software (Domestic Software)
• Software developers in Russia

Notes