Infrastructure as a Service, IaaS (Russian market)

Market Development Forecasts

It is expected that in 2019 the IaaS market will amount to 12.5 billion rubles at comparable prices, and the total corporate consumption of cloud server capacity, including services provided on the basis of infrastructure outside the Russian Federation, will reach 18 billion rubles, which will amount to about 40% of the total consumption of virtual and physical servers in Russia in 2019.

According to Parallels (Parallels Software) forecasts (2014), the IaaS market will grow at an average annual rate of 30% and by the end of 2016 will reach 17 billion rubles. ($526 million).

According to forecasts of J'son & Partners analysts made in 2014, by 2017 the market will amount to a little less than 8 billion rubles, while the average annual growth rate will be 45%. Even with the current level of functionality of services, the IaaS market is still far from saturated, so the speed of its development will not significantly depend on changes in the quality and functionality of services.

2024: Challenges and plans of Russian companies for the development of cloud IT infrastructure

Selectel on April 23, 2024 presented the results of a survey of Russian companies on changes, challenges and plans for the development of cloud IT infrastructure. The annual study involved more than 300 professionals who develop and administer the IT infrastructure of their organization or external customers.

According to the survey results, the absolute majority of companies (55%) as of April 2024 manage IT the infrastructure according to the hybrid model, combining cloud provider their own. In servers turn, more than a third of the respondents (37%) place IT systems exclusively in the clouds, and 23% of companies use the services of several providers at once. Less common are companies that keep IT infrastructure in their own loop (21%).

The consequences of economic turbulence in recent years naturally explain the predominance of hybrid clouds, "said Konstantin Ansimov, director of products at Selectel. - It has become more difficult and expensive to develop infrastructure exclusively by the company itself, while one cannot take and one day get rid of the accumulated legacy. Therefore, more and more companies are taking productive IT systems to external clouds, and their own servers are adapting for secondary tasks (for example, backups) or writing off at all. The development of multi-clouds, that is, working with several cloud providers, in turn, is explained by the desire of customers to exclude dependence on one provider, and sometimes to test several different solutions.

In 2023, 40% of companies increased their needs for using cloud infrastructure services, while 33% of companies needed solutions that they had not previously used, which indicates the active digitalization of Russian companies. Only 8% of respondents noted a decrease in the need for various cloud solutions and services.

Among the main drivers of change, companies name the change in business needs (41%), the introduction of new technologies (33%) and the need for resource optimization (32%). Some respondents, as in 2022, noted the need for import substitution of foreign IT infrastructure management tools (27%), but in 2023 this reason moved to the last place.

In 2023, Russian companies faced a number of challenges in managing IT infrastructure. The key focus for Russian companies was ensuring security storages and processing, data 48% of respondents reported. According to a similar survey for 2022, this task occupied only the third position, while in 2023 it took the lead.

At the same time, a significant number of companies (43%) remain concerned about the availability of hardware and software. Among other calls, respondents highlighted uninterrupted performance support (28%), hiring specialists (21%) and compliance (20%).

Despite the turbulence of the economy and high uncertainty, 46% of companies will continue to expand their IT infrastructure. At the same time, 41% of respondents, in response to challenges related to data security, plan to strengthen this area of ​ ​ activity.

39% of respondents noted that they plan to use new cloud solutions to optimize and increase the performance of IT systems. Almost a quarter of companies (21%) plan to develop IT infrastructure according to the hybrid model and 7% locally. It is noteworthy that 27% of companies in matters of IT infrastructure management do not plan ahead and are guided by the situation.

The survey was conducted among 300 IT specialists of Russian companies, most of whom are representatives of medium and small businesses. At the same time, the majority of respondents are somehow related to the administration of IT infrastructure, and 61% of respondents occupy leadership positions.

2023: Market growth by a third to 121 billion rubles

The volume of the Russian infrastructure cloud services market in 2023 reached 121 billion rubles, an increase of 33.9% compared to a year ago. This is evidenced by the data of the consulting agency iKS-Consulting, which were released at the end of February 2024.

According to the study, about 83% of the market in question in 2023 came from IaaS solutions (infrastructure as a service; renting computing power on which customers can run their services), and the remaining 17% is occupied by PaaS products (platform as a service; providing users with a ready-made cloud platform for development).

The volume of the Russian infrastructure cloud services market in 2023 reached 121 billion rubles

As Kommersant writes with reference to the iKS-Consulting report, a significant rise in the infrastructure cloud services market in the Russian Federation in 2023 occurred partly due to an increase in the penetration of cloud services, the transition of "a significant share of users to Russian clouds from foreign ones," the emergence of new participants in the market and "focusing large providers on the cloud services sector." In addition, the increase in confidence in cloud infrastructures by large businesses and the policy of optimizing IT infrastructure costs pursued by many companies are also affected.

iKS-Consulting adds that import substitution and rejection of a number of foreign IT solutions have launched structural changes in the market for Russian software development, in-house developments within companies, and this may become a long-term driver of sales growth of Russian cloud solutions.

As the market grows and it saturates, the pace of expansion falls slightly. The impact of the transition to domestic clouds is gradually fading, says Stanislav Mirin, leading consultant at iKS-Consulting. - In the model of market development for 2024, we lay the growth of 29% in money. The basic factor remains - the digitalization of business. The active introduction of technologies related to artificial intelligence is added.

The study also notes a growing share of government orders in the cloud infrastructure services market. This trend is due to the development of public services based on clouds and the active transfer of authorities to a single platform, analysts say.

From the materials of iKS-Consulting, excerpt from which Forbes magazine cites, it follows that at the end of 2023, Rostelecom DPC was the leader in the Russian infrastructure cloud services market in terms of revenue share (23.7% was about the same for the company in 2022). Following the companies are Cloud.ru (21.8% versus 17.6% a year earlier), Yandex.Cloud (9.8% versus 7.4% in 2022), Selectel (7.2%; compared to 2022, the share has not changed) and MTS (6.2%; compared to 2022, the share has not changed).

Commenting on the significant strengthening of the positions of Cloud.ru and Yandex Cloud, analysts noted that these vendors are united by the desire to develop clouds in conjunction with ecosystems built around companies. In these players, cloud services are a continuation of a wide range of other services, including financial, transport services, e-commerce, etc., added to iKS-Consulting.

Rostelecom-Data Rostelecom DPC remains the leader in the IaaS segment, but Cloud.ru and Yandex.Cloud hold the first two places in the PaaS category. According to analysts, the driver of Cloud.ru share growth is access to services for creating and working with artificial intelligence models, while Yandex's division is focused on services for providing database platforms and managing Kubernetes clusters.^[1][2]

2022

The Russian market for public IaaS services grew by 20% over the year

Linxdatacenter They predict that if the current economic situation continues in 2023 Russian cloudy , the public IaaS services market will show an increase of about 15%. The company announced this on February 22, 2023.

According to Linxdatacenter estimates and the dynamics of client requests for placing resources in the cloud in 2022, the Russian market for public IaaS services grew by 20%.

A significant part of customer demand in 2022 was associated with the migration of information systems and IT infrastructure of large business to private or public clouds as part of comprehensive IT projects for system integration.

The high dynamics of demand was primarily due to increased sanctions risks and uncertainty conditions. As a result, in the spring, an acute shortage of server equipment appeared on the market, which was intensified by the desire of the business to localize the entire IT infrastructure within the country, which provoked an increase in demand for cloud services.

In the summer, parallel import processes began to be established, options for the purchase of equipment, including local and Asian production, gradually began to appear, but delivery times increased compared to 2021. Nevertheless, the strong demand momentum set by the spring crisis provided the cloud market with additional growth.

Data center operators and cloud providers also faced a shortage of available servers and DSS, but thanks to established or quickly rebuilt logistics channels, they managed to solve this problem with minimal losses.

I note that the business partially compensated for the lack of computing resources that arose after the departure of foreign vendors using IaaS cloud services. Interest in IaaS also grew due to local divisions of foreign companies that left the country, which needed to transfer resources from global cloud storage to Russian ones, "said Linxdatacenter CEO Mikhail Vetrov.

According to him, the demand for PaaS solutions also increased, they were of interest to businesses using a large range of tools built into the cloud platform.

By the end of 2022, the increased demand for cloud provider services caused by the start of SVO and the supply crisis passed, but business interest remains quite high. In 2023, we can expect that customers will be in the process of adapting their customers IT strategy to new economic realities, attention will be increased to domestic platforms, virtualizations which will take time and form a demand for comprehensive design solutions from cloud providers. Provided that the country does not experience drastic changes associated with new sanctions, further deterioration economies or regulatory restrictions, we can expect that by the end of 2023 the market will demonstrate a less ambitious, but nevertheless confident growth of about 15%, "he noted.Mikhail Vetrov

Achieving technological independence will remain the main driver of cloud market growth. Cloud providers will benefit the most to offer customers maximum flexibility in optimizing the IT landscape in the current environment, choosing a virtualization platform, and a diversified set of services for a variety of business challenges within a single window.

Market growth of 41.6%

The volume of the Russian market for IaaS solutions by the end of 2022 will amount to 86.6 billion rubles, which will surpass the figure a year ago by 41.6%. Such preliminary data were released on December 12, 2022 by analysts at iKS-Consulting.

According to them, the active transition of corporate users from foreign cloud services to Russian clouds was facilitated by the entry into force of Western sanctions against Russian companies from the spring of 2022 .

According to Vedomosti, citing a study by iKS-Consulting, due to the departure of foreign players, demand was redistributed, and Russian players took the places of the departed foreign suppliers. In particular, Yandex Cloud and Selectel grew faster than the rest of the leaders and overtook CROC and MTS in the top five.

At the same time, almost half of the companies used the services of several providers at once. The authors of the study call retail the main consumers of clouds.

In addition to increasing the number of customers, individual companies have increased their market share due to higher prices for their services, follows from the responses of IaaS providers and consumers of services surveyed by Vedomosti. In particular, in April 2022, Selectel raised prices for most of the most common services by 40-60%, said Konstantin Anisimov, director of infrastructure product development at the company.

According to him , during the year Selectel helped Russian companies migrate from foreign players, Ansimov claims.

{{quote "For some Russian companies, Amazon Web Services, Google Cloud Platform or Microsoft Azure were the main cloud, for some - additional , " he said. }}  In 2022, companies migrated from foreign players to the most mature Russian providers.

The MTS representative assured that the company did not raise prices for cloud services,  while CloudMTS revenue in the third quarter of 2022 increased by 79% on an annualized basis.^[3]

2021: Russian IaaS and PaaS market up 38.3%

In 2021, the volume of the Russian cloud infrastructure services market reached 55 billion rubles, which is 38.3% more than a year earlier. The growth rate was record, according to analysts at iKS-Consulting in December 2021.

We are talking about IaaS and PaaS solutions. Expenses for them in Russia in dollar terms in 2021 increased by 34.9%. Costs for IaaS amounted to 46.6 billion rubles against 33.3 billion rubles a year earlier, and the PaaS segment grew from 6.1 billion to 7.9 billion rubles.

In the Russian market for infrastructure as a service products in 2021, almost all players retained their positions regarding 2020. Only SberCloud was able to rise from fifth to second position in the list. In addition, Yandex.Cloud got into the top 10 due to more than 5x revenue growth in the market under consideration. Also, high growth rates were demonstrated by Selectel, VK Cloud Solutions and Rostelecom DPC.

Analysts also presented the balance of power among the suppliers of so-called functional PaaS solutions. They are offered by leading providers, this category does not include web hosting, video surveillance platforms and a number of platform services that, by actual definition, fit the concept of PaaS, but not all market players classify them as PaaS. At the end of 2020, the volume of functional PaaS amounted to 2.26 billion rubles. The leaders in this segment are named SberCloud, Yandex.Cloud, as well as CDN provider CDNvideo and NGENIX. The listed four companies accounted for more than 70% of the market. The remaining companies occupy shares of no more than 7%.

In 2021, this segment increased almost 2 times to 4.4 billion rubles. This growth is associated with the high activity of the two leaders, whose total market share exceeds 65%.

According to the authors of the study, the COVID-19 coronavirus pandemic radically affected the change in the way of life and the economy of the whole world. Events related to the coronavirus have become a powerful factor affecting the development of many industries, they determine changes in consumer behavior for the coming years.

The need for remote information resources, the need for interaction between employees, communication between suppliers and customers in a "remote mode" caused the rise of unified communications services, contributed to the trend of digitalization of business processes, an increase in the need for a stable information infrastructure that ensures the availability of data and services from various locations.

According to analysts, a landmark event in the history of migration states in "" State cloud was the adoption of Government of the Russian Federation a provision for an experiment to transfer information systems to state agencies a single cloud platform. The executors of the experiment in the interests Ministry of Digital Development of became "" and. " In Rostelecom Research Institute "Sunrise 2021, the experiment was recognized as successful. As of mid-2021, the information systems of 10 departments and extrabudgetary funds -,,,,,,,,,, as well as CEC of Russia SOCIAL INSURANCE FUND Ministry of Labour and Social Protection Ministry of Justice Rosarkhiv Rosimushchestvo Rostekhnadzor RPF Federal Registration Service the Ministry of Digital Development - were transferred to the services of GosCloud.

According to iKS-Consulting forecasts, the volume of the Russian cloud infrastructure services market will grow by about 27%, while some segments (IaaS) are expected to grow in some years up to 32%.

According to the basic forecast, the volume of the cloud infrastructure services market in 2025 will reach 140 billion rubles. IaaS's share in the cloud services market has been increasing in recent years and in 2025 its volume will exceed 124 billion rubles.^[4]

2020

The Russian IaaS market grew by 32.3%, to $287.44 million

According to IDC analysts, who were released on January 18, 2021, in 2020, the volume of the Russian IaaS solutions market reached $287.44 million, an increase of 32.3% compared to 2019.

As the researchers note, companies are increasingly choosing cloud infrastructure as the basis for their projects in the field of digital transformation and modernization of IT systems. And the COVID-19 coronavirus pandemic has pushed organizations to focus on providing flexibility and cost optimization, and thereby accelerated the growth of the introduction of IaaS cloud solutions.

IDC research shows that organizations seek to integrate cloud infrastructure as a service with other solutions to optimize costs and ensure sustainable business development in a highly volatile economy. In this context, the availability of the provider ecosystem and a best practice development strategy are becoming decisive factors in choosing a cloud service provider, "said the head of cloud services research Dmitry Gavrilov at IDC Russia/.CIS

High growth rates remain in the Russian IaaS market. Interest in "infrastructure as a service" is growing both from the business and from the public sector, while large customers prefer comprehensive services, in which IaaS is only one of the components.

On January 18, 2022, IDC analysts also reported that over the past three years, domestic suppliers have achieved an increase in the level of maturity and increased functionality of public cloud infrastructure offerings. According to IDC, Russian enterprises, when choosing cloud service providers, are increasingly inclined to consider local ecosystems. The market is consolidating the business and assets of local suppliers, which helps them significantly strengthen their position, the report said.

The Russian market for IaaS and PaaS solutions grew by 33%, to 15.8 billion rubles

The volume of the Russian market for IaaS and PaaS solutions at the end of 2020 reached 15.8 billion rubles, which is 33% more than a year earlier. This is stated in a study by J'son & Partners Consulting.

According to updated data from analysts, in 2018-2019. market growth in money was measured at 22% and 29%, respectively. Thus, in 2020, the positive dynamics intensified, but it cannot be called "explosive," despite such powerful drivers of the cloud industry as lockdown and the transfer of a significant part of office staff to remote work, as well as an increase in the intensity of trading transactions online, the report says.

At the end of 2020, the level of IaaS/PaaS penetration Russia in remained low - just over 3% of the total number of companies with BROADBAND ACCESS access in, Internet although in the segment of large and medium-sized enterprises the figure is almost 10 times higher than the market average. The researchers point out that this situation is partly caused by an increase in the consumption of small business-oriented enterprise applications in the format, SaaS that is, small and especially micro-business prefers to use ready-made cloud business applications instead of buying IaaS/PaaS, and IaaS/PaaS services are used by SaaS providers and large non-IT companies.

In 2020, nearly 80% of companies using IaaS or PaaS were in trade and services, including telecommunications, IT, government and financial, according to J'son & Partners Consulting. The market structure in monetary terms remains stable - for the period 2014-2019. no significant changes were noted, with the exception of growth in the "State Administration" segment associated with the introduction of online services of public services, EMIAS and similar. Experts draw attention to the fact that a high share of IaaS/PaaS consumption from trade and services is the downside of extremely low consumption from industrial and transport and logistics enterprises.

In the territorial structure of consumption, IaaS/PaaS is still about 55% made up of companies located in Moscow and the Moscow region. Even for Russia, with its inherent high concentration of economic activity in the Moscow region, this is an abnormally high share. This skew, analysts said, is a consequence of the horizontal structure of the market, where large companies are dominated, using IaaS/PaaS in addition to colocation/dedicated and/or their own IT infrastructure. Thus, while the IaaS/PaaS market repeats the structure of the colocation market and, in general, the structure of the placement of data center areas in Russia, where Moscow and nearby regions prevail.

The study also says that from 2014 to 2020, the volume of the Russian IaaS/PaaS market grew 5 times in terms of the number of user companies, and 6 times in terms of market size in monetary terms, which corresponds to annual growth at the level of 35%. In the period from 2016-2018 there was a steady trend of market growth slowdown both in terms of customer base and in monetary terms. This trend was reversed in 2019-2020.

Experts consider the main driver of market growth to be the expansion of consumption of public IaaS/PaaS by large enterprises and organizations, mainly focused on retail business and public services, as well as consumption by small enterprises, mainly represented by providers of SaaS and online services.

Analysts also noted a steady trend towards a reduction in the market share of independent niche players and the formation of three "poles" of the Russian IaaS/PaaS market: telecom operators, through acquisitions developing the IaaS/PaaS direction and offering comprehensive communication and computing services to customers in the state and corporate segments, and developing organically competing global and Russian hyperscale players.^[5]

Sber entered the top 5 IaaS suppliers in Russia

The volume of the entire Russian cloud services market in 2020 reached 100 billion rubles, which is 19.5% more than a year earlier. For the first time, SberCloud (part of the Sberbank ecosystem) entered the top 5 providers of IaaS solutions, ahead of Onlanta, according to data from analysts at iKS-Consulting.

The leading five in the Russian IaaS services market is as follows:

• Rostelecom (20.8%);
• MTS (11.2%);
• Croc (8.3%);
• Selectel (8,2%);
• SberCloud (6,2%).

Sberbank's breakthrough in the cloud market in iKS-Consulting was associated with a low base in 2019, the company's general activity and the start of a partnership with Chinese Huawei, which offers its cloud services through SberCloud.

The launch of the Sberbank ecosystem and an increase in the number of clients among state corporations could also affect, "said Stanislav Mirin, leading consultant at iKS-Consulting, quoted by Kommersant.

The figure of 6.2% is only IaaS, and the company's share in the market as a whole, including services for providing cloud platforms as a service (PaaS), is about 9-10%, said SberCloud CEO Yevgeny Kolbin. The company's revenue, according to him, in 2020 increased 22 times. He explained the rise in income by expanding the number of customers and increasing consumption of cloud services from, first of all, representatives of large businesses.

Meanwhile, one of the sources of the publication said that SberCloud, actually not having its own products, resells the infrastructure of partners with a mark-up, including the structures of Sberbank itself. Instead of building healthy market competition, making the best products, they flood the market with money, monopolizing it, the source said.

The growth of almost all companies was influenced by the COVID-19 coronavirus pandemic, said Maxim Berezin, Development Director of CROC Cloud Services. In his opinion, the business "increased its capacity to organize the remote work of its employees, launch and develop client online services."^[6]

2019

The Russian IaaS solutions market grew by 38% over the year

Spending on cloud solutions IaaS (infrastructure as a service) Russia in 2019 reached 23 billion, rubles an increase of 38% compared to the previous year. Such data are provided by the analytical agency "."TMT Consulting

Market participants also note a surge in IaaS costs. Thus, Rostelecom reported a 32 percent growth in the segment with an increase in the entire Russian cloud services market by 24%. In 2019, there was a significant shift in the attitude towards cloud solutions from the public sector, largely stimulated by the national program "Digital Economy," the company explained to ComNews.

Maxim Berezin, Development Director of CROC Cloud Services, says that competition in the IaaS market has greatly escalated in 2019, as a result of which cloud providers began to pay more attention to specific segments, for example, small and medium-sized businesses. He also noted the growing interest in the so-called managed services, which, among other things, provide configuration, monitoring, and administration of cloud environments.

Dmitry Yashin, CEO of ActiveCloud in Russia, called the launch of digital stores for cloud services an increasing trend in 2019. By that time, the market offer is more concentrated on selling cloud products from global suppliers through digital stores - Amazon Web Services or Microsoft Azure, which, due to the developed API, are easier for Russian suppliers to integrate into their own marketplaces. However, the number of available Russian services is also gradually growing, he added.

According to the agency, the largest providers of IaaS services in Russia by the end of 2020 were MTS (14%), Rostelecom (13%) and (DataLine 9%).^[7]

Data from J'son & Partners Consulting

In 2019, the volume of the Russian IaaSPaaS market/amounted, according to estimates, to J'son & Partners Consulting 11.9 billion rubles, having increased by 29% compared to 2018. According to updated data, in 2018 the Russian IaaS/PaaS market in monetary terms grew by 22%, in 2017 by 28%, in 2016 by 34%. Thus, in 2019, the slowdown trend that took place in 2016-2018 was overcome.

At the end of 2019, the total level of IaaS/PaaS penetration in Russia remains low - slightly more than 2% of the total number of business entities with broadband Internet access, although in the segment of large and medium-sized enterprises penetration is almost 10 times higher than average. This situation is partly due to the growing consumption of small business-oriented enterprise applications in SaaS format. That is, small and especially micro-business prefers to use ready-made cloud business applications instead of buying IaaS/PaaS, and IaaS/PaaS services are used by SaaS providers and large non-IT companies.

In 2019, nearly 80% of IaaS/PaaS user companies were in trade and services, including telecommunications, IT, government and financial, according to J'son & Partners Consulting. This structure is stable - for the period 2014-2019. no significant changes were noted, with the exception of growth in the "State Administration" segment associated with the introduction of online services of public services, EMIAS and similar. It is important to note that a high share of IaaS/PaaS consumption from trade and services is the downside of extremely low consumption from industrial enterprises. In the territorial structure of IaaS/PaaS consumption, about 55% are companies located in Moscow and the Moscow region.

From 2014 to 2018, the IaaS/PaaS market in Russia tripled both in terms of the number of user companies and in terms of market size in monetary terms, which corresponds to annual growth with CAGR at 37%. However, since 2016, there has been a steady trend of market slowdown both in terms of customer base and in monetary terms.

The sharp acceleration of the subscriber base growth that took place in 2019 has not yet led to an equally significant growth of the market in monetary terms, but nevertheless creates the potential for its growth in 2020 and in subsequent years, the basis of which may be an increase in the volume of IaaS/PaaS consumption by existing users, and, as a result, the growth of ARPUs, especially in small and micro-enterprises. According to the forecast of J'son & Partners Consulting, the annual growth rate of the IaaS/PaaS market in the period 2020-2025. in monetary terms will amount to 23% per year against the background of a change in the negative dynamics of the ARPU in 2020-2021 to a weakly positive one in the period 2022-2025.

2018

Data TMT Consulting

According to a study by the TMT Consulting analytical agency, the volume of the Russian public cloud services market in 2018 grew by 31% and reached 55.9 billion rubles.

More than 65% of the public cloud services market is formed by the SaaS segment, which is due to the activity of a large number of medium and small businesses here. About a third of the market is in the IaaS segment, which is still dominated by large and medium-sized enterprises. PaaS forms a little more than 4% of the market, but over the past year the demand for this type of cloud services has been more clearly indicated (taking into account the expansion of the presence of Russian Internet companies and a more active migration of users to domestic platforms).

The IaaS market in 2018 reached 16.8 billion rubles. with an increase of 27%. The strengthening of dynamics here is facilitated by the active promotion of a number of large players with wide investment opportunities, the necessary ICT infrastructure and competencies. The leaders in revenue from IaaS were GC, and Rostelecom/ MTS (ServionicaSatCloud total share - 34%).

According to the forecast of TMT Consulting, in 2019 the volume of the public cloud services market as a whole will grow by 28%. At the same time, the SaaS segment will grow by 25% (including by expanding penetration in the public sector), IaaS - by 34%, PaaS - by 36%. The share of foreign providers will continue to decline against the background of consolidation processes launched by large domestic players (primarily in the IaaS segment).

In the 5-year perspective, TMT Consulting predicts a CAGR (CAGR2018/2023) of 20% in the public cloud services market. Its volume by 2023 will increase 2.5 times and reach 142 billion rubles. The main segment will remain SaaS, it will account for 62% of the market.

J'son & Partners: 8.8 billion rubles (+ 21%)

On May 13, 2019, it became known that it J'son & Partners Consulting (Jason & Partners Consulting) presented the results of the study "Russian market/in IaaSPaaS 2014-2018. Forecasts until 2022."

The study only looks at the public model of providing IaaS, the private cloud model is completely excluded from consideration. The studied IaaS market volume includes PaaS services due to the inability to correctly distinguish them from the offers of IaaS and PaaS service providers. The limited Russian IaaS/PaaS market described above amounted to 8.8 billion rubles in 2018, according to J'son & Partners Consulting, an increase of 21% compared to 2017.

This is an extremely modest volume, accounting for only 0.2% of the global market with Russia's share in the global economy at 1.5-1.8%. At the same time, the growth rate of the Russian market in ruble terms in 2018 (21%) does not exceed those for the global market in dollar terms. According to updated data, in 2017 the Russian IaaS/PaaS market in monetary terms grew by 27%, in 2016 by 34%, in 2015 by 74%. Thus, there is a slowdown in market growth.

At the end of 2018, the total level of IaaS/PaaS penetration in Russia remains low - less than 2% of the total number of business entities with broadband Internet access, although in the segment of large and medium-sized enterprises penetration is almost 10 times higher than average. This situation is partly due to the growing consumption of small business-oriented enterprise applications in SaaS format, that is, small and especially micro-business prefers to use ready-made cloud business applications instead of buying IaaS/PaaS, and IaaS/PaaS services are used by SaaS providers and large non-IT companies.

In 2018, more than 70% of IaaS/PaaS user companies were in trade and services, including telecommunications, IT and financial, according to J'son & Partners Consulting. This is the downside of extremely low consumption from industrial enterprises. In the territorial structure of IaaS/PaaS consumption, more than 65% are companies located in Moscow and the Moscow region.

Even for Russia, with its inherent high concentration of economic activity in the Moscow region, this is an abnormally high share. This skew is a consequence of the horizontal market structure, which is dominated by large companies using IaaS/PaaS in addition to colocation/dedicated and/or their own IT infrastructure. Thus, while the IaaS/PaaS market repeats the structure of the colocation market and, in general, the structure of the placement of data center areas in Russia, where Moscow and nearby regions prevail.

As for the prospects for the development of the IaaS/PaaS market, the emergence of powerful players among specialized Russian providers who can significantly change the competitive landscape of the market in the coming years. Thus, Yandex and Mail.Ru services in the future can become a full-fledged replacement for AWS and Azure services, or an addition to them, if a promising path of partnership with global providers IaaS/PaaS and a multi-cloud model is chosen. Operators of similar corporate data centers, primarily Sberbank, with the Sberbank Cloud public cloud service can also join the operators of hyperscale date centers.

According to the forecast of J'son & Partners Consulting, the growth of the IaaS/PaaS market in monetary terms will be 18% per year against the background of a change in the fading positive dynamics of ARPU in 2015-2018 to a slightly negative one in the period 2019-2022.

iKS-Consulting Data

According to preliminary estimates, iKS-Consulting at the end of 2018, the Russian cloud services market grew by 25% compared to 2017 and reached 68.4 billion rubles. The main market volume - up to 70% - fell on the Software as a Service segment (,, SaaS software which works in the cloud, users gain access to it through). Internet In the coming years, this market will grow by an average of 23% per year and by the end of 2022 may reach 155 billion rubles, according to a study by iKS-Consulting (available RBC ^[8]

Analysts point out that Russia has become an exporter of cloud services: the share of foreign customers in the revenue of domestic cloud providers is 5.1%, or 2.4 billion rubles, in the SaaS segment. In the revenue of the Infrastructure as a Service segment (IaaS, servers, data warehouses, networks, operating systems in the cloud, which clients use to deploy and launch their own software solutions), foreign customers accounted for 2.2%, or 380 million rubles.

2017: SAP and Forrester Russia Forecast

SAP CIS (SAP CIS) and Forrester Russia presented at the beginning of the year the results of a study of the cloud technology market in Russia. According to the results of the study, analysts at Forrester Russia concluded that the domestic cloud market will grow faster than IT - the market as a whole, and by 2020 its volume will amount to 48 billion rubles. That is, at an average annual rate of 21%, the cloud market will grow 3 times compared to 2015.

According to the study, large business is as ready as possible for the use of cloud services: in this segment, over 90% of respondents know about cloud services, in small business - over 70%. At the same time, in large business, 54.5% of respondents use simultaneously cloud services from 2 or more categories, in average business - 50%, in small business - 43%.

Most respondents associate cloud services with virtual infrastructure (IaaS), although the SaaS model now has the largest market share - 58.9%. IaaS and PaaS so far account for 37.2% and 3.9% of the market, respectively. According to the study, the share of SaaS by 2020 will increase to 62.4%, and IaaS will decrease to 32.3%.

2016

CNews Analytics

Forrester

iKS-Consulting: 9.6 billion rubles (+ 43%)

According to the data, iKS-Consulting the market volume IaaS in 2016 amounted to 9.6 billion, rubles which is 43% more than in 2015.

Despite the stagnation in the IT market as a whole, IaaS is showing rapid growth.

However, in the medium term, the market growth rate will gradually decrease due to the increase in the level of penetration of the service and the slow shift in demand of large and medium-sized customers from IaaS services to SaaS services. Small companies and individual entrepreneurs most often immediately purchase services in the SaaS segment.

TOP-3 IaaS market players in 2016 are I-Teco, DataLine, and CROC, which account for more than 30% of all revenue from IaaS services in public and hybrid clouds.

2015

CNews Analytics: 3.8 billion rubles (+ 63%)

As part of the Cloud Services 2016 review, CNews Analytics ranked the largest IaaS providers for the first time. The study took 14 companies, the total revenue of which amounted to ₽3,8 billion. Compared to 2014, participants earned 63% more (according to the results of 2014, the total turnover from IaaS of the same companies amounted to ₽2,35 billion^[9].

All participants in the rating showed positive dynamics with the exception of Inoventica (-3%). The high growth rates suggest that the IaaS market is at the beginning of its formation.

The largest IaaS suppliers in Russia 2016

J'son & Partners: RUB 3.4 bn (+ 31 %)

The IaaS (Infrastructure as a Service) market evaluated in this study refers to virtual server services in the cloud service format. The costs of cloud storage and additional services offered by providers (including as part of service packages) are not included in this report. Also, consumption by private users (B2C) and IaaS services provided on the basis of infrastructure located outside the territory of Russia are not considered.

According to J'son & PartnersConsulting estimates, the volume of the estimated IaaS services market in 2015 in monetary terms amounted to 3.4 billion rubles, 31% higher than in 2014

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According to J'son & Partners Consulting, the volume of the estimated IaaS market in 2015 in monetary terms amounted to 3.4 billion rubles, 31% higher than in 2014.

According to J'son & Partners Consulting, in 2015 in Russia, about 28 thousand companies used the IaaS services of Russian providers.

Drivers and barriers

The share of cloud services, including IaaS, continues to grow in the load structure of commercial data centers (data centers). Despite the difficult situation in the Russian economy, which is reflected in the dynamics of most IT areas, the cloud services segment remains positive. New large providers are also entering the market

One of the main drivers of market development remains the growing demand for enterprise data processing, both due to the actual increase in its volume, and due to the consolidation processes associated with virtualization of desktops and applications. The number of fully digitally executable transactions is also increasing, which requires constant expansion of computing power and storage systems.

The beginning of the use of DBMS versions that allow dynamically connecting external cloud computing resources has a beneficial effect on the development of the industry.

Stimulates the development of the public IaaS market and a reduction in IT budgets (in relation to the dollar) for most customers. Many companies see public clouds as a real alternative to investing in their own infrastructure.

Other notable factors that have been studied in this study include the development of hybrid infrastructures and the telecommunications segment, the offers of foreign players (capacities of foreign data centers), the policies of equipment suppliers and software for the deployment of IaaS, as well as changes in the regulatory framework.

IaaS Market Outlook

According to J'son & Partners Consulting estimates, according to the baseline forecast, the segment of public IaaS in Russia in the interval 2015-2020. in ruble terms will grow with a CAGR of 22%.

According to the baseline forecast, the segment of public IaaS in Russia in the interval 2015-2020. in ruble terms will grow with a CAGR of 22%. However, it should be noted that under the influence of a number of factors, primarily macroeconomic and related to regulation in the industry, dynamics may change in one direction or another. An analysis of possible development scenarios is presented in the full version of the report.

iKS-Consulting: 4.4 billion rubles (+ 52 %)

• According to iKS-Consulting estimates, the volume of the Russian cloud services market in 2015 amounted to 27.6 billion rubles, showing an increase of 39.6% compared to the previous year.
• According to iKS-Consulting, the market volume IaaS in 2015 amounted to 4.4 billion, rubles which is 52% more than in 2014.
• The largest players in the IaaS market in 2015 are I-Teco, CROC, Dataline, Softline and IT-Grad, which account for more than 55% of all revenue from IaaS services in public and hybrid clouds.
• In 2015, the SaaS segment reached RUB 22.2 billion.
• 54% of the SaaS market is accounted for by the accounting and preparation and reporting software segment of the tax authorities. The second largest is the virtual telephony segment, which occupies 16.4% of the SaaS market.

Companies that are among the top three in terms of revenue from IaaS services have their own data centers and deploy virtual sites on their basis. Ai-Teko and CROC are primarily integrators and provide cloud services within the framework of specialized complex projects, Dataline is a large commercial data center, and IT-Grad and Softline are independent cloud providers using the physical infrastructure of partner data centers.

2014: J'son & Partners: RUB 2.6 billion (+ 13 %)

According to J'son & Partners Consulting (Jason & Partners Consulting), the volume of IaaS services provided by Russian providers to corporate clients in Russia in 2014 in monetary terms amounted to 2.6 billion rubles, which is 26% higher than in 2013^[10]

By the end of 2015, the volume of this market segment will grow by 31% and reach 3.4 billion rubles. The share of this part of the IaaS market is about 35% of the total IaaS consumption in Russia, which includes the mass segment, services provided by international players based on infrastructure located outside the Russian Federation and cloud storage services without processing them.

The company "I-Teco" is the leader in the volume of revenue from the provision of IaaS services in 2014, its market share was 22%.

The second largest player with a 15% share is CROC. The third and fourth places were taken by IT-GRAD and DataLine, respectively.

Among companies with an annual ARPU of less than 500 thousand rubles. the three leaders were Cloud4Y, Inoventica Services and ActiveCloud.

Analysts noted an annual increase in the number of providers providing cloud infrastructure services, which, in their opinion, indicates a noticeable growth in the market and the effectiveness of the business model.

In the IaaS market, the main drivers and barriers are mainly of a technological nature:

• The main driver is the rapid growth of the volume of corporate data stored and processed, both due to the actual growth of its volume, and due to consolidation processes related to virtualization of desktops and applications. There is also an increase in the intensity of fully digitally executed transactions, which requires a constant increase in computing power and storage systems.

• the main barrier is also technical restrictions - for business applications like ERP, carrier billing, automated banking systems, processing and several others, these restrictions are at the database level, since the versions of the DBMS used do not allow scaling computing resources to the cloud. In 2014, versions appeared that allow you to dynamically connect external cloud computing resources, but the process of migrating large application systems to such DBMSs can take at least three years.

• problem is the need to provide the application with not just a virtual server in the cloud, but a full-fledged virtual container (the so-called software-defined data center, SDDC), which includes virtual storage systems and a software-defined network.

The process of creating the necessary infrastructure by IaaS service providers and physical communication network operators to form such virtual containers will also take at least three years.

2013: J'son & Partners: RUB 1.68 bn (+ 35 %)

According to J'son & Partners Consulting, the IaaS market in 2013 in monetary terms amounted to 1.68 billion rubles, 35% higher than in 2012. This year we expect an increase in growth rates to 50%, while the market volume will be about 2.5 billion rubles.

The IaaS cloud services market is becoming an increasingly popular service in Russia. According to J'son & Partners Consulting forecasts, by 2018 the market will be about 7 billion rubles with a CAGR of 29% during 2014-2018.

The leader in revenue from the provision of IaaS services in 2013 for the second year in a row was I-Teco, whose market share was 32%. The second largest player, with a share of 28%, was CROC. Both companies work with big business. The third and fourth places are occupied by Onlanta (the main clients are large business) and Inoventica (Parking.ru), respectively. Closes the top five company Cloud4Y. Among the new players, it should be noted the company Cloud Computing, which began to actively provide IaaS services only in 2013.

According to J'son & Partners Consulting estimates, in Russia, about 20 thousand companies used the IaaS services of Russian companies, and by 2018 the number of companies using IaaS will increase almost 3 times and amount to about 58 thousand.

Parallels (Parallels Software) gives the following assessment: in 2013, compared to 2012, the Russian IaaS market grew by 36%, reaching 7.8 billion rubles. ($242 million). 15% of Russian SMBs use server hosting, which is 9% more than in early 2012.

Telecom company "Caravan" predicted that by 2013 Russian enterprises will acquire IaaS services for $83 million, with 64% of them provided in Russia. Thus, the local IaaS market in Russia by 2013 could reach $53 million. This is well above IDC's forecast for the same period of $38.5 million. The overwhelming market share will be provided by the Web segment (portals, corporate sites, online stores, game servers, Internet application developer servers). Only a small share of "cloud" services will continue to occupy business applications. ^[11]

The cloud services market is seeing significant growth, according to J'son & Partners Consulting. Even with the current level of functionality of these services, the market is still far from saturated, therefore, according to J'son & Partners Consulting, the speed of development of this market will not be significantly correlated with changes/improvements in the quality and functionality of cloud services. At the same time, an important factor in growth is the increase in the activity of current and the emergence of new players, especially large telecommunications companies.

A significant factor in the growth of the market can be a decrease in the cost of cloud services. Thus, the use of non-cloud infrastructure in some cases turns out to be economically more profitable than cloud infrastructure.

In addition, a significant barrier is the reluctance of IT directors of companies to switch to cloud infrastructure due to the need for infrastructure changes and a possible reduction in IT staff.

Currently, Russia is actively working to regulate and adopt modern laws regulating many areas of telecom and IT markets. Market regulation and regulation could have a positive impact on the industry, according to J'son & Partners Consulting.

2012: J'son & Partners: RUB 1.24 bn (+ 226 %)

The Russian market for the lease of computing power (Infrastructure-as-a-Service, IaaS) in 2012 increased by 226%. According to J'son & Partners estimates, it amounted to 1.24 billion rubles. Obviously, IaaS services are becoming in demand on the Russian market, and an increasing number of companies are switching to cloud infrastructure.

Dynamics of the Russian IaaS market

J’son & Partners, 2013

At the same time, according to the J'son & Partners Consulting methodology, foreign companies providing IaaS services to Russian clients are not taken into account in the market assessment. Under the volume of the Russian market, IaaS considered the amount of money that Russian consumers paid to Russian legal entities.

IaaS services on the Russian market in 2012 were provided by 11 major players (J'son & Partners): ActiveCloud, Clodo (iT House), Cloud One, CROC, Parking.ru, Selectel, I-Teco, Oversan, Scalaxi, Corp Soft (CorpSoft24), Dataline. CloudGate (Scalaxi brand) has ceased providing such services since August 2013.

The leader in revenue from the provision of IaaS services (Chart 4) in 2012 was I-Teco, followed by CROC (in 2011 CROC was the leader in revenue). Both companies work with big business. The third and fourth places are occupied by ActiveCloud and Parking.ru, respectively.

What is curious about the most "advanced" region is not Moscow, but St. Petersburg - it is there that the largest penetration of IaaS services is observed - 4%. In Moscow, this figure is 3.8%, and in all other large cities it does not exceed 1%.

When comparing companies by the number of customers, the situation looks slightly different. Clodo was the leader by a wide margin, Scalaxy was in second place, Parking.ru and Selectel shared third place.

If we talk about segmentation, then all companies are aimed at various market segments. If CROC and I-Teco are focused on large businesses, then companies such as Selectel, Clodo and Scalaxy are rather not focused on relatively small businesses. It is likely that revenue from the services of IaaS players providing services in the mass market (SMB) should eventually equal and possibly exceed revenue from the services of IaaS system integrators. On average, the annual ARPU on the market (average revenue per subscriber) in 2012 amounted to 73.5 thousand rubles, which is almost 2 times more than in 2011. In general, ARPU companies can be divided into 3 segments:

• ARPU more than 1 million rubles: system integrators (CROC, Ai-Teko);
• ARPU more than 30 thousand rubles: Cloud4Y, "Oversan," Parking.ru, ActiveCloud;
• ARPU less than 30 thousand rubles: Selectel, Clodo, Scalaxy.

In order to understand how fast the segment is growing, a comparison of the growth rate of this segment with the growth rate of substitute services (competing and/or technologically preceding) has been made. If in 2012 the IaaS market grew by 226% in monetary terms, the markets of secondary hosting and commercial data centers increased only by 29 and 22%, respectively. Such high growth means that IaaS services are becoming in demand on the Russian market and an increasing number of companies are switching to cloud infrastructure.

2011: J'son & Partners: RUB 380 mln

According to J'son & Partners estimates, the IaaS market in 2011 in monetary terms amounted to 380 million rubles.

Russian IaaS market forecast by revenue, 2010-2016, RUB bn

J’son & Partners Consulting, 2012

Comparison of the volumes of IaaS markets, commercial data centers and secondary hosting in Russia, 2011, billion rubles

J’son & Partners Consulting, 2012

IaaS services in the Russian market are provided by 8 major players: Active, Clodo (AiTi House), Cloud One, CROC, Parking.ru, Selectel, Ai-Teko and Oversan. The leader in revenue is CROC, followed by I-Teco. Both companies work with big business. The company closes the top three Parking.ru.

Top 5 players of the Russian IaaS market by revenue, 2011

J’son & Partners Consulting, 2012

Top 5 players of the Russian IaaS market by number of customers, 2011

J’son & Partners Consulting, 2012

When comparing companies by the number of customers, the situation looks slightly different. The leader is Oversan, which serves more than 9 thousand customers, followed by the Clodo project, and Selectel closes the top three.

In 2011, the IaaS market was not developed in Russia, most of the companies were not ready to switch to using cloud services. At the end of 2011, the total usable area of ​ ​ Russian commercial data centers amounted to 60,980 square meters. m, an increase of more than 60% compared to 37,500 square meters. m at the end of 2010. A significant increase in the useful area of ​ ​ data centers in 2011 became possible both due to the expansion of existing data centers and due to the emergence of new players on the market.

The largest increase in useful area was shown by Moscow, but in the last 2 years in area terms the share of the Moscow region has been decreasing, which is primarily due to active construction in the past and current years in St. Petersburg and other regions.

Usable area of Russian commercial data centers, sq. m.

J’son & Partners Consulting, 2012

About 51% of the useful area of ​ ​ Russian data centers falls on Moscow and the Moscow region, about 25% - on St. Petersburg and the Leningrad region, about 24% - on the rest of the regions of Russia.

Geographical Distribution of Commercial Data Centers in Russia, 2011

J’son & Partners Consulting, 2012

data centers Moscow MOs also receive the largest income from the sale of services, their share in the total income of Russian data centers is 60.5%, the income of data centers St. Petersburg and the Leningrad region and regional data centers is 29.7% and 9.8% of the total income of Russian data centers, respectively.

Russian secondary hosting market, 2010-2016, RUB bn

J’son & Partners Consulting, 2012

This service provides software that ensures the operation of the services required by the customer, but works on the same hardware platform with other similar virtual servers. According to J'son & Partners Consulting estimates, the Russian hosting market in the future until 2016 will grow by an average of 20-30% per year.

See also

• TAdviser Overview: Commercial Data Centers
• Data Center (Data Center)
• Key Data Center-Based Services
• Colocation
• Russian Data Center Market
• Trends in the Russian data center market
• Cloud services (Russian market)
• What is a "green" data center?
• Data Center Economy Measurement
• Container Data Centers
• Data Center Technologies: Solid State Drives (SSDs)
• Global Data Center Market
• Top Trends in the Global Data Center Market

• IaaS Catalog - Infrastructure as a Solution and Project Service
• PaaS
• SaaS
• DPC
• Cloud computing

Notes