1C Joint Stock Company

The founder and permanent director of 1C is Boris Nuraliev.

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Partner Network

Main article: 1C Partner Network

Subsidiaries and joint ventures

2023

As of 2023, 1C has more than 150 joint ventures in which the company has a direct ownership stake, and at least the same number of "granddaughters." Over the past 5 years, the firm's ecosystem has grown in quantitative terms by at least 30 participants. Founder and Director of 1C Boris Nuraliev told TAdviser about the principles of the formation of this ecosystem and his expectations from its development.

2015

As of June 2015, the 1C group includes more than 200 subsidiaries and joint ventures. The 1C franchisee network exceeds 6,700 firms. Among the joint ventures of the group:

Some 1C joint ventures

From an interview with Boris Nuraliev in the summer of 2015^[1]

Part of our business model is joint ventures, there are about 200 of them. In total, they give more revenue than the central "1C." Previously, we shared shares in legal entities 50/50, now we keep 51% for ourselves, a partner - 49%, which allows us to fully attribute to the group of companies the success of joint ventures in consolidation under IFRS. At the same time, it is important for us to maintain in entrepreneurs a sense of drive and steering in our hands - so that a person understands that this is his business and he is responsible. The role of the central "1C" in the joint venture is the assignment of a common strategy and the assistance that is necessary for the development of a joint business: money, advice, reputation, technology, space, contacts, access to the sales network.

Tourism business

1C entered the tourism market in 2018 by buying control packages in the Smartway startup, the developer of an IT platform for organizing business trips, as well as in the small Sawady tour operator specializing in travel in Russia. By 2023, the tourism business has grown noticeably, both due to the dynamic development of first-born assets and thanks to new acquisitions. In 2022, their total revenue amounted to almost 2.5 billion rubles.

All 1C assets in the field of tourism are given in the infographic (click to increase). Detailed analysis of the tourism business "1C" - at the link.

Performance indicators

2022: Revenue reduction by 7.8% to RUB 64,900 million

At the end of 2022, 1C's revenue decreased by 7.8% to 64,900 million rubles (according to TAdviser). In the ranking " TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 11th place.

History

2024

Boris Nuraliev explained why many large companies are talking about switching from SAP to 1C, but are in no hurry to  do so

Companies working for SAP now almost everyone says that they are about to switch to the Russian solution, and 1C is the most obvious choice, but in reality the transition is somewhat slower and more difficult, Boris Nuraliev, founder and director of 1C, shared with TAdviser in October 2024. He cited a number of reasons why, despite the urgent need to move away from Western products, many companies using Western ERP are in no hurry to start switching to domestic products (more).

Increase in software prices by 10-18%

1C is going to raise prices for its products in 2025. The maximum cost increase will be 18% for some positions, while the bulk of decisions will rise in price by 14%. This was announced in October 2024 by the founder and co-owner of the company Boris Nuraliev.

Price increases will be differentiated: the cost of the mass group of job licenses will increase by 10%. For PROF licenses intended for small organizations with up to 500 users, the new prices will come into force on April 1, 2025. KORP licenses for large companies with more than 500 users will rise in price from July 1, 2025.

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Freepik

The representative of 1C explained that the price increase is planned and is due to several factors. Among them - the constant development of product functionality, an increase in development costs, including an increase in market salaries of programmers and the cost of equipment. It is important to note that most of this increase will be received by the company's implementation partners, since their discount is 55% of the retail price.

Despite the increase, the cost of 1C solutions remains significantly lower than its Western counterparts. Partner and General Director of 1C Missile Defense Consulting Vladimir Bibanov noted that the price increase is due to the improvement of products and the platform as a whole, and does not expect a negative impact on the market.

According to the Association of Software Developers, 70% of Russian software developers did not raise prices in 2023. The remaining 30% has increased the cost of software by 20% over the past two years. The main reasons for the rise in prices are the increase in salaries of IT specialists, an increase in investment in development and general inflation.^[2]

Boris Nuraliev ordered 1C partners to use the "medieval" method of growing specialists from Junes

Despite the fact that the admission of students to universities for IT specialties has grown in recent years, the shortage of IT professionals in the market remains. At the same time, the number of teachers remains insufficient, and universities are ready to accept them. Against this background, the founder and director of 1C Boris Nuraliev at a conference in Nizhny Novgorod on May 22, 2024 called on IT companies and customers with IT staff to train students themselves. Read more here.

Joining the consortium of investors of Tochka Bank

On March 21, 2024, representatives of Tochka Bank shared with TAdviser information that the formation of the target structure of Tochka JSC was completed. VK and 1C joined the consortium of investors, which earlier, together with the management, bought out 100% of the shares of Tochka JSC. Read more here.

Joint venture "1C" and "Galaxy" broke up

As TAdviser found out, in February 2024, 1C left Primquantum (formerly 1C-Galactica), a joint venture with Galaxy Corporation. Prior to that, since the creation of the legal entity, companies owned it in equal shares. Read more here.

2023

The competition is getting tougher. 1C and Tensor terminated the integration of their services

Tensor, the developer of the SBIS business system, announced in January 2024 that in December of the previous year 1C began blocking the installation of its personnel EDO extensions for cloud 1C:Fresh. Even earlier, according to Tensor, 1C banned its partners from selling any SBIS products. Read more here.

4th place in the ranking of CRM systems vendors leading in the Russian market

The company 1C"" took 4th place in the ranking of vendors CRM- systems leading in the Russian market number of implemented projects according to to data the base for the TAdviser period from 2020 to 2023. More details here.

1st place in the ranking of HRM vendors leading in the Russian market

The company 1C"" took 1st place in the ranking of vendors HRM- systems leading in the Russian market number of implemented projects according to to data the base TAdviser as of December 2023. More details here.

2nd place in the ranking of WMS vendors - leaders in the number of projects implemented in Russia

The company 1C"" took 2nd place in the ranking of vendors WMS- systems leading in the Russian market number of implemented projects Russia in accordance with to data the database TAdviser as of October 2023. More details here.

Purchase 51% of Project Point Business Software Developer

1C closed the acquisition of a 51% stake in Project Point, which specializes in the design and development of business software. Read more here.

"1C" sold a network of games and music stores "1C Interest" to a competitor

As TAdviser found out in August 2023, 1C sold the company Clean Soft Center LLC, a legal entity of the 1C Interest multimedia store chain. 1C confirmed the deal, telling TAdviser that the company was sold to the GamePark structure, one of the leaders in the domestic entertainment market. Read more here.

1C and the Rosatom structure created a joint venture that will automate nuclear enterprises

As TAdviser found out, in August 2023, 1C created a joint venture with Greenatom, the IT integrator of Rosatom. The company was named "Grintech." According to the database of legal entities Kontur.Focus, "its authorized capital is 160 million rubles. A share of 51% of the authorized capital is owned by 1C, and 49% is owned by Greenatom. Read more here.

Ministry of Digital Development of Ukraine: Business and the public sector will not be able to abandon 1C for several more years

In June 2023, the Ministry of Digital Transformation of Ukraine was forced to state the impossibility of refusing local business and the public sector from 1C products.

The problem of using the Russian 1C software is likely to exist for several more years, but the market will settle it itself. A certain implemented policy has been formed. I think that in a few years this problem will not happen, - said Deputy Prime Minister - Minister of Digital Transformation of Ukraine Mikhail Fedorov (quoted by TASS), adding that by June 2023, 1C software is already banned in Ukraine.

The Ministry of Digital Transformation of Ukraine recognized the impossibility of abandoning local business and the public sector from 1C products

According to Fedorov, "the market economy should equalize everything, and it is already equalizing it." Every day new Ukrainian companies appear, which begin to occupy their niche in the market. The Deputy Prime Minister noted that the public sector is now actively replacing the old software that Ukrainian companies administer.

The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Daniil Getmantsev, in turn, believes that "the decision to ban 1C at the state level will probably be popular on social networks within one day, but will entail significant business costs."

Whoever I communicate with behind the scenes, everyone has an ambiguous perception. Therefore, this is a very difficult decision. I have no answer whether a one-time complete rejection of 1C is possible, "he said.

According to Getmantsev, by June 2023, over 90% of Ukrainian companies somehow use 1C

Earlier, the Security Service of Ukraine (SBU) says that the 1C ban in Ukraine will not affect private business, but for state-owned companies the use of this software is unacceptable. All Ukrainian government agencies use the 1C system and it will not be easy for them to abandon it, since the company is a "market monopolist," the SBU said.^[3]

Agreement with Mospolitech for training for the digital economy

Rector of Moscow Polytechnic University Vladimir Miklushevsky and Director of 1C Boris Nuraliev signed a cooperation agreement. The main direction of joint work will be the creation of educational programs on the key competencies of the digital economy, as well as the development of 1C digital departments at the Moscow Polytechnic. The signing took place on June 15, 2023. Read more here.

Create a Timelist Company

On May 10, 2023, it became known that 1C formed a new structure called Timelist, which will develop software for time management (time management tools) and organization of enterprises. Read more here.

Transfer from Cyprus to Russia of its gaming assets

As it became known on January 17, 2023, 1C transferred its gaming assets from Cyprus to Russia. This step is expected to help 1C more actively engage in the development and distribution of games in the Russian Federation, competing with VK. Read more here.

1C raises prices for popular products and support services

1C will increase prices for a number of its popular 1C:Enterprise 8 system products in 2023. At the new cost, some of the products will begin to be sold in April, and some - from July 2023.

The price change will affect 1C programs for commercial and budget organizations, as well as 1C servers and client licenses for additional workplaces. Among them are the products of the lines "1C: Accounting 8," "1C: Payroll and HR Management 8," "1C: Document Flow 8 ," "1C: Trade Management," "1C: Budget Reporting 8," "1C: Contracts 8," "1C: Taxpayer 8," "1C: Retail 8," licenses "1C:Enterprise 8" and others.

Prices will increase by approximately 11-18%. So, for example, the cost of "1C: Accounting 8" KORP will increase from 33.6 to 39.7 thousand rubles, "1C: Payroll and HR Management 8" KORP - from 109 to 128.7 thousand rubles, "1C:Enterprise 8.3" PROF. server license - from 50.4 to 55.5 rubles, given in comparison of old and new prices on the website of one of the partners "^[4].

"1C" raises prices for its products "(image - blanet.ru)"

1C notes that prices for products that are being increased have not changed for three, and for the majority - six previous years. At the same time, the functionality of products has continuously developed and continues to develop.

During this time, development costs, including market salaries for programmers and hardware, rose significantly more than 11 or 18%, TAdviser said in 1C.

In 2023, 1C also changes prices for 1S:ITS and 1C: KP. "1S:ITS" (information technology support) is a comprehensive support that 1C, together with official partners, provides to users of 1C: Enterprise programs. Maintenance of 1C: Enterprise 8 PROF software products and their legal update is possible only if there is a 1C:ITS contract. And "1S:KP" (support kit) is intended for users of software products of the "1C: Enterprise" system and makes it possible to access automatic updates of "1C: Enterprise" and its additional capabilities in the form of access to cloud services, as well as use materials of the "1C:ITS" information system.

Retail prices for "1S:ITS" and "1S:KP" for commercial enterprises increased from January 1, 2023, for partners they will increase from March 1, 2023. About this planned increase in the cost of "1C" warned back in the fall of 2022. The price increase affects all tariffs "1S:ITS" and "1S:KP" for users of local configurations "1C: Enterprise" and cloud versions "1C: Fresh," "Lease 1C," "1C: Timing."

Over the past three years, the price lists of "1S:ITS" and "1S:KP" have not changed, regardless of the inflation rate. The current price increase is due to the overall inflation rate and is approximately 14.3% of 2022 prices.

2022

Creation of JV with Business Solutions Lab (BSL)

As TAdviser found out in January 2023, 1C created a joint venture - 1S-BSL - with the general director and co-founder of Business Solushins Lab (BSL) Sergei Kostin. 1C told TAdviser that 1S-BSL is a new player in the courier delivery software market. The company will offer automation capabilities to customers using their own couriers. Read more here.

Cislink Acquisition

In December 2022, Taxcom and 1C acquired CISLINK, one of the participants in the Russian market, in the development and implementation of electronic document automation systems. This was reported to TAdviser on December 12, 2022 by representatives of Taxcom. Read more here.

1C bought a stake in the procurement automation business Cognitive Technologies

As TAdviser found out, in mid-November 2022, 1C"" acquired shares of 28% of the authorized capital in two companies, where the main owner is the Andrey Chernogorov son of the co-founder and president. Cognitive Technologies Olga Uskova One of these companies is Cognitive LLC, which develops the Russian system for automating planning, placing purchases and working with contracts. "E1-Procurement" This product is positioned as an analogue. And SAP SRM a little earlier, 1C reported on the purchase of the same size of a share in another company - Bidzaar LLC, which is developing a trading platform - Bidzaar an analogue. SAP Ariba More. here

Acquisition of 28% stake in cloud service Bidzaar

The firm 1C"" on November 17, 2022 announced TAdviser the closure of the transaction to acquire a 28% stake in the company. Bidzaar (Bidzaar LLC) The value of the transaction was not disclosed. The controlling owner and operations manager of Bidzaar remains its founder, Andrey Chernogorov whose ownership share is 50.45%. More. here

1C has a decline in sales. Boris Nuraliev explained the reasons

In 2022, the volume of sales in rubles of the 1C group of companies with subsidiaries, joint ventures and retail enterprises (with the elimination of intra-group turnover) shows a decrease. This follows from the presentation of the founder of "1C" Boris Nuraliev at the business forum on October 28. Sales will fall by 7.8%, he predicted. Judging by the graphics given in the presentation, this situation is developing for the first time in the entire time of operation of "1C" on the market.

Absolute business indicators in the company traditionally do not disclose. According to the TAdviser100 ranking: The largest IT companies in Russia, at the end of 2021, the revenue of the 1C group (excluding 1C-Bitrix indicators) amounted to 67,905 million rubles (according to TAdviser), an increase of 8.1% compared to 2020.

From the presentation of Boris Nuraliev

The direction of business in 1C: Enterprise, including licenses and services, instead of growth, also demonstrate negative dynamics - minus 8.1%. Sales are coming out at about 2020 levels.

From the presentation of Boris Nuraliev

At the same time, says Boris Nuraliev, the result is not bad: "slightly less than last year, but much more than it could have been, so far everything is quite positive." And if you look not in rubles, but in "unfriendly currency," then growth comes out altogether. In addition, at the end of October 2022, 1C expects sales of 1C: Enterprises to grow in rubles.

From the presentation of Boris Nuraliev

The company cited data that now the system of applied management and accounting solutions built on 1C: Enterprise includes more than 1,000 replicated products. The platform has more than 6 million users in more than 1.5 million commercial enterprises and government agencies. At the same time, in 2021, more than 1.32 million jobs were formed at 1C: Enterprise.

In explaining the dynamics of sales of the entire group for 2022, the founder of 1C chose not to go into it, noting only that the 1C business includes different areas. A significant part of it, for example, falls on foreign games. At the same time, Boris Nuraliev explained to TAdviser the situation with the 1C: Enterprise business, where the dynamics are comparable to the general group. The given indicator is an extrapolation: what dynamics will be in a year if there are no dramatic changes from October.

Boris Nuraliev explained to TAdviser the emerging dynamics in 1C: Enterprise by the fact that the economy in Russia is on a certain decline. "1C" makes the most money in the mass market, and it falls, there is a decrease in business activity. So, according to the Federal Tax Service, from June to October 2022, the number of small and medium-sized businesses (legal entities and individual entrepreneurs) in Russia decreased by almost 5^[5].

People are engaged in automation when there are prospects, when it is necessary to develop. And if businesses have concerns, should they develop, then how will they spend money on automation and digitalization? Boris Nuraliev said in a conversation with TAdviser.

It should be borne in mind that some decline in 1C: Enterprise sales occurs after dynamic growth, he added. In 2021, in particular, sales of services and licenses "1C: Enterprise" increased in rubles by 17.3%, in 2020 - by 15.8%.

This was largely facilitated by the situation with the coronavirus: COVID-19 it required a restructuring of business processes. For example, at that time, the retailer "" Dixy urgently needed to organize delivery in much larger volumes and roll it out to about 600 stores. Also, many people switched to remote work, which increased the demand for IT.

During the covid, the economy as a whole died down, but the restructuring of business processes led to the fact that IT became more in demand, - said Boris Nuraliev in a conversation with TAdviser. - Against the background of the special operation, someone also has such an effect when the business is growing or rebuilding, but in general the economy is getting somewhat worse.

Boris Nuraliev connects the emerging dynamics of sales in the direction of "1C: Enterprise" with the fact that the economy in Russia is on a certain decline

In 2021, they also tightened the screws in the field of combating piracy. And due to the fact that some used unlicensed 1C software, in 2021 there was some part of the purchase of licensed products. This is also one of the additional factors that contributed to the growth, said Boris Nuraliev.

Against the background of the current difficult economic situation, some areas of 1C business in 2022 demonstrate high positive dynamics, 1C said. For example, cloud services "1C" - "1C: Fresh" - show an increase of 33% in the number of paid customers. Growth is also observed in 1C joint ventures providing cloud services.

The growth of customers and revenue goes both in the direction of 1C:Accounting service network - outsourcing of accounting, and in Smartway - an online travel service. This is facilitated, among other things, by the focus of company leaders on reducing costs.

As for expectations in the market in 2023, Boris Nuraliev says he does not know what to expect.

We work, we are here, we have not left anywhere, we are investing in development. And what will happen? As they say, "do what you have to do, and be what it will be," the 1C founder said.

1C told how the Russian market will be taken from SAP

Due to the departure of SAP from Russia and the increased need of Russian organizations to switch to domestic solutions, 1C is expanding its partner network, retraining SAP specialists for its technologies, and is also preparing new solutions for customers to replace some products of the German vendor. Representatives of 1C spoke about this at a business forum on October 28. Read more here.

TAdviser interview with Marina Lyubchenko, Project Manager for EDMS Implementation

The Unified Electronic Document Management System (EDMS), implemented in the Russian Post on the basis of the 1C: Document Flow solution, is one of the largest EDMS implementations in Russia.

The head of the project for the implementation of EDMS in the Post, Russia Marina Lyubchenko(company 1C"") in September 2022 in an interview TAdviser said that the EDMS served the development of digitalization in the company and made it possible to minimize the use of paper document management. In turn, the 1C company, thanks to its participation in such a large-scale project testing of new technologies, developed additional functionality and formed a more effective model for accounting and processing documents - all this was included in version 3.0 of the 1C: Document Flow software product. More. here

"1C" became part of the founders of Mirapolis

1C bought a share of Softline Venture Partners in Mirapolis, a company specializing in creating IT solutions for managing human capital development and digital transformation of HR processes in medium and large businesses. TAdviser reported this to Softline on September 22. Read more here.

Appointment of the ex-head of ANO "Digital Economy" Deputy Director "1C"

Evgeny Kovnir has been appointed Deputy Director for Development of 1C. The company announced this on September 13, 2022. Read more here.

1C and top managers of SAP, which left Russia, have created a new company

On August 19, 2022, it became known about the creation of a new company in the 1C group. We are talking about 1C-Perspective LLC, in which 1C owns 50.2%. The remaining co-founders with equal shares of 8.3% were six individuals: Roman Dianov, Oleg Kornishev, Vladimir Shcherbinin, Andrei Alekseev, Alexey Krutilin and Grigory Ermakov. Read more here.

Agreement with OmGTU and Satory Consulting

OmGTU, 1C and Satory Consulting Group of Companies have signed an agreement on cooperation in the field of digital technologies and training specialists in business automation and digitalization. 1C announced this on June 20, 2022. It was also decided to create a specialized competence center in the field of digital transformation on the basis of OmGTU. Read more here.

Agreement with SibGUTI on the development of training programs

On June 16, 2022, Acting Rector of the Siberian State University of Telecommunications and Informatics (SibGUTI) Bari Khairov and Director of 1Sboris Nuraliev signed a cooperation agreement. Read more here.

Poland imposed sanctions against the founders of 1C and Kaspersky Lab, and also blocked their subsidiaries in the country

The Ministry of Internal Affairs and the Polish Administration imposed ^[6] on Polish subsidiaries 1C, Kaspersky Lab and their founders Boris Nuraliev and Yevgeny Kaspersky. Read more here

Acceptance of applications for the annual competition of the best corporate automation projects "1C: Project of the Year"

Acceptance of applications for the annual competition of the best corporate automation projects, held by 1C, 1C: Project of the Year, continues.

1C annually holds an international competition for the best corporate automation projects - 1C: Project of the Year. The objectives of the competition are to identify advanced users and partners who have achieved maximum success in digitalization, to promote landmark projects for introducing solutions based on the 1C:Enterprise 8 platform. Read more here.

Sale of game developer 1C Entertainment

At the end of February 2022, it became known about the sale of 1C Entertainment to the Chinese company Tencent. The latter buys a controlling stake in the publisher and developer of games from the Russian "1C." The value of the transaction was not disclosed. Read more here.

2021

Revenue growth by 8.1% to RUB 67,905 million

At the end of 2021, 1C's revenue amounted to 67,905 million rubles. (according to TAdviser, excluding 1C-Bitrix indicators), an increase of 8.1% compared to 2020, which allowed it to take 9th place in the ranking of TAdviser100: The largest IT companies in Russia 2022.

Acquisition of 51% stake in AK

The company 1C"" bought control in the developer of online accounting, which is embedded bank in services. This became known on November 22, 2021. More. here

Launch of client systems hosting in MTS cloud

The company MTS"" began cooperation with the company, 1C one of the the Russian developers software for business. This was IT Hail announced on February 24, 2021. Provider launched a direction that will deal hosting with 1C client systems in, their cloud comprehensive maintenance and individual configuration. More. here

Leadership in the rating of IT suppliers in the defense industry

1C became the leader in the rating of Russian IT suppliers in the defense industry in terms of revenue from relevant IT projects for 2019. Read more here.

2020

1C share in the domestic market of business automation software - 39.2%

The share of the company 1C"" in the domestic market ON for business automation at the end of 2020 amounted to 39.2%, which is only 3.2 percentage points lower than the company's indicator. SAP For comparison, in 2019, the same indicator of a domestic company was 36.7%.

IDC: Shares of companies in the domestic market of software for business automation in monetary terms by the end of 2020

Revenue growth by 19.7% to 65.01 billion rubles.

At the end of 2020, 1C's revenue amounted to 65.01 billion rubles, an increase of 19.7% compared to 2019, which allowed it to take 8th place in the ranking of TAdviser100: The largest IT companies in Russia 2021.

Inclusion in the rating "Largest IT companies in Russia 2021"

The company 1C"" is included in the rating "Largest IT companies Russia in 2021 by revenue in 2020," prepared TAdviser in June 2021. More. here

Joint venture "1C" and "Galaxy" did not take off

The 1C-Galactica joint venture has shown no signs of commercial activity since its inception in July 2018, data from FTS the financial reporting resource show. In 2018 and 2019, the company did not receive revenue, did not participate in public procurement. In addition, according to the Federal Tax Service, in both of these years the average number of 1C-Galactica employees was zero people. More. here

Inclusion in the list of backbone companies in Russia

On April 3, 2020, it became known that the Government of the Russian Federation included 1C in the list of backbone companies. In total, 646 organizations were on the list. In addition to 1C, the list includes such IT companies as SKB Kontur, Yandex, Мэйл.ру. Read more here.

2019

Agreement with YarSU named after Demidov on strategic partnership in the field of personnel training

On June 6, 2019, Rector of Yaroslavl State University named after P.G. Demidova Alexander Rusakov and Director of 1C Boris Nuraliev signed an agreement on strategic partnership. Read more here.

Agreement with Qiwi to jointly develop IT solutions for fintech companies

On June 6, 2019, QIWI and 1C announced a strategic partnership. Companies will work together to develop IT solutions to optimize the operational processes of fintech companies. The corresponding memorandum was signed by QIWI CEO Sergei Solonin and 1C Director Boris Nuraliev. Read more here.

2018

Creation of a joint venture with "Galaxy"

On July 30, 2018, Russian developers of corporate information systems, 1C and Galactica Corporation, announced the creation of a joint venture with equal ownership shares. The main task of the created joint venture is to more effectively meet the needs of enterprises of the military-industrial complex, which consider it advisable to simultaneously use the 1C and Galaxy systems (more...).

Agreement with Sberbank on integration of products and services

On May 24, 2018, Sberbank and 1C entered into a cooperation agreement on the integration of their products and services for corporate lending, financing investment and export activities, as well as other banking operations and services. The agreement was signed by Senior Vice President of Sberbank Anatoly Popov and Director of 1C Boris Nuraliev. Read more here.

1C buys Smartway controlling stake

On January 15, 2018, it became known about the sale of a 51 percent stake in Smartway to 1C. The value of the transaction was not disclosed, but an informed source of the Kommersant newspaper estimates it at 150 million rubles. Read more here.

2017

TAdviser Review: How 1C and Galaxy Business Approaches Differ

1C or Galaxy? How the main Russian ERP vendors are similar and how they differ

Boris Nuraliev: Large enterprises are no longer shy about introducing 1C, now it is fashionable

Founder and Director of 1C Boris Nuraliev believes that his company has overcome its reputation as an ERP provider only for small enterprises and has become a serious competitor to solution providers for large customers.

There is a legend that "1C" is only for small enterprises. It is partially due to our past, since 1C started with small companies, and is partially fueled by our competitors. In fact, we are now seriously competing in the automation market of large enterprises, the largest holdings, Nuraliev said at a press conference at the St. Petersburg International Economic Forum (SPIEF) in May 2017.

As an example of 2016 projects among large customers, he cited the expansion of the use of 1C products in, "Russian Post",,, GazprombankTransmashholding Bashkirenergo,. "Unimilk"

Boris Nuraliev, founder and director of 1C

Boris Nuraliev also noted that "1C" has become fashionable. " In this he sees, among other things, the merit of import substitution. The director of 1C says that on this wave, large holdings have those responsible for import substitution, who need to report.

If earlier they were embarrassed that they had introduced "1C: Enterprise," for them it was not as ceremonial as the introduction of a large foreign system, now it has become easier to obtain consent to publish the very fact of the project, he said.

At the same time, Nuraliev points out, import substitution is not a key factor in the choice of 1C solutions by customers in Russia: "in reality, after all, no one will buy our systems only because they are domestic."

From the reports of partners on almost 200 cases of choosing ERP-solutions "1C" instead of foreign ones in the period from 2015 to February 2017, it follows that in the first place are such factors as the cost of licenses, implementation and maintenance, compliance of functionality with the price, the presence of a large number of 1C specialists and partners on the market, Boris Nuraliev said.

The general director of 1C told TAdviser that in the total revenue of the company, large customers occupy a not very large share, since there are still relatively few of them.

At the same time, Nuraliev noted that 1C does not seek to shift to the segment of large business: the company aims to cover the entire range of customers, including those as small as they did not even work with before. For the latter in 2017, 1C released a special application "Individual Entrepreneur 6%" for passing tax reports, he said.

Creation of 1C International for growth in foreign markets

In May 2017, 1C announced the creation of a joint venture with Sergei Andreev, from 1999 to 2017. worked as CEO of Abbyy. A new company called 1C International began to develop and promote the 1C: Enterprise (1C:Enterprise) product group in foreign markets. Sergey Andreev became its leader. Read more here.

Falling under Ukrainian sanctions

On May 16, 2017, President of Ukraine Petro Poroshenko, by his decree, enacted the decision of the National Security and Defense Council (NSDC) on sanctions against Russian companies and their subsidiaries in Ukraine. In total, 468 legal entities were on the sanctions list, of which 81 were related to the IT sphere. Among the companies that fell under the sanctions were the Russian and Ukrainian legal entities 1C and 1C Multimedіa Ukraїna, as well as a number of their large distributors and representatives in Ukraine: Eurosoftprom, Skyline Software, Sunline, 1c-Telur Module, Alfa-Kom Soft, 1C-Rarus Soft Ukraїna, Pershiy bіt 1C. Read more here.

SBU announced surveillance of Russian special services for Ukrainian companies using 1C software

On April 27, 2017, the Security Service of Ukraine (SBU) announced the danger of using 1C software, since it allegedly allows surveillance in favor of Russian special services, RBC writes with reference to Ukrainian Truth.

We urge our entrepreneurs to be prudent and balanced in making decisions about the software products that you use in your activities,  "said Alexander Tkachuk, chief of staff of the head of the SBU, at a briefing in Kyiv.

The Security Service of Ukraine caught a local company in the sale of the Russian software product "1C"

The SBU website notes that administration, updating and support of 1C software is carried out from the territory of the Russian Federation, including through remote access to the equipment of the Kyiv representative office of the Russian company.

Another fact was discovered of the presence of hidden control of the special services   of the Russian Federation over the situation in the public and private sector of the Ukrainian economy , as well as over enterprises located in the territories of the so-called "LPR/DPR," the Security Service of Ukraine said.

According to Alexander Tkachuk, the SBU exposed a company that illegally sold 1C products in the territories of the self-proclaimed Donetsk and Lugansk People's Republics (DPR and LPR ). In the Kyiv office of the company, operatives found documentation confirming the facts of "illegal sale of this software product in the temporarily occupied territories," the SBU said.

This commercial structure involved in the distribution of 1C software is included in the   sanctions list by the National Security and Defense Council. The company's name has not been disclosed. It is only noted that it is legally registered and is actually located in Lugansk.

On April 26, 2017, the SBU reported on the "exposure" of the management of eight firms that sold and used prohibited spyware  from Russia.^[7]

In addition, Alexander Tkachuk said that the FSB could receive data from Ukraine using the Stakhanovets employee monitoring program. More on this here.

2016

Revenue growth 3.6%

In 2016, the revenue of the 1C group of companies, according to TAdviser, amounted to 37.300 billion rubles, an increase of 3.6% compared to 2015. In the ranking " TAdviser100: The largest IT companies in Russia" at the end of 2016, the 1C group of companies took 7th place.

1C: Enterprise sales growth - 15.5% in rubles, outsourcing growth

In 2016, the sales volume of the 1C group of companies with subsidiaries, joint ventures and retail enterprises, with the elimination of intra-group turnover increased by 6%, said the founder and director of the company Boris Nuraliev at the St. Petersburg International Economic Forum in May 2017.

Sales of the key product "1C" in 2016 increased by 15.5%, Nuraliev said. At the same time, sales of licenses increased by 13%, and subscriptions and services - by 18%.

The director of the company also said that in 2016, the volume of sales of services and subscriptions for the first time in the history of 1C exceeded the volume of sales of 1C: Enterprise software licenses, although the advantage was insignificant. The bias towards services and the subscription model is also a global trend.

About 200 companies from 2015 to 2017 chose the ERP-solution "1C" instead of the "heavy" Western systems of the same class, cited data in "1C." The chart below shows that 1C: Enterprise is receiving more and more implementations in large organizations with a large number of jobs.

1C: Enterprise implementations by number of jobs by year

"Previously, we offered customers to automate their accounting, now we can automate their main activities (trading, production) and outsource fiscal accounting: accounting, taxes, salaries," - this is how Boris Nuraliev formulated a fundamentally new vector of his company's movement.

He recalled that 1C today is not only a leading developer, but also a recognized expert in the most substantive field of accounting, including by developing a standard for the provision of accounting services. For several years now, the company has been developing two such outsourcing projects: 1C:Accounting service (for small businesses) and 1C: Outsourcing, while developing a new partner network based on a well-developed networking model.

Accounting Function Outsourcing Sales Dynamics

According to Boris Nuraliev, the accounting functions outsourcing market in the United States is 0.35% of the country's GDP, and in Russia it is less than 0.01%, such a lag indicates a significant potential for the growth of this sector of the economy. At the same time, in Russia it is growing at an average rate of about 25% per year, even despite the opacity of Russian companies and the low qualifications of many market players that restrain it.

"We still occupy several percent of this market, but we can increase our share by an order of magnitude, and at the same time the market can also grow by an order of magnitude. Just as we created the industry of mass IT automation of enterprises, we are now starting to form the industry of mass outsourcing of accounting functions, "said Boris Nuraliev.

Share in the market of ERP systems in Russia

According to IDC, over the years 1C has been steadily increasing its market share in terms of revenue in the Russian ERP systems market.

In 2016, among the leading suppliers of enterprise management information systems (ERP, etc.) in the Russian market, 1C ranks second with a share of 32.9%. Compared to 2015, it added 0.2%. The leader here is still SAP with a share of 49%. Microsoft has 8.8%, Oracle has 4%, Galaxy has 2.2%. The rest of the players account for 3.2%.

Share of suppliers in the Russian ERP/ISUP market by sales in US dollars in 2003-2016,%

Commenting partly on the modest increase in the share of the 1C market, despite the rate of import substitution announced by the state, the head of 1C Boris Nuraliev emphasized that the study took into account money in Russian currency.

"We have ruble prices, and in order to even just maintain our share, we have to significantly increase sales in pieces," he says.

"1C" became a co-owner of Quick Resto

In August 2016, 1C became part of the owners of the Quick Resto group of companies, buying out a controlling stake. Details of the transaction - in a separate article:

• Quick Resto (Quick Resto)

2013

"1C" is going to conquer the far abroad

1C is developing and preparing to launch a partnership program for international partners working outside the CIS countries, founder and director of 1C Boris Nuraliev said in mid-June 2013.

As part of the new program, 1C is ready to provide them with development tools, technical support and stimulate partners to create their own products based on the 1C: Enterprise platform, as well as to promote them on the international market, he added.

It is worth noting that 1C has been working in a number of non-CIS countries for several years. For example, since 2005, the company's official representative office in Germany has been operating, which through partners provides customers with services for the development of custom business applications based on 1C: Enterprise, licensing, installation and maintenance of 1C products in Europe.

Other countries outside the CIS, where the company has partners and representative offices, on the 1C website are Bulgaria, Poland, Romania, Turkey and Vietnam. The interface "1C: Enterprise" as of June 2013 is available in 14 languages, in addition to Russian. The last languages added were Azerbaijani and Chinese.

At the same time, 1C has not yet announced the sales indicators of its platform outside the CIS. Boris Nuraliev notes only that until now "1C" were engaged in work in the markets of non-CIS countries "pointwise": there has not yet been global expansion and large investments in this area.

"1C led to success in the territory of the former USSR two things: on the one hand, this is really good software, and on the other, we built a business approach that had not been used in Russia before, due to a good understanding of the local market," says Boris Nuraliev.

The 1C strategy in Russia and the CIS countries is based on work through a partner network. As of June 2013, it has more than 6.5 thousand franchisees. However, the model that ensured 1C success in these markets is most likely not to work in the same way on the international market, 1C believes. Now the company is thinking about various possible models of working with partners in far abroad.

1C will switch to electronic document management with partners

From the 3rd quarter of 2013, 1C plans to offer all partners of the 1C: Franchising network a transition to legally significant electronic document management, said the founder and director of the company Boris Nuraliev. The corresponding information letter, according to him, is in the process of preparation.

So far, 1C has been implementing such document flow in test mode since mid-2012, exchanging certificates for the provision of services and invoices with franchisees and distributors. It is planned to extend it to the conclusion of contracts.

In October 2011, amendments to Art. 54 of the Civil Code ("Commercial Concession") came into force, regulating the application of franchising relations in Russia. In accordance with them, the franchisor has the opportunity to set a number of restrictions on partners: for example, to require them to a certain level of quality of goods and services related to his brand and certification of employees.

After the change in the law "1C," the renegotiation of contracts with franchisees began: instead of information support contracts, it became necessary to conclude a concession agreement to join the network.

Contracts are concluded through the CRM system "1C": partners submit an application for new contracts through the web interface, after which it is considered and approved by the partner department. After that, a PDF file with a contract is automatically generated and sent to the partner, which he signs, puts seals and sends both copies for signature in "1C." According to 1C, since 2011, about 34 thousand contracts and additional agreements have been concluded in this way.

To ensure legally significant electronic document management, an electronic digital signature is required . Its employees "1C" is issued by its own certification center.

2012

90% of companies in Russia keep records in 1C

According to the TNS study, the results of which were reviewed by TAdviser on April 3, 2013, in 2012, about 90% of companies in large Russian cities used 1C products for accounting.

According to the study, they are followed by the BEST and Parus systems, whose shares in the number of Russian companies where they are used do not exceed 1.4% and 1.2%, respectively. Among the world leaders in the ERP systems market, the list includes Microsoft Dynamics NAV with a 0.2% share.

1C representatives told TAdviser that their solutions are often used for accounting and in those companies where enterprise management systems of the world's largest vendors are installed.

"This is due to the fact that we, as a large Russian company, can respond as quickly as possible to changes in local legislation and reflect them in our products," 1C representatives said in a conversation with TAdviser.

SAP and Oracle did not comment on the results of the TNS study. Microsoft told TAdviser that they see a constant increase in the popularity of Microsoft Dynamics NAV in Russia.

"According to our estimates, the number of new customers of this solution in 2012 amounted to more than 50%. The next version of Microsoft Dynamics NAV, on the localization of which we are working today, will be available in the traditional model (installation in its own infrastructure), as well as in the form of a cloud service based on Windows Azure, "said TAdviser in Microsoft

1C buys Megaplan

In March 2012, it became known that 1C acquired 51% of Megaplan. The investor of the first round - the IQ ONE fund (the main beneficiary is Ulvi Kasimov) - retained the Megaplan block package as a result of the transaction. The organization and structuring of the transaction was carried out by the investment agency StartupIndex.

The investments received will strengthen the development of the product line and expand the marketing budget, the parties said in a statement.

The plans for 2012 include a 6-fold increase in Megaplan's revenue compared to 2011. The parties expect that strategic cooperation will make it possible to implement closer integration of Megaplan's products with 1C accounting and management solutions and, as a result, offer partners and users new services and opportunities.

Aleksandr Volchek, General Director of Megaplan, says that concluding a deal with 1C gives the company unique opportunities to develop and promote products:

"We are seeing a real revolution in the cloud services market for small and medium businesses. We hope that the investments received and reaching a new level of cooperation with 1C will allow us to implement ambitious plans - to grow faster than this rapidly developing market. "

During 2011, Megaplan implemented a number of strategic initiatives: in addition to products for organizing joint work and task management, a line of CRM solutions was launched, representative offices were opened in Ukraine, Belarus, Kazakhstan, and free products for small companies were announced.

Earlier, "1C" became a co-owner of another cloud service - "MyWayhouse." Funds for the purchase of new assets "1C" received through the sale of a share to the investment fund Baring Vostok.

The share of "1C" in the ERP market decreased for the first time in 9 years

According to the results of 2012, the shares and SAP Oracle corporations in the "Galaxy" Russian market ERP systems grew, and "" and 1C- Microsoft somewhat decreased. This follows from materials provided by TAdviser by an analytical company IDC in October 2013. The general market report for 2012 was back IDC made public in August, but then there was no data on the balance of power of the largest players in it.

According to analysts, SAP remained the leader in the Russian ERP systems market in 2012 with a share of 49.9% (in 2011 - 47.8%). It is followed by 1C, whose share was 29.2% (in 2011 - 31.6%), and Oracle with a share of 8% (in 2011 - 7.5%). Microsoft closes the top five, whose share was 6.8% (in 2011 - 6.9%), and Galactica with a share of 2% (in 2011 - 1.8%).

It is worth noting that the 1C share showed a reduction for the first time since 2004 when IDC began to include the company in its reports on the Russian market for enterprise management systems. This happened after 1C launched the 1C:Enterprise 8 platform on the market. Then the company's share was 4.6%. The shares of SAP, Oracle, Microsoft and Galaxy at the same time were 40.6%, 22.8%, 10.9% and 8.2%, respectively.

Since 2004, as analytical reports show, 1C has steadily increased its presence in the market, reaching a share of 12% in 2006, 22.3% in 2009, and taking more than a third of it by 2012. In absolute terms, as can be calculated based on IDC reports, 1C sales in the ERP market in 2012 continued to grow.

Shares of the largest players in the Russian ERP systems market, 2003-2012 ^[8]

1C told TAdviser that with the current state of the economy, they consider the result achieved in recent years "as a whole very good." Commenting on the decline in the company's market share in the latest IDC report, 1C notes that in 2011 sales of its 1C: Enterprise platform in the wake of delayed post-crisis demand increased by a jump of 74%. In 2012, the deferred post-crisis demand was already exhausted, and in the second half of the year there was a noticeable slowdown in the economy, stagnation began.

"Accordingly, fewer and fewer new businesses were created, more and more were closed previously created, the growth of the client base slowed down, especially in the SMB segment, the most massive for us," explains 1C representative Alexei Kharitonov. - Enterprises began to save more and more, just as in a crisis. In the SMB segment, this led, among other things, to the fact that the share of cheap, "basic" versions of 1C: Enterprises programs in our sales increased, which IDC does not take into account in its review

An additional factor was the change in the situation in the state budget sector, adds Kharitonov: "if in 2011 serious changes in legislation caused a massive transition of budgetary institutions to new software products, including solutions of the 1C system:Enterprise 8, "sales of" 1C "in this segment jumped several times and became one of the main drivers of growth, then in 2012 the situation returned to normal - organic growth continued from the level of 2010.

The company adds that for large businesses, the demand from which, according to IDC, is now the main factor supporting the Russian ERP market, 1C is preparing new generation solutions on the 1C:Enterprise 8.3 platform, focused on a more efficient and integrated solution to the problems demanded by large enterprises, for larger implementations.

"We expect that the release of the final version of the 1C: Enterprise Management (ERP) 2.0 system, planned at the end of the year, will allow us to further strengthen our positions and increase our share in this market segment," says Alexey Kharitonov.

The company released the 1C: Enterprise Management (ERP) 2.0 beta in September 2013, and the final version of the product is expected at the end of 2013.

2011

Purchase of My Warehouse Service

In May 2011, 1C became part of the owners of Lognex LLC, having bought a stake from its former co-owner, the investment fund Ambient Sound Investments. In the future, it is planned to increase the share of 1C in the project due to additional investment aimed at the development of the MyWayhouse project. 1C intends to actively participate in the development of the MyWayhouse project together with its founders and co-owners Askar Rakhimberdiev and Oleg Alekseev, who will continue to carry out operational management of Logneks.

Director of 1C Boris Nuraliev:

"The technology platform" 1C: Enterprise 8.2 "is already implementing functionality designed to use system solutions as" cloud "services provided via the Internet, including according to the SaaS model. With this in mind, we are working on various options for improving our business model, which is based on the reliance on a wide partner network. The creation of a joint venture with the founders of Lognex will allow us to use the experience of the successful SaaS project "MyWayhouse" to further develop both our technologies and solutions and the business of our partners. "

Sales stop 1C: Enterprise 7.7

In July 2011, the products of the 1C line: Enterprise 7.7 were withdrawn from the price list. Among them: 1C: Enterprise 7.7. Complex delivery , 1C: Accounting 7.7, 1C: Accounting 7.7 (basic version), 1C: Accounting 7.7. Simplified taxation system. Basic version, 1C: Entrepreneur 7.7, Solutions for the public sector, 1C: Accounting for budgetary institutions, Accounting for budget managers, 1C: Clothing allowance 7.7 and others.

Trademark "1C" is recognized as well-known

In September 2011, by the decision of the Federal Service for Intellectual Property, Patents and Trademarks (Rospatent), the 1C trademark was recognized as well-known in the Russian Federation from January 1, 2006. According to the current legislation, this gives the trademark indefinite legal protection and additional protection against illegal use. At this time, only 107 trademarks have this status in Russia, 1C was included in one row with such famous brands as Intel, Disney, Bolshoi Theater, NTV, Gazprom, Sberbank, Coca Cola and Alenka chocolate.

The decision to recognize the trademark as well-known was made by the Expert Commission of the Federal Service for Intellectual Property, Patents and Trademarks on the basis of documentary evidence and a sociological survey conducted by the Institute of Sociology of the Russian Academy of Sciences in 25 Russian cities. A sociological survey showed that 92% of respondents correctly identify the image of the trademark with 1C, while 73% know that this sign is used in relation to programs for automating enterprises, 52% associate it with programs for home computers. On June 23, 2011, the 1C trademark was included in the List of well-known trademarks in the Russian Federation, which is confirmed by Certificate No. 106.

Restructuring and sale of 9% of Baring Vostok

On October 1, 2011, it became known that the Baring Vostok Private Equity Fund IV invested in the 1C group of companies. This was announced by the management of the software company on Saturday at a partnership seminar. About this^[9]" said one of the participants in^[9] event. The transaction was confirmed by 1C representative Alexei Kharitonov and senior partner of the Baring VostokElena Ivashentseva fund. According to Kharitonov, Baring Vostok invested in a new company, on the basis of which 1C consolidated assets: these assets themselves became 1C's contribution, and the fund contributed money and received about 9%. The remaining 91% is controlled by 1C CJSC.

Only a business related to licensing and work with state secrets remained fully owned by ZAO, Kharitonov said. With the exception of this area, the new company controls the entire 1C business, adds Ivashentseva. Neither party discloses the amount of the transaction.

1C promises to use the funds raised to further develop, acquire and expand its joint venture structure. As a rule, Baring Vostok is a long-term investor, and in the case of 1C too, adds Ivashentseva.

In addition, 1C and Baring agreed to create a pool of stock options for the parent company, part of which will be provided annually to key 1C employees, joint business partners and franchisees who play a strategic role in the development of the group.

Participants in the IT market and managers of investment companies told Vedomosti about the negotiations between the founders of 1C and Baring back in 2009. The basic documents on the deal were signed, according to some of them, in the spring of 2011. It could take two years to reorganize 1C, suggests the manager of a large investment bank: earlier the company's business was dispersed among many joint ventures and needed centralization.

The financial indicator 1C calls only one - the dynamics of turnover change, which in 2010 added 20%. In 2010, the total turnover of the 1C group amounted to $608 million, RIA Novosti reported at the end of September, citing company materials (this estimate was confirmed to Vedomosti by a manager close to the participants in the transaction), and in 2011 it is planned to increase by 26% to $768 million. The capitalization of the main competitors 1C - SAP and Oracle - as of September 30, 2011 amounted to 3.41 and 4.1 indicators of revenue for the previous 12 months, respectively. If you apply the corresponding multipliers to 1C, then its estimate can vary from $2.07 billion to $2.49 billion, and the cost of Baring's share - from $186 million to $224 million.

The value of the multiplier is determined, on the one hand, by the scale of the business, and on the other, by the dynamics of its growth, explains Nadezhda Golubeva, senior analyst at Unicredit Securities. 1C revenue is two orders of magnitude less than both Oracle and SAP; In terms of growth, 1C is at the level of SAP (+ 19% in 2010), but is inferior to Oracle (thanks to the purchase of Sun Microsystems, it increased revenue by 33%). "As a first approximation" 1C can be estimated at three to four revenues, Golubeva admits.

Start your own cloud 1cfresh.com

In December 2011, it became known that to work with 1C applications from the capacities of the company itself, a website was launched in pilot mode through the public access network 1cfresh.com.

It was also announced that an option program is being developed in 1C, in which both the developer's employees and the heads of the main enterprises of the partner network will probably be able to take part. The largest of them, we recall, are 1C-Rarus and 1C: BIT, which have been engaged in acquisitions of smaller franchisees over the past years.

Soaring revenue growth

In monetary terms, SAP is the market leader in ERP systems. According to IDC, in 2011 the share of this vendor in Russia was 47.8%, 1C was in second place with a share of 31.6%, and in third - Oracle, whose market share was 7.5%.

In December 2011, 1C projected that revenue growth in 2011 compared to 2010 would be 34% in dollar terms. This was stated by the founder and director of the company Boris Nuraliev during the traditional December partnership conference^[9]. In October 2011, the group's turnover was expected to grow by 26% to $768 million^[9]"

For comparison, a year earlier, 1C growth was 20%. 1C revenue includes the sales volume of the entire group, taking into account the results of subsidiaries, joint ventures and retail enterprises. Intra-group turnover is not included in the result of the company's work.

Absolute values ​ ​ in "1C" are not called. According to CNews Analytics in 2010, the company's revenue amounted to $608 million (18.4 billion rubles). Accordingly, in 2011, the group expects to earn over $814 million.

Sales growth of the 8th version of 1C: Enterprise in 2011, according to Boris Nuraliev, amounted to 74.5% in dollars (67.9% in rubles). Since 7.7 products were removed from the price list back in July 2011 and the share of the eighth version reached 94%, we can say that this indicator roughly reflects the dynamics of sales of products for enterprise management as a whole.

"1C" consistently refines its software for operation according to the lease scheme. According to Nuraliev, the total revenue from software sales as a service over the past months of 2011 reached 21.5 million rubles.

• In the first nine months of 2011, revenue from sales of the 1C: Enterprise system in dollars exceeded the level of the same period in 2010 by 78.7%, said 1C representative Alexei Kharitonov.

2010: Sales surge after crisis

The financial indicator 1C calls only one - the dynamics of turnover change, which in 2010 added 20%. In 2010, the total turnover of the 1C group amounted to $608 million, RIA Novosti reported at the end of September, citing company materials (this estimate was confirmed to Vedomosti by a manager close to the participants in the transaction).

1C does not disclose total revenue data. According to CNews Analytics, in 2010 the holding's turnover amounted to 18.4 billion rubles, which is 15% more than a year earlier. In 2010, 1C was first included in the ranking of the largest software developers in Europe, prepared by PwC, and took 59th place in it with an indicator of 65 million euros.

Sales volume "1C" with subsidiaries, joint ventures and retailers, with elimination of intra-group turnover, US dollars *

* Cross-hatching shows proportional extrapolation from the first 5 months of 2011

In 2010, sales of 1C: Enterprises licenses increased in dollar terms by 33% compared to 2009. At the beginning of 2011, growth accelerated, the first quarter became a record in sales of 1C: Enterprises for all the years of 1C operation, an increase of 47% compared to the same period in 2010.

IDC estimated 1C's share in the Russian ERP market in 2010 at 26%.

The 1C: Franchising partner network is developing successfully: during 2010, the number of companies included in it increased from 6500 to 7000. According to the results of a survey conducted by 1C in February 2011, the volume of sales of software products and services provided by a typical 1C: Franchisee partner company grew by almost 34% on average over the year.

According to the results of 2010, 1C expected to show revenue growth by 22% (the same indicator a year earlier amounted to -13%), said its director Boris Nuraliev. The absolute indicator, according to CNews Analytics, taking into account the previously provided data and changes in the structure of the company, will amount to about $620 million. In the future, 3-4 years, 1C is considering the possibility of an IPO and is gradually preparing for this procedure, the company says.

The distribution of imported software products in dollar terms in January - November 2010 increased by 7% compared to the same period last year, still not recovering from last year's fall (-50% in January - November 2009).

The distribution of domestic software, measured in rubles, on the contrary, is growing stronger. In January-November 2009, income from it increased by 22%, and in the same period of 2010 - by 49%. Commenting on the dynamics of sales of flagman­skogo product, "1S:Pred­priyatiya," Nuraliev said: "2010 gives grounds for optimism, but not for euphoria." For 11 months of the year, license sales increased by 32% in dollar terms, by 25.2% in ruble terms, and December is projected to be the most successful in the entire history of 1C: Enterprise sales. Revenues from 1C: Enterprises support over the past 11 months of the year increased by 41.4% in dollars and by 35.7% in rubles. According to IDC, 1C's share increased from 18.7% in 2008 to 22.3% in 2009 in dollar terms.

2009:35% decline in own software sales

Revenue from sales of own software $263 million (according to preliminary data), decreased by 35%. Taking into account this assessment, the largest Russian software manufacturer accounts for just under 14% of all sales in the Russian software market.

In the sales structure of 1C, the multimedia segment sank the most (-52%). Sales of business software decreased by 32%, distribution - by 31%. Speaking about the distribution direction of the 1C business, Boris Nuraliev stressed that the decline is demonstrated by the general-purpose software segment: dictionaries, translators, graphic editors. But antivirus products and solutions related to information security show sales growth (for 11 months of 2009 - by 16% in rubles).

Despite the crisis, sales of domestic software also increased: in January-November 2009, by 25% (in ruble terms). At the beginning of the year, the corporate sector saw a decrease associated with budget savings, but at the end of the year, on the contrary, the number of tenders increased.

Growth in difficult times for the market was shown by the 1C retail direction: the total revenue of retail franchise stores for 11 months of this year amounted to 42.6 million rubles. (compared with 32.4 million for the whole of 2008). Sales of 1C-SoftKlab fell by 19%, but remained at the level of 2007. For business applications (1C: Enterprise), 1C saw significant growth since September 2009, with a recovery to pre-crisis levels in November-December.

2008

The company's revenue in 2008 amounted to $406 million.

Fighting piracy

The company 1C"" is actively fighting piracy, including in the regions - through the Non-Profit Partnership of Software Suppliers (NP PPP), an associate member of the Association of Computer and Computer Enterprises information technology (AP KIT). For example, the NP SPP contributed to the fact that the distribution of 1C software products on the bittorrent tracker was prohibited torrents.ru. In early December 2007, a Rostov-on-Don user who distributed 1C programs through a torrent service was convicted - this was the first case of a conviction for distributing counterfeit goods through the Web in. In Russia November 2008 software 1C: Enterprise , a 16-year-old user living in was sentenced to one year in prison for installing 1C counterfeit production (). To Moscow

Acquisition of Buki and Avalon Style Entertainment

• On July 17, 2008, 1C officially announced the purchase of Buki, a Russian game developer, 52.9% of which belonged to the Finam - Information Technologies investment funds (26.5%) and Norum (26.4%). Analysts then estimated the cost of Buka at $75-85 million. Buka was not integrated into the 1C structure and retained the name and command. Among the reasons why it was decided to buy Buka, 1C named the general consolidation trends in the Russian gaming market, the unification of strong development teams.

• On October 30, 2008, 1C announced the completion of a deal to acquire a stake in Avalon Style Entertainment, a well-known Russian developer who created one of the most popular and successful domestic series of four-wheel drive car simulators. As the company commented, the signed agreement was another step aimed at strengthening the position of 1C as the largest Russian publisher, developer and distributor of computer games.

Shareholders Meeting Sets New Strategy

In the spring of 2008, the meeting of 1C shareholders decided that the company should follow the path of creating a multidisciplinary holding, which occupies a leading position in the software market in the CIS. The company agreed with the slogan "Get big - Or get niche - Or get out" and opted for growth.

"The strategy of creating a large enterprise is a matter of ambition," says Boris Nuraliev, head of 1C. "We want to build a large, sustainable, efficient corporation that is competitive with other giants, including foreign ones."

If earlier "1C" preferred to solve all problems itself, today the basic principle of the company is formulated as "Rely on your own strength and cooperation with leaders." As a result, around a strong head company, a group of joint companies is created, strong and/or promising in their sectors of the software market. This is the model that 1C considers optimal at the upcoming stage of consolidation of the IT market in Russia.

Many areas of business that were previously part of the parent company "1C" are included in subsidiaries and joint ventures:

• development, publication and sale of games - in the joint venture "1C: SoftClub";
• retail destination, including 47 stores, in "1C: Interest," etc.

This led to a reduction in the revenue of the parent company and the real state of affairs now reflect the aggregate performance of the group of companies.

1C creates companies with varying degrees of participation, but the most effective is the joint ownership model, where the co-owner, not the hired manager, takes over the management of the company. According to Boris Nuraliev, joint companies are more profitable than branches and show more effective business growth in general. That is why recently the company has been trying to transfer its subsidiaries to joint ventures. The total sales growth of 1C subsidiaries and joint ventures in the first five months of 2011 compared to the same period in 2010 was 27%.

Subsidiaries and joint companies of the holding are established with different shares of ownership. Recently, a scheme has been used more often, in which "1C" controls 51%, and the partner - 49%. In the first six months of 2011 alone, 7 new subsidiaries and joint ventures were established. The total number of joint ventures exceeds a hundred. Among them are companies in, Netherlands,, Great Britain Hungary Bulgaria,,,, Germany Latvia Czech Republic Slovakia,, To Ukraine Moldova,,,,,,, Vietnam China Uzbekistan Kazakhstan Kyrgyzstan. Belarus

In "1C" it is recognized that the selected model does not correspond to Western theory.

"Everything we've done best just doesn't fit Western patterns," says Boris Nuraliev. "There is no such IT franchise anywhere in the world. No major country has such a share of a single accounting product. Nowhere in the segment of integrated ERP systems is there an increase in the share of a local supplier due to a reduction in the share of international vendors. "

For rapid growth, it is planned to use and attract additional capital, through the placement of shares on the stock exchange (10-20%). According to the company's representatives, according to the results of 2011, it is planned to conduct an international audit. To be admitted to an IPO, this procedure must take place for three consecutive years, therefore, the placement will be able to take place no earlier than 2014. Among the disadvantages of publicity in the company include a greater openness of business, less flexibility and more complex mechanisms for making business decisions, plus a clearer demonstration of the company's social responsibility, as well as the possibility of rallying a team of employees and partners due to their possible transition to the status of 1C shareholders. Now many would like to become co-owners of the company, but there is no mechanism acceptable to everyone yet.

1994: First franchise agreements

• In parallel, 1C developed its partner network. Instead of opening a huge number of branches, the company settled on a franchise model. The first trial franchise agreements were signed in mid-1994. At that time, there were about 50 companies in the experimental group, while the number of dealers exceeded 600. Along the way, the company was developing a system of programs "1C: Enterprise," with an architecture focused on a high degree of adaptability.

• 1994 - Beginning of development "1C: Accounting 6.0" for Windows

• 1995 - Edition "1C: Accounting 6.0" for Windows. The number of personnel amounted to 65 people.

• 1996 - Release of the 1C: Enterprise 7.0 platform.

• In the summer of 1996, the first product of the system, 1C: Trade, was released, and as a result, by the end of the year the number of franchisees increased to 414. In the same 1996, 1C began developing and selling computer games.

• 1997 - Release of 1C: Enterprise 7.5 platform

• 1998 - Headcount reached 143.

• 1999 - 1C: Enterprise 7.7 Platform Release

• 2002 - 1C: Enterprise 8.0 Platform Release

• 2003 - 1C: Trade Management of 8.0 System Release

• 2004 - Release of "1C: Manufacturing Enterprise Management 8.0" system

• 2006 - Release of the beta version of the 1C: Enterprise 8.1 platform

• In 2007, the first release of the 1C: Consolidation program was released.

1992: Issue of the Mini-Accounting Program

• The idea to create an accounting program arose in 1992. Then the accounting in the new company was headed by Boris Nuraliev's brother, Sergei Nuraliev, who was professionally engaged in the automation of accounting operations. It was he who developed the AWS of the chief accountant of 1C. This product was presented at the Komtek exhibition in April 1992 and aroused unusually high interest from enterprises. The 1C Minibuhgalteria, unlike traditional computer programs, was quite easy to install with a "boxed" solution that allows replication, which quickly made it popular in the business environment.

• 1993 - Issue of Accounting for DOS

1991: Creation of 1C Company

With the approval of the leadership of the institute and the consent of Nuraliev, part of the activity began to be carried out on behalf of the 1C company established in 1991.

Initially, "1C" was the name of its own search program: no more than 1C (second) was required to obtain the required information. The choice of the name of the company turned out to be extremely successful - in any reference book or exhibition catalog in the first place was always "1C." In addition, "c" is the only key on the keyboard whose spelling in Cyrillic and Latin matches.

The brother of Boris Nuraliev - Sergey (left) in the early 90s developed the AWS of the chief accountant of 1C

In 1991, a network of dealers was created for the implementation of Lotus 1 − 2 − 3 version 2.2 Russian

1987-1990: Goskomstat. Background

Since 1987 - Boris Nuraliev worked at the design institute of the State Statistics Committee, where he held the post of head of the self-accounting department. Even then, Nuraliev, together with his team, created a system with natural language queries, similar to modern search engines, as part of an order to create a database of statistical indicators of the national economy of the Soviet Union. Then two acquaintances of Nuraliev - Vadim Rappoport and Yuri Kricher developed a device called "electronic teletype." In fact, it was a means of connecting an IBM-compatible computer to telegraph communication networks, which in those years were in abundance. Nuraliev himself wrote a program for the device. As a result, about 6 thousand such devices were sold.

The next step towards the creation of the company was the signing by the self-supporting branch of Nuraliev of a contract for the distribution of spreadsheets Lotus 1-2-3. At first glance, this task seemed insoluble: in 1990, the distribution of the program cost about $500, dollars while the average salary in the country was about $12. However, enterprises had the means, as well as the needs for modern software tools for accounting and analysis, which at that time were spreadsheets. In addition, successful sales of electronic teletype helped Nuraliev's team to develop a partner base. The self-billing department became the most profitable at the institute. It was then that the company "" appeared.1C

1C Principles of Operation

In 1C, the following uniform corporate principles of operation are adopted and valid:

• Focus on meeting the real needs of the mass user.
• It is profitable to work.
• Be a reliable and profitable partner, be honest with partners, end users, employees.
• Work well, make and sell products better than competitors.
• Rely on your own strength and on cooperation with leaders.
• Study someone else's experience, but think with your head.

Software Development

1C supplies a wide range of office and home programs from its warehouse, currently totaling more than 10,000 items. Of the own developments of 1C, the most famous are the programs of the 1C: Enterprise system, as well as products for home computers and the educational sector.

The 1C: Enterprise system is designed to automate management and accounting at enterprises of various industries, types of activities and types of financing, and includes solutions for production enterprises (complex solution "1C:Production Enterprise Management 8 "), Trading Enterprises, Accounting Products (" 1C:Accounting "), for accounting in budgetary organizations of payroll and human resources, a variety of industry and specialized solutions developed both by 1C itself and its partners.

The key direction of the development of the program system is the development of a new generation of management and accounting solutions on the 1C:Enterprise 8 technology platform and the implementation of powerful functionality in them, designed to organize the management of a modern enterprise.

1C pays great attention to programs for home computers and the educational sector. Among the most famous own developments are the series of training programs "1C: Tutor," "1C: School," "1C: Computer World," "1C: Educational Collection," "1C: Cognitive Collection," the series "1C: Audiobooks," as well as the games "Il-2 Stormtrooper," "Il-2 Stormtrooper: Forgotten Battles" and "Pearl Harbor," publishing projects "Vivisector," Rear. " Hot Rocks, "" Blitzkrieg 2 "and others. Along with the distribution of its own products, 1C maintains the largest warehouse in Russia for domestic home software, being the largest distributor of such suppliers as Buka, Nikita, Nival and others.

Distribution

The company 1C"" is actively developing the distribution of business software products. In the distribution of programs of other vendors, "1C" acts as an official distributor, ON Microsoft,, Novell, and Symantec Computer Associates Acronis other foreign companies, and is also a distributor of products of Russian software companies: ",,," "and PROMT ABBYY INECKaspersky Lab more than 100 others.

Products

In general, products manufactured by "1C" can be classified as follows: technology business platforms, information products, economic programs, telecommunications and databases, multimedia products and programs for the home, educational and methodological materials.

Process platforms

1C:Enterprise 8 includes:

• 1C: Accounting 8, 1C: Payroll and HR Management 8 , 1C:Enterprise 8. Production Enterprise Management, 1C:Enterprise 8. 1C: Trade Management.

Information products

• ITS, 1S:KONSALTING. STANDARD, 1S:KONSALTING. ISSUER, 1C-Elite. Estimated consulting, Taxes and fees in schemes, 1C: Guarantor Legal support, 1C: Standard Full legislation of Russia and others.

Telecommunications and Databases

• 1C: E-mail, 1C: Archive , 1C: Primary documents.

Multimedia Products and Home Programs

• Games ,
• educational programs,
• audiobooks,
• educational and methodological materials.

Notes