Microsoft, Oracle, and other major software companies operating in Russia are expected to have tough times in the country, as most local organizations will turn to Russian software. The reason of course is the international sanctions imposed on Russia by the United States and the European Union on the subject of Ukraine.
Russian software costs are estimated at $ 2.900.000.000 (€ 2.500.000.000), and according to one exhibition by Bloomberg , three quarters went to imports, with ecosystem and Oracle have taken the lion's share.
However, due to concerns about international sanctions following the military conflict in Ukraine, Russian companies are preparing to switch to local software, damaging the sales of US companies.
Life insurance company OAO Sberbank has decided not to choose Microsoft software for its businesses and to develop an alternative based on open source software, namely Rosa-Linux along with a PostgreSQL database. OAO Gazprom has also completed its GeoMate testing, its own software used for geological data analysis, and has been designed to replace similar programs by foreign companies including Emerson Electric Co.
This decision is not surprising, as the United States was the pioneer of sanctions for Russian companies and Russian businessmen because of the military conflict in Ukraine in which Russian troops are reportedly involved.
Local reports claim that three of the top Russian banks are now planning to switch to domestic software as part of a national plan backed by President Vladimir Putin, including companies dealing with weapons systems, which have also been targeted by international sanctions .
Putin is one of the pioneers of a new law that will provide domestic software developers with the financial support of 3.000.000.000 rubles ($ 55 million / € 48.8) budget. The law has already passed the first regulatory approval and is likely to get the green light at the end of this year.
Microsoft has not yet made any statements as to how much will affect its businesses in Russia, but Chief Financial Officer, Mrs. Amy Hood, has said that revenue is expected to decline in the country due to the changing business climate.
Dimitris hates Mondays...
